AAA Goes Public With Concerns About E15

The American Automobile Association (AAA) issued a press release on Nov. 30 stating that 95 percent of consumers surveyed had not heard of E15, and only 5 percent of vehicles on the road have been approved for E15 use. The recent survey undertaken by AAA has pointed to the strong likelihood of consumer confusion, vehicle damage and voided warranties as a result of the Environmental Protection Agency's (EPA) approval of the E15 blend of ethanol. AAA further called on regulators and the industry to stop the sale of E15 until motorists are better protected.

From AAIA Capital Report

The American Automobile Association (AAA) issued a press release on Nov. 30 stating that 95 percent of consumers surveyed had not heard of E15, and only 5 percent of vehicles on the road have been approved for E15 use. The recent survey undertaken by AAA has pointed to the strong likelihood of consumer confusion, vehicle damage and voided warranties as a result of the Environmental Protection Agency’s (EPA) approval of the E15 blend of ethanol. AAA further called on regulators and the industry to stop the sale of E15 until motorists are better protected.

“It is clear that millions of Americans are unfamiliar with E15, which means there is a strong possibility that many motorists may improperly fill up using this gasoline and damage their vehicle,” said Robert Darbelnet, AAA president and CEO. “Bringing E15 to the market without adequate safeguards does not responsibly meet the needs of consumers.”

BMW, Chrysler, Nissan, Toyota and Volkswagen have publicly stated that their warranties will not cover fuel-related claims caused by the use of E15. GM, Ford, Honda, Hyundai, Kia, Mazda, Mercedes-Benz and Volvo have also stated that the use of E15 does not meet the fuel requirements in their owner’s manuals and may void warranty coverage.

While an oil industry study found conclusive damage to two popular vehicle engines, the EPA and the Department of Energy tested 2001-and-newer vehicles and found no damage associated with the use of E15. Other industry groups have filed lawsuits against the EPA approval of E15. The use of E15 is strongly defended by the Renewable Fuels Association.

Rep. Jim Sensenbrenner (R-Wis.) had previously introduced H.R. 3199, which would require a comprehensive assessment of the scientific and technical research on the implications of fuel with more than 10 percent ethanol. The bill passed the House Committee on Science, Space and Technology by a vote of 19-7. Sensenbrenner issued his own release on Nov. 30 that stated, “I introduced legislation to do exactly what AAA recommends. My legislation would require the EPA to task the National Academies of Science with conducting an unbiased study of E15.”

The AAA release can be viewed here.

When Your Shop Is Worth Much More Than You Thought

Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.

Case Study: Owner of San Francisco-based Import Service Shop Delighted to Discover Just How Valuable His Business is to Qualified Buyers
I sometimes share case studies of the clients I have been able to assist in my role as an aftermarket business broker and provider of intermediary and advisory services. I do that when I think the story will provide a reader in similar circumstances with new insights or helpful information.
In the case of Cowden Automotive, Inc., I acted in a consulting capacity assisting the owner and his broker in valuing the business, creating a marketing plan, finding a qualified buyer, and arranging financing for the sale.
Although every sale of a shop in which I am involved has its own unique set of circumstances, which makes my job both very interesting and very challenging, Cowden Automotive stands out as particularly memorable because I was able to demonstrate to the long-time owner, Paul Cowden, that his business was worth about three times what he had initially thought.
Needless to say, delivering that kind of good news to a shop owner is a rewarding experience. Discovering that the sale of his business would result in his retirement nest-egg being substantially larger than he had ever thought was a fitting tribute to someone who had spent his entire working career as a busy automotive service shop owner.

Read Full Article