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Report: Fuel smugglers costing Europe $4B+ in lost taxes

Filed under: Europe, Government/Legal

Euros in Fuel Tank

Cash-strapped European governments have been fighting a parasitic drain on their tax revenues from fuel theft and the tax fraud that goes along with it. According to a report from Bloomberg, individual governments are losing anywhere from 100 million to 1.3 billion euros ($133 million to $1.7 billion at today’s rates) due to the scams. The increase in theft and fraud is being blamed on a 52-percent jump in diesel prices.

Eastern European markets have seemingly been hit the hardest, with untaxed diesel estimated to make up 13 percent of Poland’s market, while the Czech Republic estimates that 20 percent of the fuel its citizens consume is provided illegally. In Lithuania and Poland, fuel is selling for 1.34 euros per liter and 1.30 euros per liter ($6.74 per gallon and $6.55 per gallon), respectively, while across the border in Russia, it’s 31.27 rubles per liter ($3.57 per gallon). This has led to a booming trade of both Poles and Lithuanians traveling across the border to purchase fuel legally, and a black market that’s seen Russian gas sold locally for less-than-local prices while still turning a profit. According to Bloomberg, 25 percent of Lithuanians admit to buying illegal fuel.

Western Europe hasn’t been immune to the scams, though. The Bloomberg piece opens with a bit on workers smuggling 912,000 liters of fuel out of a German refinery from the start of 2011 to last June. In Northern Ireland, black market diesel is 40 pence per liter lower than the UK’s average diesel price of 1.42 pound per liter (converted to USD, that’s $5.98 per gallon of illegal diesel to $8.33 per gallon of the taxed stuff).

As governments are a bit quicker to respond to things when their pockets are being lightened, several countries have tweaked their tax codes regarding fuel trades, closing the loopholes used by smugglers. Ireland has gone so far as to implement electronic monitoring for fuel movements. In Poland, the new coding is expected to slash illegal trade by 50 percent within four years.

Fuel smugglers costing Europe $4B+ in lost taxes originally appeared on Autoblog on Fri, 30 Aug 2013 11:32:00 EST. Please see our terms for use of feeds.

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Internal documents show Fisker lost $35,000 on each Karma

Filed under: EV/Plug-in, Hybrid, Fisker

Fisker Karma

Anyone looking for a chilling plug-in vehicle warning tale should check out this detailed Reuters article, which digs into the financial history of Fisker Automotive and reveals that the company lost around $35,000 per vehicle.

That number comes from “internal financial statements and interviews with former Fisker executives,” Reuters reports, quoting a former executive saying the luxury plug-in hybrid, “cost far more to produce than we could ever charge for it.” All told, between 2008 and 2012, Reuters estimates Fisker lost $1 billion.

The losses were due, in part, to those many production delays two to three years ago as well as a reduction in the number of cars it was going to make and sell. Remember when the company said it would sell 15,000 units a year? Eventually, the company sold around 2,000 vehicles, total.

There is a lot worth reading in the source article, including how the Karma’s forward-placed exhaust – which hurt the vehicle’s performance and was too loud – was fixed using a metal “pizza box” that cost millions extra. Throw in salaries of around $600,000-$700,000 for co-founders Henrik Fisker and Barny Koehler, even while Fisker was laying people off, and you have a recipe for not succeeding. Here’s a taste of what Reuters has to offer:

In May 2011, the company co-sponsored a pre-race grand prix party aboard a 146-foot yacht moored in the Monte Carlo harbor. Guests drank glasses of champagne served with flecks of gold. Clad in a dark pinstripe suit and open-neck white shirt, Henrik Fisker navigated a crowd that included Prince Albert of Monaco, whom he described as the inspiration for the Karma. … The Monaco weekend, according to several sources familiar with the event, cost Fisker between $80,000 and $100,000. That wasn’t lavish by auto-marketing standards, but by this point every penny mattered. Within weeks, the Energy Department stopped payments on its loan.

You can read the whole thing here.

Internal documents show Fisker lost $35,000 on each Karma originally appeared on Autoblog Green on Mon, 17 Jun 2013 10:44:00 EST. Please see our terms for use of feeds.

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PSA: Japan automakers have lost half a million units since quake

Filed under: Etc., Japan, Plants/Manufacturing, Honda, Mazda, Mitsubishi, Nissan, Subaru, Suzuki, Toyota

Damaged Suzuki vehicles

According to Automotive News, Japanese automakers have seen their production drop by over 500,000 units since the March 11 earthquake struck the island nation. In the month since the disaster, the country’s seven largest automakers lost around 516,000 units of production due to damage to production facilities and supplier delays. Toyota has been the hardest hit, with a loss of 260,000 units as of April 8. The automaker has a total of 18 domestic manufacturing facilities, and while two of those are back online, the remainder won’t open their doors until at least April 18. Even then, the plants may shut down again after April 27.

Honda, Suzuki, Subaru, Nissan, Mazda and Mitsubishi are all operating on some level, though production is an on-again, off-again affair. As an example, Nissan has managed to re-open all five of its Japanese facilities, though production has been scaled back to half-pace for the time being. There’s no word as to when full production will ramp up once again.

[Source: Automotive News – sub. req.| Image: Wally Santana/AP]

PSA: Japan automakers have lost half a million units since quake originally appeared on Autoblog on Wed, 13 Apr 2011 17:28:00 EST. Please see our terms for use of feeds.

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Opinion: Has Honda lost its footing?

Filed under: Honda

Honda Civic Concept sketch

When Honda handed out sketches of an all-new Civic Concept last December, they received a warm welcome from those anticipating big changes for the maker’s long-popular compact sedan.

So, the Honda press conference at the 2010 Detroit Auto Show last week triggered more than a bit of confusion – and even some disappointment. True, we journalists are used to seeing things watered down when an automaker moves from sketch to concept, and then from concept to production car. But the Civic Concept revealed in Detroit is no fantasy in chrome. If anything, in terms of design, it’s only a moderately warmed-over version of the current compact sedan.

Which raises some serious questions about Honda’s strategy at a time when the compact market is becoming more competitive than it has been in years. Until recently, Honda could assume that the only real competition for the Civic would be the Toyota Corolla. No longer.

Paul A. Eisenstein is Publisher of TheDetroitBureau.com, and a 30-year veteran of the automotive beat. His editorials bring his unique perspective and deep understanding of the auto world to Autoblog readers on a regular basis.

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Opinion: Has Honda lost its footing? originally appeared on Autoblog on Thu, 20 Jan 2011 15:01:00 EST. Please see our terms for use of feeds.

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Man says he lost consciousness at the wheel due to Benz’s ‘new car smell’

Filed under: Etc., Government/Legal, Safety

new car scent

Numerous studies have shown that the so-called new car smell – which is actually a potent outgassing of volatile organic chemicals and heavy metals – can be potentially dangerous to breathe in, and that some people are more bothered by these VOCs than others.

But could that new car smell be so insidious that it could cause you to lose consciousness long enough that you get into an accident? And if so, could an attorney use such a new car smell defense to ease a client’s legal woes? Sounds a bit odd, but just such a case is currently taking place in Colorado.

Here are the facts: Martin Erzinger, owner of a 2010 Mercedes-Benz sedan (model unknown), fell asleep at the wheel, drifted off the road and struck a bicyclist named Dr. Steven Milo before colliding with a concrete barrier. The unresolved questions are whether Erzinger’s sleep apnea was compounded by his car’s odors, as suggested by a forensic specialist, and if he was aware that he had struck a pedestrian.

Of course, it’s not up to us to decide how guilty or innocent Erzinger may be… we’ll leave that up to the court. But we are curious what you think. Could a particularly noxious new car smell be a contributing factor in an accident?

[Source: VailDaily.com | Image: Dyanna – CC 2.0]

Man says he lost consciousness at the wheel due to Benz’s ‘new car smell’ originally appeared on Autoblog on Wed, 15 Dec 2010 17:20:00 EST. Please see our terms for use of feeds.

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Review: 2010 Lexus ES 350 is soft-riding royalty that’s lost its crown

Filed under: Sedan, Lexus, Reviews, Luxury

2010 Lexus ES 350 – Click above for high-res image gallery

The entry-level luxury sedan segment doesn’t command the enthusiast attention of, say, the ultra-premium luxury sports sedan. But if you ask automakers to choose between the two, we’d wager that most would rather have a best-in-class $35,000 sedan than a world-beating $70,000 sports tourer.

The reason? Very few fortunes are made selling a few thousand highfalutin’ rocket launchers, but bottom lines can easily be bolstered or crippled based on the success or failure of a plush, high-volume cruiser. Luxury marques from Acura to Volvo have experienced varied levels of success at the low end of the luxury market, but few have enjoyed the consistent sales dominance of the Lexus ES. In the past decade, Toyota has cranked out over 600,000 copies in the U.S. alone, with another 650,000 units shipped around the world. And those sales have traditionally been overwhelmingly of the retail variety with little or no incentives. Not bad for what many consider a glorified Toyota Camry.

Enthusiasts take note: Lexus didn’t reach such lofty sales levels with a rear-wheel-drive architecture or pavement-punishing quantities of horsepower. The road map to success for the ES has been simple: a soft, compliant ride; a pampering interior; and unmatched quality. The fifth-generation ES350 has built nicely on those attributes with smoother power, a quieter cabin and more technology. But the competition is still striving to overtake the ES in sales, so Lexus has gone and given its top-selling sedan a mid-cycle refresh for 2010. We spent a week in a Starfire Pearl ES350 to see if it still had the goods to remain a top option in the entry-level luxury segment.

Gallery: Review: 2010 Lexus ES 350

Continue reading Review: 2010 Lexus ES 350 is soft-riding royalty that’s lost its crown

Review: 2010 Lexus ES 350 is soft-riding royalty that’s lost its crown originally appeared on Autoblog on Fri, 30 Jul 2010 11:58:00 EST. Please see our terms for use of feeds.

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