Congress Extends Transition Deadline for Gift Card Rules

/PRNewswire/ -- The Network Branded Prepaid Card Association (NBPCA) applauds Congress for passing H.R. 5502, the ECO-Gift CARD Act, which will avoid the needless destruction of over 100 million plastic cards and ensure consumer access to these popular gifts during the busy holiday shopping season. The act extends the August 22nd gift card implementation deadline, as mandated by Federal Reserve regulations pursuant to the 2009 Credit Card Accountability Responsibility and Disclosure (CARD) Act, to Jan. 31, 2011. This would allow the industry to sell existing gift cards, gift certificates, store gift cards and general-use prepaid cards produced prior to April 1, 2010, provided they comply with new rules regarding five year expiration of funds, conspicuous disclosures and fees.

"We want to praise members of Congress for recognizing the critical need for this legislation and voting in favor of its passage. This is a win-win for the environment, retailers, industry and most importantly consumers," said Kirsten Trusko, NBPCA President and Executive Director. "The ECO-Gift Card Act makes no change to the CARD Act rules, it simply keeps gift cards on the shelves for consumers this holiday season by not requiring the destruction and replacement of existing gift card inventory. It also avoids disruption to consumers and retailers during the busiest shopping season of the year when 90% of all gift card sales occur. NBPCA fully supports the new gift card rules, which many of our members have already implemented," added Trusko.

The ECO-Gift Card Act or HR 5502 sponsored by Reps. Dan Maffei (D-NY), Carolyn Maloney (D-NY), Carolyn McCarthy (D-NY), Mike McMahon (D-NY), Gregory Meeks (D-NY) and Kevin McCarthy (R- CA) was introduced in the House on June 10, 2010 and passed unanimously 357-0 on June 14th. Senators Jon Tester (D-MT), Evan Bayh (D-IN), Michael Bennet (D-CO), David Vitter (R-LA), Kay Hagan (D-NC), Kristen Gillibrand (D-NY) and Mike Crapo (R-ID) worked diligently to gain support for the bill, which was passed in the Senate July 13, 2010 by unanimous consent.

During the six month transition period and beyond, card issuers must notify consumers of their rights through in store signage, customer service numbers, websites, general press and advertising. Millions of consumers, businesses and governments use prepaid cards every day because they are a convenient, economical and secure payment tool.

The ECO-Gift Card makes no change to the CARD Act. Consumers who purchase old gift card stock currently in stores during the transition period will receive the full benefits of the new rules. NBPCA fully supports these new regulations, some of which include:

-- No service fees such as ATM or reload fees can be charged until one
year after inactivity and then only one fee per month may be charged.
-- Gift cards will have expiration dates of 5 years from the last load.
-- Free replacement cards must be provided or issuers can give the
remaining balance to the cardholder.
-- Disclosure requirements must be made on the cards including fees,
expiration date, toll free number and website where consumers can get
information.
-- Pre-disclosures regarding fees and expirations must be disclosed prior
to purchase and may not be changed after purchase.



NBPCA remains committed to supporting a regulatory framework where there are fewer, not more, barriers preventing consumers from accessing sound financial services products which best meet their individual needs. The prepaid card industry continues to experience exponential growth across all channels from gift cards and payroll cards to health and general purpose reloadable cards because consumers remain highly satisfied with the products, their ease of use and affordability.

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GM Retirees Call for Congressional Protection of Benefits

/PRNewswire/ -- Following denial by the federal bankruptcy court of the General Motors Retirees Association application for a benefits committee to protect GM salaried retirees, GMRA is now asking the U.S. Congress to act immediately in defense of the benefits these GM retirees earned through decades of labor and loyalty to GM.

"We at GMRA are deeply disappointed by the failure of the bankruptcy court to allow us to take reasonable steps under Section 1114 of the Bankruptcy Code to protect the health and security of all GM retirees," said John Christie, GMRA President. "The court, in our opinion, did not do what was necessary to permit all parties to be treated fairly."

"While the GMRA leadership will consider all the legal options available to us, we now look squarely to the Obama administration and to the U.S. Congress to make certain there is a fair process and outcome for all GM retirees," said Christie. "GM retirees always expected to sacrifice as part of GM's restructuring, but one group of retirees shouldn't bear the bulk of that burden. Surely our elected officials can intervene to protect the sick and elderly from poverty when these people worked hard and played by the rules."

The majority of all General Motors retirees have been represented by the United Auto Workers in negotiations with the GM leadership and bondholders on pension, healthcare, and other benefits.

However, over 122,000 salaried retirees and their surviving spouses were not part of the UAW agreement and have had no representation in discussions about the new GM. These non-union, salaried retirees were engineers, project managers, clerks, and other employees. Many earned annual salaries equal to or less than the wages earned by union employees.

For the non-UAW retirees, who live throughout the United States, the current GM proposal would reduce certain benefits by two-thirds, including the outright elimination of dental, vision, and long-term disability coverage. The retirees would see significant increases in premiums, co-payments and deductibles for health care.

The non-UAW retirees also would face an immediate reduction of life insurance benefits following the emergence of the new GM from bankruptcy. In some cases retirees would lose $70,000 or more in life insurance benefits.

"For people living on a fixed income, the benefit losses proposed by GM are breathtaking," said Karen DeOrnellas, Director of Communications for GMRA. "These retirees are old. Many are sick or disabled. In almost all cases they cannot make this money back or return to work."

GM retirees have written GMRA to say the latest proposals for benefit losses will make them choose between paying for prescription drugs and paying for food, electricity, and housing. Many will be unable to replace lost life insurance, jeopardizing the ability of their spouses to remain in their homes.

"We want a reorganized GM to succeed, but bankruptcy shouldn't push tens of thousands of retirees and their families into poverty or endanger their health when those people did nothing wrong," said DeOrnellas.

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UPS Bailout Opposed by FedEx Express

(BUSINESS WIRE)--United Parcel Service – the 100-year-old company that operated for decades as a parcel-delivery monopoly – is quietly seeking a Congressional bailout designed to limit competition for overnight deliveries, leaving Americans with less reliable next-day delivery network for critical goods like medicines and essential inventory, according to "BrownBailout.com” and a public-education campaign launched today by the creator of the overnight delivery, FedEx Express.

The focus of the campaign is the 230-word bailout to UPS written into the voluminous FAA Reauthorization Act of 2009 currently before Congress that would force FedEx Express – UPS’ primary competitor for next-day deliveries – to operate under a law not designed for airlines and express companies.

“In 1997 UPS experienced a system-wide strike that crippled business and commerce across America. Now it wants Congress to expose FedEx Express to that risk,” said Maury Lane, FedEx Express spokesperson. “America relies too much on the reliability and dependability of the FedEx Express overnight-delivery network, and we can’t allow this bailout to pass only because UPS wants to harm its main competitor.”

UPS and FedEx Express are fundamentally different companies. UPS – the largest political giver to Congress over the decades – is a trucking company, shipping 85 percent of its parcels on the ground. FedEx Express is an airline, flying 85 percent of its packages in the air.

“The operations of an overnight airline and that of a traditional trucking company are radically different. You can’t shoehorn an airline into trucking company’s rules and still expect critical packages to arrive within hours on the other side of the country,” Lane said. “UPS is making a problem where one doesn’t exist. This is a bailout, plain and simple, and the American people won’t stand for it.”

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Companies Across U.S. Poised for Growth Under Cap on Carbon

/PRNewswire-USNewswire/ -- Environmental Defense Fund today released a groundbreaking online map that identifies and profiles more than 1,200 companies in key manufacturing states poised to grow their business and create new jobs when Congress passes a cap on global warming pollution.

The interactive map, online at LessCarbonMoreJobs.org, was released at the first meeting of Vice President Joe Biden's task force on middle class jobs in Philadelphia. It highlights hundreds of companies and communities in coal country, the rust belt and other manufacturing regions poised to benefit from demand for clean energy technologies created by a cap on carbon.

Vice President Biden hosted EDF President Fred Krupp and a range of experts to highlight new ways to increase renewable energy jobs and improve America's energy efficiency. Krupp said EDF's map shows that a carbon cap will create new markets and new customers for companies in the supply chain for low-carbon energy technologies and services.

"Our nation is rich with a skilled and dedicated workforce waiting for the economic opportunity that comes with a cap on carbon, especially in the current economy," said Krupp. "A cap creates customers for U.S. manufacturers, and new customers mean new jobs. If there was ever a time we needed new customers at home and abroad, that time is now."

LessCarbonMoreJobs.org identifies the locations, products, and services as well as select case studies and worker profiles for companies in 12 states: Michigan, Ohio, Pennsylvania, Indiana, New Hampshire, Arkansas, Tennessee, Colorado, Georgia, Missouri, Virginia and Florida.

Jackie Roberts, Director of Sustainable Technologies for EDF, spearheaded the research behind the website. "These maps tell the story of how a cap can fuel economic growth in the heartland while reducing America's global warming pollution," Roberts said. "There is a manufacturing boom ready to happen, and a cap will help ignite that spark."

LessCarbonMoreJobs.org allows visitors to search by state, Congressional district and media market to find companies manufacturing windmill components, shipping solar panel equipment and installing energy efficient building materials. The site also provides business details and contact information for companies in each profiled state.

Among the business leaders highlighted is Jeff Metts, owner and president of Dowding Industries, a Michigan-based manufacturer of large-scale machinery and parts that is hiring laid-off auto workers to build wind turbine components.

"This business is growing exponentially," Metts said. "I don't come here as the owner of a company that last year employed 250 people, I come here excited about being the owner of a company that will create hundreds of jobs for our community and the possibility of thousands of jobs for our state in this new energy market. We've tapped into a workforce eager to apply their skills from previous jobs to our new ventures, and the result has been incredible. We're ready to do much more."

Abe Breehey, Director of Legislative Affairs for the International Brotherhood of Boilermakers, said, "The demand for climate solutions will create job opportunities across the economy. We can put American ingenuity and skills to work to reduce emissions, with all the necessary labor and materials to make it happen. With the right market signals, we can turn the jobs union members do everyday into the environmental solutions our nation needs to meet this enormous challenge."

Bill Keith, president of the St. John, Indiana-based Sunrise Solar, Inc., echoed Breehey's comments.

"We're producing solar-powered attic fans, trying to keep up with a demand that's skyrocketing," Keith said. "We saw a market for energy efficient products and technologies that help consumers reduce their energy consumption, and we've been greeted with overwhelming support and demand. But we know there's much more to do. We are hoping that Congress finally puts the economy on a path to embrace these technologies. My operation is ready to grow, and I know others companies like mine are ready too."

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Detroit Bailout: Many Questions Remain, Says Finance Expert

As the Big Three automakers defend their restructuring plans before Congress this week, finance professor Ray Hill of Emory's Goizueta Business School points out that many Americans remain skeptical that a Detroit bailout is anything more than rewarding a failed status quo.

The automakers are promising that with federal loan help, "they will have gotten out of their health care obligations to retirees, and that they will be able to realize compensation costs savings from new hires," says Hill. "But if you look at their data, it's not clear that, three years from now, they still won't be paying their workers more than the international auto companies operating in the U.S."

"The first question is a question of equity: Why are taxpayers being asked to fund the Big Three autoworkers and not other autoworkers in the U.S.?" asks Hill.

The Big Three project that with government help, "in four or five years they could make cars more or less competitively with other companies that make cars in the United States," says Hill. "The question is why should taxpayers finance four or five years of inefficiency, higher wages and benefits for one segment of the population? Carmakers can project future viability on paper, but is anyone going to want to buy those cars four or five years from now?"

Hill questions the efficacy of GM's proposal to eliminate some lines of business. "When they eliminated Oldsmobile, because of state franchise laws, they had huge financial obligations to franchisees when they tried to exit that line of production. Are we actually going to be putting up money to pay car dealers so that the Big Three can meet their obligations under an antiquated system of selling cars?"

Hill also is critical of the two-fleet system, in which American automakers are not allowed to import into the United States the more fuel-efficient cars they make overseas to help meet current U.S. fuel economy standards. "Are we going to continue to have a two-fleet rule, which makes U.S. auto companies unable to make their fuel economy standards, but does help preserve UAW jobs?"

Hill, who is assistant professor in the practice of finance, is a former investment banker who teaches managerial economics and finance.

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Ford Motor Company Submits Business Plan to Congress; Profit Target, Electric Car Strategy Among New Details

/PRNewswire-FirstCall/ -- Ford Motor Company (NYSE:F) this morning submitted to Congress its comprehensive business plan, which details the company's plan to return to profitability and outlines a request for potential access to a temporary bridge loan in case the current economic crisis worsens or there is a bankruptcy of a major competitor.

In the plan, Ford said the transformation of its North American automotive business will continue to accelerate through aggressive restructuring actions and the introduction of more high-quality, safe and fuel-efficient vehicles -- including a broader range of hybrid-electric vehicles and the introduction of advanced plug-in hybrids and full electric vehicles.

Ford is asking for access to up to $9 billion in bridge financing, but reiterated that it hopes to complete its transformation without accessing the loan should Congress agree to make the funds available.

Despite the serious global economic downturn, Ford said it does not anticipate a liquidity crisis in 2009 -- barring a bankruptcy by one of its domestic competitors or a more severe economic downturn that would further cripple automotive sales and create additional cash challenges.

"For Ford, government loans would serve as a critical backstop or safeguard against worsening conditions, as we drive transformational change in our company," said Ford President and CEO Alan Mulally, who will testify before Congress this week.

In the plan submitted to Congress, Ford reiterated that its One Ford transformation plan remains fully in place, anchored by four key priorities:

-- Aggressively restructure to operate profitably at the current demand and changing model mix;

-- Accelerate development of new products our customers want and value;
-- Finance our plan and improve our balance sheet; and
-- Work together effectively as one team, leveraging our global assets.

"Ford is committed to building a sustainable future for the benefit of all Americans," Mulally said. "We believe Ford is on the right path to achieve this vision.

"We appreciate the valid concerns raised by Congress about the future viability of the industry," he added. "We hope that our submission today helps instill confidence in Ford's commitment to change, including our accountability and shared sacrifice during this difficult economic period."

Ford's submission to Congress included new details about Ford's future plans and forecasts, including:

-- Based on current business planning assumptions -- including U.S. industry sales for 2009, 2010 and 2011 of 12.5 million units, 14.5 million units and 15.5 million units, respectively -- Ford expects both its overall and its North American automotive business pre-tax results to be breakeven or profitable in 2011, excluding any special items.

-- As part of a continuing focus on building the Ford brand, the company said it is exploring strategic options for Volvo Car Corporation, including the possible sale of the Sweden-based premium automaker. The strategic review is in line with a broad range of actions Ford is taking to strengthen its balance sheet and ensure it has the resources to fund its plan. Since 2007, Ford has sold Aston Martin, Jaguar, Land Rover and the majority of its stake in Mazda.

-- Ford's plan calls for an investment of approximately $14 billion in the U.S. on advanced technologies and products to improve fuel efficiency during the next seven years.

-- Half of the Ford, Lincoln and Mercury light-duty nameplates by 2010 will qualify as "Advanced Technology Vehicles" under the U.S. Energy Independence and Security Act -- increasing to 75 percent in 2011 and more than 90 percent in 2014. Ford said it has included these projects in its application to the Department of Energy for loans under that Act and hopes to receive $5 billion in direct loans by 2011 to support Ford's investment in advanced technologies and products.

-- From its largest light duty trucks to its smallest cars, Ford will improve the fuel economy of its fleet an average of 14 percent for 2009 models, 26 percent for 2012 models and 36 percent for 2015 models -- compared with the fuel economy of its 2005 fleet. Overall, Ford expects to achieve cumulative gasoline fuel savings from advanced technology vehicles of 16 billion gallons from 2005 to 2015.

-- Next month at the North American International Auto Show in Detroit, Ford will discuss in detail the company's accelerated vehicle electrification plan, which includes bringing to market by 2012 a family of hybrids, plug-in hybrids and battery electric vehicles. The work will include partnering with battery and powertrain systems suppliers to deliver a full battery electric vehicle (BEV) in a van-type vehicle for commercial fleet use in 2010 and a BEV sedan in 2011. Ford said it will develop these vehicles in a manner that enables it to reduce costs and ultimately make BEVs more affordable for consumers.

-- The 2007 UAW-Ford negotiations resulted in significant progress being made in reducing the company's total labor cost. Given the present economic crisis and its impact upon the automotive industry, however, Ford is presently engaged in discussions with the UAW with the objective to further reduce its cost structure and eliminate the remaining labor cost gap that exists between Ford and the transplants.

-- As previously was announced, Ford plans two additional plant closures this quarter and four additional plant closures between 2009 and 2011. The company also has announced its intent to close or sell what will be four remaining ACH plants. The company said it will continue to aggressively match manufacturing capacity to real demand.

-- Ford will continue to work to reduce its dealer and supplier base to increase efficiency and promote mutual profitability. By year end, Ford estimates it will have 3,790 U.S. dealers, a reduction of 606 dealers overall -- or 14 percent from year-end 2005 -- including a reduction of 16 percent in large markets. In addition, Ford has been able to reduce the number of production suppliers eligible for major sourcing from 3,400 in 2004 to approximately 1,600 today, a reduction of 53 percent. Ford eventually plans to further reduce the number of suppliers eligible for major sourcing to 750.

-- Ford also confirmed today that it has decided to sell its five corporate aircraft. In addition, Ford CEO Mulally announced that, should Ford need to access funds from a potential government bridge loan, he would work for a salary of $1 a year -- as a sign of his confidence in the company's transformation plan and future.

Ford also reiterated that it is canceling all bonuses to be paid in 2009 for all management employees worldwide and foregoing bonuses for all employees in North America. The company also will not pay merit increases for North America salaried employees in 2009.

Ford said it is moving fully ahead with plans it announced this summer to leverage the company's global product strengths and bring more smaller, fuel-efficient vehicles to the U.S. The plan includes delivering best-in- class or among the best fuel economy with every new vehicle introduced. Ford also is introducing industry-leading, fuel-saving EcoBoost engines and doubling the number and volume of hybrid vehicles.

This product acceleration will result in a balanced product portfolio with a complete family of small, medium and large cars, utilities and trucks. Ford said it is increasing its investment in cars and crossovers from approximately 60 percent in 2007 to 80 percent of its total product investment in 2010.

"Ford has a comprehensive transformation plan that will ensure our future viability -- as evidenced by our profitability in the first quarter of 2008," Mulally said. "While we clearly still have much more work to do, I am more convinced than ever that we have the right plan that will create a viable Ford going forward and position us for profitable growth."

To read Ford's submission to the U.S. Congress and for more information about Ford's plan, please visit www.thefordstory.com .

Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, United States, manufactures or distributes automobiles in 200 markets across six continents. With about 224,000 employees and about 90 plants worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit www.ford.com .

Safe Harbor/Risk Factors

Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on expectations, forecasts and assumptions by our management and involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those stated, including, without limitation:

-- Continued decline in market share;

-- Continued or increased price competition resulting from industry overcapacity, currency fluctuations or other factors;

-- A further increase in or acceleration of the market shift away from sales of trucks, SUVs, or other more profitable vehicles, particularly in the United States;

-- Further significant decline in industry sales, resulting from slowing economic growth, geo-political events, or other factors;

-- Lower-than-anticipated market acceptance of new or existing products;
-- Further increases in the price for, or reduced availability of, fuel;
-- Currency or commodity price fluctuations;

-- Adverse effects from the bankruptcy or insolvency of, change in ownership or control of, or alliances entered into by a major competitor;

-- Economic distress of suppliers of the type that has in the past and may in the future require us to provide financial support or take other measures to ensure supplies of components or materials;

-- Labor or other constraints on our ability to restructure our business;

-- Work stoppages at Ford or supplier facilities or other interruptions of supplies;

-- Single-source supply of components or materials;

-- Substantial pension and postretirement health care and life insurance liabilities impairing our liquidity or financial condition;

-- Inability to implement the Retiree Health Care Settlement Agreement to fund and discharge UAW hourly retiree health care obligations;

-- Worse-than-assumed economic and demographic experience for our postretirement benefit plans (e.g., discount rates, investment returns, and health care cost trends);

-- The discovery of defects in vehicles resulting in delays in new model launches, recall campaigns, or increased warranty costs;

-- Increased safety, emissions, fuel economy, or other regulation resulting in higher costs, cash expenditures, and/or sales restrictions;

-- Unusual or significant litigation or governmental investigations arising out of alleged defects in our products or otherwise;

-- A change in our requirements for parts or materials where we have entered into long-term supply arrangements that commit us to purchase minimum or fixed quantities of certain parts or materials, or to pay a minimum amount to the seller ("take-or-pay" contracts);

-- Adverse effects on our results from a decrease in or cessation of government incentives;

-- Adverse effects on our operations resulting from certain geo-political or other events;

-- Substantial negative Automotive operating-related cash flows for the near- to medium-term affecting our ability to meet our obligations, invest in our business, or refinance our debt;

-- Substantial levels of Automotive indebtedness adversely affecting our financial condition or preventing us from fulfilling our debt obligations (which may grow because we are able to incur substantially more debt, including additional secured debt);

-- Failure of financial institutions to fulfill commitments under committed credit facilities;

-- Inability of Ford Credit to obtain an industrial bank charter or similar banking status;

-- Inability of Ford Credit to access debt, securitization or derivative markets around the world at competitive rates or in sufficient amounts due to additional credit rating downgrades, market volatility, market disruption, or otherwise;

-- A prolonged disruption of the debt and securitization markets;
-- Higher-than-expected credit losses;

-- Increased competition from banks or other financial institutions seeking to increase their share of financing Ford vehicles;

-- Changes in interest rates;

-- Collection and servicing problems related to finance receivables and net investment in operating leases;

-- Lower-than-anticipated residual values or higher-than-expected return volumes for leased vehicles;

-- New or increased credit, consumer or data protection or other regulations resulting in higher costs and/or additional financing restrictions; and

-- Inability to implement our plans to further reduce structural costs and increase liquidity.

We cannot be certain that any expectation, forecast or assumption made by management in preparing forward-looking statements will prove accurate, or that any projection will be realized. It is to be expected that there may be differences between projected and actual results. Our forward-looking statements speak only as of the date of their initial issuance, and we do not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. For additional discussion of these risks, see "Item 1A. Risk Factors" in our 2007 Form 10-K Report and our third quarter 2008 Form 10-Q Report.

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