Autoblog

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]

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]

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]

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]

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] 

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]

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]

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]