Cruise ship passenger (mistakenly) arrested for prostitution

Florida news outlets this week are abuzz over the story of a cruise ship passenger mistakenly arrested at Fort Lauderdale's port on a prostitution-related charge.

Paola Londono, 31, of Orlando was taken into custody on Sunday at Port Everglades moments after stepping off an unnamed ship that had returned from a voyage to the Caribbean.

The Orlando Sentinel reports police confused Londono for a 24-year-old woman with the same name wanted in Florida's Osceola County.

Despite her pleas of innocence -- and the fact she looked nothing like the mug shot of the wanted woman -- Londono was kept locked up in a Broward County jail for more than 36 hours, according to the news outlet.

"Our database had two Paola Londonos in the system," Osceola County sheriff's spokeswoman Twis Lizasuain told the Sentinel. "How the names crossed is going to be something that we will be looking into."

The wrongfully arrested Londono, who was traveling with her husband, had her 9-month-old child taken from her arms when she was arrested, according to a lawyer quoted in the Sentinel.

"It was outrageous," the lawyer says, noting the two Londono's are five inches and 40 pounds different in height and weight. "These two people could not look more different."

Apple TV revamp expected as Google rivalry heats up

The competition between Apple (AAPL) and Google (GOOG) in the digital living room is about to intensify.

Tech analysts expect Apple soon to revamp its under-performing Apple TV gadget, which plugs into a TV so you can watch movies and shows via iTunes, in order to take on the new Google TV service when it launches this fall.

Google TV is a new way of watching Web content on televisions, via a Google operating system of sorts. Google is partnering with Sony (SNE), Logitech (LOGI), Dish Network (DISH) and others on the service, which will make its debut on a new set from Sony. No specific date has been announced.

To gear up for the competition, tech analysts expect Apple to cut the price of Apple TV to $99 from $229. But is it too late?

"Google is proposing a solution that will change the way we watch TV," says James McQuivey, an analyst at Forrester Research. "This is something Apple needs to take very seriously."

McQuivey doesn't believe a price cut is enough. He thinks Apple has to offer more than iTunes viewing: Apple TV also needs to work with the more than 10,000 software apps that are available for the iPhone and iPad. "Apps are the new definition of the Apple experience," he says.

Unlike the iPhone and iPad, which can connect to a host of entertainment choices from the likes of Netflix, ABC and Hulu Plus, Apple TV owners' only option are downloads from iTunes.

Consumers looking to add Google TV to their living room will have a choice of a new flat-screen Sony HDTV or Sony Blu-ray player that has Google technology built in. Pricing hasn't been announced. For those who don't want a new TV or Blu-ray player, options include a set-top box from Logitech or a new box being offered for satellite TV from the Dish Network.

Piper Jaffray analyst Gene Munster believes Apple eventually will reinvent Apple TV as an all-in-one, high-def TV set with built-in Web connectivity. He sees it launching in 2012 at $1,800-$2,000. "Apple has a golden opportunity to be relevant in the living room," he says. "They're not today."

Apple in recent years has held an event in September in San Francisco to tout new iPods. Munster believes Apple will do the same this year, focusing on music and the Apple TV relaunch.

Apple had no comment.

Munster thinks both Apple and Google have their work cut out for them.

"People don't want another box in their living room," he says. "Google as a separate box is a tough sell."

Of the 220 million flat-panel TVs projected to be sold in 2012, Munster believes that 65% will be Internet connected and that Apple could have 1.4 million of those with a new Apple TV set. That would add 3% to Apple's revenue in 2012, he says.

San Francisco proposal would limit toys in kids' meals

A serious move is afoot to force fast-food giants to make kids meals more nutritionally viable if they want to sell them with kid-luring toys.

In San Francisco, newly proposed legislation would ban toys from most kids meals sold at McDonald's, Burger King and other chains unless the meals meet more stringent calorie and sodium limits. The legislation also would require fruit or veggies in each meal.

The $179 billion fast-food industry is watching with intense interest — aware that menu-labeling requirements that started locally in New York City several years ago have since been copied regionally and will become federal law in 2014 under the health care act.

Kids meals rank among fast food's big sales catalysts. Although kids meal sales are declining — because budget-minded parents sometimes opt for dollar menu items instead — the industry sold about $5.5 billion worth last year, researcher NPD Group reports.

Nothing gets kids more excited about eating out than a kids meal with a toy. That's what 36% of kids under age 6 say they like best about eating out, NPD reports. That compares with 16% who like the food best.

"Companies know it doesn't work to advertise food to kids — they want the toy," says Michael Jacobson, executive director of the consumer group Center for Science in the Public Interest.

For each kid who buys a kids meal, there's typically at least one parent — and often siblings — who make more profitable purchases, says Ron Paul, president of researcher Technomic.

San Francisco now emerges as the biggest city to place a stake in the ground linking kids meal toys and nutrition. Several months ago, Santa Clara County, just south of San Francisco, became the first local government to enact such a law, but it applies to a tiny number of restaurants. In San Francisco, it could affect hundreds.

"There's no fundamental conflict between a healthy meal and a happy meal," says Rajiv Bhatia, environmental health director for San Francisco.

He says chains could easily conform by making relatively small changes in ingredients or portion size, reducing the number of french fries, or replacing fries with veggies, fruit or salad.

Officials at McDonald's and Burger King declined to comment.

"This is just another example of San Francisco taking a bad idea and making it worse," says Daniel Conway, spokesman for the California Restaurant Association. "This ordinance will put restaurant employees in the position of playing food police."

More Saab products coming, Muller says

Saab's new Dutch owner, Spyker Cars NV, intends to spin additional models off its new Phoenix platform after it yields a redesigned Saab 9-3.

Saab dealers will receive the latest 9-3 in 2012, Spyker founder and Saab Automobile AB Chairman Victor Muller said today at the CAR Management Briefing Seminars here.

The dealers, who have been starved for product as former owner General Motors attempted to sell or liquidate the brand, also will obtain a Cadillac-based 9-4X crossover when it goes into production in April 2011 in Mexico.

Muller led the purchase of Saab earlier this year and quickly ramped up the automaker's plants to begin U.S. deliveries of a new 9-5 in recent weeks. The 9-5 was already in the pipeline as a platform developed by GM.

“Spyker's only contribution to the new 9-5 is the fact that it still exists,” Muller quipped, referring to his moves to save the Saab brand.

“There had been no cars delivered to U.S. dealers since February 2009,” he said.

Muller said the 9-3's Phoenix platform began as a GM platform for the 9-3. But Saab is now overhauling the platform and making design changes to the car.

Lamborghini predicts return to growth after H2 revenues fall 2.6%

Lamborghini, the Italian luxury sports car brand, remained cautious about 2010 when it posted a 2.6 percent fall in first-half revenues despite continued growth in Asia.

Lamborghini, a unit of Volkswagen's Audi brand, was severely hit by the recession last year, when sales fell 41 percent.

"2010 is a transition year for Lamborghini," CEO Stephan Winkelmann said in a statement on Tuesday, adding that market recovery and brand repositioning would help it return to growth.

The maker of supercars said revenues fell to 152.9 million euros ($199.9 million) in the first half when it sold 674 cars, down 18 percent.

Lamborghini cars range in price from 180,000 euros to 400,000 euros.

Car sales more than tripled in China, its second-biggest market after the United States, to 86 in the period. Lamborghini has said it expects to sell more than 100 cars in China in 2010.

First-half sales in Australia, Singapore, Hong Kong and Taiwan more than doubled.

The carmaker said it was heavily investing in the carbon fiber technology, which boosts power efficiency and helps reduce weight and car emissions.

Lamborghini competes head-on with Ferrari, owned by Italian carmaker Fiat.

Special Dodge Challenger pushes Mopar gear

To boost its Mopar service and parts brand, Chrysler Group is selling 500 Dodge Challengers equipped with Mopar performance parts.

Chrysler says the Mopar '10 Challenger, with a cold-air intake and functional hood scoop, is the first Mopar edition of one of its vehicles. Sales start in August.

The automatic-transmission version will be priced at $38,000, and the manual-transmission version will sell for $39,000. Prices include shipping. Both will be powered by Chrysler's 5.7-liter Hemi V-8.

The car will be offered in black with three accent colors: blue, red or silver. The accent colors will appear on side stripes and the baseball-style stitching on the steering wheel and seats.

Bill Gates, venture capitalist invest $23.5 million in EcoMotors

EcoMotors International has received $23.5 million from Microsoft Corp. Chairman Bill Gates and investor Vinod Khosla for engineering and testing of its trademarked Opoc engine technology.

EcoMotors said in a statement today that the investment marks a key advance in commercializing its opposed piston-opposed cylinder engine. The engine maker plans to use the funds for completing testing and building demonstration units.

Further details about the funding have not been disclosed.

EcoMotors CEO Don Runkle said it is terrific to have the support of prominent investors. He also said EcoMotors' engines will be built in Michigan because of the state's resources and talent. Runkle is a former executive of General Motors and Delphi Corp.

EcoMotors, based in suburban Detroit, says the Opoc architecture allows its opposed piston-opposed cylinder engines to use 50 percent fewer parts than standard engines, while providing 50 percent more fuel efficiency. Runkle says the company is working on its sixth-generation engine and the new funds may be used for the next engine configuration.

Touting the tech

Gates, also co-chair of the Bill & Melinda Gates Foundation, said in a statement that the technology may be a stepping stone in advancing affordable, low-emission transportation.

Khosla co-founded Sun Microsystems in 1982 and was a general partner of the venture capital firm Kleiner Perkins, Caufield & Byers in California. In 2004, he founded venture capital firm Khosla Ventures of Menlo Park, Calif., to invest in various green technologies. The firm owns 47 percent of EcoMotors.

Opoc was conceived by Peter Hofbauer, former head of powertrain development at Volkswagen AG and now EcoMotors' chairman and chief technology officer, the company said.

Hofbauer designed the VW high-speed diesel engine that became the foundation for the clean diesel engine used in the Jetta and other VW vehicles, EcoMotors said.

PRESS RELEASE: Khosla Ventures and Bill Gates Invest in EcoMotors' Revolutionary opoc® Engine

Securing “Series B” funding from two prominent investors represents a major advance in the global commercialization of the opoc® technology.



TROY, Michigan, July 12, 2010 -- EcoMotors International CEO Don Runkle announced today that the Company has secured substantial Series B funding – sufficient to complete engineering and testing of the opoc® engine.



The two exclusive investors in EcoMotors' Series B are Khosla Ventures of Menlo Park, California and Bill Gates. The two principals, Vinod Khosla and Bill Gates, indicate their stakes in EcoMotors reflect a shared belief in the global potential of the opoc® technology and the impact it can have on transportation emissions because of its cost effectiveness.



“opoc® is precisely the kind of game-changing innovation that we at Khosla Ventures are passionate about,” said Khosla. “The only truly disruptive technologies are those that can provide not only payback in months but also economic and carbon benefits to large segments of the world's population without the need for subsidies or massive infrastructure investments. Among next-generation propulsion systems, the opoc® engine is broadly applicable and can provide lower carbon emissions than almost any other technology.”



“The opoc® engine can be an important step in providing affordable, low-emission transportation for the developing world,” said Gates. “EcoMotors has developed a promising technology that could help reduce levels of greenhouse gas emissions in a low-cost, globally relevant way.”



The revolutionary opoc® architecture of opposed pistons and opposed cylinders provides unparalleled benefits:



High Efficiency: The unique enginearchitecture – which offers true modular displacement capability — delivers up to 50% greater fuel efficiency compared with conventional engines of similar output, along with a corresponding reduction in greenhouse gas emissions.

Half the weight and half the size of conventional engines: Theopoc® engine provides unparalleled power density and flexibility in automobile and truck design as well as other engine applications.

Low Cost: With50% fewer parts than a conventional engine, the opoc® is less expensive to manufacture, to purchase, to operate and to tool up.

Established in early 2008, EcoMotors is quickly achieving critical mass in terms of changing the landscape of internal combustion power. Based in Troy, Mich., EcoMotors is commercializing the unique opoc® engine for use in cars, light trucks, commercial vehicles, aerospace, marine, agriculture, auxiliary power units, generators, etc. Anywhere conventional gas or diesel power is currently utilized, opoc® represents a better propulsion solution.



EcoMotors is led by Don Runkle (Chief Executive Officer) and Prof. Peter Hofbauer (Chairman and Chief Technical Officer).



opoc® was conceived by Prof. Peter Hofbauer – who formerly as Head of Powertrain Development at VW designed the original VW high speed diesel engine that became the foundation for the Jetta Clean Diesel that won 2009 Green Car of the Year honors. Don Runkle, as former VP of N.A. Engineering at GM, spearheaded the GM EV1 electric car along with countless other innovations.



EcoMotors is a Khosla Ventures portfolio company. Khosla Ventures offers venture assistance, strategic advice and capital to entrepreneurs. The firm helps entrepreneurs extend the potential of their ideas in breakthrough scientific work in clean technology areas such as solar, battery, high efficiency engines, lighting, greener materials like cement, glass and bio-refineries for energy and bioplastics, and other environmentally friendly technologies as well as traditional venture areas like the Internet, computing, mobile and silicon technology arenas. Vinod Khosla founded the firm in 2004 and was formerly a General Partner at Kleiner Perkins and founder of Sun Microsystems. Khosla Ventures is based in Menlo Park, California.

Spyker holds talks to build new version of 1950s Saab model

Spyker Cars NV, Saab Automobile's owner, is in talks with automakers to share technology and a platform for a new car based on a 1950s Saab model, CEO Victor Muller said.

“Discussions are already ongoing,” Muller said in a telephone interview on his way from Gothenburg, Sweden, to Saab's plant in Trollhaettan. “That will be on my plate for the next 100 days.”

The new small car would be tear-drop shaped, inspired by the Saab 92 model that was in production between 1949 and 1956, he said, declining to say with whom he's been negotiating.

Spyker, the Dutch maker of supercars, bought Saab in February from General Motors Co., completing a 14-month effort by GM to either unload the company or close it down.

Saab, which begins selling the new 9-5 model May 31, has spent the last three months restarting production and severing the GM ties.

“Saab is going to have to reignite interest in the brand, go back to its core values” of the 1980s and 1990s when it appealed to “creative” professionals such as architects, said Ian Fletcher, a European automotive analyst at IHS Global Insight in London. “Muller has to be optimistic.”

Saab sales goals

Saab aims to sell between 50,000 and 55,000 cars this year, of which 17,000 would be the new 9-5, Muller said. Next year Saab targets sales of 100,000 cars, including 40,000 9-5s and about 10,000 9-4X, a midsize crossover SUV to be built at a GM plant in Mexico starting in April 2011, he said.

Spyker, after considering the U.K. and Sweden, is leaning towards moving its stock listing to Stockholm from Amsterdam, Muller said, explaining just a fraction of its business remains in the Netherlands.

“I'm very optimistic about it,” Muller said of the Stockholm listing. “99.5 percent of our business is Swedish, is Saab, and we do feel that a listing in Amsterdam clearly is no longer logical in any way, shape or form.”

Saab aims to reach an agreement with a Chinese distributor within a couple months, he said, denying media reports this week that Saab and Beijing Automotive Industry Holding Co. have reached a distribution deal.

Ford said to be preparing to wind down 'forgotten brand' Mercury

Ford Motor Co. is preparing to wind down the Mercury line, created in 1939 by Edsel Ford, after sales plunged 74 percent since 2000, said two people familiar with the plan.

The automaker's top executives are preparing a proposal to kill Mercury to be presented to directors in July, said the people, who asked not to be identified revealing internal discussions. Mercury, losing two of four models next year, will be starved of products and promotion, the people said.

CEO Alan Mulally emphasized the automaker's namesake brand as he revived the only major U.S. automaker to avoid bankruptcy. The timing of Mercury's demise depends on how fast executives can persuade the brand's dealers, who also sell Lincoln models, to close or merge with Ford showrooms, they said.

"Mercury is a forgotten brand," said John Wolkonowicz, an auto analyst with IHS Global Insight. "Many Americans probably already think it has been discontinued. Mercury was too similar to Ford from the very beginning."

Mulally also is unloading Ford's European luxury brands, after the automaker failed to achieve a goal to have them generate one-third of automotive profits. Ford in March agreed to sell Volvo to China's Zhejiang Geely Holding Co. It sold off Jaguar, Land Rover and Aston Martin in the last three years.

“We continue to evaluate all of our models and brands,” Mulally told reporters in Washington, D.C., Thursday. “We have no change in our position about Ford or Lincoln or Mercury.”

Mercury would join Pontiac, Saturn, Oldsmobile and Plymouth among the departed Detroit brands of the 21st century. Sales will end within four years, one of the people estimated. General Motors Co., as part of its U.S.-backed reorganization last year, sold or closed four of its eight brands sold domestically.

Established by Edsel

Edsel Ford, son of founder Henry Ford, established Mercury during the Great Depression as a mid-priced alternative to mainstream Ford and upscale Lincoln. Edsel's great grand-daughter, Elena Ford, now the automaker's director of global marketing, initially opposed discontinuing Mercury, which she was in charge of promoting prior to 2002, the people said.

Doing away with Mercury is supported by Ford Executive Chairman Bill Ford and other members of the founding family, who have 40 percent voting control of the automaker through a special class of stock, the people said. With Mercury accounting for 1.9 percent of Ford's global sales in the first quarter, the family has decided ending it is best for the business, the people said.

“Edsel Ford is revered in the family, and Mercury was his creation,” said Wolkonowicz, a former Ford product planner. “This is the end of an era.”

Bill and Elena Ford also declined to comment, spokesman Mark Truby said.

1978 peak

Mercury's U.S. sales peaked in 1978 at 579,498, when it had the slogan “The Sign of the Cat.” Deliveries fell to 92,299 last year. As the U.S. auto market recovers, Mercury's sales are up 23 percent this year through April, less than Ford Motor's overall gain of 33 percent. Mercury had 0.9 percent of the U.S. market through April, unchanged from 2009.

Mulally, since arriving from Boeing Co. in September 2006, put a priority on improving quality and expanding the offerings of the Ford brand to lessen its dependence on pickups and SUVs. He ended three years of losses at the automaker by earning $2.7 billion last year and has said 2010 will be “solidly profitable.”

As Mulally focused on the namesake brand, Mercury withered, the people said. Ford's ad spending on Mercury fell 88 percent from 2005 through 2009, according to researcher Kantar Media of New York. Last year, Ford stopped selling the Mercury Sable, a sibling to the Taurus. The Mountaineer, Mercury's version of the Explorer, is to go away next year as Ford rolls out a new version of the SUV.

Since Mulally's arrival, Ford stopped giving Mercury exclusive features and technology, the people said. That made Mercury less distinctive than comparable Fords, which tend to be priced lower.

“The reason Mercury failed throughout its existence is because Ford never wanted to spend any money on it,” Wolkonowicz said. “Ford always wanted to do it on the cheap and the results were what you'd expect.”

Milan #1

Mercury's top-selling model is the Milan, a sibling of the Ford Fusion, with sales up 53 percent this year. Mercury also sells its own version of the Ford Escape SUV, known as the Mariner, which has had a 22 percent sales gain through April. Ford is scheduled to replace those models in 2012 and 2013 and could drop the Mercury versions, Wolkonowicz said.

Mercury's second best-selling model, the Grand Marquis, is being retired next year as Ford stops producing a trio of large, rear-wheel drive sedans that also includes the Lincoln Town Car and Ford Crown Victoria. Mulally has emphasized more fuel- efficient models, such as the Fiesta and Focus small cars Ford is introducing this year in the United States. Neither has a Mercury counterpart.

“The Grand Marquis has the oldest buyer demographics in the industry with an average age of 70,” Wolkonowicz said. “There are still members of the Depression generation who will miss Mercury.”

Mercury's cultural heyday came in the 1950s, when hot-rodders favored its engines, which were larger and faster than those found in Ford models, Wolkonowicz said. Along with Lincoln, Mercury sponsored “The Ed Sullivan Show” on CBS in the 1950s and 1960s. Detective Steve McGarrett drove a black Grand Marquis in the “Hawaii Five-0” TV series on CBS in the 1970s.

As Mercury's sales plunged, so too have its profits, Wolkonowicz said. With one-quarter of the sales it had a decade ago, it's hard to rationalize the line's continued existence, he said.

“I'm not surprised to see Mercury go because they don't sell enough of them,” Wolkonowicz said. “It's been a case of benign neglect for years.”

BMW plans 3- and 5-series full hybrids

BMW AG plans to take its 5-series ActiveHybrid concept into production as early as next year and expects to introduce the dual-powertrain technology into its smaller 3 series.

"As early as next year, the new BMW 5 series will also be available as a full hybrid. And we are anticipating the hybridization of further models series, such as the 3 series," CEO Norbert Reithofer told shareholders at the carmaker's annual meeting in Munich.

As emission standards become ever stricter, BMW needs to lower the carbon footprint of its fleet in coming years as Brussels targets an overall level of around 95 grams of carbon dioxide by 2020 for new cars sold in Europe.

"We want to reduce our global fleet's carbon emissions by at least another 25 percent between 2008 and 2020," Reithofer said.

At the end of last year, BMW's European fleet emissions equated to 150 grams of carbon dioxide per kilometer, down from 156g at the end of 2008.

First shown at the Geneva auto show in March, the 5-series hybrid can be driven entirely in electric mode -- like the Toyota Prius -- after the sedan's brakes recuperate enough kinetic energy initially generated by its petrol engine.

This would be BMW's second full hybrid on offer after the BMW ActiveHybrid X6 launched at the end of last year.

By comparison, the larger BMW ActiveHybrid 7 luxury sedan that went on sale this spring is a mild hybrid, meaning it cannot run on zero-emission electric propulsion alone.

Reithofer pointed to government incentives for hybrids as a key driver of demand, particularly in Japan. "Sales of hybrid vehicles (there) have skyrocketed. If you don't have a hybrid in your portfolio, soon you might not be selling any cars in Japan at all," he said.