By Jetta! 800,000 More VW’s Offend; B(u)y Jeep-ers! U.S. Auto Sales Don’t Offend; Call of Duty About to Get a Whole Lot Sweeter

This thing just keeps growing and growing…

Image courtesy of  fantasista/

Image courtesy of fantasista/

Just when you thought it was okay to start thinking about buying a Volkswagen, the company announced that yet another 800,000 vehicles are getting caught in the toxic wind of the company’s emissions probe. This revelation was the result of an internal probe and while those cars are currently out and about, Volkswagen wants to reassure the public that the cars are still safe to drive. Just don’t breathe around them. The auto company set aside close to $7 billion hoping that amount will be enough to cover the repairs and lawsuits. It won’t be. It’s estimated that there are 11 million Volkswagens worldwide that currently have the illegal software installed. Now it’s up to newly crowned CEO Matthias Mueller, who came over from Porsche, to help save the embattled car company, which already lost a third of its value and reported its first quarterly loss in 15 years.

Speaking of cars…

Image courtesy of bplanet/

Image courtesy of bplanet/

But on this side of the pond, car companies are having a much better day than Volkswagen. In fact, GM and Fiat Chrysler are currently in the wonderful throes of their best two month stretch. Ever. Well, in 15 years anyway. Even if you weren’t one of the lucky ones to have purchased one of those vehicles, it’s still good news since increased automobile sales indicate that the U.S. economy is in fairly decent shape. Ford did okay and Nissan did a little better. But nothing like GM, whose sales were up a nice beefy 16%, even though analysts only thought its sales would increase 12%. The company did especially well with a little help from its pricey truck lines and SUV’s. Fiat Chrysler’s sales were up a very respectable 15%, selling over 195,500 cars just last month. However, the company had a humongous boost from its Jeep brand which saw a massive 33% increase. This makes it the 67th consecutive month of increased sales for Fiat Chrysler. But, what exactly, is the reason why all these people are running out and buying up cars? If you answered low gas prices, then score one for you. The national average gas price hit a new low of $2.20 a gallon, 85 cents less than last year at this time.  But low interest rates and a slew of manufacturer incentives in order to move out the 2015 inventory also helped matters. A lot.

Call of Candy Crush Duty…

Image courtesy of foto76/

Image courtesy of foto76/

What happens when you cross the “Call of Duty” with a bunch of confections? You get the biggest acquisition of a mobile-game. Ever. Even bigger than the much-hyped Microsoft acquisition of Mojang, maker of the very beloved “Minecraft.” That’s right, Activision Blizzard, video-game maker of perennial fave games, including “Call of Duty” and “Skylanders,” scooped up King Digital Entertainment, the force behind the highly addictive “Candy Crush,” for a whopping $5.9 billion. Activision Blizzard is getting the mobile confection game maker for $18 a share, a premium over its $17.84 closing price and $4.50 less than its $22.50 IPO.  But many are wondering if Activision’s purchase will pay off. On the one hand, this is a great way for Activation to get into the $20 billion mobile gaming industry. On the other hand, King Digital failed to impress with Candy Crush follow-ups, Farm Heroes Saga and Pet Rescue, leaving many to wonder if the company’s got anything left to show.  After all, its third quarter earnings weren’t exactly sweet and monthly active users came in at 474 million, down from last year’s 495 million.


Activist Investor Sets His Fiscal Sights on Congress; Ferrari Races to IPO; UPSet

Icahn do it…

Image courtesy of  iosphere/

Image courtesy of iosphere/

Many U.S. companies are taking a breather for the moment since billionaire activist investor, Carl Icahn, has shifted his attentions away from struggling businesses and instead to Washington D.C. And just like he ousts under-performing CEO’s, he now plans to give the boot to under-performing congressman.  Icahn tweeted  earlier today, “I am starting a Super PAC with my initial commitment of $150 million to help end the crippling dysfunction in Congress.” I’m just wondering why his millions are going to be more effective than the millions of taxpayer dollars Americans have been throwing at congress until now. But I digress. Icahn, by the way, happens to be a dear pal of Presidential candidate Donald Trump. “Basically he’s by far the best of what I see out there,” and “The Donald” would like to install Carl Icahn as his treasury secretary. Laugh all you want, but with Trump pulling in some great numbers, you might end up crying come November 2016. This Super PAC has  more than a bit to do with the letter Icahn sent out to Congress this week demanding that it pass corporate tax reform legislation that would dissuade U.S. companies from leaving to other countries with more favorable tax laws at what Icahn calls “the worst time imaginable.” He also wants Congress to offer companies like Apple a “tax holiday” that would allow it to bring back its trillions of dollars at much much lower rate. That cash can then be used to invest and create jobs. Sounds fair.  Boom.

Ciao bella…

Image courtesy of sattva/

Image courtesy of sattva/

Ferrari, one of the world’s most valuable and utterly fabulous brands, made its U.S. stock market debut today in true Ferrari-style. Several of the high-performance, extremely pricey automobiles were parked by Wall Street, as the company stock opened at $52, the high-end of its range. And from there, the stock even cruised a bit higher. $893 million was raised and 17.18 million shares were dished out under the ticker symbol RACE. Catchy, huh? And just like it’s hard to come-by cars, there was more demand than there were shares. The IPO is a way for Fiat Chrysler to finance a $54 billion investment program that will help expand the Jeep, Alpha Romeo and Maserati brands. As for the Ferrari family, the founder’s son, Piero Ferrari, has a 10% stake and has now earned his billionaire badge with this IPO.  The Agnelli family, however, remains the biggest shareholder with more than a 30% stake in the company. In the meantime, Fiat Chrysler CEO, Sergio Marchionne, took time out of his busy morning from ringing the opening bell at the New York Stock Exchange to let the world know that he thought the EU’s charges that his company evaded $23 million in taxes “absolutely ludicrous.” He should really start hanging out with Carl Icahn.

Brown paper packages tied up with false claims…

Image courtesy of Iamnee/

Image courtesy of Iamnee/

UPS is not having a very good day after having to fork over $4.2 million to settle charges that it over-charged 17 states and three local entities. It seems the company falsely recorded packages reaching their destination on time when, in fact, they didn’t.  Customers paid to have packages delivered via next day service, however, those packages did not arrive by the promised time. These incidents ran from 2004-2014. UPS employees used “exception codes” and filed false claims that would excuse late arrivals for reasons like inclement weather and other difficult circumstances.  By using these codes, customers could not even file a claim to get a refund. And while whistleblower Robert Fulk can look forward to a piece of that $4 million pie, UPS has no plans to acknowledge any wrongdoing, even though the company already had to pay $25 million for a different settlement with the U.S. Department of Justice back in May for similar allegations. The company says it ponied up the settlement cash in order to avoid a costly litigation trial. Uh huh.