BMW CEO Norbert Reithofer is not happy. In a case which proves that nothing is immune to the sleight of hand of Chinese manufacturers and their ability and willingness to clone any product on earth, BMW has been forced to threaten legal action over a cheap knock-off version of their popular X5 SUV.
The Chinese-made SUV which ironically enough is called CEO is almost identical in appearance to BMW’s X5…especially from the rear.
“We have already taken steps against the marketing of the CEO (SUV) in Europe. Should this car be presented at the IAA, we will look into taking further legal steps,” a BMW spokesman said.
Forbes reports that Karl Schloessl, the owner of independent importer China Automobile Deutschland said he knew nothing of the legal action, but said it might well help sales of the model.Schloessl said he is planning to sell the cars at around 100 dealerships in Germany starting in October…again proving there is no shame among the Chinese or the vendors who get rich selling their knock-off merchandise.
The BMW X5 is pictured on the left and the Chinese CEO SUV is on the right.
According to a company spokesman, DaimlerChrysler AG Chief Exec Dieter Zetzsche also known in America as Dr. Z. will remain both group CEO and head of the Mercedes Car Group following the Chrysler sale. “He will maintain his double responsibility as group chief executive and head of Mercedes Car Group in the long-term,” the spokesman said.
Prior to the DaimlerChrysler’s sale of its Chrysler unit to Cerberus Capital Management, Zetsche served as the chairman of DaimlerChrysler, the parent company of Chrysler, Jeep, Dodge, and Mercedes-Benz.
Zetzsche was the driving force behind the resurgence of those three American brands, where he infused Mercedes engineering into cars like the Chrysler 300. Think of him as Germany’s version of Lee Iacocca.
Hancock Park Associates, the parent company of Saleen, recently wrapped up its purchase of American Specialty Cars Incorporated (ASC), the specialty roof and body maker based in Southgate, Michigan.
As part of the deal, Hancock also got Paul Wilbur, the current President and CEO of ASC.
Along with Wilbur, Saleen will also be supported by Chris Theodore, the retired vice president of product development at Ford Motor Company, best known as the “father of the Ford GT program.”
Theodore will lead new product development for both companies and be its chief technology officer.
This past Friday, Cerberus Capital Management finally completed its purchase of Chrysler Corporation. Somehow lost in the $7.4 billion transaction was the fact that GE trained, former Home Depot CEO Robert Nardelli was appointed Chrysler’s chairman and Chief Executive Officer.
News sources including Fortune are reporting that the disgraced former Home Depot Chief, who became the poster child for excessive CEO compensation, is back in the saddle at Chrysler.
Nardelli joined Home Depot in 2000, but came under fire for his excessive compensation despite poor company stock performance.
Nardelli was ousted in January of this year after Home Depot’s shares dropped 7.9 percent and the company lost market share to Lowe’s during a six-year reign in which he earned $225 million.
Nardelli’s Home Depot severance package was valued at about $210 million including cash ($20 million), stock-based compensation ($128 million), retirement benefits ($32 million), lifetime health and life insurance (valued at $18 million) and $9 million in owed but not yet received pay.
According to Fortune, a source inside Cerberus says that Nardelli will receive only $1 a year in compensation. The source would not go into details as to how the rest of Nardelli’s compensation would be worked out, but only added that his salary is directly tied to the success of Chrysler’s turnaround.
Jacques Nasser, Ford CEO from 1999-2001, plans to fly to Britain to visit the Land Rover and Jaguar factories as part of his attempt to buy back the two luxury brands that he put together.
Nasser bought Land Rover for Ford seven years ago while serving as Chief Executive. During his trip to the UK, he is expected to woo trade unions in an effort to gain their support for his bid. Nasser will have the support of One Equity Partners, the private equity firm owned by JPMorgan Chase as he tries to rekindle old flames.
There are reports that Union leaders have urged the Government to block any sale to a private equity bidder, out of fear that such a move could lead to widespread job losses. Nasser wants Ford to keep a 30 to 50 % stake in the business to ensure security of engines and parts supplies.
Billionaire Warren Buffett’s holding company Berkshire Hathaway Inc. reported today that its net income jumped nearly 33 percent during the second quarter because of strong performance from its insurance division. Berkshire said it earned $3.1 billion during the quarter that ended June 30. That’s up from $2.3 billion, or $1,522 per share, in the same period last year. Berkshire’s insurance business pulled in nearly $6 billion in premiums during the quarter, up from $5.8 billion a year ago.
Companies including Geico and Berkshire Hathaway Reinsurance Group recorded a $632 million underwriting profit during the quarter, up from $371 million in 2006. And Geico had 381,000 more car insurance policies in force at the end of June than it did at the end of 2006. Plus the car insurance company’s cavemen commercial pitchmen inspired a sitcom on ABC this fall.
The underwriting profit also includes $356 million from the Reinsurance Group, up from $137 million last year.
