Autoblog

WSJ: Big 3 seeking $25 billion from Feds

Damon Lavrinc — 2008-08-22T16:58:00+00:00

Filed under: Government/Legal, Chrysler, LLC., Ford, GM, Earnings/Financials

No matter how you slice it, a proposed $25 billion loan from the Feds is a bailout, and that's exactly what Detroit's Big Three automakers are after, according to a report by the Wall Street Journal.

Lobbyists for General Motors, Chrysler and Ford have met with White House officials, Rep. John Dingell and a smattering of Michigan Democrats to discuss the loan, with plans to unveil the proposal after Labor Day.

The plan includes lending $25 billion to automakers in its first year at an interest rate of 4.5 percent (about one-third of what the companies are currently paying), with the government having the option to defer any payment for up to five years.

Details are scarce, and naturally, GM, Ford and Chrysler reps aren't saying much, but if the automakers and the Feds are serious, expect more information to leak out before the proposal is officially announced.

[Source: WSJ, Photo by Tracy O | CC2.0]

Read | Permalink | Email this | Comments

Police and protestors clash at future site of Tata Nano plant

Michael Harley — 2008-08-21T14:31:00+00:00

Filed under: Economy, Government/Legal, Plants/Manufacturing, India, Tata

Click above for a high-res gallery of the Tata Nano

Raze 1,000-acres of farmland to build an automobile factory, and somebody is going to protest. Even in India. The automaker is Tata, and the protesters numbered at least 1,000 strong as they went head-to-head against police in eastern India yesterday at the future manufacturing site of the Tata Nano (rumored to be the world's cheapest car at just $2,380). The protests are rooted deeper than just "open space" issues. In fact, the real tension is between India's ruling party, and the communist-run government in West Bengal where the plant is to be located. The farmers are unwilling to part with their agricultural livelihood, while the government continues to promote industry. After blocking a highway for a few hours, the stick-wielding protesters were dispersed without injuries. Once again, progress wins out over pastures.

Gallery: Tata Nano

[Source: Automotive News, subs. req'd]

Permalink | Email this | Comments

Traffic deaths down, U.S. roads reach record level of safety

Chris Shunk — 2008-08-18T19:28:00+00:00

Filed under: Government/Legal, Safety

Safer vehicles and increased law enforcement has resulted in the lowest driving fatality rate ever last year. There were 41,059 traffic deaths in 2007, down 1,600 from 2006. Fatalities are now at 1.37 per 100 million miles traveled, which is the lowest number since the National Highway Traffic Safety Administration started keeping track. The proliferation of safety technology, like side curtain air bags, stability control, and traction control, are apparently helping to make our roads safer, and good old-fashioned seat belts are being used more than ever. The "Click it or Ticket" campaign isn't the only way law enforcement has helped to lower fatalities either, as increased drunken driving patrols have lead to a 3.7% decline in deaths. Still, 13,000 people died last year as a result of drunken driving, which is 13,000 too many.

News on the safety front isn't as good for motorcycle drivers, though. A record 5,154 bikers lost their lives on U.S. roads in 2007, which is over 200 more than in 2006. Part of the reason for that increase is that there are more motorcycle drivers on the road, with 6 million motorcycles registered last year, up 2.2 million in the past decade.

[Source: Kicking Tires via CNN]

Read | Permalink | Email this | Comments

Industry sets fuel efficiency record in first half of '08

Jeremy Korzeniewski — 2008-08-13T09:58:00+00:00

Filed under: Trends, Government/Legal, Green

In light of the current pain at the pumps, fuel economy is on all of our minds these days no matter what kind of car you drive. That being the case, it might not be surprising to you that the car we're buying are getting more fuel efficient. Don't believe us? The National Highway Traffic Safety Administration has just revealed that the U.S. auto industry set a new record in overall fuel efficiency during the first half of the 2008 model year by averaging 26.8 mpg through March. That's up from an average of 26.6 mpg through the entire 2007 model year.

While this is certainly good news for both consumers and manufacturers that need to meet the government's mandated CAFE standards, the numbers used by the NHTSA aren't really representative of the real-world fuel mileage you should expect to achieve on the road. The testing standards were initially created in 1975 and automakers get certain credits for creating flex-fuel vehicles, which can artificially inflate their miles-per-gallon numbers. Additionally, automakers earn credits for surpassing the CAFE requirements and can carry these credits forward for up to three years. Still, the numbers are somewhat worthwhile when comparing the current model-year with those of the past. Expect to see the year-end numbers set another new record as consumers continue choosing smaller and more fuel efficient models over larger, gas-guzzling choices.

[Source: The Detroit News]

Read | Permalink | Email this | Comments

U.S. Army declares Arizona car dealer a no-go zone

Jonathon Ramsey — 2008-08-11T14:29:00+00:00

Filed under: Car Buying, Etc., Government/Legal

If you believe the Johnston family, owners of Wildcat Mitsubishi in Tucson and Ideal Automotive in Sierra Vista, Arizona, they have a little communication and paperwork problem. If you believe the soldiers at the Army base in Fort Huachuca, the Better Business Bureau, the Arizona Department of Financial Institutions, the Arizona Transportation Department, the police department, and at least one civilian customer, the Johnstons have a much larger number of far more serious problems.

The Army base has banned personnel from patronizing the dealerships, alleging its soldiers have been abused. Soldier James Tuman traded in an SUV and a motorcycle and got financing from Ideal Automotive to buy a used car. When he tried to return the car because of mechanical issues, the Johnston's wouldn't give him his money back, instead saying he could buy another car on the lot. When he threatened to complain, they said they'd declare the car repossessed, which could hurt Tuman's security clearance. Tuman ended up with no money and no car.

Other complaints against Johnstons range from financing auto loans without a license and issuing temporary tags with the wrong VIN numbers. The Johnstons say they are sorting things out... but until the Army et al sort things out with the Johnstons, you might want to give Wildcat and Ideal a wide berth.

[Source: Auto News, sub req'd]

Read | Permalink | Email this | Comments

London congestion charge has failed to solve congestion

Jeremy Korzeniewski — 2008-08-08T14:28:00+00:00

Filed under: Government/Legal, UK

London Congestion Charge: FAIL. According to the most recent reports, traffic in London is exactly as bad today as it was before the C-Charge was ever initiated. London motorists have made their opinion about the system clear in recently voting out ex-Mayor Ken Livingstone, a man who championed the charges and had plans to increase their dollar amount and expand their coverage. The new mayor, Boris "Fast Lane" Johnson, says, "I have always thought that the Congestion Charge is a blunt instrument." Blunt and ineffective, it would seem. While the number of cars within the city limits have gone down, other factors have crept up like an increase in bike and pedestrian traffic that keeps motorists crawling.

There is one thing that the London Congestion Charge was good at: making money. Last year alone, the C-Charges racked up some £268 million (a whopping $536 million) in charges. While it may be hard to see that income go away, the fact is that it still takes Londoners an average of 2.3 minutes per kilometer to drive through the city, so expect to see some major modifications to the system in the coming months.

[Source: Reuters via Motor Authority]

Read | Permalink | Email this | Comments

Switzerland considers banning sportscars SUVs everything

Noah Joseph — 2008-08-07T12:59:00+00:00

Filed under: Government/Legal, Green

Switzerland is not the most car-friendly place on earth. (Odd, then, that after Monaco, the mountainous country is one of the most popular residence choices for F1 drivers.) But this just puts it over the top. The Swiss Green Party is proposing legislation that would effectively ban supercars. Most sportscars, actually. And SUVs. More than a few luxury sedans, too. Even some small hatchbacks.

The proposed regulations would ban any vehicle over 4800 lbs in weight, producing more than 250 grams of CO2 per kilometer, burning diesel without a new-fangled particulate filter or possessing a front end deemed less than optimal for pedestrian impact. Many of the vehicles on the proposed list of non-compliant new cars would seem logical, according to the Green Party mindset: Aston Martins, Bentleys, HUMMERs, pretty much anything from Italy bigger than a Fiat Panda, most American cars offered in Europe... but wait a second, the Hyundai Getz? Kia Rio? Nissan Micra? Even the Dacia Logan. Somebody's getting carried away in Switzerland, and we hope with the country's populist approach to governance that the Swiss populace will keep their tree-hugging elements in check. Otherwise, we might be riding bikes to next year's Geneva show.

[Source: Asphale.ch via AutoblogGreen]

Read | Permalink | Email this | Comments

Daimler considering cancelling hybrid 'ute

Jeremy Korzeniewski — 2008-08-07T07:56:00+00:00

Filed under: Hybrids/Alternative, SUVs, Government/Legal, Green, Mercedes-Benz

Click above to enlarge the Mercedes-Benz ML 450 Hybrid

Batteries are an integral part of any hybrid automobile. No batteries means no electric assist, which means no point in lugging around all that extra hardware. So Mercedes-Benz is in a world of hurt as it alleges that Cobasys, the chosen battery supplier for the upcoming ML 450 hybrid SUV, has decided not to fulfill its obligation to the German automaker. You might recall that General Motors had problems with leaky batteries from Cobasys, reportedly leading the automaker to consider purchasing the supplier outright from its current parents, Chevron and Energy Conversion Devices.

For its part, Mercedes-Benz has sued Cobasys and petitioned the court to order Cobasys to supply the batteries in had committed to. Cobasys CEO Thomas Neslage has denied that his company ever agreed to supply the batteries in the first place. If this situation isn't resolved in a timely manner, Mercedes-Benz may be forced to delay the introduction of its first-ever hybrid vehicle.

Update: Mercedes has told AutoblogGreen that cancellation is a worst case scenario and the company is still planning to introduce the ML450 Two-Mode hybrid in late 2009. A mild hybrid S400 is also arriving earlier in the year.

[Source: Tuscaloosa News, Automotive News - sub. req'd]

Read | Permalink | Email this | Comments

Saudi Arabia threatens Nissan boycott over Israeli ad

Noah Joseph — 2008-08-06T15:28:00+00:00

Filed under: Government/Legal, Marketing/Advertising, Videos, Nissan

Click above to watch the video

Saudis may be known for a lot of things, but let's face it - comedy is not one of them. Israelis on the other hand... have you seen The Zohan? In any event, it's not surprising that people in Saudi Arabia are outraged at something from Israel, but this time it has nothing to do with military actions or residential construction, and to be fair, while talk of boycotts is filling the air once again, they're not actually blaming Israel itself for anything. Instead, Nissan is the boycott target.

The spate was started by a commercial Israeli TV that depicts Arabian oil sheikhs getting medieval on a Nissan Tiida. The implication is that the car's fuel efficiency is harming the sheikhs' business interests. The Saudi regime, along with other oil-producing Gulf states, is threatening to boycott Nissan - which itself is collaborating on the development of the Project Better Place electric car system in Israel - if the automaker doesn't apologize.

Follow the jump to watch the commercial - which, strangely, we could only find in Arabic with Russian subtitles - and leave your thoughts in the comments section below (just please keep it tasteful).

[Source: Haaretz]

Continue reading Saudi Arabia threatens Nissan boycott over Israeli ad

Read | Permalink | Email this | Comments

VW, Porsche talks stumbling over labor issues?

Jeremy Korzeniewski — 2008-08-06T08:32:00+00:00

Filed under: Government/Legal, Porsche, Volkswagen, UAW/Unions

Porsche wants to purchase Volkswagen, this much we know. But before that happens, the huge labor union at VW needs to agree on terms with Porsche management. This, as you may imagine, is proving a bit more difficult than Porsche had hoped, prompting the automaker's senior labor leader Uwe Hueck to lash out at the heads at VW. Not surprisingly, his initial attack received a response from Bernd Osterloh, the head of VW's labor union. It seems that some major sticking points exist that the organized Volkswagen employees are not too keen on, causing them to believe that they would be relegated to second-class status. Whether or not these negotiations will keep Porsche from purchasing a controlling stake in Volkswagen seems up in the air at the moment, though we wouldn't be surprised if some sort of deal were made sooner rather than later.

[Source: Automotive News - sub. req'd]

Read | Permalink | Email this | Comments

Endangered Species: Europe's sportscar makers worried about the future

Noah Joseph — 2008-08-05T19:32:00+00:00

Filed under: Sports/GTs, Euro, Government/Legal, Green, Supercars

With the European Union tightening restrictions on carbon emissions, danger has been spelled out in big bright letters for the sportscar-makers we know and love. The bulk of the world's best supercar manufacturers - including Ferrari, Lamborghini, Lotus, Aston Martin and Porsche - reside in Europe, but while industry executives continue to campaign for exception and protection, things don't look good. There are, however, a few solutions that could keep the exotic automakers in business and unmolested.

Firstly, both automakers and lawmakers agree on the need to reduce weight, which helps neither emissions nor performance. However, weight reduction itself won't bring the supercars below the 120g/km target touted by the EU. One possible solution would be to give niche automakers an exemption, noting that the few cars they produce are rarely driven anyway. According to Lamborghini CEO Stephan Winkelmann, exotic automakers like his "are representing Europe to the world" and "are a species to protect", much like an art form. That's something we car lovers can appreciate, and if it strikes a cord with the lawmakers it could help some of the smaller independent automakers like Aston Martin and Lotus, but it won't help the likes of Ferrari and Lamborghini, which are part of bigger auto groups Fiat and Volkswagen, respectively. Fiat CEO Sergio Marchionne has argued that it would be unreasonable to force low-polluting little Fiats like the Panda and the 500 to bear the burden of their more polluting cousins from Ferrari and Maserati simply because they happen to be under common management.

At the end of the day, these exotic sportscars are not the big problem, though they do make easy targets. If European Union bureaucrats ignore the former and focus on the latter, Europe's most famous automakers could be legislated right out of business.

[Source: Reuters]

Read | Permalink | Email this | Comments

Traffic Enfarcement: What's wrong with this picture?

Dan Roth — 2008-08-05T17:58:00+00:00

Filed under: Etc., Government/Legal, Safety

The script for selling one of these "automated revenue enhancement devices" to a municipality might go something like "and the best feature of the Robthepopulace 3000 is that it never makes a mistake - machines don't lie!" Tell that to Thomas, who received a citation in the mail after a South African traffic camera nabbed his VW Polo "clearly traveling in excess of the 60 km/h limit." Right. Technically, the camera is not lying, but machines are incapable of interpreting on their own, otherwise the fleece-bot would have noted that while the car was indeed traveling in excess of the limit, it was on a hook! Thomas got the ticket because his car obscured the plate of the tow truck dragging his little Polo somewhere. While the picture doesn't lie, the government agency drew a false conclusion and stuck to it. We wonder if the amount of the ticket could be deducted from Thomas's income tax to ensure fairness. Now that's just crazy talk. Thanks for the tip, Erwin!

[Source: Daily WTF]

Read | Permalink | Email this | Comments

AutoblogGreen for 08.05.08

Sam Abuelsamid — 2008-08-05T06:49:00+00:00

Filed under: Government/Legal, Green

In Lansing MI yesterday Democratic presidential aspirant Barack Obama outlined his plans for an energy policy, including have at least 1 million plug-in hybrids on the road by 2015, having at least half of federal government vehicle purchases be plug-in capable by that time. Tesla picked up a new design director from Mazda and ABG takes a look at the math behind all these on-board hydrogen generators.

Read | Permalink | Email this | Comments

Ford working to prevent catalytic converter theft

Jeremy Korzeniewski — 2008-08-02T15:23:00+00:00

Filed under: Government/Legal, Green, Ford, UK

There's a container of precious metals dangling from the bottom of your car: your catalytic converter. They contain platinum, and its rising cost has caused a recent spike in converter theft, especially in the U.K. Not only does a missing cat let more pollution into the air, it also disables operation of the car in some cases. In an effort to combat this growing problem, Ford has partnered with Retainagroup to place individual serial numbers on converters. These IDs are intended to give law enforcement the ability to track down and prove whether individual converters were stolen or not. Want one? Visit your local U.K. Ford dealer with £11.87 in hand and you're all set.

[Source: Automotive Business Review]

Continue reading Ford working to prevent catalytic converter theft

Read | Permalink | Email this | Comments

On the Block: Saddam's Rollers up for sale

Noah Joseph — 2008-07-31T08:58:00+00:00

Filed under: Car Buying, Auction Action, Government/Legal, Rolls-Royce

It'd be hard to find a vehicle that conveys a greater sense of authority and superiority than a Rolls-Royce. How about a Rolls-Royce that previously belonged to a dictator? A year and a half since his execution, several uber-luxury automobiles that belonged to Saddam Hussein are now popping up for sale.

Following previous posts on Saddam's '88 Mercedes 560 SEL and Lamborghini LM002 - to say nothing of fellow executed despot Benito Mussolini's Alfa Romeo - comes the sale of a burgundy Rolls-Royce Corniche owned by the deposed Iraqi dictator. The car was acquired by an Iraqi investor and is being sold by Autocontinental, an importer in Surrey, England. The convertible appeared briefly on eBay before disappearing, suggesting there was either a legal issue or the car was sold. Among the prospective buyers cited by the dealership was a U.S .army colonel who wanted to acquire the license plate SADDAM for the ride. Even if the Corniche has already been sold, don't worry, because there are more coming to market, including another Corniche in blue and a gilded Maybach that Saddam never even drove before his regime collapsed.

[Source: Telegraph]

Read | Permalink | Email this | Comments

Max Mosley launches more lawsuits against newspapers

Noah Joseph — 2008-07-29T18:01:00+00:00

Filed under: Motorsports, Euro, Government/Legal, UK

Unwilling to recognize when genug is enough, Max Mosley is forging ahead with more lawsuits. After being awarded a £60,000 judgment (plus an additional estimated £1 million in expenses) against News of the World, the tabloid that broke the story of the FIA president's alleged sexual activities, Mosley is now launching a second lawsuit against the publishers. Whereas the previous lawsuit was on the grounds of invasion of privacy, the second action is for libel.

In addition to the follow-up suit against News of the World, Mosley will also be pursuing compensatory damages from German newspaper Bild, which Mosley claims repeated the story unchecked. The suit against Bild petitions for one million euros, plus an addition half-million from its online edition. The prostitute, known only as Woman E, who originally claimed the episode had a Nazi theme, has since recanted and revised her statement to the exclusion of any such connection.

[Source: Autosport, Photo by Peter Macdiarmid/Getty]

Read | Permalink | Email this | Comments

Lexus Lanes coming to California's Bay Area

Noah Joseph — 2008-07-28T19:19:00+00:00

Filed under: Etc., Government/Legal

Officials are hard at work trying to alleviate the notorious traffic congestion in California. Across the state, drivers sit still in traffic while carpool lanes sit empty, underused by public transit and vehicles carrying multiple passengers. The solution for the Bay Area, as the Metropolitan Transportation Commission sees it, is to allow solo motorists to pay for using the carpool lanes.

The commission is working up a proposal that would start with a pilot project in 2010 or early 2011 on I-680 S over the Sunol Grade and in both directions on I-580 between Livermore and the I-680 interchange. To implement the project over the entire 12-highway system would require the approval of state lawmakers (who are currently considering such a bill for Sacramento), as well as an investment of an estimated $3.7 billion. That would be recuperated and then some in the long run, generating an estimated $6 billion over the course of 25 years, the balance of which would be reinvested into the transportation network. If implemented, drivers running late and motivated to pay the fee would be able to move into the carpool lane at designated spots and pay with in-car transponders. Although the fees have yet to be determined, they are estimated at between 20-60 cents per mile at the outset of the program, eventually ramping up to as much as $1 per mile by 2030. Similar systems in place in southern California got the nickname "Lexus Lanes" because of the perception that the rich would use them all the time, leaving those with less means stranded in traffic. However officials cite studies that indicate that the system would be used by a wide cross-section of the socio-economic populace.

[Source: SF Chronicle via All Cars, All the Time, Image: Justin Sullivan/Getty]

Read | Permalink | Email this | Comments

In the San Mateo Garage: 2006 Crown Victoria Police Cruiser [w/DUMMY]

Chris Shunk — 2008-07-28T16:41:00+00:00

Filed under: Etc., Government/Legal

There are few things more jarring than when you're doing 80 on the freeway and spot a well-concealed police cruiser. You immediately begin to sweat, get your story straight, perform a mental check-list of license and registration, then watch the rearview mirror like a hawk to see if he pulls out. If you get the ticket, your day is ruined. If the cop was looking down, eating a donut, or just wanted a more brazen offender, flowers smell sweeter and your step is a little lighter.

The San Mateo police know this all too well, but a tight budget and too few officers makes putting more cops on the street all but impossible. So drivers have been flying through the suburban streets of San Mateo without the worry of an expensive, time consuming ticket. To put a wrench in the plans of would-be traffic violators, the police have enlisted volunteers to drive actual cop cars and park them somewhere in their own neighborhood. To make the cars look more official, officer David Coy (alias: D-Coy) has been commissioned to sit behind the wheel, but this guy is as dumb as they come. D-Coy is a mannequin, and he sits behind the wheel to make the city's ruse more effective. So far, drivers are fooled, as most are obeying traffic laws under Coy's watch. We're questioning, however, why the police department would talk to the local news paper about its own deception. Officers say they want more volunteers, but what they'll likely get is area drivers that ignore their decoy. We just hope the guy we pass on I-75 every day is replaced with Dave real soon.

[Source: San Mateo Daily News (pic by Victor Maccharoli), via All Cars, All The Time]

Read | Permalink | Email this | Comments

Port Authority skittish over BMW Hydrogen 7

Jeremy Korzeniewski — 2008-07-25T13:31:00+00:00

Filed under: Hybrids/Alternative, Sedans/Saloons, Government/Legal, Green, Safety, BMW

Note to all you celebs and journos driving around in BMW Hydrogen 7s: be careful where you go in New York and New Jersey. While taking the uber-clean car for a joyride, The New York Times was informed it was not to drive through either the Lincoln or Holland Tunnels or on the lower level of the George Washington Bridge. It seems that the Port Authority of the two states isn't thrilled with the idea of 17.5 pounds of liquid hydrogen moving about its crowded thoroughfares, fearing a disaster of Hindenburg-like proportions. It so happens that our own Alex Núñez also just had the Hydrogen7 recently, and he's provided us with a copy of the relevant bit of paperwork which the Times refers to. You can read about the Hydrogen7's visit to the AutoblogGreen Garage at our sister site on August 1.

Seriously though, BMW has done an excellent job of ensuring safety on the Hydrogen 7. There are numerous mechanical and electronic systems designed specifically to be sure that any hydrogen let loose is done so in a controlled manner. We're sure that the last thing the bosses in Munich want on their hands is the negative publicity associated with a mishap involving a celebrity, dignitary.... or innocent bystanders in the New York metropolitan area. (Or me, Jeremy -- AN)

[Source: The New York Times | Photos: Alex Núñez]

Read | Permalink | Email this | Comments

Toyota tops big company CAFE ratings for 2007 model year with 29.69 mpg

Sam Abuelsamid — 2008-07-25T13:01:00+00:00

Filed under: Government/Legal

The final 2007 model year tally of corporate average fuel economy for automakers selling cars in the U.S. is done, and Toyota came out on top of the heap again among the big brands. However, Toyota was not the overall winner. That honor went to none other than Lotus with 30.2 mpg! Lotus however is a very small fish in a huge if shrinking pond, having only sold six hundred 2007 model cars here. Toyota sold a couple more than that and averaged 29.69 mpg with its lineup of Priuses, Camrys, Corollas and Tundras. The no. 1 brand edged out Honda and Hyundai, which got 29.47 and 29.39 respectively. The Detroit based automakers? Well, not so good. GM, Ford and the then DaimlerChrysler brought up the rear with 25.16, 25.15 and 23.97. The 2008 numbers should show a significant improvement for all three companies now that truck sales have gone in the toilet and they are selling whatever smaller cars they have as fast as they can build them. Chrysler will also benefit by not including Mercedes-Benz in its numbers.

The averages are sales weighted and based on fuel economy numbers from 1970s era test procedures rather than the new lower mileage numbers that can be found on current window stickers, so keep that in mind. You can check out the full report at the NHTSA web-site including numbers for previous model years.

[Source: NHSTA, via Toyota Open Road Blog, Photo by Justin Sullivan/Getty]

Read | Read | Permalink | Email this | Comments