Autoblog

President-Elect Barack Obama thinks we have an oil addiction and he wants to do something about it. That something is developing a plan for energy independence. While that might have seemed easier to discuss when oil was at $147 a barrel, Obama thinks it's even more important to talk about now, with oil hovering around $60. "It may be a little harder politically, but it's more important," Obama told 60 Minutes in his first post-election interview. Obama explained that our addiction to oil causes a mental transition from "shock to trance." As oil and gas prices go up, it creates "a flurry of activity." When the prices go back down, however, people seemingly forget, and "we act like it's not important. And, as a consequence, we never make any progress." He considers it an addiction and knows it needs to be broken. Our next top executive thinks now is the time to break it.

Along with energy independence, Obama also addressed the auto industry bailout, and GM's situation in particular. Acknowledging that a complete collapse would be "a disaster in this kind of environment," but he's not in favor of handing the industry a blank check. He feels that discussions with the Detroit Three should be focused on figuring out what a sustainable U.S. auto industry will look like so that the bridge loans the government is offering lead to a definable goal rather than being open-ended. Unlike some critics, Obama doesn't think the country would be better off if General Motors was allowed to go into bankruptcy. Unlike the situation with the airlines where they could restructure and reorganize and still operate during that process, GM could be cut off completely if it isn't helped out, potentially preventing it from continuing on.

You can read the transcript of the complete interview and watch the video here.

[Source: CBS News]

Pickup and SUV sales plummeted when gas hit $4 per gallon, and many thought these gas-guzzling segments would never fully recover. That may be true, but for now Americans are once again getting more comfortable with trucks and SUVs. Truck sales fell below 10% of overall vehicle sales back in May and June, but the price of gas falling from an average of $4.11 per gallon to $2.78 has helped the share of trucks rise to 14.1% of the overall market for September. Depending on how buyers react to the financial crisis, October could be even better as gas prices have continued to go down. SUVs have seen a smaller but still significant jump in overall share, going from 1.9% in May to 2.5% in September – a big improvement for a shrinking segment.

Much of the increased interest in trucks and SUVs can easily be attributed to huge incentives on the hoods of these hefty haulers, but gas prices are a big factor, as well. And while most analysts feel the truck market won't recover until construction picks back up, we're sure automakers are happy to see an increase in sales for their most profitable vehicles, even if it takes a pile of cash on the hood to get them moving.

[Source: Automotive News - sub. req'd, Photo by Bill Pugliano/Getty ]

The US, and in fact the entire civilized world, is knee deep in a financial meltdown. However, crashing stock markets and crumbling banking institutions have led to one pleasant side effect. The price of gas is dropping faster than the NASDAQ. A quick trip through south-east Michigan shows that gas prices have dropped below the $3.00 threshold, and tumbling crude prices show that even cheaper petrol is on the way. A barrel of oil now costs $77.70, which is in stark contrast to the $147 per barrel crude in July that lead to $4.25 per gallon gasoline. That's a drop of nearly $9.00 today alone, and OPEC has scheduled an emergency meeting to try to halt the precipitous drop of black gold. And since we're paying under $3.00 per gallon for oil that was purchased last month, that means we won't bear the fruit of the recent drop in crude until November.

While many of you were with us in praying for this drop, it's coming at a huge price. Gas is becoming more affordable because a set of Texas-sized Brembos put the brakes on energy use, but at least it's cheaper. At this rate, if the get depressed about the economy, we can afford to go for a quick ride without having to take out another loan on our crashing mortgages.

[Source: CNN Money]

Simply put, the U.S. economy is in the crapper. Stocks are yoyoing and our mortgages are a fraction of what they were even a year ago. For all that's fiscally wrong here in the States, there is one pleasant side effect: the price of a barrel of oil is dropping faster than Kimbo Slice against a two bit hack. Oil dropped 6% in trading on Monday, bringing down the price of a barrel of crude to $87.81. Black Gold has been on a downward trajectory since July 11, when it peaked at $147 per barrel. Since then, demand has weakened both in the U.S. and China, with demand slacking so badly that the Communist government hasn't purchased any oil in two months, and it's even selling some of its stockpiles.

While demand for oil is down to where it was eight months ago, OPEC is watching with a wary eye. The oil consortium, which on several occasions has increased oil production over the past year, is likely to slash production when it meets again in December. In the short term, industry experts are predicting that gas prices will drop below the $3 mark by November 1, which will make for one piece of good news in an otherwise lousy news cycle.

[Source: Reuters]

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]

In the book of Genesis, man was given dominion over all the plants and animals, so we're guessing that dead, liquified ones count, too. Since Rocky Twyman started his Pray At The Pump effort in April, average fuel prices have certainly fallen. Twyman believes that his groups' prayers have effected the change, and that no other factors like shifting consumer behavior, international conflict, or speculators has anything to do with it. Right.

The Pray At The Pump group is not just asking for divine fuel price intervention without also encouraging acts of sacrifice on behalf of man – Twyman's ministry strongly encourages car pooling and better organized trips to maximize conservation on a day to day basis. After all, committing the mortal sin of gluttony while asking for the Lord to make it easier on us all would ring kind of hollow. We suppose even the non-faithful can get behind Twyman's effort in that it's at least as effective as the various fuel-saving trinkum that internet scheisters are imploring us to buy (run your car on water? hydrogen "batteries"?), and it costs nothing, to boot. Combined with a regimen of proven fuel-saving behaviors, extra prayers certainly can't hurt in keeping the flow of car-sustaining manna trickling along at an affordable price.

[Source: BBC, AutoblogGreen, Photo: daylife.com]

Of course your wallet hurts every time you have to fill the car up. Nevertheless, in these trying times we must always remember the words of Fernando Lamas: it is better to look good than to feel good. Cars That Matter has put together a list of classic automobiles that get anywhere from 21 to 48 mpg, which means you can look good while you save money.

The heaviest drinker is the Datsun 240Z, just cracking into the twenties. But plenty of cars hover around the 30 mpg mark, like the Lotus Europa, Alfa Romeo Giulietta Spider, and Fiat X1/9. If you want to crack the big four-oh, you've still got choices: BMW Isetta and Honda S800. And the Crosley Hotshot will get you a miserly 48 mpg.

All right, so there are some niggling issues of practicality -- almost all the cars have only two chairs -- unsuitability for winter, plus many of them are mechanical horrors. As such, we must always remember the words of dear old dad: there are no free lunches. But there are choices, and that has to count for something...

[Source: Cars That Matter, Photo by Liftarn | Creative Commons 2.0]

Click above for high-res gallery of the Dodge Hornet concept

Besides the introduction of the Dodge Challenger, there has been very little good news coming out of Chrysler lately. Sales are down 22% for the year due to a lineup that's still heavy on trucks and SUVs, but there may be some help on the way as soon as 2009. Chrysler CEO Bob Nardelli has hinted that a fuel efficient new vehicle(s) could debut next year, and platform sharing with other automakers would be behind the quick turn-around. Nardelli says the Auburn Hills-based automaker has re-prioritized its capital in an effort to quickly get to market the fuel-efficient vehicles that the market demands. Debuting even a single vehicle that's more fuel-efficient than anything else in the Chrysler lineup would likely have a big effect in light of the fact that its brands offer some of the least fuel-efficient lineups in the industry.

Nardelli didn't give any details as to which vehicle could arrive ahead of schedule, but speculation is that the Dodge Hornet is on the short list. The handsome Hornet (if it looks like the concept) will be based on the Nissan Versa small car platform, and was originally slated to arrive in Dodge guise in 2010. Chrysler is also rumored to be working on alliances with Tata, Fiat, and Chery, and each automaker has plenty of small, efficient vehicles at its disposal. None of those automakers has a presence in the U.S., though, so a quick turnaround on a platform that hasn't been properly crash tested doesn't seem likely.


[Source: Detroit News]

There's been a lot of head-scratching about the exact cause of the meteoric rise in price for a barrel of oil. Are speculators driving it to turn a quick buck? Is it the weakening value of the U.S. dollar? How about increaded worldwide demand? Chances are, all those forces are playing a part in the rise of fuel prices, and no single solution is likely to fix the problem.

Just as it was starting to look like prices would rise on a daily basis for the rest of eternity, the price of a barrel of oil dropped by $16 from Tuesday to Thursday. Economists point to the dismal economic and inflation news as a main factor for the drop. All we know is that ever since gas got more expensive, everything else started to follow suit. That leads us to spend less on things that we don't absolutely need, which probably isn't good for the economy.

With news of the large drop in the price of a barrel of crude, Wall Street got all excited and responded with a couple days of very positive gains in the stock market. Good news, right? Well, oil jumped by over $2 on Friday morning alone, so we'll have to see. Is the $4 per gallon nightmare almost over? Probably not, but we can hope.

[Source: Yahoo, Photo: Getty/Justin Sullivan]

UPDATE: The Better Business Bureau apparently has some issues with MyGallons. This post was written several days ago and we were not aware of the dustups at that time.

You can pre-pay for cellphone minutes, here in New England it's popular to lock in your heating oil price for the winter, and now you'll be able to bank gallons of gasoline on a debit card, thanks to MyGallons.com. While you're screwed out of the money if the price of fuel drops, it's not looking like that's going to happen soon. MyGallons uses your zip code to determine what price you'll pay to add gallons to your card, which is accepted just like a normal debit or credit card at most fuel stations. It's a creative way to smooth out the fluctuations in the price of fuel, and it could also be a boon to those wanting to run a tighter budget, or at least know what they'll be spending on fuel for a given time period, as they've pre-bought. Shoot, it could even be a decent gift idea for the person who has everything!

[Source: Reuters]