A woman driving between Texas and Montana was stopped in South Dakota for the crime of driving with too many cats. In the case known as “South Dakota v. Fifteen Impounded Cats,” that state’s highest court ruled Wednesday that the feline seizure was the appropriate response. On August 13, 2009 at around 11:15pm, a Pierre policeman had stopped Patricia Edwards as she was backing out of a parking spot. Edwards, broke, was living out of the car with fifteen cats and all of her personal belongings.
I don’t know whether you know, but the UK government has a deficit of £155b which needs to be slashed. On June the 22nd, Chancellor George Osbourne laid out his plans on how to eliminate that ugly budget gap. VAT would be increased to 20 percent from 17.5 percent, civil servants would have their wages frozen and benefits would be slashed. Yep, life is going to be pretty grim in the UK for the next five years. Unless you’re a multi-national company with an electric car up your sleeve. Read More >
If checking whether your car has been recalled is part of your morning routine and civic duty, then you were greeted by the above message this morning. Defects appear to be contagious. The insidious part: The NHTSA recall database appears to be operational. You are left clueless about what is and what isn’t working. Troubles without a fix? Ghost in a machine? Is the database safe for us to use? Read More >
Throughout the debate on Wall Street reform, I have urged members of the Senate to fight the efforts of special interests and their lobbyists to weaken consumer protections. An amendment that the Senate will soon consider would do exactly that, undermining strong consumer protections with a special loophole for auto dealer-lenders. This amendment would carve out a special exemption for these lenders that would allow them to inflate rates, insert hidden fees into the fine print of paperwork, and include expensive add-ons that catch purchasers by surprise. This amendment guts provisions that empower consumers with clear information that allows them to make the financial decisions that work best for them and simply encourages misleading sales tactics that hurt American consumers. Unfortunately, countless families – particularly military families – have been the target of these deceptive practices.
This is what president Obama said just six weeks ago about efforts to exclude car dealership financing from consumer protection measures included in the forthcoming Financial Reform bill. With that bill moving towards Obama’s desk, all that stands in the way of its passage are angry dealers who don’t want to be subject to oversight. And despite the tough talk about standing up to financial interests to pass this reform, it seems Obama has caved to America’s auto dealers.
The WSJ [sub] reports that GM is officially looking outside of its former captive finance arm Ally Financial (formerly GMAC) as it seeks more subprime loan deals to drive sales volume ahead of its IPO. GM execs tell the WSJ that The General could do even better with an in-house finance arm, but that these deals will help. And, according to Experian Automotive’s Melinda Zabritski, GM needs the help because
By not financing [subprime] consumers, they are locking out about 40% of the U.S. population
GM’s restructuring consultants AlixPartners add that loyalty improves for customers who buy using a captive lender. The downsides? Higher default risks, the temptation to overload on incentives, and then there’s one more biggy…
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The Oregon Court of Appeals earlier this month threw out a commonly performed roadside sobriety test as unscientific. A divided three-judge panel found the accuracy of vertical gaze nystagmus in establishing drunkenness remained unproven in the eyes of the court.
Motorist Paul Miller filed a federal lawsuit against Sanilac County, Michigan sheriff’s department after he was accused of driving under the influence of alcohol (DUI) despite being completely sober. The US Court of Appeals for the Sixth Circuit earlier this month ruled that his case should be tried by a jury.
The Detroit News reports that GM will file paperwork to register its initial public offering as soon as next week, citing anonymous sources. This registration will be our first look at exactly what GM and its masters at the Treasury Department are trying to achieve with the offering. Analysts are predicting that the government will sell only one-third of its 61 percent stake in GM, which would rid it of an absolute majority stake but would preserve its status as the largest GM stakeholder. The Canadian and Ontario governments, the UAW’s VEBA fund and bondholders in Motors Liquidation may sell parts of their stakes as well, but there are still no estimates as to just how much of GM’s equity will be up for grabs in this offering. Or what the market response will be. And with the car market still shaky, Opel demanding more of GM’s cash, IPOs being canceled right and left, and only one profitable quarter under GM’s belt, voices are already starting to wonder if GM isn’t rushing this offering for political reasons.
Unsure of what to do about its nearly $20b budget deficit, California is entertaining some pretty wild ideas. And no, not legalizing and taxing marijuana. According to Yahoo News, State Sen. Curren Price is introducing legislation that would replace license plates with digital versions which
would mimic a standard license plate when the vehicle is in motion but would switch to digital ads or other messages when it is stopped for more than four seconds, whether in traffic or at a red light. The license plate number would remain visible at all times in some section of the screen.
Yes, advertising on license plates. Ray LaHood’s distracted driving crusade be damned, California is on a mission to prove that the movie Idiocracy was right. Luckily there’s a slight hitch…
If there’s one reason we dedicate as many pixels as we do to the rise of speed cameras in the US, it’s the UK. We’ve seen how speed cameras have taken over Old Blighty, jamming the newswires with reports of mis-ticketing, unwarranted surveillance and popular backlashes against the dread cameras. But apparently the UK has decided that, with more speed cameras than any other nation on earth, it’s time to stop building more. Totallymotor reports that road safety minister Mike Penning has announced that his new conservative government will stop financing the construction of speed cameras by local authorities, bringing an end to a decade’s worth of camera build-up. Penning tells local authorities that they are free to purchase cameras with their own money, but that the government will encourage the use of alternative safety measures.
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South Carolina Governor Mark Sanford (R) last week signed a law banning the use of red light cameras and speed cameras in the state. The measure swept unanimously through the House, 106 to 0, on June 3 and in the Senate 38 to 0 on June 2. So far, fifteen states have taken legislative or judicial action to prohibit the use of automated ticketing machines. In addition, the voters in ten cities have thrown out photo enforcement by referendum (view complete list). South Carolina’s law takes effect immediately.
Baytown, Texas is easing up on issuing red light camera tickets in the hopes of diverting momentum away from a planned effort to place a photo enforcement ban on the ballot. Resident Byron Schirmbeck and a team of volunteers expect soon to turn in a second petition forcing a referendum. Statistics show that, in response, city officials and American Traffic Solutions have deliberately issued fewer citations. The program rejected 29 percent of violations in July 2008, but documents show the rate of rejections climbed to 54 percent in December.
America’s ethanol producers were some of the few Americans optimistic or cynical enough to find a bright side to the BP Gulf spill. Ethanol’s lobbyists-in-chief, GrowthEnergy, decided it would be real cute to run ads highlighting all the bad things ethanol hadn’t done. One of which is not “Ethanol has never harmed the Gulf of Mexico,” by the way. As the ad parody above points out though, even if the ethanol was creating a dead zone in the Gulf of Mexico for years before the BP spill, there are quite a few other things ethanol hasn’t done. Like this, just in from the AP [via Google]: convince the EPA to buy into its shameful, manipulative PR line and rush a decision on increasing blending limits.
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If you go back for what seems to be years, TTAC never gave Opel big odds for getting state aid. Ever since GM reneged on the Magna deal, their chances were pretty much nil. Since then, the German government had been subjecting Opel to water torture. A few days ago, Berlin made it obvious. They had to, because GM was like a psychiatric patient that was slowly going through all stages of the Kübler-Ross model: Denial (“They said they would help us”), anger (“Maybe this will make your chancellor happy”), bargaining, depression, now finally, acceptance. Today, GM and Opel officially threw in the towel. Opel officially gave up on state aid. They will turn to the entity that supposedly wasn’t allowed to help them: The GM mother-ship. In other words: You and me will pay to save Opel.
Of course, GM didn’t just cry uncle. Read More >
It’s classic tale from the convoluted and mysterious world of the global supply chain. Crain’s Business [via Automotive News [sub]] explains how GM was forced to recall heated windshield washers not once, but twice. And we take a look at why GM took the extraordinary measure of blaming customers and GM technicians for “misdiagnosing” the problem, a strategy that makes for an interesting counterpoint to the recent Toyota recall hoopla. After all, like Toyota’s pedal problems, GM’s heated windshield washer woes are rooted in a complicated relationship with one of its suppliers… and one of its regulators.
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