Autoblog

Delphi files for $100 million IPO

Jeff Glucker — Fri, 27 May 2011 09:59:00 EST

2009 was a rough year for most companies in the automotive industry. Delphi, a major automotive parts supplier, saw things a little differently. After entering bankruptcy in 2005, Delphi was able to climb out of its Chapter 11 hole in 2009. Now, two years later, Delphi is heading to Wall Street, and it looks like the parts supplier is about to make it rain.

Delphi has filled out an S-1 form and handed it over to the SEC. An Initial Public Offering will soon follow, and Delphi is looking to bring in $100 million. Delphi believes that number will fluctuate as analysts evaluate the company and the strength of its balance sheet.

If you've been following the recent rash of automotive IPOs, then you might think $100 million sounds low. Analysts agree with you.

The $100 million figure is merely a placeholder value, so that filing fees can be calculated. It's quite possible that millions will be turning into billions. Recent movement in the automotive industry has investors spending serious amounts of money. General Motors hauled in $23.1 billion during its IPO at the end of 2010. Delphi has cleaned up billions of dollars in debt while slimming down its overhead.

We'll be paying close attention when "DLPH" starts scrolling across the ticker.

Delphi files for $100 million IPO originally appeared on Autoblog on Fri, 27 May 2011 09:59:00 EST. Please see our terms for use of feeds.

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Report: Chrysler ad spending up 70% in 2011

Aaron Richardson — Wed, 09 Mar 2011 11:20:00 EST

Filed under: Marketing/Advertising, Chrysler, Earnings/Financials

With a glut of new and updated models to peddle, Chrysler has reportedly upped its marketing budget to $2.9 billion for 2011, up from $1.72 billion in 2010. The automaker outlined the costs in documents given to the Securities and Exchange Commission.

The increase should mean you'll hear more from Chrysler in 2011, after a couple years of quiet while they climbed out of bankruptcy and joined forces with Fiat at the end of 2009. A fair share of the marketing budget will go not to selling cars, but courting investors before its new initial public offering later this year.

Basically, it needs to convince buyers that it's building better, more-reliable cars and investors that the company is a stable and viable concern for the future.

[Source: The Detroit News]

Report: Chrysler ad spending up 70% in 2011 originally appeared on Autoblog on Wed, 09 Mar 2011 11:20:00 EST. Please see our terms for use of feeds.

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Follow-up: Ex-Delphi CEO cleared of fraud, convicted of lesser charges

Zach Bowman — Sat, 15 Jan 2011 14:15:00 EST

Filed under: Government/Legal, Earnings/Financials

A federal jury has cleared Former Delphi CEO J.T. Battenberg of the most serious allegations levied against him by the Securities and Exchange Commission. The SEC had charged both Battenberg and former Delphi accountant Paul Free with a variety of offenses, the most severe of which were fraud charges associated with misrepresenting a $237 million payment to General Motors. On Thursday, the jury cleared Battenberg of four of the most severe charges, but found him guilty of failing to maintain accurate books or records and misleading his accountants.

Meanwhile, the jury found that Free was guilty of violating rules associated with a smaller transaction that Delphi made with a bank.

The SEC had accused Battenberg of misreporting the payment to General Motors in order to make the company's bottom line appear stronger to investors than it actually was. The move was believed to have been made to secure larger bonuses for the CEO and other executives.

[Source: Reuters]

Follow-up: Ex-Delphi CEO cleared of fraud, convicted of lesser charges originally appeared on Autoblog on Sat, 15 Jan 2011 14:15:00 EST. Please see our terms for use of feeds.

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Report: SEC says ex-Delphi CEO Batterberg misled investors

Zach Bowman — Wed, 05 Jan 2011 18:28:00 EST

Filed under: Government/Legal

According to the Detroit Free Press, the Securities and Exchange Commission has accused former Delphi CEO J.T. Battenberg III of intentionally working to hide his company's financial situation from investors. On Tuesday, an SEC lawyer told the jury in Battenberg's trial that the ex-Delphi boss made the company's financial numbers look better than they were in order to secure larger bonuses. The SEC sued both Battenberg and Paul Free, the former Chief Accounting Officer for Delphi, and several other former executives in 2006 for fraudulent accounting. Delphi entered into bankruptcy protection in 2005.

U.S. District Judge Avern Cohn began hearing the evidence against Battenberg, Free and other executives in October, and closing arguments in the case wrapped up on Tuesday. So far, two executives and the company's former treasurer have agreed to settle with the SEC over allegations that Delphi improperly reported a settlement that the company made with General Motors. Both Battenberg and Free remain as defendants in the case.

[Source: Detroit Free Press]

Report: SEC says ex-Delphi CEO Batterberg misled investors originally appeared on Autoblog on Wed, 05 Jan 2011 18:28:00 EST. Please see our terms for use of feeds.

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Former Car Czar Rattner settles with SEC, sued by Cuomo

David Kiley — Fri, 19 Nov 2010 17:31:00 EST

Filed under: Government/Legal

Former White House Auto Industry Task Force member Steven Rattner is being sued by New York State Attorney General and Governor-elect Andrew Cuomo for allegedly paying kickbacks to win investments in the state's pension fund.

Cuomo is seeking $26 million from Rattner, and to bar him from trading securities in New York for life, an agreement that might hamstring Rattner if he can't do securities work in New York any longer.

Rattner, who recently penned a book about his time on The Obama task force ("Overhaul," [Houghton-Mifflin-Harcourt, 2010]) that guided General Motors and Chrysler through bankruptcy, already settled a related case against him brought by the Securities and Exchange Commission, which brought a civil lawsuit against the private equity executive and former New York Times reporter.

Rattner's former investment firm, Quadrangle, settled with New York State and the SEC last April, which was accompanied by a statement by Quadrangle saying Rattner's conduct was "inappropriate, wrong and unethical." Quadrangle agreed to pay $7 million to Cuomo and $5 million to the SEC without admitting or denying wrongdoing.

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Continue reading Former Car Czar Rattner settles with SEC, sued by Cuomo

Former Car Czar Rattner settles with SEC, sued by Cuomo originally appeared on Autoblog on Fri, 19 Nov 2010 17:31:00 EST. Please see our terms for use of feeds.

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Report: Four former Delphi execs set to go on trial

Zach Bowman — Tue, 19 Oct 2010 08:01:00 EST

Filed under: Government/Legal, GM

The Securities and Exchange Commission is moving forward with charges against four former Delphi executives, including the company's ex-CEO, J.T. Battenberg III. Paul Free, the company's former controller and chief accounting officer, Milan Belans, who served as the director of capital planning and Catherine Rozanski, Delphi's former accounting director are all facing a civil suit along with Battenberg in relation to four suspect transactions the company made in 2000 and 2001. The SEC alleges that Delphi intentionally misled investors by understating expenses, overstating net income and falsely reporting reduction of company expenses, effectively misleading investors.

The group's lawyers, meanwhile, are expected to argue that the company underwent a "combative and confusing" process as it spun off from General Motors in 1999. As a result, GM pressured Delphi to keep prices low while the company was expected to meet earnings expectations. Delphi eventually declared bankruptcy, but not before closing down many of its U.S.-based plants and cutting pension benefits for many of its retirees.

[Source: Detroit Free Press]

Report: Four former Delphi execs set to go on trial originally appeared on Autoblog on Tue, 19 Oct 2010 08:01:00 EST. Please see our terms for use of feeds.

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Followup: GM officials take issue with Whitacre's IPO share price estimates

Jonathon Ramsey — Mon, 18 Oct 2010 16:01:00 EST

Filed under: Government/Legal, GM

It was only last week when Reuters reported that Ed Whitacre, Jr. told the media that General Motors IPO shares would "likely to be priced between $20 and $25 in the initial public offering by the automaker in November." GM didn't respond immediately, but now, like a judge giving instructions to the jury to disregard a courtroom outburst, The General is essentially saying "ignore everything you just heard."

According to The Detroit News, a GM response filed with the Securities and Exchange Commission refutes everything, saying that the price hasn't been set, the IPO might not happen in November, and the company doesn't know if it "will be successful or whether it will work." GM is in a self-imposed "quiet period" before its IPO "to comply with SEC regulations," which Whitacre's comments blew out of the water. According outside observers, "Any comments beyond what is included in GM's regulatory filings could be construed as breaking SEC rules during the quiet period and could jeopardize the timing of the IPO." Whoopsie.

[Source: The Detroit News]

Followup: GM officials take issue with Whitacre's IPO share price estimates originally appeared on Autoblog on Mon, 18 Oct 2010 16:01:00 EST. Please see our terms for use of feeds.

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Report: Ex-car czar Rattner nears SEC settlement

Zach Bowman — Thu, 14 Oct 2010 11:01:00 EST

Filed under: Government/Legal

According to Reuters, the Securities and Exchange Commission is set to settle with the former head of the Obama Administration's auto task force, Steven Rattner. Earlier this year, the SEC charged Rattner with participating in a pay-to-play pension program, but the commission is expected to announce today that the former car czar has agreed to pay a fine of more than $5 million and accept a multi-year ban from the securities industry.

New York Attorney General Andrew Cuomo has led an investigation into fraud surrounding the state's $132 billion pension fund that has resulted in seven guilty pleas. One of those pleas came from the former New York comptroller Alan Hevesi, who was charged with corruption.

Rattner, meanwhile, has been charged with unscrupulous activities associated with Quadrangle, LLC - a private equity fund he co-founded in 2000. The SEC alleges that the investment group gave kickbacks to officials if they directed state pension money into the fund. Since then, Quadrangle has agreed to pay $12 million in fines associated with that scheme. Rattner, meanwhile, missed out on those proceedings because he no longer worked for the fund at the time.

[Sources: Reuters, CNN Money | Image: Neilson Barnard/Getty for Fortune Magazine]

Report: Ex-car czar Rattner nears SEC settlement originally appeared on Autoblog on Thu, 14 Oct 2010 11:01:00 EST. Please see our terms for use of feeds.

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Report: Feds charge Daimler with paying millions of dollars in bribes

Jeremy Korzeniewski — Tue, 23 Mar 2010 18:32:00 EST

Filed under: Government/Legal, Earnings/Financials

Over the past five years, the U.S. Department of Justice along with the Securities and Exchange Commission have been investigating allegations that German automaker Daimler and three of its subsidiaries paid tens of millions of dollars in bribes through offshore bank accounts to secure contracts for its vehicles.

According to court documentation released today, the bribes took place between 1998 and 2008 in at least 22 countries that included China, Russia, Egypt and Greece. In one such case, it is alleged that Daimler made payments to officials in Iraq under the Oil for Food program.

According to The Associated Press, Daimler has agreed to pay $93.6 million to the Justice Department and $91.4 million to resolve the SEC's civil lawsuit. Further, Daimler units in Germany and Russia have reportedly agreed to plead guilty to conspiring and violating antibribery provisions of the U.S. Foreign Corrupt Practices Act. A hearing has reportedly been scheduled for April 1st, so consider this story "developing..."

[Source: The Associated Press via Google | Image: Sascha Schuermann/AFP/Getty Images]

Report: Feds charge Daimler with paying millions of dollars in bribes originally appeared on Autoblog on Tue, 23 Mar 2010 18:32:00 EST. Please see our terms for use of feeds.

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Hughes Telematics and Chrysler relationship looks to be over

Chris Tutor — Thu, 20 Aug 2009 17:59:00 EST

Filed under: CES, Technology, Chrysler, Dodge, Jeep, Mercedes-Benz, Earnings/Financials

Back in 2008 at the Consumer Electronics Show in Las Vegas, we got to spend some time in a Jeep Grand Cherokee outfitted with a bunch of technogoodies from Hughes Telematics. And again at this year's CES, Hughes let us play with even cooler stuff in a Dodge Journey. They bragged of downloadable apps for your Chrysler-branded vehicle and super-cool, futuristic travel guides from your in-dash nav system. Stuff that might convince someone to actually purchase a Journey.

But, alas, since then, Chrysler went bankrupt and it seems the company's relationship with Hughes soured. In an official statement Hughes tells Autoblog:

New Chrysler introduced additional business terms that were not part of either the prior business discussions or the original arrangement. As a result, we reached an impasse in the negotiations and are ceasing our work with new Chrysler to deploy our hardware and launch our services with them in the fourth quarter of 2009, as was previously planned.

That's okay, Hughes says, because they still have Mercedes-Benz as a customer, and they don't need Chrysler anymore. We're not financial experts by any means, but as we stumbled through the SEC report, it was obvious Hughes had invested a lot of time, money and emotions into making things work with Chrysler and that it might take a while to get over losing the bond they once cherished.

In any case, you can read the SEC filing for yourself here or check out Hughes' full official statement to Autoblog after the jump. Thanks for the tip, MBAcurafan!

Gallery: Hughes Telematics at CES 2008

[Source: SEC.gov]

Continue reading Hughes Telematics and Chrysler relationship looks to be over

Hughes Telematics and Chrysler relationship looks to be over originally appeared on Autoblog on Thu, 20 Aug 2009 17:59:00 EST. Please see our terms for use of feeds.

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Forbes takes on the 0-60

Noah Joseph — Mon, 23 Jul 2007 22:12:00 EST

Filed under: Etc.

0-60 time is the gold standard in automotive performance. It's the first thing an enthusiast looks at when presented with a car's stats, and typically trumps all others. Top speed is all but completely irrelevant in most cases, while the quarter mile is only valued in drag-racing circles. Attempts have been made to substitute something more all-encompassing, like the 0-100-0 acceleration/braking test, but it hasn't replaced the old 0-60. Lap times around a given course might be more useful for comparison, but unless every manufacturer tested on the same track, that falls to pieces. At the end of the day, 0-60 is where it's at, but as Forbes points out, it's not the most reliable or useful performance indicator.

In most cases, it takes ideal conditions - including a professional driver - to hit sixty in the time specified. As a result, some manufacturers quote conservative figures so as not to disappoint customers who can't manage the quoted time. Further confusing the situation, some automakers prefer to quote acceleration time in kilometers, but while the 0-100 km/h (62mph) standard might be very close to the mark, in acceleration times every millisecond counts.

It may be the gold standard, but even gold has its imperfections.

[Source: Forbes Autos]

Forbes takes on the 0-60 originally appeared on Autoblog on Mon, 23 Jul 2007 22:12:00 EST. Please see our terms for use of feeds.

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Ford restates earnings and finds an extra $550 million in Q3

John Neff — Tue, 14 Nov 2006 12:31:00 EST

Filed under: Ford, Earnings/Financials

The accountants over at Ford have cleaned off their desks looking for every available financial number between 2001 and 2005 and discovered the company had actually made more money than it originally reported to the Securities and Exchange Commission (SEC). In fact, the $5.8 billion net loss the Blue Oval recorded for the third quarter of 2006 has been reduced by $550 million to $5.25 billion. For the first three quarters of 2006, the company found an additional $250 million that reduces its year-to-date loss to an even $7 billion. The accounting adjustments come mainly from Ford's finance division and has something to do with derivatives and volatile interest rates. Whatever. Money's money and Ford will take it, even if it's money from the past that has already spent by now. Analysts aren't too impressed by the on-paper improvement either, noting that the corrections don't change the fact that Ford's pre-Way Forward turn around plan announced in 2002 didn't work. Ford will be filing new paperwork with the SEC by November 20th that finally brings its financial reportings in line with SEC requirements.

[Source: Automotive News]

Ford restates earnings and finds an extra $550 million in Q3 originally appeared on Autoblog on Tue, 14 Nov 2006 12:31:00 EST. Please see our terms for use of feeds.

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GM's second-largest shareholder unloads some stock, yawn

Damon Lavrinc — Tue, 14 Nov 2006 08:35:00 EST

Filed under: GM, Earnings/Financials

We don't want to bore you with all the financial details, so here's the short and (not-so) sweet of it.

Capital Research and Management Co. is the second-largest shareholder of General Motors. At the end of June, they held over 60 million shares of the General's stock, or almost 11-percent. Yesterday, they filed a reduction of that stock with the SEC, which stated that they've reduced their GM ownership to 8.4-percent or about 48 million shares.

The spokesman for the company, Chuck Freadhoff, said that they won't comment on the reason for the sale, but analysts insist that there's no real rhyme or reason to it, just another day at the office.

This does spell a trend for the mutual fund managing firm, as they've unloaded another 33.6 million shares of the automaker earlier this year.

[Source: Detroit News]

GM's second-largest shareholder unloads some stock, yawn originally appeared on Autoblog on Tue, 14 Nov 2006 08:35:00 EST. Please see our terms for use of feeds.

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GM adds a couple hundred mil to Q2 losses; GMAC sale may not come until '07

Eric Bryant — Wed, 02 Aug 2006 14:36:00 EST

Filed under: Etc., GM, Earnings/Financials

Despite the fact that Wall Street is giddy about General Motor's performance in the second quarter of 2006, the automaker still lost $3.2B due mostly to write-downs associated with employee buyouts. Or, rather, make that $3.4B, according to a filing with the Security and Exchange commission. The discrepancy - one of several in recent months - comes as the company takes an additional charge of $200M related to a difference in declared value and taxable value of some GMAC assets.

And while the automaker was on the topic of GMAC, it also saw fit to mention that the sale of GM's lending arm might not be completed this calendar year. Apparently, the Federal Deposit Insurance Company has placed a six-month halt on the sale of any industrial loan companies, and that includes GMAC. The impact of this isn't known at this time, but it's unlikely to be severe, and GM states that the details of the sale will still be worked out by the fourth quarter of this year.

[Source: Reuters]

GM adds a couple hundred mil to Q2 losses; GMAC sale may not come until '07 originally appeared on Autoblog on Wed, 02 Aug 2006 14:36:00 EST. Please see our terms for use of feeds.

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Probe into Delphi finances targets seven former company officials

Eric Bryant — Wed, 07 Jun 2006 13:30:00 EST

Filed under: Earnings/Financials

Presumably, the fact that "target letters" have been sent to seven ex-Delphi executives by the Securities and Exchange Commission is not a welcome sign for those on the receiving end of that particular communiqué. It's likely that the letters are a step towards civil charges being filed against the individuals for their roles in the accounting scandal that led Delphi to dramatically restate several years of earnings, with an adjustment of over $300M being made to the company's profits prior to its October bankruptcy filing. At this time, it's not clear exactly who is being targeted by the SEC.

The Justice Department may soon be joining the case to toss in some criminal penalties, and several shareholders and retirees have filed their own civil lawsuits against Delphi.

[Source: Detroit News]

Probe into Delphi finances targets seven former company officials originally appeared on Autoblog on Wed, 07 Jun 2006 13:30:00 EST. Please see our terms for use of feeds.

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GM changes its mind, posts Q1 profit

Erin Mays — Tue, 09 May 2006 07:57:00 EST

Filed under: GM, Earnings/Financials

General Motors has revised its first quarter earnings statement to show a profit of $445 million, rather than the $323 million reported earlier this month. GM says the change is based on conversations the company had with SEC regulators regarding whether or not it could write off the settlement it made with blue collar retirees over health care. The charges will instead be broken out over seven years starting third quarter, when the changes take effect.

[Source: Reuters]

GM changes its mind, posts Q1 profit originally appeared on Autoblog on Tue, 09 May 2006 07:57:00 EST. Please see our terms for use of feeds.

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Ford considering amending employment policy's sexual orientation clauses

Chris Paukert — Wed, 05 Apr 2006 11:02:00 EST

Filed under: Trends, Etc., Government/Legal, Hirings/Firings/Layoffs, Ford

Ford's shareholders are to reportedly consider changing the company's equal employment policy language to exclude any mention of sexual orientation. The move is expected after the U.S. Securities and Exchange Commission (SEC) rejected the automaker's bid to keep the matter from its proxy statement. As of right now, the Blue Oval's policy includes clauses that specifically outline the company's pledge not to discriminate based upon sexual orientation, but a request by shareholder Robert Hurley has submitted the proposal for consideration.

Ford has apparently been petitioning the government agency to exclude the issue, arguing that its inclusion will hurt the automaker's chances of wooing potential employees at certain universities (that require sexual orientation to be included in recruiting companies' policies), also fearing that backlash stemming from such a changeover could hurt sales to GLBT supporters.

The proxy statement goes out this Friday, at which point shareholders will vote on the issue. The result is expected to be made public on May 11 at Ford's annual meeting.

[Source: Associated Press via Detroit News]

Ford considering amending employment policy's sexual orientation clauses originally appeared on Autoblog on Wed, 05 Apr 2006 11:02:00 EST. Please see our terms for use of feeds.

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SEC subpoenas Lear for more details on supplier's relationship with GM

Eric Bryant — Mon, 13 Mar 2006 11:00:00 EST

Filed under: Trends

With the Securities and Exchange Commission a bit curious about some of General Motors' accounting practices as it relates to the automaker's price concessions negotiated with suppliers, Lear now finds itself on the receiving end of a subpoena of its financial records. Lear 'fessed up to its newfound role in the investigation last week, but received the Fed's request back in February.

Records of transactions dating back to 2001 are said to be of interest in the investigation. GM has long been regarded as the most aggressive of the automakers when it comes to putting the screws to suppliers, so it's likely safe to assume that there's a bit of Schadenfreude circulating among its suppliers with word of this case.

[Source: The Detroit News]

SEC subpoenas Lear for more details on supplier's relationship with GM originally appeared on Autoblog on Mon, 13 Mar 2006 11:00:00 EST. Please see our terms for use of feeds.

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