Friday, March 31, 2006

GM plans assembly plant in Mexico

GM to build a New Plant in Mexico

In a move that is sure to smooth the ruffled feathers of the UAW (not), GM is planning a new plant in Mexico to assemble up to 50,000 small cars per year.

Just where will GM get the cash to build this thing? They're not saying.

GM plans assembly plant in Mexico

CNN.com - New legal troubles for Joey Buttafuoco - Mar 31, 2006

Joey Buttafuoco Arrested for Illegal Mullet

Check out the hair.


CNN.com - New legal troubles for Joey Buttafuoco - Mar 31, 2006

Bloomberg.com: Top Worldwide

Delphi News UPDATE
- Rejecting Union Contracts
- Rejecting Unprofitable Supply Contracts
- Closing MOST US Pants



Will your community be affected? Per Bloomberg News, here's what Delphi won't be producing

The company will stop making brakes, chassis, catalysts, cockpits, door modules, instrument panels, wheel bearings and steering systems. It plans to sell off all but eight of its 29 remaining U.S. production sites by Jan. 1, 2008.

If you Don't live in one of the towns below, your Delphi plant will be closing.

The company will keep its sites in Brookhaven and Clinton, Mississippi; Grand Rapids, Michigan; Lockport and Rochester, New York: Kokomo, Indiana; and Warren and Vandalia, Ohio.

Bloomberg.com: Top Worldwide

Thursday, March 30, 2006

OFFICIALLY LICENSED NASCAR? MEATS - TASTE THE EXCITEMENT

Today's Sponser: NASCAR MEATS

You know it has to be good because it has a racecar on the package.

OFFICIALLY LICENSED NASCAR? MEATS - TASTE THE EXCITEMENT

WSJ.com - GM Moves Closer to Selling 51% Stake in GMAC

A General Motors Believe it or Not Story: Dan Quayle - Enter Stage Right

The Wall Street Journal reported today that negotiations are under way to sell 51% of GMAC to Cerberus Capital Management. As of the last published info, former Vice-President Dan Quayle was serving as CEO of Cerberus. As far as I could tell in the 5 minutes I had to look into this while eating my lunch, Dan Quayle is not the real control person, the real control person is a financier named Steve Feinberg.

So, though George W. Bush doesn't think it's save GM's hide, apparently his dad's former VP at least thinks the bones are worth picking over.

WSJ.com - GM Moves Closer to Selling 51% Stake in GMAC

Delphi Deadline Draws Near - The Car Connection

March 30: Today is Showdown Day in UAW-Delphi Battle

Today is the deadline that Delphi CEO, Steve "Pompatus of Bankruptcy" Miller set for coming up with a wage agreement with the UAW. According to press reports, the UAW rejected Miller's last offer without even sending it to the membership for a vote.

Delphi's next step is to apply for bankruptcy court approval to void the Delphi/UAW collective bargaining agreement. UAW officials have indicated that such a move would automatically provoke a strike. The UAW reaction is harsher than I would have expected.

A couple days ago, I predicted that UAW would not strike after seeing the proposal that was on the table. That proposal included a lump-sum payment by GM of $50,000 (at least to some workers); and wages that would be reduced immediately from $27 to $22 per hour with reduction in a year and a half down to $16.50.

Personally, I think it would hurt the UAW over the long term if it strikes Delphi. It is estimated that a Delphi strike will cost GM as much as a billion dollars per week. Consider that the costs of the proposed buy-out plans for the GM and Delphi workers is estimated to cost $5 billion give or take a billion or 3, a a few weeks of an ill-considered strike can rob GM of the cash that would otherwise provide an entire generation of General Motors (and Delphi) workers a level of economic security that the average Jane or Joe Blow just doesn't have and never will have. (Run-on sentence intended.) What will the Delphi workers get in return? They will get nothing except the satisfaction (if you can call it that) that they weren't bullied into taking a pay cut. They can take that satisfaction with them to the unemployment office because at the end of the strike Delphi will be gone along with their jobs.

If the strike kills Delphi and GM, there's no way that any of the transplant workers will ever vote for UAW representation. The UAW will slowly drift further into irrelevance and eventual extinction.


Delphi Deadline Draws Near - The Car Connection

Does GM have cash to fund comeback? - 03/30/06 - The Detroit News

General Motor's (First) Cash Crunch

Let's review shall we? At the end of last year, GM maintained that though there were problems, its cash position was strong, with $20 billion in the bank. Some analysts say that GM must have about $10 billion in cash to handle the cash flow from regular operations. GM was losing $10/billion a year on operations based on its disclosed operations. So if everything stayed the same in the last three months, GM would have lost about $2.5 million. On the other hand, assuming the money is already in the bank, GM would have made $2.76 billion in its sales of the Subaru and Suzuki shares, and another 1.5 billion on the sale of its GMAC commercial properties, so the quarterly loss is about cancelled out, and perhaps GM is a little ahead.

Now, last week, GM cut a deal with Delphi and the union that was going to have a cash impact of perhaps $5 billion to Delphi, and with the buy-outs, another 5 billion (give or take) to the UAW workers. We don't know when those payments will be due either from a payout or accounting segregation basis, but you're looking at $10 billion in negative cash flow arising from those transactions.

It should therefore come as no surprise that cash is still a precious commodity at General Motors. Today the story is about a possible sale of GM's share of Isuzu. Standard & Poor's cut GM's credit rating to B3. Since the cuts have already gone through B1, and B2, GM can take cold comfort that with just two more cuts, it'll have a BINGO. At least the price money will come in handy.

Does GM have cash to fund comeback? - 03/30/06 - The Detroit News

Wednesday, March 29, 2006

Pontiac Brickyard Driving Experience

Pontiac Brickyard Driving Experience

If you will be in my hometown of Indianapolis this weekend for the Final Four, you should plan on visiting Indianapolis Motor Speedway on Sunday, April 2. In addition to checking out the excellent Indianapolis Motor Speedway Museum, this Sunday you can drive all the latest Pontiac products in a special course laid out in the Speedway parking lot. Supposedly you can get professional driving tips as well. It's free.

Keep in mind whenever something is free, it's usually either underwhelming or overbooked, so it would make sense to come early. Here's the link:

Pontiac Brickyard Driving Experience

Best Buy says it may lay off some workers

Best Buy may Lay off Workers

According to the CEO, a layoff is necessary. Apparently a few customers found an employee to help them within in less than an hour.

Best Buy says it may lay off some workers

Tuesday, March 28, 2006

Automotive News

New Delphi Proposal on the Table

Delphi has formally proposed a new wage schedule for its UAW-represented employees. The proposal would immediately cut wages from $27.00 per hour to $22.00 hour, and the wages would gradually go down to $16.00. The $22.00 figure includes a subsidy from General Motors. This subsidy would be phased out over time to get to the lower figure.

Is it enough to avoide a strike? In my view: probably. Delphi CEO Steve "the Pompatus of Bankruptcy" Miller did a good job at setting low expectation at the outset of the bankruptcy by threatening to impose $9.00/hr. wages. This proposal is far more reasonable than that. Secondly, the workers would not make anything close to $22.00 in strike pay. Finally, a lot of the higher wage workers will be gone anyway through the GM buy-out plan.

Will it be good enough to keep Delphi in business? That's a harder question to answer. If they can convince the Chapter 11 trustee and the creditors committee, they at least have a shot at it.


Automotive News

GM cuts hundreds of salaried workers - 03/28/06 - The Detroit News

Black Tuesday Strikes - GM Lays off Hundreds of White Collar Workers

As part of a previously announced program to lay off 7% of its salaried workforce, GM gave the pink slip to hundreds of salaried workers including engineers and technical workers. Workers are to get severance of one month's pay for every year of service up to 15 months. Actually, for a company in GM's shape, that's not such a bad deal.

GM cuts hundreds of salaried workers - 03/28/06 - The Detroit News

Monday, March 27, 2006

Peace symbol - Wikipedia, the free encyclopedia

Wikipedia Entry of the Day
The Peace Symbol


As the anti-war movement grows in the United States, the Vietnam-era peace symbol is becoming a more common sight. I was curious about the origin of the symbol of the circle with a line straight up and down and two anchor legs going right and left from the midpoint.

According to Wikipedia, the symbol originated in 1958 in Great Britain as a symbol of the nuclear disarmament movement. It evolved into a more generic peace symbol somewhat later. The prongs inside the circle symbolize the semaphore codes for "N" and "D". Now you know.

Peace symbol - Wikipedia, the free encyclopedia

Windows Is So Slow, but Why? - New York Times

Thumbtwiddling at Microsoft

I'm not one to give advice, because there are very few things that I'm sure of. There's one piece of advice that I am very comfortable giving: don't get into a game of "thumb wars" with a Microsoft employee. Last week Microsoft announced that it's upcoming version of Windows, called Vista, will be delayed, and it will not be released until January 2007. Since this is not the first delay, even that date is anything but assured.

The current version of Windows, XP, came out in 2001. This means that it will be 6 years between updates. If Microsoft were a 1-man operation that would be understandable, but Microsoft has 64,000 employees. Windows is the bread-and-butter, flagship product. If these 64,000 employees can't get a new version of Windows out the door in six years, what are they doing. They must be twiddling their thumbs. They must be building up thumb muscles of Barry Bonds proportions. Therefore, it would be a suicidal act to get in a thumb war with a Microsoft programmer. Don't' say you weren't warned. Oh, ixna on the addleballpa also.

Windows Is So Slow, but Why? - New York Times

Saturday, March 25, 2006

Dick Cheney's Suite Demands - March 23, 2006

From the How to Not Piss Off Dick File:
Cheney's Hotel Requirements


Thesmokinggun.com has published Dick Cheney's unique demands regarding hotel accommodations. Among the demands, a carafe of decaf coffee should be in the room brewed before his arrival (Caffeine makes him cranky.), and all televisions must be tuned to Fox News. (You wouldn't want to hear any liberal media bias there would you, Dick? Besides, it's too much effort actually pressing an "on" button on the remote control.) He requires a private bathroom. (We'll just call it an "undisclosed location.") He also drinks Diet Sprite. (If news of this gets around, no doubt sales of the beverage will soar.)

Dick Cheney's Suite Demands - March 23, 2006

CBC Ottawa - Drunk driver deemed fit to stand trial on new charge

Shania Twain is Possessed by the Devil

Did you ever wonder how Shania Twain could keep a perfect body even as a 40 year-old working mother? Personal trainers aside, it obviously involves a deal with the devil. Now, when you deal with the devil, sometimes you need to run some errands and speak to people that you wouldn't otherwise talk to. Like this guy . . .

CBC Ottawa - Drunk driver deemed fit to stand trial on new charge

style.org > Estimating the Airspeed Velocity of an Unladen Swallow

What IS the airspeed velocity of an unladen swallow?

African or European? According to the website below (math included) the airspeed velocity of a European Swallow is 11 meters per second, or 24 miles per hour.

style.org > Estimating the Airspeed Velocity of an Unladen Swallow

Friday, March 24, 2006

Virtual Globetrotting: Home

Fun Site of the Day
Virtualglobetrotting.com


Can't afford to go anywhere on spring break? Try a virtual trip through virtualglobetrotting.com. Many of the pictures on this site are satellite views. You can be a voyeur from a safe distance.

Virtual Globetrotting: Home

The Impeachment Project

An Assortment of Impeach Bush Signs

The Impeachment Project

MSN Money - Bankruptcy law backfires on credit card issuers#Rating

2005 BARF - Let the "I told you so's" Begin

I don't need to tell any of my fellow Afscme 3357 folks what chaos the Bankruptcy Reform Act of 2005 brought. The October deadline brought record numbers of filers trying to beat the new law.

That's fine said the law's backers, that will just mean fewer bankruptcies later. And, for a while, that was true, but the reprieve is showing itself to be short-lived. Bankruptcy numbers are creeping up as debtors who missed the October deadline complete the counseling process necessary to file for under the new law.

According to the article linked below (from MSN Money, written by Liz Pulliam Weston), counselors report that only 3% of those applying for counseling have sufficient resources to enter a Chapter 13 plan, and fewer still have the ability to complete one.

As to the counseling process itself, even the counselors admit that it is often a pointless exercise. Quoting the MSN Money article:

That's certainly been true at Riverside, Calif.-based Springboard, which counseled 2,200 pre-bankrupts between Oct. 17 and Nov. 28, 2005, said President Dianne Wilkman. Wilkman said her counselors, who mostly talk with customers by phone, sometimes have to strain to average the 90 minutes the Justice Department requires of pre-bankruptcy counseling sessions because their clients' situations are so cut and dried.

"After 45 minutes you're left with saying, 'So, what about those Dodgers?'," Wilkman said. "But then with other clients with more complex situations, you use much more than 90 minutes."




MSN Money - Bankruptcy law backfires on credit card issuers#Rating

GM salaried workers in U.S. await layoffs on 'Black Tuesday' - 03/24/06 - The Detroit News

Next Step in the GM Restructuring Plan: "Black Tuesday"
Hundreds of Salaried Employers to Get the Boot


I'm sure a lot of work is getting done in the General Motors engineering offices today. The water cooler has to be buzzing about what's going to happen next Tuesday, already being called "Black Tuesday" according to the Detroit News. GM has indicated that it is going to lay off hundreds of salaried workers.

Have you ever wondered what union membership is worth? A mid-career UAW member is being offered $140,000 to leave. According to the Detroit News, in the last layoff, salaried engineers were called at home,told their employment was terminated, and had their "health benefits abruptly discontinued."

GM salaried workers in U.S. await layoffs on 'Black Tuesday' - 03/24/06 - The Detroit News

Thursday, March 23, 2006

Become a Republican

How to Become a Republican (Humor)Link:

What does it take to become a Republican. Here it is in cartoon form.

Remember folks, whenever I post anything political here, it's my opinion and doesn't come from Afscme 3357 or anybody else. If you don't like what I say or what I link to, take solace in the fact that the people I vote for hardly ever win anyway.

About the offers on the table - 03/23/06 - The Detroit News

The Take it Or Leave it Dilemma of the GM Buyout: Which would you choose?

It's interesting that people my age, mid-40s, are offered $140,000 to walk away with no continuing GM benefits other than accrued pension. As a lawyer who theoretically has skills and the ability to make a decent living elsewhere, I'd jump at a deal like that; but if I just had a high school education, it would be a hard choice. In that case, in today's economy, I'd be hard-pressed to make even $30,000 elsewhere. Perhaps I wouldn't be able to find any job with health insurance. If I stayed with GM, it would only take two to three more years on the job to make up the $140,000.

On the other hand, if in 2007 GM runs out of money and goes Chapter 11, I could be handed my walking papers with no compensation at all.

For workers faced with this decision, the information in General Motors' delayed financial statements will be crucial. Paradoxically, the worse GM's current cash situation, the more employees will (should) accept buy-outs. Each buy-out may help GM's long-range prospects, but each buyout puts a drain on available cash. This will be true unless GM can offset buyout cash with funds that have been set-aside already for future pension obligations.






Details on the UAW - GM - Delphi Pact

As usual, the Detroit News has excellent coverage of breaking news in the Auto industry. The GM buyout pact is no exception.

Here's a link to the Detroit News story that gives more details on the agreement.

About the offers on the table - 03/23/06 - The Detroit News

Stolen Fidelity computer raises privacy fears - Security - MSNBC.com

Fidelity Investments Laptop Stolen: Identity of 200,000 customers at risk

A laptop was stolen from a Fidelity Investments employee. The laptop included account information for about 200,000 customers. The data included names, addresses, birth dates and social security numbers.

I wrote in one of my first newsletters years ago that just because your laptop can hold gigabytes of information doesn't mean that you need to load it on there. If you are buying a laptop computer, I strongly recommend that you buy one with the smallest hard drive available. If you have more budget, buy an external drive to keep at home. Having a small drive on your laptop will make you more consciencious of which data you carry around with you, and it might make you back up your info more often.

Let's say you have a need to carry sensitive ID documentation, you might want to carry the information on an encrypted thumbdrive. Don't encrypt your main boot drive because Murphy's law applies to encrypted drives.Stolen Fidelity computer raises privacy fears - Security - MSNBC.com

G.M. Sells 78% of GMAC Mortgage Unit for $1.5 Billion - New York Times

GM Sells 78% of GMAC Commercial Mortgage for $1.5 Billion

This is not a sale of General Motors Acceptance Corporation. This is a sale of commercial mortgage interests only. This could be a harbinger of a piecemeal sale of GMAC.

G.M. Sells 78% of GMAC Mortgage Unit for $1.5 Billion - New York Times

Wednesday, March 22, 2006

IndyCar.com

Meet Gene Simmons Marketing Genius:
Kiss Singer Leads new Indycar marketing Push


KISS frontman Gene Simmons now has a marketing company, and he has apparently cast a spell over Indianapolis Motor Speedway president Tony George. Simmons has come up with a marketing plan designed to take back some of the ground that open-wheel racing has lost to NASCAR over the past x years. You can preview the new theme song I am Indy at the website below.

IndyCar.com

I still think the Indy 500 is the greatest spectacle in racing. The best theme song in racing? Not so much. It's not so bad with the video.

Delphi, G.M. and U.A.W. Reach Buyout Deal on Hourly Workers - New York Times

It's Official: GM, Delphi & UAW Reach Deal

This just in at NYT.com:

The plan, which is subject to approval by a bankruptcy court, allows up to 5,000 workers to flow back to GM, Delphi's former parent company. Up to 13,000 U.S. hourly workers also will be eligible for a lump sum payment of up to $35,000 to retire.

Under the plan, GM would pay for the buyouts and also would assume some post-retirement benefits for Delphi employees who go back to work for GM.


How much will the buyout cost? Where will the money come from? We shall see.

Delphi, G.M. and U.A.W. Reach Buyout Deal on Hourly Workers - New York Times

Tuesday, March 21, 2006

bizjournals: How much do these jobs pay? -- bizjournals.com

Average Lawyer makes $118,004 per year

According to government statistics sited by bizjournals.com, the average lawyer makes $118,004 per year. I'm not sure I believe it but that's what they say.

bizjournals: How much do these jobs pay? -- bizjournals.com

Wikiversity:School of Law - Wikibooks, collection of open-content textbooks

Wikiuniversity: School of Law

Think back to your law school days. Think back to all that money you spent on law books. Think of how crappy half of them were. Wouldn't it be great if all the law books you needed were FREE and available via wi-fi on the web, accessible with your laptop, and that's all you ever had to carry? It could happen within a few years. Check out the Wikiversity School of Law.

Wikiversity:School of Law - Wikibooks, collection of open-content textbooks

The Energy Blog: Batteries

The Energy Blog: The place to keep up with Vehicle Electric Power technology and more

The Energy Blog: Batteries

Bloomberg.com: Top Worldwide

How about $35,000 to retire to Full Pension?
GM & Delphi Expected to offer Retirement Incentives to 70,000 Workers


Though no final information has been released, the core of the GM/Delphi/UAW agreement is shaping up to be cash offers in the neighborhood of $35,000 directed at current workers who are eligible to retire. To get the money, the workers would have to agree to retire early. The goal is to open up slots in the active workforce for workers currently in the job bank and who will be laid off from Delphi.

This article does not address hourly subsidies to Delphi-UAW workers to continue at Delphi under a (much) reduced wage scale.

Bloomberg.com: Top Worldwide

Monday, March 20, 2006

This is JEOPARDY! - JEOPARDY! ONLINE CONTESTANT TEST

Take the Jeopardy! Contestant Test Online

Ever since I was a kid, I've wanted to be a contestant on Jeopardy! (The exclamation mark is part of the name of the show.) Actually, the desire has waned a little since middle age has dulled my recall of obscure information. Anyway, I never did anything about it because there was never a good opportunity to take the contestant test. Now there's no excuse. The test will be offered three times online on Tuesday March 28, Wednesday March 29 and Thursday March 30, with each test at 8:00 Pacific Time. Click on the link below for additional information.

This is JEOPARDY! - JEOPARDY! ONLINE CONTESTANT TEST

Rube Machine Contest

National Rube Goldberg Machine Competition

Looking for a place to go on April Fool's Day? The finals for the Rube Goldberg Machine Contest will be held at the Armory at Purdue University in West Lafayette Indiana the morning of April 1, 2006. The link to the official website is below.

I've taken my two elementary-school aged kids to the competition twice now, and it's a good time. I think it's important show students some appreciation for mental accomplishments and not just sporting accomplishments. Purdue is an easy day drive for most 3357 members in Ohio Illinois and Indiana.

Rube Machine Contest: "Welcome to the National Rube Goldberg Contest Website "

AutoWeek

Chevy to Cap Impala production at 250,000 units

The Chevrolet Impala has been one of the few bright spots for General Motors. The Impala received a substantial refreshening for 2006 and sales have been strong. The Impala is one of the few GM models to have earned better than average reliability marks from Consumer Reports.

Automotive News, and its sister publication Autoweek, report that Chevrolet is going to attempt to cap production at 250,000 units per year to keep from flooding the market and thereby depressing residuals. We'll see if this discipline holds.

By the way, the Automotive News story on the web is subscriber only. Somebody should have told Autoweek where the story is available for free.

AutoWeek

AutoWeek

Chevy to Cap Impala production at 250,000 units

The Chevrolet Impala has been one of the few bright spots for General Motors. The Impala received a substantial refreshening for 2006 and sales have been strong. The Impala is one of the few GM models to have earned better than average reliability marks from Consumer Reports.

Automotive News, and its sister publication Autoweek, report that Chevrolet is going to attempt to cap production at 250,000 units per year to keep from flooding the market and thereby depressing residuals. We'll see if this discipline holds.

By the way, the Automotive News story on the web is subscriber only. Somebody should have told Autoweek where the story is available for free.

AutoWeek

Basic motoring? Get Alif! | Car News | Auto Express

What Kind of Car can you get For $3000
Presenting the New Alif


What does it take to turn over a new Alif? Probably about 3 drunk fraternity brothers. The Alif, made in Pakistan has such advanced features as a canvas roof, seatbelts and a spare tire. You can rocket down the road with a 400 cc engine. That's 12 cubic inches for those who ar metrically impaired. You can see the Alif by clicking the link below.

Basic motoring? Get Alif! | Car News | Auto Express

Friday, March 17, 2006

BLOGGER IS DRIVING ME NUTS!

This is the third Friday in a row that I've had problems publishing on Blogger.

Thursday, March 16, 2006

GM RESTATES EARNINGS

BREAKING NEWS -- GM RESTATES 2005 EARNINGS
$2 Billion in Additional Losses
10K Filing will be Late


Apparently after markets closed today, GM dropped a bombshell. It announced that it was restating 2005 earnings, increasing the reported loss by $2 billion to $10.5 billion total.

What may be worse news is that GM also announced that the annual report that it files with the Securities and Exchange Commission will be late. GM's spin on this is that there is now a better perspective of what GM's loss from the Delphi bankruptcy will be. Another way to look at it is that the outside auditors consider GM's projections as being overly optimistic.

When markets open in the morning, you'll know whether GM's spin worked.

Fellow 3357 members, check our internal message board. You can get the password from your area rep or from one of the officers. We need to add alacrity to the discussion of our future.

CNBC: How much home can you get for $1M? - Real Estate - MSNBC.com

A Million Million Dollar Homes

There are more than one million homes in the US valued at over a million dollars. That means if you have one, you are no longer one in a million. What are the social implications of this? Where do these people get their money?

CNBC: How much home can you get for $1M? - Real Estate - MSNBC.com

ABC News: How Did Georgia Lure Korean Carmaker?

From ABC News: Georgia to pay $160K in Incentives for Each Kia Job

Georgia is paying $400 million in incentives to get the recently-announced Kia plant. We may never know what kind of offers were on the table to get Ford and GM to keep open their existing plants, but I have a hunch that the offers were lower. Both Ford & GM decided to close their Georgia facilities.

ABC News: How Did Georgia Lure Korean Carmaker?

Wednesday, March 15, 2006

Welcome to the Foreclosure Recovery Center

Forclosure Recovery Consultants, FRConline.com - Is this a Scam

There's a new site on the web that talks up its ability to rescue your home from foreclosure. FRC insunates that it can give you access to hardship loan programs that are not otherwise available. In every case that I know of where the lender has a hardship program, you don't need a third party agent to get you into the program.

The site talks about a network of attorneys in "all 50 states". I think this means that they will look up the name of a bankruptcy attorney and give it to you.

Before you get involved with this company, I recommend that you check out bbb.com, ripoffreport.com, and other consumer-oriented resources. There ain't no such thing as a free lunch.

Welcome to the Foreclosure Recovery Center

Press-Telegram - Business

Whither Fico -- Hither Vantagescore

Earlier this week, the three major credit reporting agencies, or credit bureaus, Experian, Trans Union and Equifax announced that they would be using a uniform credit scoring system. Each credit bureau will use uniform algorithms but will use their own proprietary databases to feed the data into the algorithm. The algorithm yields a credit score known as the Vantagescore. All of the credit bureaus are licensing the scoring algorithm from a company called Vantagescore Inc., with a website at www.vantagescore.com. Prior to this announcement the credit bureaus either used their own in house credit scoring system or licensed a credit scoring system from the industry leader, Fair Isaac. Inc. The Fair Isaac score, called the FICO score, is currently the industry standard. FICO has been criticized because actually Fair Isaac tailors the algorithm to the needs of different merchants, therefore, you may actually have several different FICO scores score based upon to whom and for what you apply for credit.

Vantagescore could be a big deal, or it could end up being much ado about nothing. I've seen nothing about the ownership of the Vantagescore algorithms, or even the trade-name, but it may actually be owned by the credit bureaus themselves. If so, it seems awfully fishy from an anti-trust standpoint. Secondly, lenders have a lot of money wrapped up in their current underwriting systems based upon FICO. The lenders may resist abandoning this investment to jump ship to Vantagescore.

In a best-case scenario, a common credit scoring standard with fixed underwriting grids could reduce the common phenomenon of subprime lenders intentionally lying about the applicant's credit rating to steer the applicant into a higher rate loan.

In a worst-case scenario, the Vantagescore could result in A-B-C-D-F grids that don't correspond to the mathematical loss probability models and actually increase the cost of credit for some individuals.

Side note about googling Vantagescore: On the day the newsstories came out about Vantagescore, I tried googling the term "vantagescore" and nothing came back on either a standard Google web search and Google news search. Dogpile returned lots of hits. I put off posting my comments for a couple days, and today Google returned expected results. I bring this up because it seems like Google was imposing some kind of embargo on returning results on a "Vantagescore" search. Hmmm.

Press-Telegram - Business

GM and Ford: Roadmaps for Recovery

GM & Ford Restructuring Plans Compared

Businessweek.com has published a Standard and Poor's analysis of General Motors' and Ford's restructuring plans. General Motors' plan especially reminds me of the Far Side cartoon where the scientist puts on a blackboard a complex formula and in the middle writes "and then a miracle happens" and the complex math continues.

Thanks to Ken W. for the link.

GM and Ford: Roadmaps for Recovery

UAW shrugs off deadline - 03/15/06 - The Detroit News

Gettlefinger: March 30 is "Mr. Miller's Deadline"
2 Weeks to Delphi Crunch Time


When I last reported on the Delphi mess, Delphi CEO Steve (the Pompatus of Bankruptcy) Miller had imposed a deadline of March 30 for the GM/UAW/Delphi negotiations to bear fruit. Mr. Miller all but said that if a deal isn't struck by March 30, Delphi will ask the bankruptcy court to void the UAW collective bargaining agreement. The parties have been negotiating since then and unconfirmed reports suggested that they were close to a deal.

That's not necessarily true according to UAW President Ron Gettlefinger. He insists that there is no deal, and as to the March 30 deadline? "That's Mr. Miller's deadline," said Gettlefinger.

Much has been said about how GM is in a difficult position. If no deal is made, and Delphi voids the contract, the union members have both the right and the incentive to strike. A strike could deliver a killing blow to General Motors within just a few months. General Motors can't afford to make big payments to bail out Delphi, but it can't afford not to.

Less has been said about the difficult position of Ron Gettlefinger. Make no mistake about it, Ron Gettlefinger is walking a tightrope too. UAW-GM workers would natually want a Delphi deal, even if that means the Delphi workers make a lot less money and have a lot less security. On the other hand UAW Delphi workers have every reason to stand firm. If Delphi goes under, GM owes them significant compensation. If Delphi continues but with 50% wages, then they might be able to do as well working somewhere else. In short, Gettlefinger has two constituancies with different objectives and motivations, and he owes fiduciary duties to both of them.


UAW shrugs off deadline - 03/15/06 - The Detroit News

H&R BLOCK SUED FOR FRAUDULENT MARKETING OF IRAS

H&R Block - The smart way to save
IF you never want to make any money


One of my heroes, Elliot Spitzer, is at it again. The N.Y. Attorney General sued H&R Block for deceptive marketing of its Express IRA savings product. According to the NY AG website, only about 15% of the people buying this sucker ever made any money.

H&R BLOCK SUED FOR FRAUDULENT MARKETING OF IRAS

Ford limits spouse health care - 03/15/06 - The Detroit News

Ford to Limit Health Care for Spouses of Salaried Workers

Ford is imposing a surcharge to cover spouses (and domestic partners) when the spouse/partner is eligible for other coverage.

The past couple days haven't been filled with good news for Ford. It's credit rating went down, and it's being boycotted again by folks who aren't happy that Ford's marketing efforts include pitches aimed at gays and lesbians.

Ford limits spouse health care - 03/15/06 - The Detroit News

Ukrainian 4x4 unveiled by boxer Vitaly Klicko - Autoblog

Is this the world's ugliest SUV?

Sorry Aztek, Sorry Tribecca, you've been voted off the island.

Ukrainian 4x4 unveiled by boxer Vitaly Klicko - Autoblog

Tuesday, March 14, 2006

Chrysler calls 1,000 employees back to work at Belvidere - Autoblog

DaimlerChrysler Recalls 1000 workers in Illinois

Chrysler called back workers to staff the Belvidere plant producing the Dodge Caliber and forthcoming Jeep Compass. Some were workers laid off from other plants.

I test-drove a Dodge Caliber last week. When I get time, I'll try to write something halfway intelligent. My overall impression is that it was good, but it could have been better if they would have gotten rid of all the faux-SUV styling that adds weight and hurts aerodynamics. The new engine and CVT transmission seem to be much better than that in the Neon.


Chrysler calls 1,000 employees back to work at Belvidere - Autoblog

Monday, March 13, 2006

Automotive News

Lincoln-Mercury - no Money Down Car Leases
It "Worked" for Mitsubishi


I received a direct mail advertisement from Lincoln Mercury the other day touting no down payment lease deals on Lincoln-Mercury products. This seems to be exactly the same type of promotion that almost sunk Mitsubishi a few years back. Mitsubishi sold cars to a lot of folks with no money down, often folks with poor credit. In the short term, it worked, and sales were up. Then - disaster - a lot of repos, and low mileage Mitsubishis were flooding the market. Resale values were in the dirt. Apparently those old Mitsubishi executives finally found new jobs . . .


Automotive News

Toyota will make Camrys in Indiana | IndyStar.com

Lafayette Indiana Subaru Plant to Make Toyota Camrys

It's official, Toyota will make Camrys in the under-utilized Fuji Heavy Industries (Subaru) plant in Lafayette, Indiana. When GM severed its relationship with Subaru, it gave Toyota a chance to swoop in and fill the gap. Now the taxpayers in Indiana are going to pay Toyota $97 million to crank out 100,000 Camrys a year. (I personally think Toyota would have completed the deal with no taxypayer incentives whatsoever. There was no more cost-effective way to add Camry capacity.)

In addition, Subaru gets access to Toyota's hybrid technology. This is a win-win deal for Subaru, it gets a product to fill in excess capacity, and it gets the technology they need to remain the leader in civilized all-wheel-drive. For passenger cars, hybrid power is the way to go for adding all-wheel-drive capability. Subaru's current system adds about 200 lbs. to the weight of an otherwise fwd sedan, and it also contributes to drivetrain power loss. In contrast, compact electric motors on all four wheels with a hybrid battery pack add about the same amount of weight, but also add additional power. With regenerative regnerative braking, a hybrid drivetrain recycles energy that would otherwise be lost.

Toyota will make Camrys in Indiana | IndyStar.com

Bloomberg.com: U.S.

Blog Drought about to End

A lot of things kept the posting down last week. First of all, it was a relatively slow week in he auto industry. Secondly I had very little time. Finally, Blogger decided to have service outages on the rare occasions when I could actually do anything. Just for that I'm not going to pay my bill. Oh, it's free.

I have a few drafts that I couldn't get posted that I'll probably tidy up and scatter around this week.



Kia to build Georgia Plant


Pretty soon, Kia will employ more people in Georgia than General Motors and Ford. Kia's Georgia plant will be a big one, with capacity up to 300,000 units per year, and it will employ about 2,500 workers.

It would have been nice if they could have taken over at least the site of the closing Ford or General Motors plants to minimize the effect on the environment, or possibly to re-hire displaced workers, but that's not the way things go these days, both the workers and the land are damaged goods.

Bloomberg.com: U.S.

Wednesday, March 08, 2006

Some Sleeping Pill Users Range Far Beyond Bed - New York Times

Today's Sponsor: Ambien

- Ambien, the drug that lets you drive without waking up. Take lots today.

Some Sleeping Pill Users Range Far Beyond Bed - New York Times

GM to revamp pensions, sells most of Suzuki stake - 03/07/06 - The Detroit News

GM to End Salaried Workers' Pension
GM To Sell Stake in Suzuki


Salaried workers are being shifted from a defined benefit (traditional pension) plan to a defined contribution (401k type) plan. This move is expected to save a bout a half billion dollars.

Yesterday it was announced that GM was selling its stake in Suzuki. Proceeds from the sale of the Suzuki shares should generate about $2 billion.

GM to revamp pensions, sells most of Suzuki stake - 03/07/06 - The Detroit News

Tuesday, March 07, 2006

What is a "spoof site", what is "phishing" and why do I need to know about this stuff?

Phishing and Spoofing for PayPal Users

I recently got a spam e-mail supposedly from service@paypal.com. It said

We recently have determined that different computers have logged into your PayPal account, and multiple password failures were present before the login. One of our Customer Service employees has already tried to reach you by phone. As our employee did not manage to reach you, this email has been sent to your notice.
Therefore your account has been temporary suspended. We need you to confirm your identity in order to regain full privileges of your account.


The only problem is, I don't have a paypal account. That was one factor that led me to believe that these folks weren't legit. The other thing was the e-mail address that comes up when you hit 'reply'. Here it is verbatum:

accunting@paypal.com

I could be wrong, but I don't think that PayPal has an accunting department. I know I never got to take accunting in college.

Anyway, below is a link to paypalsucks.com for more information on paypal spoofers and phishers.

What is a "spoof site", what is "phishing" and why do I need to know about this stuff?

Monday, March 06, 2006

Dana Plunges Into Bankruptcy - The Car Connection

Dana Files for Chapter 11 Bankruptcy

Dana Corp. filed for Chapter 11 bankruptcy Friday. Blogger was down, so I couldn't report it then. Interestingly, out of 46,000 employees, only 7,200 are unionized according to the article linked below from thecarconnection.com.

The recent surge in supplier bankruptcies has caused suprisingly little interruption of component supply to US auto makers. Still, one wonders how many more straws can be piled upon the camel's back.

href="http://www.thecarconnection.com/Auto_News/Auto_News/Dana_Plunges_Into_Bankruptcy.S175.A10113.html">Dana Plunges Into Bankruptcy - The Car Connection

MotorWeek: Road Test: Long Term

2006 Winnebago View - 17.9 MPG Motorhome

I just posted a reference to Motorweek's long term Sonata returning 19.1 MPG. Consider that the Motorweek also is testing a Winnebago View, and the Winnebago is getting 17.9 (diesel) MPG. Just 1 mpg less than the Sonata!

MotorWeek: Road Test: Long Term

MotorWeek: Road Test: Long Term

Hyundai Sonata - Real World MPG

Reports are starting to trickle in that the redesigned Hyundai Sonata is falling below its EPA fuel economy ratings. By below, I'm not talking the same amount below that the average car returns, I'm talking considerably less. The Sonat with the six cylinder engine is rated at 22 City and 29 Highway MPG. Autoweek (not your typical racy car mag) has a long-term Sonata, and at last check is reporting 19.1 mpg. Edmunds has a long-termer that is reporting only 18.9.

MotorWeek: Road Test: Long Term

GM readies buyout of 20,000 workers - Autoblog

GM to Buyout 20,000 GM and Delphi workers

There are multiple news reports of a GM plan to buy out the contracts of 20,000 UAW and Delphi workers who are nearing retirement.

I don't know what the ratio is for GM Employees & retires to UAW-LSP attorneys. I'm guessing that it's about 2000 to one. If my math is right, that would eventually result in the need for 10 fewer UAW-LSP attorneys.


GM readies buyout of 20,000 workers - Autoblog

Sunday, March 05, 2006

Dana Plunges Into Bankruptcy - The Car Connection

Dana Files for Chapter 11 Bankruptcy

Dana Corp. filed for Chapter 11 bankruptcy Friday. Blogger was down, so I couldn't report it then. Interestingly, out of 46,000 employees, only 7,200 are unionized according to the article linked below from thecarconnection.com.

The recent surge in supplier bankruptcies has caused suprisingly little interruption of component supply to US auto makers. Still, one wonders how many more straws can be piled upon the camel's back.



Dana Bankruptcy

Thursday, March 02, 2006

All America committee Supporters: attending Evan Bayh/All America Committee Meetups, events, clubs and groups

Bayhwatch 2006

Hard to believe, but it's been three months since we checked up on the status of the Evan Bayh/ All America Committee membership on Meetup.com.

Evan's been busy. He's been meeting people. He's been kissing hands and shaking babies (or whatever). He's had to spend time in Iowa & New Hampshire and other places that get lousy television reception.

Now we get to the nitty gritty: How many people are signed up to jump on the Bayh for President bandwagon at meetup.com? The central Indiana chapter now has six members! Wow, six members! With that many members, you can get a good discussion going about the important issues of the day, like whether it's better to be wishy or washy, whether the wind is blowing from the east or the west, and whether it's better to be a Republicrat or a Democrlican.

Not only are there six central Indiana members, there are eleven people that are waiting for a meetup group in their area. Well Evan, that's eleven sofas to crash on when your fundage runs low. Of course, there's not much chance of that as long as you keep stroking the special interests in the consumer finance and health care industries.


All America committee Supporters: attending Evan Bayh/All America Committee Meetups, events, clubs and groups

FOXNews.com - Politics News - Video Footage Shows Bush, Chertoff Were Warned of Katrina's Potential Impact

From the Hard to Believe File:
FOX NEWS HAMMERS BUSH


Even Fox news hammering President Bush over the pre-Katrina "We are fully prepared" teleconference video.

George W. Bush ignored dire warnings of imminent disaster then went about on his regular schedule during the hurricane, twiddled his thumbs, blamed his political crony, then lied, saying nobody could have predicted the disaster. Maybe we should can our current system and adopt a parliamentary process so we could boot the guy on a "no confidence" vote.

FOXNews.com - Politics News - Video Footage Shows Bush, Chertoff Were Warned of Katrina's Potential Impact

Chrysler sales up; Ford and GM slide - 03/02/06 - The Detroit News

February Auto Sales Report

GM Down 2.7%
Ford Down 3.4%
DaimlerChrysler up 2.5%
Toyota up 2.4%
Honda up 8.7%
Nissan up 2.2%

Chrysler sales up; Ford and GM slide - 03/02/06 - The Detroit News

Press releases/English Wikipedia Publishes Millionth Article - Wikimedia Foundation

Wikipedia Publishes Millionth Article

The English language version of the Wikipedia collaborative encyclopedia just announced that it published its one millionth article in its English language version. There are many other versions for other languages. Already the Wikipedia is the most comprehensive encyclopedia in the world, and it's only a few years old.

Press releases/English Wikipedia Publishes Millionth Article - Wikimedia Foundation

Wednesday, March 01, 2006

Disturbing Auctions

We Interrupt this Blog for a Picture of a Goat Nursing a Baby

Disturbing Auctions

Buy & Sell New & Used Trailers at TrailerShopper.com -- Browse

Help Britney Pick Out a New Trailer

With all this talk about Britney Federline fixin' to pop a new young'un, it seems to me that she ought to be thinkin' about buyin' a new trailer. Here's a shopping site for ya'll Brit.

Buy & Sell New & Used Trailers at TrailerShopper.com -- Browse

NWA annual loss now biggest in its history

More Bad News for Michigan: Northwest Airlines Loses $2.6 billion, Pilots threaten strike

Northwest is already in bankruptcy. The pilots have already taken pay cuts up to 28% of their pay. Northwest spent about a billion on bankruptcy-related fees. They want more concessions from the pilots, and the pilots have had their fill.

Northwest carries about 60% of the passengers out of Detroit's airport. The times I've flown Northwest, I've hated it, so it's good riddance as far as I'm concerned. I feel sorry for the Detroit-metro economy though.

NWA annual loss now biggest in its history

Americans Are Cautiously Open to Gas Tax Rise, Poll Shows - New York Times

Americans Open to Higher Gas Tax

It has long been assumed that a higher gas tax ranks just behind cutting Social Security as the third rail of American politics. Quite a few politicians have admitted candidly that raising the gas tax would cut consumption, cut emissions, and it would raise revenue that could either be used for cutting the deficit or for lowering other taxes. Few have dared to publicly propose the solution.

A poll discussed in the New York Times article linked below (free registration required) indicates that a slight majority of Americans would be open to the idea of higher gas taxes.

Americans Are Cautiously Open to Gas Tax Rise, Poll Shows - New York Times

"Cadillac converters" - Google Search

The Googleteer: All this talk about 'Cadillac Converters'

"Cadillac converters" - Google Search