2012-05-16

DETROIT – With the official start of the summer driving season fast approaching, Chevrolet is reminding consumers of some easy ways to maintain their vehicles and drive smarter to help improve fuel economy and save money at the pump.

To demonstrate 10 common mistakes drivers make that hurt their fuel economy, General Motors fuel economy engineers Ann Wenzlick and Beth Nunning drove identical Chevrolet Cruze LTs with an EPA estimated at 24 mpg city and 36 mpg highway, on a typical workday commute. For the route, they drove both cars for 20 minutes, including city and highway driving as well as stopping for coffee.

The results show that sweating the small stuff could save drivers as much as $100 a month in fuel costs. Wenzlick averaged 37 miles per gallon using efficient driving habits in a properly maintained Cruze. Driving inefficiently and ignoring common maintenance, Nunning managed only 21 miles per gallon. The difference means Nunning would get 250 fewer miles per tank of gas, while Wenzlick would save $100 a month – or $1,200 a year – assuming 15,000 miles and $4 a gallon for gas:

“Ann and Beth’s results support data from OnStar that shows the fuel economy of drivers in identical cars can vary by 75 percent,” said Roger Clark, manager of the GM Energy Center. “With a well-maintained car, the best drivers get up to 25 percent more miles per gallon than average. When you combine a poorly maintained car with inefficient driving habits, the fuel economy of the worst drivers can be 50 percent below average.

“The fuel economy of every vehicle is greatly affected by how you drive, and how you care for your vehicle,” Clark said. “Often, relatively small changes to your driving habits and vehicle maintenance can make the difference between being on the bottom, or the top, of the fuel-economy scale.”

Five Driving Tips to Save at the Pump

Here are five things Ann Wenzlick did to drive more efficiently in her Cruze:

1. Get out of the drive-through lane.
   “While Beth waited in the drive-thru with her car running, I shut off the engine and went inside for my morning coffee. Idling for 15 minutes burns through an average of a quarter of a gallon – adding another $1 to the cost of your latte.”
2. Take it easy
   “In the city, I accelerated smoothly while Beth demonstrated one of the most common mistakes we see on the road: Jumping on the gas at every light, only to hit the brakes as she caught up with the traffic ahead. Such aggressive driving isn’t going to get you home any faster, while driving smoothly can improve your mileage by 20 percent.”
3. Driving 70, not 80.
   “On the highway, I drove 70, compared to Beth’s 80. Again, a 10-mph difference likely won’t add much time to your daily commute, but it will save you up to four miles per gallon on the highway.”
4. Use cruise control
   “I tried to maintain a constant speed during our drive, while Beth’s fluctuated with traffic. Try using cruise control when possible, and maintaining a constant speed over time, which is much more efficient than speeding up and slowing down over and over again.”
5. Roll up the windows
   “One of the most common questions we get is ‘Is it better to drive with the A/C on, or off?’ At slower speeds, turning off the air conditioning can save you a little, but I always roll up the windows on the highway. Beth was driving with her windows down, and the increased air pressure acted like a parachute trying to slow her down – consuming much more energy than air conditioning ever will.”

Five Vehicle Mistakes That Hurt MPG:

Here are things that contributed to Beth Nunning’s poor fuel economy:

1. Low tire pressure
   “All four tires on my car were five pounds under their recommended air pressure. That’s not enough to change how the Cruze drives, but it does make the engine work much harder to turn the wheels. Check your tires at least once a month, as a tire that is 10 pounds under pressure can cut your fuel efficiency by more than 3 percent.”
2. Using roof ornaments
   “To show support for my Detroit Tigers, I put up window flags on my Cruze for every home game. But, when the boys hit the road, the flags will come down. At highway speeds, up to a third of your fuel is used to overcome wind resistance, so even small changes to your vehicle’s aerodynamics will have a big impact in fuel economy.”
3. Carrying extra junk in the trunk
   “I had six bags of water-softener salt in the trunk I bought on sale at the hardware store. But, according to EPA estimates, every 100 pounds of weight can reduce fuel economy by 2 percent. While I saved at the checkout, that 240 pounds of salt added almost 5 percent to my fuel costs for the trip.”
4. Ignoring the “check engine” light
   “I called OnStar to run a remote diagnostics check on my Cruze, because the check engine light was on. Turns out the light was on because the gas cap was loose. But more serious engine problems can cut your fuel economy by up to 40 percent.”
5. Not bundling errands
   “An engine at operating temperature is up to 50 percent more efficient than a cold engine. So, when possible, it’s much better to run five errands in an afternoon, than running one errand every day of the week.

Regular Vehicle Maintenance Tips That Can Save Money in the Long-run:

1. Make your tires last
   Properly inflated tires will improve your fuel economy, and they will last longer. Also rotate tires at manufacturer-recommended intervals.
2. Use the recommended grade of motor oil
   Motor oil that says “Energy Conserving” on the performance symbol of the American Petroleum Institute contains friction-reducing additives that can improve fuel economy.
3. Check your owner’s manual for the most effective octane level for your car.
   For most cars, the recommended gasoline is regular octane. In most cases, using a higher-than-recommended octane gas offers no benefit – and costs more.
4. Batteries can make or break you
   Check battery life, replace or charge your current battery and make sure battery cables are free of corrosion. Many breakdowns occur because batteries aren’t delivering full cranking power.
5. Get regular engine tune-ups and car maintenance checks.
   According to the EPA, tune-ups improve performance as well as gas mileage. Check your owner’s manual for recommended maintenance schedules and follow them. This will avoid fuel economy problems due to worn spark plugs, dragging brakes, low transmission fluid, or the transmission failing to go into high gear.
6. Be skeptical about any gizmo that promises to improve your gas mileage. The EPA has tested supposed gas-saving devices – including “mixture enhancers” and fuel line magnets – and found that very few provided any fuel economy benefits. The devices that did work provided only a slight improvement in gas mileage. In fact, some products may damage your car’s engine or cause a substantial increase in exhaust emissions. For a full list of tested products, visit www.epa.gov/otaq/consumer/reports.htm.

Founded in 1911 in Detroit, Chevrolet is now one of the world’s largest car brands, doing business in more than 140 countries and selling more than 4million cars and trucks a year. Chevrolet provides customers with fuel-efficient vehicles that feature spirited performance, expressive design, and high quality. More information on Chevrolet models can be found at www.chevrolet.com.

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CONTACT: Jack Ferry, Mercedes-Benz Financial Services, +1-248-761-3233, john.r.ferry@daimler.com

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CONTACT: Julie Shipp, +1-404-568-7914 (o) +1-404-558-7837 (m), julie.shipp@autotrader.com

Web Site: http://www.autotrader.com

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NEW YORK, May 16, 2012 /PRNewswire/ – The Automotive Resource Network Holdings (ARNH.PK)  today addressed present shareholders’ concerns over the recent aggressive and unexplained trading that has taken place. Over the past week a large amount of shares has traded hands and, in our opinion, has clearly been done in an attempt to disrupt the stability of the stock price and gain at the expense of the overall shareholders. ARNH management is aware of 100% of all Free Trading shares available to be sold into the market.  As part of the master plan to get the company on a firm financial footing, ARNH was able to “erase” almost ALL of the outstanding debt against the company by issuing the debt holders either a block of restricted or free trading common shares of the company.  Kathy Roberton CEO said, “Over many months, plans and overall actions were discussed and agreed upon, in a ‘gentlemanly fashion,’ with Note Holders of ARNH that were designed to protect long term both the company and the shareholders.” Roberton went on to say, “Upon our detailed investigation beginning last Thursday, we have verified the activity of all issued shares except that of the shares issued to settle previous management debt of Diversity Group International. Several requests have been made to verify the detailed activity of this block of common shares, yet parties have failed to respond. In the absence of any communication, I can only conclude, in my opinion, that this indicates a deliberate and intentional attempt to personally gain at the expense of the shareholders and the company. I am appalled and angered by this action, and our SEC attorney is looking into any possible wrongdoing.”

ARNH management is confident and excited with both the short term and long term future goals of the company.  In conclusion, Roberton went on to say, “We will be releasing a complete DRTV initiative plan and launch dates shortly, and are diligently revamping websites and the network marketing compensation plan to fall more in line with our distributors’ wants and needs. This will give us a rock-solid base and revenues to sustain the growth of the company.”

About The Automotive Resource Network Holdings, Inc.: The Automotive Resource Network Holdings, Inc. offers a unique month to month vehicle service contract and roadside assistance products direct to consumers through independent sales channels.

Cautionary Statement Regarding Forward-Looking Statements

Statements in this press release relating to The Automotive Resource Network Holdings, Inc.’s future plans, expectations, beliefs, intentions and prospects are “forward-looking statements” and are subject to material risks and uncertainties. When used in this press release, the words “will,” “future,” “expect,” “look forward to,” similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Diversity Group International, Inc. (the “Company”) that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur. All information set forth in this press release is current as of May 16, 2012.

The Company undertakes no duty to update any statement in light of new information or future events unless required by law.

Contact:
The Automotive Resource Network Holdings, Inc.
info@thearn.com

SOURCE The Automotive Resource Network Holdings, Inc.

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Editor’s note: For an electronic image of the award presentation, contact Deanna Lorincz (dlorincz@steel.org) at (248) 945-4763.

CONTACT: Deanna Lorincz, +1-248-945-4763, dlorincz@steel.org

Web Site: http://www.autosteel.org

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CONTACT: Robyn Eagles, +1-949-268-3049, regales@kbb.com, Joanna Pinkham, +1-949-268-3079, jpinkham@kbb.com, or Brenna Robinson, +1-949-267-4781, berobinson@kbb.com

Web Site: http://www.kbb.com

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5/15/2012 Defendants in a debt collection operation that allegedly sought payment for bogus magazine subscription debts have settled with the Federal Trade Commission.

The FTC alleged in its complaint that the defendants knew, or should have known, that some of the magazine subscription debts they were collecting were not valid. The defendants, who handle collection of hundreds of thousands of accounts each year, violated the FTC Act, the Fair Debt Collection Practices Act, and the Telemarketing Sales Rule, according to the complaint.

The proposed settlement order, filed by the Department of Justice on the FTC’s behalf, bars Luebke Baker and Associates, Inc., Kevin Luebke, and other defendants from representing that a consumer owes a debt without having a reasonable basis to do so, and from making any other misrepresentations when collecting debts or selling goods and services.  It also requires the defendants to conduct a reasonable investigation when a consumer disputes a debt or when the defendants otherwise have reason to question whether the debt is valid.

Under the proposed settlement order, when the defendants attempt to collect debts, they must provide consumers with disclosures about their rights under the Fair Debt Collection Practices Act.  The proposed order also requires the defendants to inform their collection employees of their personal obligations under the Act.

The Luebke defendants allegedly collected on debts for magazine subscriptions despite the fact that the FTC had successfully sued the company that originally sold the magazine subscriptions for deceptive marketing.  The defendants were notified of a 2003 federal court order against Cross Media Marketing Corp. that placed special requirements on anyone attempting to collect payment for these magazine subscriptions.

The FTC alleged that the Luebke defendants ignored these requirements and repeatedly told consumers the debts were due and payable.

The complaint also alleges that the Luebke defendants:

• illegally masked their identity and sent false information over caller ID, falsely posing as Ed McMahon, attorneys from a law firm, and other entities;
• falsely told consumers that magazine subscription debts are exempt from the statute of limitations; and
• illegally threatened to garnish wages and take other unintended legal actions.

The defendants also marketed a credit repair CD titled “Credit Solutions,” allegedly collecting an up-front fee before providing any goods or services, in violation of the Telemarketing Sales Rule, which bans advance fees imposed by companies selling credit repair goods and services, according to the complaint.

The complaint and proposed settlement against Luebke Baker and Associates, Inc. and Kevin Luebke also name as defendants Leslie M. Farrar, Matthew T. Scott, and Joel P. Ferguson. They also name Kevin Luebke’s wife, Julissa Luebke, as a relief defendant.

The proposed settlement imposes monetary judgments totaling $3.1 million – $2.3 million in civil penalties for violations of the Fair Debt Collection Practices Act, $730,000 in disgorgement for collecting Cross Media Marketing Corp. accounts in violation of the FTC Act, and $45,000 in restitution to consumers for charging an advance fee for a credit repair product in violation of the Telemarketing Sales Rule.  In addition, a judgment is imposed against relief defendant Julissa Luebke for $420,000.  The judgments will be suspended, based on most of the defendants’ inability to pay, when Farrar pays $20,000.  If it is later determined that the financial information the defendants provided was false, the full amount of the judgments will become due.

For consumer information about dealing with debt collectors, see Debt Collectio n
FAQs:  A Guide for Consumers.

The Commission vote to authorize the staff to refer the complaint to the Department of Justice and to approve the proposed consent decree was 3-1, with Commissioner J. Thomas Rosch voting no.  The Department of Justice filed the complaint and proposed consent decree on the FTC’s behalf in the U.S. District Court for the Central District of Illinois, Peoria Division, on May 11, 2012.  The proposed consent decree is subject to court approval.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest.  The complaint is not a finding or ruling that the defendant has actually violated the law.  This consent decree is for settlement purposes only and does not constitute an admission by the defendant of a law violation.  Consent decrees have the force of law when signed by the District Court judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

MEDIA CONTACT:

Betsy Lordan
Office of Public Affairs
202-326-3707

STAFF CONTACT:

Tom Carter
FTC Southwest Region
214-979-9372

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AUBURN HILLS, Mich., May 14, 2012 /PRNewswire/ –

• A $500 ‘Military Appreciation Bonus Consumer Cash’ allowance will be applied toward the retail purchase or lease of a new, eligible Chrysler, Jeep®, Dodge, Ram Truck, or FIAT brand vehicle
• All franchised Chrysler Group dealers are eligible to participate
• Bonus cash offered for limited time

Chrysler Group LLC today announced that the company will expand its support for the U.S. military by adding a $500 “Military Appreciation Bonus Consumer Cash” allowance to the retail purchase or lease of a new, eligible Chrysler, Jeep®, Dodge, Ram Truck, or FIAT brand vehicle from May 14 through May 31, 2012.

The “Military Appreciation Bonus Consumer Cash” is on top of the $500 military bonus cash that the Chrysler Group already offers to eligible members of the military and their families.

Eligible consumers include active military, active military reserve, retired military (honorable discharge required), and retired military reserve (honorable discharge required). All honorably discharged veterans are eligible regardless of discharge date.

“Chrysler Group and its dealers are proud to support the members of the U.S. Armed Forces and their families by offering this additional Military Appreciation Bonus Consumer Cash,” said Reid Bigland, President and Chief Executive Officer – Dodge Brand and Head of U.S. Sales. “During this 18-day period, eligible members of the military and their families can take advantage of this $1,000 cash allowance to purchase or lease a new Chrysler Group vehicle.”

This limited-time offer is available on 2012 Chrysler, Jeep, Dodge, Ram Truck, and FIAT brand vehicles, excluding the 2012 Dodge Avenger SE, Chrysler 200 LX sedan, Dodge Journey AVP, Fiat 500 Abarth, all SRT models, and the Viper.

All eligible personnel must present their military I.D., discharge papers (DD214 form), or other documentation that clearly reflects their eligibility status, to a franchised Chrysler dealer in the United States at the time of retail purchase of an eligible vehicle.

Additional information about this special promotion may be obtained from any participating Chrysler Group dealer.

SOURCE Chrysler Group LLC

NOTE TO EDITORS: For more information, please visit the Chrysler Group LLC media site at http://www.media.chrysler.com.

CONTACT: Ralph Kisiel , +1-248-512-2757 (office) , +1-248-705-9688 (cell), ralph.kisiel@chrysler.com

Web Site: http://www.chryslergroupllc.com

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Ally Financial Announces Key Strategic Actions to Strengthen Company and Accelerate Ability to Repay U.S. Treasury

* ResCap mortgage subsidiaries file Chapter 11

* Company launches process to explore strategic alternatives for its international businesses

* No impact on Ally’s leading U.S. auto finance and direct banking businesses

* Strengthens Ally’s financial position going forward and accelerates ability to repay the U.S. Treasury

DETROIT, May 14, 2012 — Ally Financial Inc. (Ally) today announced key strategic actions aimed at strengthening the company’s longer term financial profile and accelerating repayment of the U.S. Treasury’s investment.  The actions include the decision by the mortgage subsidiary, Residential Capital, LLC and certain of its subsidiaries (ResCap), to file Chapter 11, and the decision by Ally to launch a process to explore strategic alternatives for its international operations.  These actions will enable Ally to further invest in and grow its leading U.S.-based automotive services and direct banking franchises and be best positioned to return additional capital to the U.S. taxpayer by year-end.

Related materials FAQs: ResCap filing and Ally actions Investor call information ResCap website ResCap Press Release

“The action by ResCap will enable Ally to achieve a permanent solution to its legacy mortgage risks and put these issues behind us,” said Ally Chief Executive Officer Michael A. Carpenter.  “This action, along with pursuing alternatives for the international businesses, will allow Ally to focus 100 percent of its energies on further strengthening its already leading U.S. auto finance and direct banking franchises.”

Carpenter continued, “The depth and breadth of our automotive services operation is unmatched in the industry, and we see significant opportunities to broaden and strengthen this business domestically.  In addition, our U.S. direct banking platform, Ally Bank, helps to power our auto business, and its consumer-value proposition has attracted a strong and loyal customer base in the growing direct banking segment.

“Together, we believe these businesses, which represent the core of the company, are a winning combination and will continue to deliver value for our shareholders and provide opportunities to complete the important task of repaying the remaining investment of the U.S. taxpayer,” said Carpenter.

Ally has paid approximately $5.5 billion to the U.S. Treasury, which has enabled the taxpayer to recover about one-third of the investment made in the company.  Upon successful completion of the announced strategic initiatives, Ally expects to have returned a total of two-thirds of the taxpayer’s investment.

ResCap Chapter 11 Filing
Earlier today, ResCap filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code.  In connection with the Chapter 11 filing, ResCap announced it has reached agreement with certain of its key creditors, including Ally, on the terms of a prearranged Chapter 11 plan.

Ally Financial, Ally Bank and all other Ally entities are not part of the ResCap Chapter 11 cases and there will be no change or interruption to Ally’s business operations as a result of ResCap’s action.  In addition, ResCap and its origination and servicing platform are expected to operate in the normal course during this process.

A key feature of ResCap’s prearranged Chapter 11 plan is proposed settlements among Ally, ResCap’s Chapter 11 estates and certain of ResCap’s creditors that provide for the release of, among other things, all existing and potential claims between Ally and ResCap, as well as a release of all existing or potential causes of action against Ally by third parties. The settlements also contain milestones for ResCap to emerge from Chapter 11 by year-end.

Ally has agreed to take certain steps to support the stability of ResCap and its leading mortgage servicing platform during the Chapter 11 cases. Those steps include:

• Making a cash contribution of $750 million to the ResCap Chapter 11 estate upon confirmation of the plan;
• Making a stalking horse bid for up to $1.6 billion of ResCap-owned mortgages currently marked at 45 percent of UPB;
• Providing ResCap a $150 million debtor in possession financing facility;
• Supporting ResCap’s consumer lending originations during the process; and
• Other arrangements to support ResCap’s Chapter 11 plan.

ResCap has also obtained support for its prearranged Chapter 11 restructuring from the ad hoc steering committee representing ResCap’s junior secured notes, as well as other certain noteholders, and to date has affirmative support from entities holding $781 million of these notes.

In addition, institutional investors in residential mortgage-backed securities issued by ResCap’s affiliates and, at present, holding more than 25 percent of at least one class in each of 290 securitizations have agreed to support ResCap’s reorganization.  These 290 securitizations (out of a total of 392 outstanding securitizations with an original principal balance of $221 billion) have an aggregate original principal balance of more than $164 billion. The settlements reached with these creditors and with ResCap are subject to Bankruptcy Court approval.

Ally has determined that, on and as a result of the Chapter 11 filing, ResCap will be deconsolidated from Ally’s financial statements and Ally’s equity interest in ResCap will be written-down to zero.

Ally is expected to record an associated charge of approximately $1.3 billion in the second quarter of 2012.  The estimated charge is primarily driven by a write-down to zero of Ally’s approximate $400 million equity investment in ResCap, the $750 million cash contribution and approximately $130 million related to the establishment of a mortgage repurchase reserve at Ally Bank that replaces a reserve previously held at ResCap.  Absent the determination by the ResCap board of directors to file for Chapter 11, ResCap would have required billions of dollars of support from its parent to meet its obligations, which would have substantially delayed Ally’s plans to repay the remaining capital investment to the U.S. Treasury.

“The decision by the ResCap board to pursue this course will best enable it to preserve more than 3,500 jobs and keep its talented workforce focused on assisting homeowners by servicing the more than 2.4 million loans in its portfolio,” Carpenter concluded.

International Businesses
Ally will explore strategic alternatives for all of its international operations, which includes auto finance, insurance, and banking and deposit operations in Canada, Mexico, Europe, the U.K. and South America.

The international businesses represent strong franchises in each of the respective countries, and Ally’s mission in exploring alternatives for these businesses is to maximize shareholder value in a timely manner, while also protecting the interests of the dealers and automakers that the company serves.

The international businesses operate independently of the U.S. businesses, and, as a result, strategic actions taken with regard to these businesses will have no adverse operating impact on Ally’s U.S. businesses.

Repayment of Government Support Programs and U.S. Auto Recovery
Ally has paid approximately $5.5 billion to the U.S. Treasury, enabling the taxpayer to recover about one-third of the investment made into the company.  Upon successful completion of the announced strategic initiatives, Ally expects to return at least another third of the total investment, thereby enabling the U.S. Treasury to recover at least two-thirds of its investment in Ally by year-end.

In addition, Ally’s cash and available liquidity will ensure the company reaches another milestone in the fourth quarter as all Ally debt issued under the FDIC’s Temporary Liquidity Guarantee Program (TLGP) will also be paid in full, further reducing another form of governmental support that was put in place during the economic crisis.

Since 2009, Ally has been an instrumental part of the U.S. auto recovery and, through its automotive finance operation, has provided financing for nine million vehicles sold to more than 6,000 U.S. auto dealers and has assisted American consumers in financing vehicles worth almost $100 billion.

“Ally was a key part of supporting the recovery of the U.S. auto industry by ensuring that thousands of dealers and millions of consumers had access to financing during the crisis.  We took that responsibility very seriously and take equally seriously the mission to repay the remaining U.S. taxpayer investment in full as soon as possible,” Carpenter said.

Ally is advised by Evercore Partners, Kirkland & Ellis and Mayer Brown on the ResCap matters and by Citi and Evercore Partners on the strategic matters related to the international businesses.

Ally Investor Call
Ally Chief Executive Officer Michael A. Carpenter and Senior Executive Vice President of Finance and Corporate Planning Jeffrey Brown will host a conference call for investors at 8:30 a.m. EDT on Tuesday, May 15, 2012, to discuss these developments.  The call will include formal comments by Ally senior management followed by a question and answer session. The call is expected to last approximately 60 minutes.

Conference Call Information: Dial 1-800-659-2056 (or +1-617-614-2714 for international access) at least 15 minutes prior to the start time and enter the participant code 14798537.

The conference call will also be webcast live on Ally’s Investor Relations website in the Events & Presentations section (http://www.ally.com/about/investor/events-presentations/index.html).

A presentation will be posted in the Events & Presentations section of Ally’s Investor Relations website on May 15, approximately one hour prior to the start of the call.

Archive: A taped replay of this call will be made available from 10:30 a.m. EDT on May 15, until May 22, 2012. Please dial 1-888-286-8010 (or +1-617-801-6888 for international access) and enter participant code 26255191 to access the taped replay. A replay of the webcast will also be made available on the Ally Investor Relations website.

ResCap Press Release
ResCap’s press release and additional information can be viewed at http://www.kccllc.net/rescap.

About Ally
Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Ally’s automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services.  Ally Bank, the company’s direct banking subsidiary, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and online checking.  Ally’s Commercial Finance unit provides financing to middle-market companies across a broad range of industries.

With approximately $186 billion in assets as of March 31, 2012, Ally operates as a bank holding company.  For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @ally.

Forward-Looking Statements
In this press release and in any related comments by Ally Financial Inc. (“Ally”) management, the use of the words “expect,” “anticipate,” “estimate,” “forecast,” “initiative,” “objective,” “plan,” “goal,” “project,” “outlook,” “priorities,” “target,” “explore,” “positions,” “intend,” “evaluate,” “pursue,” “seek,” “may,” “would,” “could,” “should,” “believe,” “potential,” “continue,” or the negative of any of those words or similar expressions is intended to identify forward-looking statements. All statements herein and in related charts and management comments, other than statements of historical fact, including without limitation, statements about future events and financial performance, are forward-looking statements that involve certain risks and uncertainties.

While these statements represent our current judgment on what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of any events or financial results, and Ally’s actual results may differ materially due to numerous important factors that are described in the most recent reports on SEC Forms 10-K, 10-Q, and 8-K for Ally, each of which may be revised or supplemented in subsequent reports filed with the SEC. Such factors include, among others, the following: the approval of the bankruptcy court and the timely consummation of Residential Capital LLC’s proposed bankruptcy plan, including the settlement agreements contemplated therein; maintaining the mutually beneficial relationship between Ally and General Motors (“GM”), and Ally and Chrysler Group LLC (“Chrysler”); the profitability and financial condition of GM and Chrysler; the ability to secure low cost funding; our ability to realize the anticipated benefits associated with being a bank holding company, and the increased regulation and restrictions that we are now subject to; any additional future impact resulting from delayed foreclosure sales or related matters; the potential for legal liability resulting from claims related to the sale of private-label mortgage-backed securities; risks related to potential repurchase obligations due to alleged breaches of representations and warranties in mortgage securitization transactions; changes in U.S. government-sponsored mortgage programs or disruptions in the markets in which our mortgage subsidiaries operate; continued challenges in the residential mortgage markets; the potential for deterioration in the residual value of off-lease vehicles; disruptions in the market in which we fund our operations, with resulting negative impact on our liquidity; changes in our accounting assumptions that may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; changes in the credit ratings of Ally or its subsidiaries,  Chrysler, or GM; changes in economic conditions, currency exchange rates or political stability in the markets in which we operate; and changes in the existing or the adoption of new laws, regulations, policies or other activities of governments, agencies and similar organizations (including as a result of the Dodd-Frank Act and Basel III).

Investors are cautioned not to place undue reliance on forward-looking statements. Ally undertakes no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events or other such factors that affect the subject of these statements, except where expressly required by law.

Contact:

Gina Proia
646-781-2692
gina.proia@ally.com

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DETROIT, May 14, 2012 /PRNewswire/ – The real story in this year’s rankings of automakers by their suppliers in the 12th annual study of OEM working relations is not their overall rankings, but rather the dramatic and continuing slide of Toyota and Honda, and the continuing improvement of Chrysler Group, General Motors and Ford since 2005.

While still in first and second place overall respectively in this year’s rankings, Toyota and Honda – which had the highest scores in the study in the 2005-2007 period – have fallen this year to their worst scores in 11 years while Chrysler, GM and Ford have improved dramatically and as a group, have achieved their highest scores.  Nissan’s rankings have also fallen during the same period but showed slight improvement this year; however, it could lose fourth place to GM or Chrysler next year if these companies continue their current trend lines. Only eight points separate the three.

(Photo: http://photos.prnewswire.com/prnh/20120514/DE05225-a )

For 2012, Toyota and Honda still rank first and second overall, while Ford fell slightly but continues to lead the US automakers and remains in third place overall even though its improvement has been stalled for the last three years.  Nissan showed slight improvement and is in fourth place, while GM and Chrysler continue to improve and remain in fifth and sixth place respectively, according to the 12th Annual North American Automotive OEM-Tier 1 Supplier Working Relations Index® Study conducted annually by Planning Perspectives, Birmingham, MI, USA.

The study tracks supplier perceptions of working relations with their automaker customers in which they rank the OEMs across the six major purchasing areas broken down into 14 commodity areas.  The results of the study are used to calculate the Working Relations Index (WRI®) based on 17 working relations variables. This year, 564 supplier personnel from 439 suppliers participated, representing 62 percent of the six automakers’ annual buy.

However, all is not rosy for any of the automakers.  “It’s a concern that all of the automakers are ‘converging toward mediocrity’ in the overall low Adequate range in the Working Relations Index which is equivalent of a grade C in academia,” says John Henke, president of Planning Perspectives and a Professor at Oakland University.  In fact, 40 percent of suppliers still rank the Detroit 3 and Nissan in the “Poor – Very Poor” range.  According to the Henke, there are several reasons for this:

• Much of the improvement of the US automakers has come by fixing some fundamental relations problems – the “low hanging fruit” says Henke — problems that are relatively easy to identify and rectify, such as Chrysler improving processes to quickly rectifying late payment issues.
• There is still considerable performance variation among all OEMs’ purchasing areas except GM’s.  For instance, this year Honda’s Electrical & Electronics group scored 328, while its Body-in-White group only scored 231 (see Table 1 below).
• Implementation of the Working Relations variables year-to-year is inconsistent within each OEM.  For example, if GM had maintained its ranking in the “Help” category this year, it probably would have surpassed Nissan and Ford in its overall WRI ranking.
• While automakers’ top purchasing executives understand and support positive working relations, many individual buyers who work for them apparently do not.

Cost of Poor Relations; Benefits of Good Relations; Shortage of good suppliers

The costs to automakers of poor working relations are substantial, and the importance of good relations is significant and will only increase going forward with more automakers manufacturing more vehicles in North America, while competing for the same suppliers.

Over the years, the study has shown convincingly that automakers with Good-Very Good working relations get the following benefits.  Their suppliers:

• Are more willing to invest in new technology, and more willing to share new technology with the OEM
• Are more willing to support the automaker beyond contractual terms
• Are assigning their “A teams” in terms of OEM support personnel
• Are communicating more openly and honestly with the OEM
• Are willing to give greater price concessions to OEMs

“However, in spite of their willingness to give greater price concessions, OEMs have to give up the idea they can expect 5% reduction annually,” says Henke.  “That’s a race to the bottom and it will eventually destroy suppliers.  The price of vehicles does not decrease five percent a year; if it did, automakers would go out of business. So why should the price of parts?”

Whereas, automakers with poor relations with their suppliers:

• Receive smaller price concessions and must work harder to get them
• Are supported by less experienced supplier personnel
• Typically are not among the first to get their suppliers’ best ideas and innovations

How to Improve Supplier Relations: Focus and Discipline

The most important factor in improving supplier relations is consistency in managing the purchasing-engineering-quality interfacing activities.  “The automakers must understand that maintaining supplier working relations is a never ending process; it’s dynamic, not static, and requires continuous attention,” says Henke.

“Decades ago, US automakers thought they were building the best vehicles possible – until the Japanese came here and suddenly everything changed.  Automakers now expect 100 percent quality and are building the best vehicles they ever have.

“It is going to take that kind of focus and discipline to consistently achieve high levels of supplier relations – and the payoff will be just as valuable. Look at Chrysler’s performance during the Stallkamp days and where Toyota was only five years ago in the WRI ranking. It can be done – and Dan Knott did a remarkable job getting Chrysler turned around.  However, the challenge for Chrysler, GM and Ford will be to continually improve how they are working with their suppliers in the coming years and not stall, or worse – fall back to their adversarial practices – something that suppliers are telling us more frequently is already happening.”

The WRI consists of five key behavioral Component areas broken down into 17 variables that contribute to good supplier relations.  The five areas are OEM Help, OEM Hindrance, Relationship, Communication and Profit Opportunity. “It’s obvious these are not being implemented consistently nor are they being measured, and many buyers are not performing as if they understand that good working relations are essential to their company’s future,” says Henke.

There are two key things these automakers can do to tackle this problem, he says:

• Automakers should focus resources and training on improving “working relations quality” with measurable performance metrics — just as they did to improve product and manufacturing quality.
• Train the buyers better and make sure they understand that poor supplier relations are costing the automaker money and will no longer be tolerated.

The German Big Three

In 2010, Planning Perspectives began studying the Big Three German automakers in with manufacturing operations in North America:  Volkswagen, Mercedes-Benz and BMW.  Because this study is very new, its results are not yet included in the “official” Working Relations Index because the data doesn’t yet provide the historical depth of information necessary to explain trends and relationships relative to other OEMs.

However, certain broad trends are identifiable and credible.

For instance, since 2010, all three German automakers have fallen in their WRI rankings as dramatically as have the Japanese domestics, as the chart below shows – and for the same reasons:  Wide variations in managing the Working Relations Components across purchasing areas.  In fact, the German automakers’ variations are much wider than either the US or Japanese Big 3.

At Mercedes, for instance, its chassis area scored a very high 397, while its Powertrain area was more than 200 points lower at 192.

In addition, Trust has fallen all three years for the German automakers, while it has increased significantly during the period for both the US and Japanese automakers as the chart below shows (note the descending green lines).

(Photo: http://photos.prnewswire.com/prnh/20120514/DE05225-b )

Overall rankings – combining the Big Three German, Japanese and US automakers puts BMW and Mercedes at the top of the nine automakers, with VW at the bottom – as shown in the chart below.

(Photo: http://photos.prnewswire.com/prnh/20120514/DE05225-c )

About The Study: Now in its 12th year, the Annual North American Automotive OEM-Tier 1 Supplier Working Relations Index® Study determines the supplier working conditions in numerous areas at the North American domestic OEMs (GM, Ford and Chrysler) and the foreign domestic OEMs (Toyota, Honda and Nissan).  This year, 564 sales persons from 439 Tier 1 suppliers – representing 1,915 buying situations (e.g., supplying brake systems to Chrysler, tires to Toyota, seats to GM) and 62% of the OEMs’ annual buy – responded to the survey.  Demographically, the supplier-respondents represent 39 of the Top 50 North American suppliers, 67 of the Top 100 North American suppliers.  The study culminates in the Working Relations Index (WRI®) which is a quantitative ranking by suppliers of their working relations with each of the six OEMs.  For the last three years, VW, BMW, Mercedes Benz have also been included.

About PPI: Since 1990, PPI has specialized in developing and implementing in-depth surveys of suppliers for the automotive OEMs and Tier 1 suppliers, and companies in numerous other service and manufacturing industries worldwide, including the aircraft engines, computer, construction tools, electronics, energy, and food industries.  In 2001, PPI initiated its syndicated annual North American Automotive OEM – Supplier Working Relations Study.  This annual study has been recognized as the benchmark of supplier working relations for the automotive industry in the Harvard Business Review and several books.  The Studies provide critical sales and financial planning information for suppliers and their sales, marketing, and financial staffs, as well as a means by which OEMs and their purchasing staffs can get a reality check on their working relations with suppliers.  John W. Henke, Jr., Ph.D. is president of Planning Perspectives, Inc., and a Professor of Marketing at Oakland University in Rochester, MI.  PPI is based in Birmingham, Michigan USA and can be reached at +1.248.644.7690.  Visit PPI at www.ppi1.com.

SOURCE Planning Perspectives, Inc.

CONTACT: Mike Hedge, Hedge & Company, Inc., Public Relations, +1-248-789-8976 (cell), mhedge@hedgeco.com

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