What’s New: In brief (June 03, 2005)

Toyota Motor Co’s (TM.NYS) Prius petrol-electric hybrid sedan is facing investigation by the US regulatory authority, due to complaints of a sudden stalling of its engine. Preliminary evaluation of approximately 75,000 Prius models manufactured in 2004-2005 is being implemented by the National Highway Traffic Safety Administration. The investigations result from a to-date 33 complaints relating to the engine. No accidents or injuries have been reported. The hybrid vehicle is Toyota’s third best selling car in the US.

The Great American Insurance Group has promoted Scott Hendricks to divisional president of Great American’s Trucking Division. Prior to serving 11 years with the Great American Group, Hendricks owned his own insurance agency and then began working with Transport Insurance Company for two years. Hendricks has a BA from Asbury College and an MA from the University of Cincinnati.

A new report recently released by the World Resources Institute (WRI) is meant help investors analyze business risks and regulatory uncertainties in light of global climate change. Limits on international greenhouse emissions and the potential regulation of North American carbon limits provides a basis for the reports recommendation to assess climate risk posed to their investments and include climate-risk adjustments when valuing companies due to climate-change policies and other related impacts. Investors are advised to determine which companies are best positioned to adapt to climate policies, as climate change is an increasingly competitive issue. The report offers an analytical framework to assess how climate risk can affect corporate value, especially in the electric power, oil and gas and auto industries.