Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[REPORT: January's Detroit Auto Show to be loaded up with political VIPs]]>http://www.autoblog.com/2009/11/17/report-januarys-detroit-auto-show-to-be-loaded-up-with-politic/http://www.autoblog.com/2009/11/17/report-januarys-detroit-auto-show-to-be-loaded-up-with-politic/http://www.autoblog.com/2009/11/17/report-januarys-detroit-auto-show-to-be-loaded-up-with-politic/#commentsFiled under: , , ,



After General Motors and Chrysler required a combined $80 billion in government assistance to keep their doors open, many speculated that Uncle Sam would want to keep a hand in the carmaking cookie jar. While it is debatable how much control (a lot) the White House and Congress have over the Detroit automakers, it certainly appears that our politicians have taken a keen interest in the nation's auto industry.

One sign that our government is keeping an eye on our investment is the overwhelming amount of interest Washington is reportedly taking in the 2010 North American International Auto Show. The Detroit Free Press is reporting that Congress, the Department of Transportation and other agencies are making so many requests for access to the press days of the show that special gray and silver government badges are being created just for them. NAIAS Chairman Doug Fox says more than twice the politicians and government agencies have requested to attend the show than last year, and we're guessing the queries will continue to pour in as the show draws nearer. There is also speculation that President Obama may himself attend the show, though the White House isn't likely to confirm or deny that until much closer to the actual event.

On one hand, it's nice to see that Washington has finally decided to pay attention to the auto industry, but we can't help but wonder what what the value add is of joining the scrum during press days. We're thinking most of the politicians and government officials can learn all they need to know about the show from Autoblog, save a few million dollars, and perhaps avoid some time in the frozen tundra that is Detroit in January.

[Source: Detroit Free Press | Image: Stan Honda/AFP/Getty]

REPORT: January's Detroit Auto Show to be loaded up with political VIPs originally appeared on Autoblog on Tue, 17 Nov 2009 15:58:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chryslercongressdetroit auto showdetroit auto show 2010DetroitAutoShowDetroitAutoShow2010gmlawmakersnaiasNAIAS 2010Naias2010obamapoliticianswhite houseWhiteHouseTue, 17 Nov 2009 15:58:00 EST<![CDATA[Senators mulling a nationwide ban on texting while driving]]>http://www.autoblog.com/2009/07/29/senators-mulling-a-nationwide-ban-on-texting-while-driving/http://www.autoblog.com/2009/07/29/senators-mulling-a-nationwide-ban-on-texting-while-driving/http://www.autoblog.com/2009/07/29/senators-mulling-a-nationwide-ban-on-texting-while-driving/#commentsFiled under:



Last time we checked in with the issue of texting while driving, the NHTSA practically claimed it was gagged by Congress. Fast forward a week -- after the New York Times report and the results of a Virginia Tech study -- and now a group of Democratic senators is proposing a nationwide ban on texting behind the wheel.

In a study of truckers, VA Tech said the increased risk of an accident was 23-times higher when texting and six-times higher when simply dialing or reaching for "an electronic device." In response to those kinds of numbers, New York Senator Charles Schumer (D) said "The federal government ought to pass a law banning this dangerous and growing practice to protect the millions of Americans on our nation's roads. It is a matter of public safety."

Like the drunk driving or minimum drinking age laws enacted in years past, the proposed legislation would punish states that don't enact the restrictions by reducing federal highway funds by 25%. There's no timeline yet for the legislation to be passed, but if it does get approved, it would become law within six months, and states would be given two years to develop their own laws. Important to note: the law would only apply to texting in moving cars, not stopped cars.

[Source: Yahoo! | Image Source: Bruno Vincent/Getty]

Senators mulling a nationwide ban on texting while driving originally appeared on Autoblog on Wed, 29 Jul 2009 18:28:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>congressdistractionsdrivinggovernmentlegalsenatetextingtexting while drivingTextingWhileDrivingWed, 29 Jul 2009 18:28:00 EST<![CDATA[Cash for Clunkers passes Congress, awaits President's signature]]>http://www.autoblog.com/2009/06/19/cash-for-clunkers-passes-congress-awaits-presidents-signature/http://www.autoblog.com/2009/06/19/cash-for-clunkers-passes-congress-awaits-presidents-signature/http://www.autoblog.com/2009/06/19/cash-for-clunkers-passes-congress-awaits-presidents-signature/#commentsFiled under: ,



After narrowly surviving an attempt by Sen. Judd Gregg, R-N.H. to strip it from a war-spending bill, the Cash for Clunkers program passed the Senate yesterday evening. Well, the $106 billion war-spending bill passed the Senate on a 91-5 vote, but the $1 billion scrapping program earlier survived Sen. Gregg's attempt to have it removed and thus passed, as well. Now the bill makes its way to President Obama, who is expected to sign the bill into law, after which the U.S. Transportation Department reportedly has one month to figure out how the Cash for Clunkers program will be run. Since Congress reduced funding for the program from $4 billion to just $1 billion, it's expected that the money will run out long before the program is scheduled to end on November 1.

The Cash for Clunkers program is intended to aid automakers and their dealers, including imports, by offering vouchers worth between $3,500 and $4,500 to car buyers willing to trade in their old vehicles for new, more fuel efficient ones. The program's eligibility rules, however, are stiff. Trade-in vehicles have to be in drivable condition, insured by the same owner for the last year, manufactured in 1984 or later and have a combined EPA fuel economy rating of 18 mpg or less.

The new car being purchased must also achieve at least 22 mpg combined in order to receive the $3,500 voucher and be 10 mpg better than your trade-in to earn the $4,500 voucher. For light trucks and SUVs, the new vehicle must get 2 mpg better than the old one for $3,500 and 5 mpg better for $4,500. Reported estimates say around 250,000 car shoppers will be able to take advantage of the program, so don't sell your clunker on Craigslist if you want to be one of them.

[Source: The Detroit Free Press | Photo by Kevin Burkett | CC2.0]

Cash for Clunkers passes Congress, awaits President's signature originally appeared on Autoblog on Fri, 19 Jun 2009 12:58:00 EST. Please see our terms for use of feeds.

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According to The Wall Street Journal, President Obama has taken a pass on granting auto parts suppliers' request for $10 billion in aid, leaving the financially-strapped companies to seek succor from Congress instead.

While the president's administration says it will keep a wary eye on the state of the industry, no more federal aid appears to be in the cards. As quoted in the WSJ, Neil De Koker, president and CEO of the Original Equipment Suppliers Association says that he thinks the government won't financially intervene further "unless we see chaos or a disorderly situation arising where have assembly-line shutdown due to lack of ability to get parts or stuff like that, then we would relook at this situation..."

While the industry's highest-profile bankruptcy have undoubtedly been that of General Motors and Chrysler, major suppliers like Karmann, Visteon and Metaldyne have also filed in recent months, and industry watchdogs see the potential for many more red ink stained white flags to be erected before the industry's economy recovers.

[Source: The Wall Street Journal | Image: Saul Loeb/AFP/Getty]

WSJ: Obama nixes auto suppliers' request for aid originally appeared on Autoblog on Tue, 16 Jun 2009 15:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto supplierAutoSupplierCongressNeil de kokerNeilDeKokerobamaOESAsuppliersupplierstier-1Tue, 16 Jun 2009 15:30:00 EST<![CDATA[REPORT: Detroit execs grilled on dealer cuts by Congress, Henderson agrees to cough up closure list]]>http://www.autoblog.com/2009/06/04/report-detroit-execs-grilled-on-dealer-cuts-by-congress-he/http://www.autoblog.com/2009/06/04/report-detroit-execs-grilled-on-dealer-cuts-by-congress-he/http://www.autoblog.com/2009/06/04/report-detroit-execs-grilled-on-dealer-cuts-by-congress-he/#commentsFiled under: , ,



When it comes to dealership closings, there is a big divide between what General Motors, Chrysler and President Obama's auto task force want and what dealers and Congress want. The bankrupt Detroit automakers say that closing dealerships will save money, streamline vehicle delivery, improve brand image, and improve the health of remaining retail stores.

Some members of Congress aren't so sure that dealer closings will cure much for GM and Chrysler, and the legislative branch brought Chrysler's Jim Press and GM's Fritz Henderson before the Senate Commerce Committee on Wednesday for yet another grilling. Broadly speaking, Congress tends to side with dealers because of the political influence of the dealer body, and because of the impact of dealership job losses in the districts/states that Congressmen and women serve.

According to The Wall Street Journal, committee chairman John D. Rockefeller (D-W. Va.) says that he doesn't "believe that companies should be allowed to take taxpayer funds for a bailout and then leave it to local dealers and their customers to fend for themselves with no real plan, with no real notice, with no real help." Mike Johanns (R-Neb.) added that he is introducing legislation that will force the Obama administration to require congressional approval to use TARP funds to obtain an equity stake in any company.

Press and Henderson told the dealers that they would need to ultimately close 3,400 dealerships. GM has so far announced 1,324 closings by the end of 2010, while Chrysler will shutter 789 retail stores by June 9. Over the course of the congressional proceedings, Automotive News notes that Henderson bowed to pressure to disclose the list of dealers GM is eliminating, although that list has not been made public yet.

Henderson calls bankruptcy "our last chance to get it right, to fix permanently those parts of the business that have diverted us from consistently building winning cars and trucks and the consumer experience to match." Dealers called the closings "hasty," and contend that the actions taken against them won't be nearly as effective as GM and Chrysler expect. Hat tip to Dave!

[Sources: Wall Street Journal; Automotive News - subs. req | Source Photo by Mark Wilson/Getty]

REPORT: Detroit execs grilled on dealer cuts by Congress, Henderson agrees to cough up closure list originally appeared on Autoblog on Thu, 04 Jun 2009 13:28:00 EST. Please see our terms for use of feeds.

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Accusing a cross-town rival of influencing Chrysler to shut down its business so they could acquire the customers, Florida's Monarch Dodge has filed a civil suit against Massey-Yardley Dodge. The two Sunshine State dealerships will meet in court to determine whether Massey-Yardley Dodge contacted Monarch Dodge employees with job offers - before Chrysler LLC had announced its closure list. The suit alleges that Massey-Yardley and its "agents engaged in a campaign with agents of Chrysler LLC to acquire Monarch" while actively convincing the bankrupt automaker to close the Lauderdale Lakes dealership.

Regardless of the pending litigation, Monarch Dodge joins hundreds of other dealerships still coming to terms with their closures. Not only is Monarch the only new car dealer in the small city (employing 67 people), but it says it has consistently ranked as the ninth most profitable out of 26 dealers in South Florida. To bolster its cause, the 35-year-old dealership is rallying local support among the community and may even appeal to Congress. Thanks for the tip, Mike!

[Source: TCPalm]

Dodge-Eat-Dodge: Dropped Chrysler dealer sues competitor that's staying open originally appeared on Autoblog on Tue, 02 Jun 2009 17:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>BusinessClosureCongressLawsuitLitigationMassey-Yardley DodgeMassey-yardleyDodgeMonarch DodgeMonarchDodgeSueTue, 02 Jun 2009 17:29:00 EST<![CDATA[Unlikely Ally: Ralph Nader addresses Capitol Hill over likely GM bankruptcy]]>http://www.autoblog.com/2009/05/19/unlikely-ally-ralph-nader-addresses-capitol-hill-over-likely-gm/http://www.autoblog.com/2009/05/19/unlikely-ally-ralph-nader-addresses-capitol-hill-over-likely-gm/http://www.autoblog.com/2009/05/19/unlikely-ally-ralph-nader-addresses-capitol-hill-over-likely-gm/#commentsFiled under: ,



Ralph Nader, the man who single-handedly sank the Chevrolet Corvair by exposing its safety faults in his book Unsafe At Any Speed, has unexpectedly appeared at the side of General Motors. In a letter written to Senator Chris Dodd, Chair of the U.S. Senate Committee on Banking, Housing and Urban Affairs, and Barney Frank, Chair of the House Committee on Financial Services, Nader warns the Congressmen about the risk of leaving GM's fate in the hands of the Auto Task Force, or what he calls "a small unelected and largely unaccountable group arranged to avoid the Federal Advisory Committee Act."

In truth, Nader is not necessarily sticking up for GM, but as a consumer advocate he's more interested in protecting tax-payers and the thousands -- if not millions -- of families that could be harmed if the Auto Task Force makes a misstep on its march towards an increasingly likely GM bankruptcy. His solution? Get Congress involved through more oversight of the Auto Task Force's decisions and urge the administration to postpone any irreversible decisions until they can be carefully reviewed in Congressional hearings. Of course, this delay would mean that GM needs more bridge loans to survive the interim, but as Nader reminds us, "the virtually condition-free Wall Street" bailout has cost much more. Follow the jump to read Nader's letter for yourself in its entirety.

[Source: Nader.org | Photo Source: Brendan Smialowski/Getty]

Continue reading Unlikely Ally: Ralph Nader addresses Capitol Hill over likely GM bankruptcy

Unlikely Ally: Ralph Nader addresses Capitol Hill over likely GM bankruptcy originally appeared on Autoblog on Tue, 19 May 2009 15:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>auto task forceAutoTaskForcecongressgeneral motorsGeneralMotorsgmralph naderRalphNaderTue, 19 May 2009 15:28:00 EST<![CDATA[U.S. Cash-for-Clunkers deal reportedly nearing congressional compromise]]>http://www.autoblog.com/2009/04/24/u-s-cash-for-clunkers-deal-reportedly-nearing-compromise/http://www.autoblog.com/2009/04/24/u-s-cash-for-clunkers-deal-reportedly-nearing-compromise/http://www.autoblog.com/2009/04/24/u-s-cash-for-clunkers-deal-reportedly-nearing-compromise/#commentsFiled under: , , ,



It's looking increasingly likely that the United States will soon have its own Cash-for-Clunkers program. According to The Detroit News, two bills are currently competing for Congressional votes, and while they would both offer sizable rewards for turning in older vehicles, they vary in what new cars and trucks would qualify for the program.

One bill, sponsored by Rep. Betty Sutton (D-Ohio) would give the largest voucher - up to $5,000 - to purchasers of new vehicles made in the United States. Slightly smaller amounts would be granted for other vehicles made in the rest of North America, and no cash would be granted for the purchase of foreign-made cars. All cars would need to manage at least 27 mpg to qualify, and trucks would need to hit at least 24 mpg.

The other bill, sponsored by Rep. Steve Israel (D-New York), would offer up to $4,500 for the purchase of a new vehicle, assuming that the vehicle being traded-in gets 18 mpg or less, and the new vehicle's fuel efficiency is at least 25% better than average for its class. No distinction would be made based on the vehicle's country of origin.

According to Rep. Israel, the two sides are 90% of the way to an acceptable compromise. Even after an agreement is reached on a final bill, policymakers will need to figure out how to come up with the (up to) $4 billion that the program is expected to cost - not to mention how to handle the resulting lot-fuls of so-called clunkers.

[Source: The Detroit News | Image:: dave_7, CC2]

U.S. Cash-for-Clunkers deal reportedly nearing congressional compromise originally appeared on Autoblog on Fri, 24 Apr 2009 13:27:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>Betty SuttonBettySuttoncar scrappagecar scrappingCarScrappageCarScrappingcash for clunkersCashForClunkerscongressgreenscrap carScrapCarSteve IsraelSteveIsraelFri, 24 Apr 2009 13:27:00 EST<![CDATA[Ford CEO Mulally gets 37% pay cut; Gephardt, Earley appointed to board]]>http://www.autoblog.com/2009/03/25/ford-ceo-mulally-gets-37-pay-cut-gephardt-earley-appointed-to/http://www.autoblog.com/2009/03/25/ford-ceo-mulally-gets-37-pay-cut-gephardt-earley-appointed-to/http://www.autoblog.com/2009/03/25/ford-ceo-mulally-gets-37-pay-cut-gephardt-earley-appointed-to/#commentsFiled under: , ,



Ford's CEO Alan Mulally took hope a tidy $13.57 million compensation package for his work in 2008, While that's a handsome sum, it represents a 37 percent cut of the $21.67 million he took home in 2007 - and that's before the ex-Boeing exec takes an additional 30 percent haircut for 2009. By comparison, General Motors' CEO Rick Wagoner and Chrysler's Bob Nardelli are slated to have salaries of $1 each, although both automakers have already received $17.4 billion in federal loans.

In addition, Automotive News reports that the company will abolish merit raises for salaried workers in the U.S. (and in most of its global ops), kill off a worldwide incentive compensation program for 2008 and newer employees, and give no compensation to board members for 2009.

In related news that's causing a bit of consternation, AN is reporting that Mulally and executive chairman Bill Ford will continue to use corporate jets for business and private travel. The flights will be chartered planes, as Ford put its own fleet of private aircraft up for sale some time ago after being chided by politicians during the bailout hearings on Capitol Hill.

Speaking of which, Ford also has some news on that front, as well. The Wall Street Journal reports that House Majority Leader Richard "Dick" Gephardt has now found a seat on the Blue Oval's board, as has Anthony Earley, chairman and CEO of DTE Energy Co. The two bigwigs replace seats vacated by members who reportedly no longer have the necessary time to serve.

[Sources: Automotive News - subs. req.; Wall Street Journal | Image: AFP/Getty]

Ford CEO Mulally gets 37% pay cut; Gephardt, Earley appointed to board originally appeared on Autoblog on Wed, 25 Mar 2009 15:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Alan MulallyAlan MullalyAlanMulallyAlanMullalyBlue OvalBlueOvalCongressDick GephardtDickGephardtDTE EnergyDteEnergyFord MotorFordMotorhouse of representativesHouseOfRepresentativesWed, 25 Mar 2009 15:57:00 EST<![CDATA[REPORT: Congress members drafting cash-for-clunkers bill]]>http://www.autoblog.com/2009/03/18/report-congress-members-drafting-cash-for-clunkers-bill/http://www.autoblog.com/2009/03/18/report-congress-members-drafting-cash-for-clunkers-bill/http://www.autoblog.com/2009/03/18/report-congress-members-drafting-cash-for-clunkers-bill/#commentsFiled under: , , ,



Ohio Congresswoman Betty Sutton has introduced a new bill to provide a voucher of up to $5,000 in exchange for your clunker. To be eligible for the voucher, car buyers would have to purchase a new vehicle that is more fuel efficient than the car or truck it replaces. The trade-in also needs to be at least eight years old, while the replacement vehicle needs to sticker for less than $35,000.

The bill will include purchases of both foreign and domestic autos, but there is an incentive to buy vehicles assembled in North America. If the bill passes, foreign-made vehicles will receive a voucher of $4,000, while North American-made vehicles will be eligible for the entire $5,000.

Sutton is hailing her bill as a win for all, saying the legislation will "help consumers, stimulate our economy, improve our environment, reduce our dependence on foreign oil, and help our domestic auto and related industries." Not surprisingly, domestic automakers are smitten with the idea of vehicle vouchers. General Motors CEO Rick Wagoner said the legislation would be a "big help," while Ford called the idea a "win-win" for the auto industry and the environment. We're calling it a great way to get $5,000 off the price of a 29-mpg Chevrolet Camaro. Thanks for the tip, Vlad!

[Source: The Detroit News, Photo by tromasbronot | CC2.0]

REPORT: Congress members drafting cash-for-clunkers bill originally appeared on Autoblog on Wed, 18 Mar 2009 08:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>betty suttonBettySuttoncash for clunkersCashForClunkerscongressfordgmvehicle voucherVehicleVoucherWed, 18 Mar 2009 08:59:00 EST<![CDATA[Obama vows not to give up on Detroit automakers]]>http://www.autoblog.com/2009/02/25/obama-vows-not-to-give-up-on-detroit-automakers/http://www.autoblog.com/2009/02/25/obama-vows-not-to-give-up-on-detroit-automakers/http://www.autoblog.com/2009/02/25/obama-vows-not-to-give-up-on-detroit-automakers/#commentsFiled under:



In last night's televised speech to a joint session of Congress, President Obama vowed to commit to a reworking of the domestic auto industry, saying that it is too important to let go:
But we are committed to the goal of a re-tooled, re-imagined auto industry that can compete and win. Millions of jobs depend on it. Scores of communities depend on it. And I believe the nation that invented the automobile cannot walk away from it.
Obama will present is first budget proposal on Thursday, but in his speech, he said that his administration will focus on three things: energy, health care, and education. All three components of his focus have the potential to impact the auto industry, but Obama took particular pains to acknowledge that the U.S. has fallen behind in renewable energy production, noting that "New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea."

In his speech, Obama was short on specific courses of action, but he acknowledged that Detroit's automakers have fallen into disrepair in part because of their own doing and in part because of market conditions:
As for our auto industry, everyone recognizes that years of bad decision-making and a global recession have pushed our automakers to the brink. We should not, and will not, protect them from their own bad practices.
[Source: Automotive News (subs. req.) | Image: Saul Loeb/Getty]

Obama vows not to give up on Detroit automakers originally appeared on Autoblog on Wed, 25 Feb 2009 10:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>chryslercongressdetroit automakersDetroitAutomakersdomestic autoDomesticAutofordgmjoint sessionJointSessionobamapresidential addressPresidentialAddressWed, 25 Feb 2009 10:57:00 EST<![CDATA[GM plans to trim 400 dealers per year until 2012]]>http://www.autoblog.com/2009/01/26/gm-plans-to-trim-400-dealers-per-year-until-2012/http://www.autoblog.com/2009/01/26/gm-plans-to-trim-400-dealers-per-year-until-2012/http://www.autoblog.com/2009/01/26/gm-plans-to-trim-400-dealers-per-year-until-2012/#commentsFiled under: , ,



Dealership rationalization was something General Motors was looking at well before the economy went pear-shaped. GM still has more than 6,300 dealerships in the U.S., and it is even more important now to start shedding some of that financial burden. That is why The General told dealers at the NADA conference that it plans to get rid of 1,600 dealerships by 2012.

GM's initial viability plan to Congress proposed an eventual reduction to 4,000 dealerships. No one knows yet, though, how GM plans to do that. GM said it will explain the dealer elimination plan in the follow-up viability plan it submits to Congress on February 17. Said one GM dealer, "They basically said, 'We're looking for strong dealers, and if you're not a strong dealer, you better evaluate your options."

GM did say that 400 dealers per year being shut isn't a firm number, simply a target. Nevertheless, dealers are none too happy. Some dealers say GM is using GMAC to force dealers out by setting capital requirements beyond a dealer's reach. GM says it has no intention of using GMAC in such a way. When the time comes, dealership liquidation will be be judged market by market, and based on a number of factors including age, location, volume, capitalization and customer satisfaction. While the plan will obviously save GM money in the long term and make it more efficient, in the short term it is going to cost GM a fortune to close 1,600 locations.

[Source: Automotive News, sub req'd, Photo by Justin Sullivan/Getty]

GM plans to trim 400 dealers per year until 2012 originally appeared on Autoblog on Mon, 26 Jan 2009 14:43:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bridge loanBridgeLoancongressdealerdealersdealershipdealershipsgmgm bailoutgm dealersgm dealershipsGmBailoutGmDealersGmDealershipsnadaMon, 26 Jan 2009 14:43:00 EST<![CDATA[Road commission calls for gas tax hike]]>http://www.autoblog.com/2009/01/03/road-commission-calls-for-gas-tax-hike/http://www.autoblog.com/2009/01/03/road-commission-calls-for-gas-tax-hike/http://www.autoblog.com/2009/01/03/road-commission-calls-for-gas-tax-hike/#commentsFiled under: , , , ,

A gas tax is about more than putting liquid into your tank and subtracting a higher amount from your bank account. A gas tax is -- just like CAFE and hybrids and $25 billion set aside to finance fuel efficient technologies -- about reworking and redefining our entire system of private transportation. And since that system is most certainly going to redefined, it is no surprise that the National Commission on Surface Transportation Infrastructure Financing has recommended a jump in the federal fuel tax.

Congress created the commission to examine the federal taxes on fuel -- currently 18.4 cents for gas and 24 cents for diesel -- and the commission came back with the same results as everyone else: people are driving less, and driving more fuel efficient cars, and that has killed revenue for transportation infrastructure. One member of the commission said, "I'm not excited about a gas tax increase, but the reality is our current gas tax doesn't pay for upkeep of the system we have now. We can either let the roads go to hell or we can pay more." If the roads go to hell, though, guess what? We're going to pay more, but that money will go to service departments and auto parts stores.

The proposed solution is to make the gasoline fuel tax 24.4 cents, and the diesel tax between 36 and 39 cents. That would begin to make up for the $105 billion difference between actual revenues and the money needed to upkeep our roads and highways. It is conceivable that a higher gas tax could also encourage people to buy those high-mileage vehicles the government keeps commanding Detroit to make. But before that happens, it will probably just make a lot of people anguished and angry.

[Source: CNBC]

Road commission calls for gas tax hike originally appeared on Autoblog on Sat, 03 Jan 2009 15:43:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>congressdiesel taxDieselTaxetcfederal gas taxfederal taxFederalGasTaxFederalTaxfuel taxFuelTaxgas taxGasTaxgovernmentgreenlifestylestudytaxesSat, 03 Jan 2009 15:43:00 EST<![CDATA[Wagoner arrives for Senate hearing in Volt mule]]>http://www.autoblog.com/2008/12/04/wagoner-arrives-for-senate-hearing-in-volt-mule/http://www.autoblog.com/2008/12/04/wagoner-arrives-for-senate-hearing-in-volt-mule/http://www.autoblog.com/2008/12/04/wagoner-arrives-for-senate-hearing-in-volt-mule/#commentsFiled under: , , ,



General Motors CEO Rick Wagoner has arrived in Washington to deliver testimony at Senate hearings scheduled for today and tomorrow, and as we reported late yesterday, his transportation this time was not a private jet, but rather a series hybrid Chevy Volt mule in the body of a Chevy Cruze. Ford CEO Alan Mulally also ditched his private plane for a ride down to DC in a Ford Escape Hybrid, while Chrysler CEO Bob Nardelli made the trip in a Chrysler Aspen Hybrid. UAW President Ron Gettelfinger flew down, but on a commercial flight (he never had a private jet in the first place and it likely would've been awkward if he chose one automaker's vehicle over the other two).

Testimony will be given by the four men and a number of other witnesses today and tomorrow, though it still appears as if there aren't enough votes in the Senate to get federal aid for the automakers passed immediately. Even if aid in the form of government loans is approved, there's still the matter of where the money will come from. The only two options on the table are converting $25 billion in already approved loans for investment in green technology to be used by the automakers to keep their businesses afloat, or carving out the money from the $700 billion in aid that Congress has already approved for the financial industry. We'll be keeping an eye on what's happening in Washington today and tomorrow, so stay tuned.

[Photo by Win McNamee/Getty]

Wagoner arrives for Senate hearing in Volt mule originally appeared on Autoblog on Thu, 04 Dec 2008 10:29:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>alan mulallyAlanMulallybailoutbob nardelliBobNardellicongressgovernment bailoutgovernment loansGovernmentBailoutGovernmentLoansrick wagonerRickWagonersenate hearingsSenateHearingsThu, 04 Dec 2008 10:29:00 EST<![CDATA[Ford claims to be back in black by 2011, release EV sedan same year]]>http://www.autoblog.com/2008/12/02/ford-claims-to-be-back-in-the-black-in-2011-release-ev-sedan-sa/http://www.autoblog.com/2008/12/02/ford-claims-to-be-back-in-the-black-in-2011-release-ev-sedan-sa/http://www.autoblog.com/2008/12/02/ford-claims-to-be-back-in-the-black-in-2011-release-ev-sedan-sa/#commentsFiled under: , , , , ,

In just a few short days, Ford and its two cross-town rivals will be required to lay down a plan before Congress that points a clear path towards profitability and global competitiveness. These days, any automaker's future will involve plenty of greenery, and as the first of the three automakers to submit its comprehensive business plan to the lawmakers in DC, Ford's plan includes electric vehicles slated for launch starting in 2010. First up will be a new electric van for commercial use, followed in 2011 by a new electric sedan. Other highlights include U.S. versions of the European-designed automobiles that are currently making their way across the pond, the sale of all its private jets, further plant closings and continued negotiations with the UAW.

So, what kind of money are we talking? The Blue Oval's plan calls for a bridge loan of $9 billion to be made available, though it hopes it doesn't need it. You may remember that Ford bet Henry's farm already when Mulally first took office at the automaker, so it's already got a load of financed cash on hand to weather the current stormy climate through 2010. What's more, Ford hopes to get $5B of loans under the already-promised $25B for fuel efficient cars. On the negative side, the plan suggests that a bankruptcy of either General Motors or Chrysler would be enough to cripple Ford's operations. Barring that, even with a forecast of flat sales of 12.5 million units per year for the next three years for the U.S. auto industry, Ford believes it's on its way back to profitability as early as 2011. Check out the Blue Oval's official press release detailing its proposed plan to Congress after the jump.

[Source: Ford]

Continue reading Ford claims to be back in black by 2011, release EV sedan same year

Ford claims to be back in black by 2011, release EV sedan same year originally appeared on Autoblog on Tue, 02 Dec 2008 12:58:00 EST. Please see our terms for use of feeds.

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It seems the entire world is still debating whether or not Rick Wagoner, Alan Mulally and Bob Nardelli should have carpooled, walked or taken the bus for their last trip to the Capitol, but that's all behind us now. The good news for those who like to play expert on the internet is that Detroit's got another date with Congress this week. Ford CEO Alan Mulally is the first of the three CEOs to announce that he'll be driving, though we expect the others to follow suit shortly.

There's no doubt that Mulally will be driving a car from Ford's latest crop of vehicles (rather than his own Lexus), but which one would make the best impression? No matter which he chooses to drive, you can count on the fact that the choice will be dissected, so this seemingly insignificant decision could have major future ramifications. So, we ask you, dear Autoblog readers: What should Mulally drive to Washington... Mustang? Hybrid? Voting polls are now open.

View Poll


[Source: Detroit News, Photo by Mark Wilson/Getty]

Mulally driving to Washington, but what car should he drive? originally appeared on Autoblog on Mon, 01 Dec 2008 19:27:00 EST. Please see our terms for use of feeds.

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Remember the growing movement to caravan a few hundred of Detroit's most fuel efficient vehicles to the automaker's next meeting with Congress? Not happening. Interestingly, it wasn't for lack of support. In fact, it was just the opposite. So many people had voiced their support and announced their intentions to join in that the event's organizers just weren't able to keep up. Talk about a logistical nightmare.

Organizers have not given up on the idea completely, launching a new website called TheEngineofDemocracy.com that's supposed to drum up support for Detroit and fuel efficient cars in general. Along with an outpouring of support via the interwebs, a list of 51 people from various suppliers, dealership workers and Union officials will accompany the CEOs of General Motors, Ford and Chrysler to Washington - one from each state plus one from the capital itself - to prove that the loss of the American auto industry would affect everyone. At this point, we think it's safe to say that Wagoner, Mulally and Nardelli will be, ya know, driving to the proceedings.

[Source: The Detroit News Photo by Mark Wilson/Getty]

Detroit to DC caravan cancelled originally appeared on Autoblog on Sat, 29 Nov 2008 13:22:00 EST. Please see our terms for use of feeds.

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When ants need to cross some dangerous span in order to get to the thing they want, certain ants in the colony will sacrifice themselves to build a bridge that other ants can cross. That's how you get the honey. In GM's case, the honey is a $12 billion government lifeline. The dangerous span is, well, extinction. And the sacrificial ants in this case could be Pontiac, Saturn, and Saab.

Before the government would start writing checks (to the automakers, at least), Congress told GM (and Ford and Chrysler) to come back with a plan that gave some indication of long-term viability and a return to financial health. Supposedly, as part of such a plan, GM has looked at "shedding" the three brands in question, which would eliminate the massive costs associated with production, marketing and sales. But that would happen after massive payouts, some serious upheaval and tens of thousands of job losses. It would leave GM with Chevrolet, GMC, Buick, and Cadillac... which, since it's in ruthless survival mode, makes us wonder what kind of crush GM has on GMC. GM will release a 10-to-12 page plan to the public making its case and Congress has scheduled a hearing on the matter for December 5th.

In the article, the word "shedding" is used to describe what GM would do with Saturn, Pontiac, and Saab. But we don't know where and how they would shed them. Saturn is a misfit child (not really Saturn's fault), Pontiac is unsure of itself (except when it comes to the G8 triplets and the Solstice), and Saab sold about 33,000 cars in America last year and 125,000 around the world. With the state of lending and credit markets, it would probably be easier to buy a pterodactyl than get a loan to buy one of GM's brands. HUMMER's already been on the block so long it's about to get arrested for loitering. So is "shedding" a euphemism for "bye-bye..."? We'll know soon enough. Thanks to all who tipped in.

[Source: Bloomberg]

Would GM shed Saab, Saturn and Pontiac to secure gov't aid? originally appeared on Autoblog on Fri, 28 Nov 2008 10:15:00 EST. Please see our terms for use of feeds.

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Click above to watch video after the jump

Saturday Night Live has been on a roll of late, with a string of strong skits centered around the Presidential election and the ongoing financial crisis. So it was only a matter of time before SNL took on the auto industry to task, using last week's Congressional hearings as the backdrop. As one might expect, SNL writers showed no mercy for Allan Mulally, Bob Nardelli, and Rick Wagoner, and Congress didn't look too bright, either. The omnipresent joke of the entire eight-minute skit was a long, consistent shot at the quality of Detroit 3 products. Even though it's an obvious exaggeration, we're guessing the shots are a sure-fire sign that commercials touting the quality improvements at Ford and GM have fallen on deaf ears. Hit the jump to view SNL's latest.

[Source: DKKonservo]

Continue reading SNL takes on the Detroit 3 bailout

SNL takes on the Detroit 3 bailout originally appeared on Autoblog on Tue, 25 Nov 2008 09:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Allan MulallyAllanMulallyAuto industryAutoIndustryBob NardelliBobNardellicongressRick WagonerRickWagonerSaturday Night LiveSaturdayNightLiveTue, 25 Nov 2008 09:01:00 EST<![CDATA[The Skinny: Automaker aid from the Feds]]>http://www.autoblog.com/2008/11/18/the-skinny-automaker-aid-from-the-feds/http://www.autoblog.com/2008/11/18/the-skinny-automaker-aid-from-the-feds/http://www.autoblog.com/2008/11/18/the-skinny-automaker-aid-from-the-feds/#commentsFiled under: , , , ,

So here's a breakdown of what's going on in Congress concerning federal aid for U.S. automakers. A Senate bill expected to be voted on this Thursday would expedite funds for Ford, GM and Chrysler so that they could actually get the cash they need within 22 days after the bill becomes law -- should the bill become law. The $25 billion loan, paid back at an initial rate of 5-percent, would come out of the $700 billion bailout fund for financial institutions. The Senate's stipulations would be that the government receives "stock warrants or senior debt instruments to the government," similar to actions taken with banks that accessed the $700 billion. As well, top executives get no big payouts and stockholders get no dividends.

The rumblings on the track indicate that unless the folks in favor can change a lot of minds before Thursday, the Senate bill has little hope of passing. That makes it even more unlikely that a House version of the bill would pass, since it has even stricter requirements. The House bill would also get money for the automakers quickly, but would establish a Financial Stability Oversight Board that would have veto power over any auto company action that would cost more than $25 million. Who would be on that board and how would they be chosen? Who knows.

Latest word is also that the White House doesn't want to take money from the $700 billion bank bailout and use it for the auto industry. It would rather speed up disbursement of the $25 billion in low interest loans that was already approved for research into more fuel efficient vehicles and let the automakers use that for their current cash needs. The White House also wants, and the Senate bill requests, that Ford, GM and Chrysler give the Treasury "a detailed plan on how the government funds requested will be utilized to ensure the long-term financial posture of the company." Cue the dramatic music, some maniacal laughter and the late Vincent Price intoning: the plot thickens.

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

The Skinny: Automaker aid from the Feds originally appeared on Autoblog on Tue, 18 Nov 2008 14:31:00 EST. Please see our terms for use of feeds.

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