Ford Earns $3.9 Billion
Ford earned $3.9 billion in net profits in 2004. Of this, $2.9 billion came from financing operations. North American car & truck operations earned $1.9 billion.
Overall, it appears that Ford's recovery is well underway. The $2.9 billion in earnings will make up over half of the $6.4 billion in losses ford suffered in 2001 and 2002. Ford's pipeline of upcoming models is better than it has been in years, and some of the most recent models have yet to make their impact.
Legacy costs seem to be hurting Ford just like General Motors, but not to the same degree.
Ford's full-year profit up sevenfold from '03
Friday, January 21, 2005
Texas Dept. of Insurance Credit Scoring Study
At the request of the Texas legislature, the Texas Department of Insurance has compiled a study of credit scores as a predictor of insurance claims risk. The study concluded that credit scores correlate highly with claims risk. The use of credit scores to set insurance rates is controversial on at least two grounds. (1) Credit scores also correlate with race. (2) Low credit scores, a symptom of poverty, can result in effective uninsurability, and that doubles the burden of poverty.
I haven't studied this in great detail, but it seems like in the past few years, most legislatures have reacted to the increased use of credit scoring in insurance underwriting by allowing credit scores to be used as a factor when it can be shown to be a risk predictor, but limiting the weight that can be given to the credit scores either in the decision to underwrite, in setting the premiums, or both. This is an intelligent approach in my opinion.
TDI - Credit Scoring Study Synopsis
At the request of the Texas legislature, the Texas Department of Insurance has compiled a study of credit scores as a predictor of insurance claims risk. The study concluded that credit scores correlate highly with claims risk. The use of credit scores to set insurance rates is controversial on at least two grounds. (1) Credit scores also correlate with race. (2) Low credit scores, a symptom of poverty, can result in effective uninsurability, and that doubles the burden of poverty.
I haven't studied this in great detail, but it seems like in the past few years, most legislatures have reacted to the increased use of credit scoring in insurance underwriting by allowing credit scores to be used as a factor when it can be shown to be a risk predictor, but limiting the weight that can be given to the credit scores either in the decision to underwrite, in setting the premiums, or both. This is an intelligent approach in my opinion.
TDI - Credit Scoring Study Synopsis
Automakers to give employees profit sharing checks.
Not big money, but worth cashing.
Automakers to pay more profit shares: "American Axle Manufacturing & Holdings Inc."
Not big money, but worth cashing.
Automakers to pay more profit shares: "American Axle Manufacturing & Holdings Inc."
Wednesday, January 19, 2005
How much does a house cost?
The table linked below on Coldwell Banker's annual Home Price Comparison Index (HPCI) shows how much a 2200 sq. ft 4 br 2 1/2 bath house costs in most of the major metropolitan areas of the US as of 2004. The differences are astounding. As a union with members scattered across the country, we should keep an eye on data like this as we make our decisions at contract time etc.
For example, in my area, Indianapolis, housing costs are well below average at $189,488, significantly below our neighbor, Cincinnati at $234,167. Minneapolis tips in at $354,175. Michael Moore may make a career out of describing how depressed Flint, Michigan is, but it doesn't show up when it's comparable home price is $237,466. Detroit metro is $282,480.
You better break out your millionaire checkbook if you want a 2200 sq. ft. house in Boston Mass, because it'll cost you a whopping $1,053,594. Honolulu HI is a comparative bargain at $614,750.
On this list, the lowest priced city in California is Fresno at $305,000. If you are buying a 2,200 sq. ft house in La Jolla, you better take some oxygen to the closing table to use when you write out that check for $1,708,333. But if you are lucky at playing California real estate arbitrage, maybe with a year's profits, you can buy outright a retirement house in Arlington Texas for $134,550.
CNN/Money: Most expensive housing markets
The table linked below on Coldwell Banker's annual Home Price Comparison Index (HPCI) shows how much a 2200 sq. ft 4 br 2 1/2 bath house costs in most of the major metropolitan areas of the US as of 2004. The differences are astounding. As a union with members scattered across the country, we should keep an eye on data like this as we make our decisions at contract time etc.
For example, in my area, Indianapolis, housing costs are well below average at $189,488, significantly below our neighbor, Cincinnati at $234,167. Minneapolis tips in at $354,175. Michael Moore may make a career out of describing how depressed Flint, Michigan is, but it doesn't show up when it's comparable home price is $237,466. Detroit metro is $282,480.
You better break out your millionaire checkbook if you want a 2200 sq. ft. house in Boston Mass, because it'll cost you a whopping $1,053,594. Honolulu HI is a comparative bargain at $614,750.
On this list, the lowest priced city in California is Fresno at $305,000. If you are buying a 2,200 sq. ft house in La Jolla, you better take some oxygen to the closing table to use when you write out that check for $1,708,333. But if you are lucky at playing California real estate arbitrage, maybe with a year's profits, you can buy outright a retirement house in Arlington Texas for $134,550.
CNN/Money: Most expensive housing markets
Tuesday, January 18, 2005
Chevrolet HHR Pictures & Comments
Here are some good pictures of the HHR concept vehicle from Automobile magazine. The interior is handsome, but I still think the vehicle will be a flop. Here's why: It's too heavy. Chevy has not (to my knowledge) published the weight of the HHR, but it has to be heavy. The Dodge Neon weighs about 2700 lbs. The PT Cruiser based upon the Neon weighs 3100-3200 lbs, about the same as a Stratus. PT Cruiser owners report worse performance and fuel economy than the Stratus, probably because of poor aerodynamics. The HHR will probably have the same problems but even more so. The GM Delta platform is heavy, the base weight for a Chevrolet Cobalt appears to be about 2800, and an all-options version comes in at about 3100 lbs. If the HHR is 500 lbs heavier, you're looking at a curb weight of around 3600 lbs, or about the same as a Buick LaSabre, a short-wheelbase Chevrolet Venture or midsized Equinox SUV. The most powerful engine planned for the HHR is the 170 hp Ecotech four cylinder. Torque figures for the 170 hp engine arent' available, but I'm guessing it's around 150 ft.lb. This is about 25% shy of the 200 ft.lb available in the base engines for both the Venture and the LaSabre. The bottom line is that the HHR will probably feel wheezy and underpowered. The HHR will probably have inferior performance and fuel economy to its showroom sibling, the Equinox.
2006 Chevrolet HHR - Automobile Magazine
Here are some good pictures of the HHR concept vehicle from Automobile magazine. The interior is handsome, but I still think the vehicle will be a flop. Here's why: It's too heavy. Chevy has not (to my knowledge) published the weight of the HHR, but it has to be heavy. The Dodge Neon weighs about 2700 lbs. The PT Cruiser based upon the Neon weighs 3100-3200 lbs, about the same as a Stratus. PT Cruiser owners report worse performance and fuel economy than the Stratus, probably because of poor aerodynamics. The HHR will probably have the same problems but even more so. The GM Delta platform is heavy, the base weight for a Chevrolet Cobalt appears to be about 2800, and an all-options version comes in at about 3100 lbs. If the HHR is 500 lbs heavier, you're looking at a curb weight of around 3600 lbs, or about the same as a Buick LaSabre, a short-wheelbase Chevrolet Venture or midsized Equinox SUV. The most powerful engine planned for the HHR is the 170 hp Ecotech four cylinder. Torque figures for the 170 hp engine arent' available, but I'm guessing it's around 150 ft.lb. This is about 25% shy of the 200 ft.lb available in the base engines for both the Venture and the LaSabre. The bottom line is that the HHR will probably feel wheezy and underpowered. The HHR will probably have inferior performance and fuel economy to its showroom sibling, the Equinox.
2006 Chevrolet HHR - Automobile Magazine
Next Gen Honda Civic to be Unveiled in Chicago
Honda had announced that its eighth-generation Civic will be unveiled at the 2005 Chicago Auto Show on February 12th. Like usual, Honda has kept a firm lid on the looks an specs of the 2006 Civic. The current generation Civic has been criticized for being too soft and too boring.
Here's an excerpt from a news story published at edmunds.com, apparently from a press release:
The Civic, the eighth-generation of the popular small car, goes on sale in the fall, said Takeo Fukui, president and CEO of Honda Motor Co.
The new Civic will be offered with two, three, four and five doors and will be produced at Honda's six regional operations around the globe. In the US, the Civic will be equipped with all of the same standard safety features, including side curtain airbags and antilock brakes, as the current Accord.
Fukui said the Civic will come with four new global powerplants in its first year — an industry first. They include a higher fuel economy, lower-emission gasoline engine, a compressed natural gas engine that is made in Ohio, a gas-electric hybrid with significantly higher fuel economy and performance and, for Europe, a diesel engine.
The spy shot included with the Edmunds article, supposedly a shot of the European 2-door hatchback version, looks a lot like the old Renault Fuego.
Inside Line: 2006 Honda Civic set to debut at Chicago Auto Show -
Honda had announced that its eighth-generation Civic will be unveiled at the 2005 Chicago Auto Show on February 12th. Like usual, Honda has kept a firm lid on the looks an specs of the 2006 Civic. The current generation Civic has been criticized for being too soft and too boring.
Here's an excerpt from a news story published at edmunds.com, apparently from a press release:
The Civic, the eighth-generation of the popular small car, goes on sale in the fall, said Takeo Fukui, president and CEO of Honda Motor Co.
The new Civic will be offered with two, three, four and five doors and will be produced at Honda's six regional operations around the globe. In the US, the Civic will be equipped with all of the same standard safety features, including side curtain airbags and antilock brakes, as the current Accord.
Fukui said the Civic will come with four new global powerplants in its first year — an industry first. They include a higher fuel economy, lower-emission gasoline engine, a compressed natural gas engine that is made in Ohio, a gas-electric hybrid with significantly higher fuel economy and performance and, for Europe, a diesel engine.
The spy shot included with the Edmunds article, supposedly a shot of the European 2-door hatchback version, looks a lot like the old Renault Fuego.
Inside Line: 2006 Honda Civic set to debut at Chicago Auto Show -
In Car News: The President gets a new Cadillac and the Pope tries to score some Formula 1 tickets.
Thecarconnection.com reports today that the Presidential innauguration will feature the debut of a new Cadillac presidential limo.
More disturbingly to a Catholic like me, it reports that the Pope granted an audience to the Ferrari Formula One team. What's so bad about that? Here's what the Pope said:
"My compliments to you for the victory in the recent world championship,'' the AP reports. "The Church considers sporting activity, practiced in full respect of the rules, a valid educational instrument for the younger generations.''
Ferrari's primary sponsor is Marlboro cigarettes. It bugs me that the Pope publicly proclaims that a team that promotes the single largest cause of avoidable deaths is "a valid educational instrument for the younger generations." Maybe the Pope should get out more and perform last rights on a guy who's smoking through his trach. We've had to do home wills for folks like this, and let me tell you, it ain't pretty.
The Car Connection [ The Web's Automotive Authority ]
Thecarconnection.com reports today that the Presidential innauguration will feature the debut of a new Cadillac presidential limo.
More disturbingly to a Catholic like me, it reports that the Pope granted an audience to the Ferrari Formula One team. What's so bad about that? Here's what the Pope said:
"My compliments to you for the victory in the recent world championship,'' the AP reports. "The Church considers sporting activity, practiced in full respect of the rules, a valid educational instrument for the younger generations.''
Ferrari's primary sponsor is Marlboro cigarettes. It bugs me that the Pope publicly proclaims that a team that promotes the single largest cause of avoidable deaths is "a valid educational instrument for the younger generations." Maybe the Pope should get out more and perform last rights on a guy who's smoking through his trach. We've had to do home wills for folks like this, and let me tell you, it ain't pretty.
The Car Connection [ The Web's Automotive Authority ]
AirBus unveiled its A-380 Super Jumbo - but don't believe everything you read
AirBus unveiled its A-380 superjumbo airliner today. At the ceremony, Richard Branson of Virgin airlines boasted how, instead of packing in 550 passengers like sardines, his airline would include such amenities as bars and double beds. He said: " . . . you'll have at least two ways of getting lucky on our flights."
All kidding aside, history tells us that all the talk of bars and lounges and beds will vanish once the planes are in mainstream service. There were similar announcements at the beginning of the Boeing 747's service. The bars and lounges didn't last long though. Even if the bars, gyms and lounges make their way to regular A-380 service, you can expect that for all practical purposes, they will be First-class only. Would you want to pay $100 to work out on a Virgin A-380?
USATODAY.com - Branson boasts of mile-high pleasures on Airbus superjumbos
AirBus unveiled its A-380 superjumbo airliner today. At the ceremony, Richard Branson of Virgin airlines boasted how, instead of packing in 550 passengers like sardines, his airline would include such amenities as bars and double beds. He said: " . . . you'll have at least two ways of getting lucky on our flights."
All kidding aside, history tells us that all the talk of bars and lounges and beds will vanish once the planes are in mainstream service. There were similar announcements at the beginning of the Boeing 747's service. The bars and lounges didn't last long though. Even if the bars, gyms and lounges make their way to regular A-380 service, you can expect that for all practical purposes, they will be First-class only. Would you want to pay $100 to work out on a Virgin A-380?
USATODAY.com - Branson boasts of mile-high pleasures on Airbus superjumbos
Monday, January 17, 2005
AutoWeek - The Auto Enthusiast's Online Resource
Autoweek quotes GM Vice-Chairman Robert Lutz on the topic of whether the retro-styled HHR throwback mini-ute is too limited in maret and too late to the party to be successful:
"I swear to God some of your colleagues just don't understand this business, which doesn't prevent their busy fingers from moving over the keyboard. Read my lips, the HHR will be sensationally successful. I don't apologize for it."
"Read my lips?" Hmmm, didn't George H.W. Bush say "Read my lips, no new taxes" right before he raised taxes? Sorry, Bob, the HHR has loser written all over it.
Autoweek quotes GM Vice-Chairman Robert Lutz on the topic of whether the retro-styled HHR throwback mini-ute is too limited in maret and too late to the party to be successful:
"I swear to God some of your colleagues just don't understand this business, which doesn't prevent their busy fingers from moving over the keyboard. Read my lips, the HHR will be sensationally successful. I don't apologize for it."
"Read my lips?" Hmmm, didn't George H.W. Bush say "Read my lips, no new taxes" right before he raised taxes? Sorry, Bob, the HHR has loser written all over it.
Sunday, January 16, 2005
JVC Everio
The first mass market hard-drive based camcorder has been introduced. It blurs the lines even further between a camcorder and a digital camera. The $1000 JVC Everio's main recording medium is a 4 GB microdrive, a removable hard drive. You can record 2.1 mpixel stills or video to the microdrive or a removable SD memory card.
Given that you can buy an iPod Mini with a similar microdrive for under $300, it looks like camcorders like the JVC Everio are poised for a rapid introduction and a rapid price drop. Still, if SD memory cards continue their recent price plunge, I think it's plausable that consumer imaging will skip the hard drive phase altogether. Based on Moore's law, 18 months from now, a 2 GB SD memory card will cost about $60.00 and will give about 40 minutes of high resolution video. Four gigabyte cards will be available at a little over $100.00. With no moving parts, camcorders using solid state memory can be as small and light as current snapshot digital cameras.
Based on the review below, the Everio appears to be a transitional product geared toward early adopters. You would be better servedby buying a $300 4-5 Mpixel camera and a $350 minidv camcorder
Tom's Hardware Guide Video: JVC Everio GZ-MC200: An Hour of DVD with No Cassette! - Introduction
The first mass market hard-drive based camcorder has been introduced. It blurs the lines even further between a camcorder and a digital camera. The $1000 JVC Everio's main recording medium is a 4 GB microdrive, a removable hard drive. You can record 2.1 mpixel stills or video to the microdrive or a removable SD memory card.
Given that you can buy an iPod Mini with a similar microdrive for under $300, it looks like camcorders like the JVC Everio are poised for a rapid introduction and a rapid price drop. Still, if SD memory cards continue their recent price plunge, I think it's plausable that consumer imaging will skip the hard drive phase altogether. Based on Moore's law, 18 months from now, a 2 GB SD memory card will cost about $60.00 and will give about 40 minutes of high resolution video. Four gigabyte cards will be available at a little over $100.00. With no moving parts, camcorders using solid state memory can be as small and light as current snapshot digital cameras.
Based on the review below, the Everio appears to be a transitional product geared toward early adopters. You would be better servedby buying a $300 4-5 Mpixel camera and a $350 minidv camcorder
Tom's Hardware Guide Video: JVC Everio GZ-MC200: An Hour of DVD with No Cassette! - Introduction
Subscribe to:
Posts (Atom)
