Would you be willing to fly on a newly developed jumbo airliner with battery technology that has been known to cause fires, whose exact cause is still unknown, but whose manufacturer has claimed to find a temporary “fix” that would allegedly contain –but not prevent – future flaming flights?
Boeing bets you would. Airbus bets you wouldn’t.
On Sunday the Seattle Times reported that Boeing might propose a plan as early as this week to get the troubled Dreamliner airborne again, after two incidents involving fires with the jet’s sizable lithium ion battery packs shut down all 50 of the units now in service. The rumored remedy doesn’t appear to be an actual repair of the volatile battery itself, but instead “includes a heavy-duty titanium or steel containment box around the battery cells” and high-pressure tubes to vent dangerous gases outside the fuselage in case of what engineers call “thermal … Read More ➡
The employees of battery maker LG Chem still haven’t found anything to do worthy of their pay since they were caught playing games and watching videos four months ago, and now the Inspector General for the U.S. Department of Energy has embarrassed the company into returning some – but not much – of the $142 million (out of a $151 million grant) in taxpayer money they took.
Gregory Friedman released his report – which was based on an inquiry spurred by the original media stories in the fall about the mostly idle workers in Holland, Mich. – last week. Turns out the reports about workers on-the-clock playing Texas Hold ‘Em and video games, doing Sudoku and crossword puzzles, and volunteering at nonprofits like Habitat for Humanity, were not exaggerations.
In the words of the inspector, “We confirmed the allegations.” The work that was supposed to be done under DOE’s stimulus… Read More ➡
Yesterday’s earnings’ report by General Motors threw up some red flags that I reviewed here. In recent quarters, the media seemed to give quite a bit of coverage on GM’s earnings, but not so this time. I wanted to follow up and discuss what the financial news networks obviously will not.
The most glaring number that warrants further discussion was the $35 billion deferred tax valuation allowance. This tax credit is not allowed under GAAP (Generally Accepted Accounting Principles) but that does not stop many companies from using it as they tout non-GAAP earnings. It is the huge amount of GM’s credit that makes it worthy of scrutiny. Let’s look at what other sources have to say about this confusing accounting strategy that saved GM from having to explain its GAAP earnings loss of about $30 billion.
The amount of deferred income tax is based on
… Read More ➡
General Motors reported earnings today that appeared non-eventful on the surface. Upon further inspection there are some underlying concerns, including a glaring one-time event that stands out. That is an adjustment to earnings with a tax benefit (as opposed to paying taxes) of $35 billion for a “deferred tax valuation release.” This was coupled with a goodwill impairment charge of about $27 billion, which allows GM to reduce the previously unusually high goodwill assets that were recorded on its balance sheet.
GM uses non-GAAP (Generally Accepted Accounting Principles) to calculate its calendar year operating income of $7.9 billion. The GAAP number does not allow the tax benefit and is a bit more troubling at a LOSS of $30.4 billion. I do not claim to be an accountant, but the huge numbers thrown around here could be a concern and should be further investigated. My understanding of the tax benefit, in … Read More ➡
Perhaps General Motors should have put more focus on competing in the largest segment of the auto market instead of focusing on being the market leader in the least popular, plug-in, electric vehicle (EV) field. A Detroit Free Press article reported that GM had to slash Chevy Malibu prices by hundreds of dollars to try and catch up with vehicles like the Toyota Camry, which is currently eating the Malibu’s lunch.
Chevy spokesman Michael Albino is quoted as admitting that, “The midsize segment is the largest and most competitive in the industry.” Maybe GM should have realized that when they spent so much time and money hyping the Chevy Volt instead of building the most competitive car that they could in the best-selling, midsize field. In fact, the Toyota Camry (built in America), which is the market leader in the segment, sold 31,897 units in January to make it the … Read More ➡
According to Toyota Vice Chairman Takeshi Uchiyamada, “Because of its shortcomings – driving range, cost and recharging time – the electric vehicle is not a viable replacement for most conventional cars; we need something entirely new.” Uchiyamada is considered the “father of the Prius.”
An article by Reuter’s exposes the limitations of EVs and focuses on Toyota’s, along with Nissan’s, change in strategy, which is now moving away from EVs. Even the most ideological and extreme green energy proponents and backers of the Chevy Volt will have to open their eyes to the sad truth uncovered by the latest report.
The truth is that the technology of lithium-ion based, pure electric vehicles is not the most efficient manner to power motor vehicles. This is something that has been said before by many credible sources. In fact, I previously reported that auto industry executives and engineers voiced similar concerns. Even … Read More ➡
January’s dismal numbers for Chevy Volt sales may give a clue as to how successful (or not) President Obama will be in reaching his goal of having a million electric vehicles (EVs) on American roads within the next few years, a goal that is increasingly becoming unlikely. It also gives us a glimpse into a bizarre strategy General Motors has had by focusing so strongly on plug-in cars while they lose market share elsewhere. The numbers are in, and GM can proudly say that they are the market leader in an insignificant field with a paltry 1,140 Volts sold in January. The best selling passenger car on the road, the Toyota Camry, sold 31,897 during the month, giving an indication of how illogical GM’s misguided focus has been.
GM’s lame reasoning for the post-election lows (actually, the lowest since February of 2012) for Volt sales is that consumers pulled sales … Read More ➡
With the revelation that All Nippon Airways replaced defective lithium ion batteries 10 times, Japan Air Lines replaced “quite a few,” and United Airlines replaced “multiple batteries,” in the months preceding the smoke emergency that grounded their Dreamliners, is there anything that can be said about the technology that can overcome its now-horrible reputation?
Boeing has worked on the 787 for 10 years or so, with an ample amount of time to determine what kind of battery technology would be functional with the “super-efficient” jet with “exceptional environmental performance.” Had the Chicago-based manufacturer –and its airline customers – concerned themselves more with achievable plans that built on proven fossil-fuel designs and economic sensibility rather than appeasement of environmental activists, and the accompanying millions of dollars in government subsidies for such, they might not be burning through millions of dollars in costs and lost productivity due to idle airplanes … Read More ➡
A watchdog for the government’s bailout program, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), has hit the US Treasury Department with a hard combo of critique regarding some of the Administration’s actions since pumping billions of taxpayer dollars into bailed-out companies like General Motors and Ally Financial (formerly known as GMAC). SIGTARP issued a report lambasting Treasury for allowing excessive pay for executives at GM, Ally Financial and AIG and followed that with statements that scrutinized Treasury’s continued refusal to exit its stake in Ally Financial, which is currently 74% owned by the government.
The Detroit News quotes the SIGTARP report as stating, “While taxpayers struggle to overcome the recent financial crisis and look to the U.S. government to put a lid on compensation for executives of firms whose missteps nearly crippled the U.S. financial system, the U.S. Department of the Treasury continues to allow excessive … Read More ➡
Now that he’s been forced out as chairman and CEO of Duke Energy, James Rogers is apparently looking for something else to do, and may now be more receptive to the idea of becoming President Obama’s next Secretary of Energy.
The new speculation, primarily from the Charlotte Business Journal, which is based in Duke’s home city, arose following an interview that Rogers did with Bloomberg News while at the World Economic Forum in Davos, Switzerland. Whereas Rogers used to routinely dismiss suggestions that he might be up for a cabinet post, when asked this time by Bloomberg reporter Tom Keene what he would bring to the job if the president asked him to serve, he was unhesitant.
“What I would bring is someone that’s been in the industry a long time and understands the importance of getting the balance right between cheap, affordable energy and meeting our … Read More ➡