plus 4, Arrow execs raked in pay from firms - Tulsa World

Arrow execs raked in pay from firms - Tulsa World
Fuel sources of the future predicted in the past: Henry Ford's ... - Examiner
Hyundai sales increase steadily while Lamborghini sales decline in ... - Examiner
ces2010 - autoblog
Connell: Dead of winter is time of hope - Port Huron Times-Herald

Arrow execs raked in pay from firms - Tulsa World

Posted: 17 Jan 2010 08:49 AM PST

Read stories and view documents related to the problems facing Arrow Trucking.

Arrow Trucking Co. executives reaped lucrative payouts from two insurance companies controlled by Arrow, yet the company could not make good on a wrongful death judgment when the time came to pay, a Tulsa World investigation shows.

Former Arrow CEO Doug Pielsticker, Chairwoman Carol Pielsticker and former Executive Vice President Joseph Mowry received hundreds of thousands of dollars in paybacks after investing a small amount in one company known as Altura Insurance Group Inc., according to records obtained by the World.

Former COO Robert Fitz-gerald, former CFO Rob Morris and former Executive Vice President Jon Bergstrom also were shareholders in Altura, said its owner Sherril Roberts, who is the wife of Joe Mowry.

Doug Pielsticker, Mowry and Chief Financial Officer Jonathan Moore are defendants in a civil lawsuit brought by an Arrow lender alleging fraud and racketeering by Arrow Trucking.

Altura is a licensed insurance broker created by Arrow officials about September 2005 to oversee the company's casualty, auto and accident policies, Mowry said. One year later, Roberts bought out all the shareholders including her husband, she said. Arrow Trucking was Altura's primary customer.

In two shareholder transactions, Doug Pielsticker and Carol Pielsticker cashed in on their investment when Altura was sold to Roberts.

In September 2006, about one year after Altura was set up, Doug Pielsticker sold his 47.5 percent in the company for an estimated $500,000, while Carol Pielsticker sold her 22.5 percent for about $250,000, Roberts said.

Meanwhile, Mowry invested about $1,000 in September 2005 and sold his holdings to Roberts about one year later for $100,000, he said.

However, the proceeds were to be paid out over four years so the Pielstickers and Mowry did not receive their full amounts because Arrow Trucking collapsed on Dec. 22, said Roberts, an insurance broker for 22 years.

It is not uncommon for a business to provide its own casualty and accident insurance and to pay premiums into that business and to reward its executives financially for cutting costs and saving the company money on claims, Roberts said.

"You have to understand that there was a lot of hard work in setting these companies up properly," Roberts said. "Joe and the others worked very hard trying to save the company and to control costs. They saved Arrow millions of dollars.

"It was not uncommon for us to start at 4 a.m. and work to 7 p.m. most days, trying to help the company stay alive," Roberts said. "These (insurance) companies managed risk, cut costs while also protecting the drivers and the customer in the event of a claim."

Doug Pielsticker's attorney has declined to comment.

Carol Pielsticker's attorney, Jim Sturdivant, said his client has been lending the company money in an attempt to keep it going.

"During the past two years, Carol has loaned Arrow a substantial amount of money to help pay the bills," Sturdivant said. "She was putting money in to help out."

The World obtained documents from Mowry's divorce from his ex-wife, Gretchen Mowry. The divorce documents detail Mowry's involvement in the formation of several insurers to handle Arrow's insurance needs. Other Arrow executives were also involved

in the companies' startup, court records show

Roberts agreed to an interview with the Tulsa World to discuss her husband's involvement in helping establish and oversee Arrow's self-insured businesses.

Mowry declined to answer specific questions about Arrow's operations unless they were related to the insurance companies.

While Altura was a separate company, Arrow paid all its insurance premiums through Altura to be deposited in Astraea Risk Retention Group Inc. and Thureus Insurance Group, two companies owned by Arrow and its subsidiaries and registered in Arizona, records show.

Mowry and Roberts said they have been wrongly portrayed in media reports and Web blogs.

"Joe and I have done all we can to help the employees get their employee records so that they can look for jobs and get their lives back together," Roberts said. "It is heartbreaking to watch this happen to the business and the employees."

Mowry said Arrow's collapse also left him jobless.

"I have no job, no car and no paycheck just like the other employees," Mowry said. "It is terribly frustrating to sit here and read about the perception that we were doing nothing to turn things around..''

In a lawsuit filed by lender Transportation Alliance Bank Inc., the Ogden, Utah, lender alleges that Doug Pielsticker "systematically looted Arrow Trucking with unwarranted expense reimbursements, excessive salaries and benefits, and other payments to support his lavish lifestyle."

Arrow Trucking, a 61-year-old flatbed carrier, halted operations after a primary lending bank shut down its fuel cards, stranding scores of truck drivers across America just three days before Christmas.

Meanwhile, the Pielstickers faced arrest for failing to appear in court involving a wrongful death lawsuit in Cleveland County.

In October 2009, the family of Ian Upchurch won a $50,000 judgment against Arrow and its insurer, yet Arrow failed to make good on the settlement, records show. The wrongful-death lawsuit alleges that an intoxicated Arrow driver, Michael Ivan Carranza, caused an accident that resulted in the death of Upchurch in June 2006 on Interstate 35 near Norman, records show.

The judgment was against Arrow Trucking and Astraea Risk Retention Group Inc., a second Arrow insurer that rewarded executives handsomely, records show.

As executive vice president of Astraea, Mowry received $50,000 from Astraea in 2007 as part of underwriting profit, records show. Mowry said that Doug Pielsticker received a similar if not greater payment.

As part of the Arrow collapse, Astraea Risk Retention and Thureus were taken over by the state of Arizona in December due to alleged insolvency and Arrow's failure to provide audited financials to the Arizona Department of Insurance, records show.

Court records show that Astraea failed to provide 2008 reports in a timely manner. In 2009, Arizona insurance officials contacted Astraea five times for failing to provide the annual audited financial statements, records show.

While Astraea was named as a defendant in Upchurch's death, Mowry said that Astraea was not responsible for the judgment.

"The settlement amount was to be paid by Arrow and not Astraea because of the deductible,'' Mowry said.

Omer Gillham 581-8301
omer.gillham@tulsaworld.com

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Fuel sources of the future predicted in the past: Henry Ford's ... - Examiner

Posted: 17 Jan 2010 07:09 AM PST

Ethanol has been known as a fuel for many decades. Indeed, when Henry Ford designed the Model T, it was his expectation that ethanol, made from renewable biological materials, would be a major automobile fuel. However, gasoline emerged as the dominant transportation fuel in the early twentieth century because of the ease of operation of gasoline engines with the materials then available for engine construction, a growing supply of cheaper petroleum from oil field discoveries, and intense lobbying by petroleum companies for the federal government to maintain steep alcohol taxes.
Many bills proposing a National energy program that made use of Americas vast agricultural resources (for fuel production) were killed by smear campaigns launched by vested petroleum interests. One noteworthy claim put forth by petrol companies was that the U.S. government's plans "robbed taxpayers to make farmers rich".

Gasoline had many disadvantages as an automotive resource. The "new" fuel had a lower octane rating than ethanol, was much more toxic (particularly when blended with tetra-ethyl lead and other compounds to enhance octane), generally more dangerous, and contained threatening air pollutants.
Petroleum was more likely to explode and burn accidentally, gum would form on storage surfaces and carbon deposits would form in combustion chambers of engines. Pipelines were needed for distribution from "area found" to "area needed". Petroleum was much more physically and chemically diverse than ethanol, necessitating complex refining procedures to ensure the manufacture of a consistent "gasoline" product.

However, despite these environmental flaws, fuels made from petroleum have dominated automobile transportation for the past three-quarters of a century. There are two key reasons: First, cost per kilometer of travel has been virtually the sole selection criteria. Second, the large investments made by the oil and auto industries in physical capital, human skills and technology make the entry of a new cost-competitive industry difficult.

Until very recently, environmental concerns have been largely ignored. All of that is finally changing as consumers demand fuels such as ethanol, which are much better for the environment and human health.3

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Hyundai sales increase steadily while Lamborghini sales decline in ... - Examiner

Posted: 17 Jan 2010 07:09 AM PST

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Editorial: Hyundai Motor Corp just issued a press release about their year to date sales and earnings and the stats for their product look good. Lamborghini, on the other hand. Well, let's just suffice it to say that the decision to delay a jump on hybrid technology may be the reason why the company has slowed in sales of gross units and orders since the beginning of the year. Despite a successfully growing exotic car market in China that does not seem to mind the car's difficult ratings as one of the least eco-friendly car brands in the world, the addition of the new continent market has only helped the sales by just over 200 cars as a bump to units sold so far this year.

If Lamborghini comes out with an aggressive new product that is politically correct [i.e. a green exotic car or comes out with the four passenger Estoque with options to order as a hybrid, electric (perhaps made in a partnership with Tesla Motors or Fisker), hydrogen powered (like the BMW Hydrogen 7 being driven by Brad Pitt and that star who was recently determined to be the most influential woman in the world Angelina Jolie), or bio-fuel (despite the protests that it actually causes more environmental problems because of the negative impact of the products source materials fouling the arable lands)] then it stands to reason that the Lamborghini product itself will move forward to a competitive marketing position again.

Thereby, stands the problem and solution. Cars like Hyundai are moving up as economical and getting cooler in the eyes of the general population. As a result, the wealthy class and celebrity audience that are the target market for auto manufacturers like Lamborghini and Ferrari are beginning, for the first time, to actually think about it [with it meaning fuel consumption not due to cost but for smarter and more politically and socially conscious reasons]. Since Tesla Motors new success with their Tesla Roadster and announcement to open new dealerships in a very select handful of major metropolitan areas around the world (and with the sale of their 500th roadster), Ferrari -- the key competitor of Lamborghini -- has come out with a flurry of new car announcements. Not only has the competitive Cavallino camp had a new car -- the Ferrari California -- come out which they have expressly stated should appeal to women buyers and new first time buyer owners who are younger than the traditional Ferrari buying audience, they have confirmed an intention to produce a hybrid car by 2015, have applied for a patent on a new hybrid 4x4 technology, and are making noises that the new Ferrari 458 Italia they have designed may be infused with elements of green technology.

Lamborghini, in 2008, firmly denied that they would be producing a green vehicle and their older executives pushed forward with the company's carbon based fuel monster supercar systems. Now don't misread what I'm saying here -- I adore a Lamborghini. I am very fond of driving a Gallardo whether or not it is a Spyder or a coupe. I love to drive, and driving a Lambo is like being in a the front seat of a roller coaster ride -- only you are the one who is steering and deciding when to climb in speed, when to decelerate, and when to take on wild twists and turns from roadways you drive. It's heavenly if you are into motor mayhem. The Lamborghini LP-560 is probably my favorite least practical daily driver car; the best part of the ownership experience for anyone who owns a LP-640, Gallardo, Gallardo Spyder, Murcielago, or Superlegerra right now is the feel of the vehicle and the emotional gratification of receiving so many smiles, waves, and Hi's wherever you may drive. However, Lamborghini -- in their focus to be and become the best automobile in the world based on old engine technology being tweaked and refined overlooked a trend that does, in fact, indicate a paradigm shift in vehicle product consumption. And the politically cool and correct image for exotic cars is changing, despite throaty horsepower car guy outcry.

As such, based on the old fashioned theory of supply and demand, you see the rise in popularity of competitors brands that have the nod of approval from the general population... that 80% of the Americanized version of the world that buy the Hyundai and make up the real fan base audience. You see, if you buy an exotic car and everyone thinks you are a cad for doing it, no matter how much you personally love the car, it will have lost one of the most important features sets involved in ownership: prestige and status. If you car about your public image and want to be part of that ultra-cool elite and celebrity auto driver class of people, you almost have to invest in a car that the general public appreciated aesthetically and adores intellectually for its socially conscious virtues. Whereas in the 20th century, exotic cars represented the hight of power and success due to human engineering as production related to speed, handling, and performance, the 21st century is beginning to write new chapters in automotive history.

Now, the challenge the general public has given to boutique auto makers for 2010 and beyond is this: They want to be impressed with a vehicle that has all the old speed, performance, and track corner and braking of the old exotics and be 100% environmentally friendly in the fuel and emissions technology. The car makers don't even have to care about green technology from a socially conscious standpoint -- just so long as they are working on the technology to advance the green products and making them available from a purely business standpoint to the general public, then they are on the right track and in the Green Technology Race. More products, more free press and media reviews. Grass roots, eco-friendly marketing strategies. That's the hot new trend coming over the course of the next half century (like it or not, for better or for worse -- just like the Internet is here to stay right now... until something more modern replaces it).

If the news has a love affair with eco-friendly green products, and auto makers are clever enough to respond accordingly, then the media will fixate on your products and documenting the history of your production stories. More friendly stories, more rise in brand awareness and better reputation for your products. More public acceptance of the cars from the people who can't and will never be able to afford them, the better the people who can buy the products look in and around their community to the people who don't personally know them. The flash is attached to the cash -- but also inherently tied to the product as a representation of achieving the peak or pinnacle virtue as a manufactured product that represents the best technology possible as a manufactured crowning jewel of civilization. The 20th century catch phrase used to be, "Go big or go home." Now, however, at least in the auto marketing world the dilemma seems to be a new idea of, "Go green or stay off the street."

Without the green product discussion and plans in the forefront of buyers minds who could purchase a current inventory product with the future goal and intention of getting their name on the list to buy the hot 2011, 2012, 2013, 2014, 2015, or 2016 product, sales agents have a difficult time overcoming objections to the use of current technology by the company. Industry rumor even is confirming that Hummer is coming out with a green 4x4 truck in the next few years. Whether it's a big seller or not is not the point; it's the idea that scientists and engineers are actually researching technology that has a social conscience -- and that's what's selling (even if they sell the old technology from a brand maker they support ideologically).

Although it is admitted that the current exotic car drivers are less than thrilled at the thought of a green exotic car that will have all the performance features they love because the sound of the old engines screaming will be missing, they are still not averse to buying a new green product and keeping adding to their collection of vintage exotic cars (while planning to hold on to them knowing they will be incredibly valuable antiques). Japan is even working on creating a sound tape that will run with the exotic cars so they run on new green tech but play a tape of the old sounds of speed (seriously... I know it sounds funny but it is a serious sales boost to have a car you can just tell is fast simply by hearing the engine whether idling or racing). So, where will Lamborghini head with their marketing to make the corrections for the second half of the 2009 year and beyond? Our guess is away from the failed strategy of 2008 that had their market reps thumbing their noses at the "Eco" trending technology. I feel comfortable saying that out loud here and in public because after the flurry of Tesla reports, along came Ferrari... and, not to be outdone in their lifetime rivalry, the Bull announced (albeit in what came too late as a press release and sounded like an announcement that came begrudgingly) that they, too, would be following the Cavallino marque and producing something Green [we know not what yet exactly] by -- you guessed it -- 2015.

With the 2016 CAFE cars legislation that mandates 35.5 MPG fuel efficient engines on all new car models, lest they be taxed heavily by terms of the Gas Guzzler tax conditions, Obama started a flurry of global changes in the auto industry. Ferrari is on point with the change, as they are so involved with the masses and finding their pulse by measuring the response to the Formula One racing activity. [Formula One is currently the most popular spectator sport in the world, with World-Cup Soccer ("foot ball") being the fan base rival -- as a sport that enhances team building recreational activity rather than competes.] Lamborghini is not involved in the racing industry, so they don't have that same sense of what revs hearts and what kind of behind-the-scenes trending gossip auto fans are talking about. That leaves them creating products that may be technically perfect in function and form, but appeal to an audience outside of the norm. Once they realign their vision as a company in order to produce a product the public wants (assuming that they decide to target future audiences as a business -- rather than allowing emotional attachment to the old tech products to define and limit them where they currently are) they will see their sales figures almost immediately improve.

Sadly, the anti-green announcements from 2008 and prior years brought the company into a quick cause and effect jerking up of the proverbial undershorts when Obama gave the auto world a metaphorical wedgie after his inauguration. The Chrysler Fiat merger is also giving an advantage to Ferrari over Lamborghini, while companies like Hyundai rising in population tells you where the collective mind of the general public is heading. Better fuel economy, reduced emissions, pitching in and doing their part in the fight against pollution by pulling one more gas guzzler or clunker off the street during each rush hour commute; the desire to be green and high tech successfully is shaping up to be the defining moral and scientific war of the 21st century.

WHAT'S YOUR THOUGHTS? I've opened the topic as a springboard discussion.

For more info:

Hyundai Motor America Reports July 2009 Sales

Sales up substantially as dealers take in 22 percent 'Clunkers' Company delivers 7th straight year-over-year monthly retail market share increase

FOUNTAIN VALLEY, Calif., Aug. 3 /PRNewswire/ -- Hyundai Motor America today announced July sales of 45,553 units, a 21 percent increase over last month and 12 percent increase compared with July 2008. This marks the seventh consecutive month of year-over-year retail share gains, and another all-time record retail market share performance. Cash-for-clunkers deals accounted for 22 percent of Hyundai sales.

"The combination of increasing consumer recognition of Hyundai's industry-leading quality, and the incremental stimulus from the Cash for Clunkers program, led to our second-best July ever," said Dave Zuchowski, vice president of national sales, Hyundai Motor America. "J.D. Power accolades for Hyundai as the highest ranked non-premium brand in quality, combined with our very fuel-efficient lineup, drove sales increases of 13, 30, and 17 percent for Accent, Elantra and Sonata, respectively, over a year ago."

The Cash for Clunkers program is having a positive impact across all sectors of the industry. For example, Hyundai Motor Manufacturing Alabama is now increasing production by returning to a five-day work week in July after being on a shortened work week since mid-October. "We hope the Senate will support the additional $2 billion the House has approved," Zuchowski added. "The program is good for the environment, cuts oil dependency, saves consumers money and is good for the economy - and our dealers have a great lineup of vehicles perfect for customers looking for safe and energy-efficient transportation."

The North American Car of the Year Hyundai Genesis continued its strong sales performance, with sales more than tripling from last year, up 10 percent from a strong performance in June. In July, J.D. Power and Associates presented Genesis with two more major awards: "Most Appealing Mid-Size Premium Car" in the 2009 Automotive Performance, Execution and Layout (APEAL) Study, and the highest ranked 2009 all-new or redesigned vehicle in the inaugural Vehicle Launch Index (VLI).

Hyundai's Central region, comprised of 13 central and midwestern heartland states and about 160 dealers, was Hyundai's best-performing region on a year-over-year basis in July, recording an all-time, any-month sales record. Sales for the month were up 21 percent over a year ago and up 60 percent over June. "In Detroit, sales were up 48 percent from June, and we had an all-time July record in Chicago," said Brian O'Malley, general manager, Central Region. "Middle America can't seem to get enough of Hyundai quality, safety, and value."

Hyundai Assurance and Hyundai Assurance Gas Lock complement America's Best Warranty on eligible new vehicles financed or leased from a participating Hyundai dealer. For full details about the program, visit: www.Hyundai.com.

Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced by more than 790 dealerships nationwide.

 CARLINE JULY/2009 JULY/2008 CY/2009 CY/2008 ------- --------- --------- ------- ------- ACCENT 7,634 6,740 40,562 34,924 SONATA 13,381 11,409 73,862 77,336 ELANTRA 13,616 10,454 53,520 72,432 TIBURON 151 1,102 8,497 6,069 SANTA FE 6,793 6,868 40,266 44,278 AZERA 306 808 2,257 12,251 TUCSON 1,106 1,521 8,658 13,268 ENTOURAGE 32 482 3,375 3,514 VERACRUZ 519 700 7,289 7,048 GENESIS 2,015 619 11,953 649 TOTAL 45,553 40,703 250,239 271,769

Source: Hyundai Motor America

CONTACT: Lori Scholz of Hyundai Motor America, +1-714-965-3890, cell,
+1-714-457-2170, lscholz@hmausa.com

Web Site: http://www.hyundaiusa.com/ via http://www.hyundainews.com/

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ces2010 - autoblog

Posted: 17 Jan 2010 06:33 AM PST

The Cars (and bikes) of CES 2010

The 2010 edition of the Consumer Electronics Show is over, and so we're looking back with some of the vehicular highlights from the floor, and the sidewalk, and the parking lot, too. The rides on hand ran the gamut from a late '40s Chevy Truck that had been gutted and filled with speakers, to the gorgeous matte Lexus above. There were also bikes, like the Brammo, and we even snagged a picture of the Gran Turismo 5 display, just in case you needed proof that the game does indeed exist in some shape or form, even if it's not due in stores ... Read more →

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Connell: Dead of winter is time of hope - Port Huron Times-Herald

Posted: 17 Jan 2010 06:54 AM PST

THE MONEY goes to Port Huron, but the EDA is responsible for putting together an overarching strategy.

This explains why Groden and Doug Alexander, the EDA's executive director, have been working so closely on the project with City Manager Bruce Brown.

Much of the detail work is being done by a consulting firm, Wilbur Smith Associates of Columbia, S.C., which won the $220,000 contract to oversee the project.

A group led by consultant Melissa Ziegler has been compiling demographic information and trying to answer a core question: Just how bad is it?

Ziegler also is working closely with an "executive team" consisting of Alexander, Brown, Groden and 13 other members: Scott Adkins, Mark Bessette, Jeff Beckett, Randy Cutler, Rich Engle, Bill Kauffman, Larry Kinney, Randy Maiers, Dan McCarty, Kevin Pollock, Pauline Repp, John Robbins and Donna Russell-Kuhr.

The larger steering committee had 123 members in late December, but I'm told that number is now closer to 150. Many of them signed up after reading an appeal for volunteers in the Times Herald.

Tuesday's social gathering is a chance for members to mingle. The real work begins Thursday morning with a four-hour session at the Michigan Technical Education Center on Erie Street.

Similar four-hour sessions are planned in February, March and April. A final strategy is due in late May.

"We've got to do this together, get everyone together, come up with one plan -- and then work the plan," says Bessette, general manager of Domtar Industries and a mechanical engineer by training.

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