Michigan has been begging for good news from the auto industry lately, and the Great Lakes state got some from a company that was once considered public enemy number one. Toyota has officially opened a brand new $187 million technical center in York Township that will provide 400 more jobs to the beleaguered state while giving the Japanese automaker additional manpower to develop more new vehicles for North America. The York Township facility will compliment the 700-person Toyota research and development center in Ann Arbor that has been operational since 1997. The Ann Arbor facility has performed R&D duties for various vehicle including the Avalon, Tundra, Sienna and upcoming Venza. The added jobs at the new facility only represents a small portion of the thousands of jobs Michigan residents have lost over the past decade, but having an automotive force like Toyota investing in your state is a very good start, indeed.
The usual line from a preacher at a burial is "Ashes to ashes, dust to dust". Well something along those lines may soon be happening to some roads in Michigan. After my recent treatise on the process for (de)constructing roads in the Great Lakes state, an article turned up in the Lansing State Journal indicating that some county officials are contemplating an alternative to repaving decaying thoroughfares. With a complete repaving costing $100,000 per mile and repeated patching potentially costing even more over time, Clinton County is considering grinding up at least one road and returning it to gravel.
With the state of Michigan suffering perennial budget shortfalls and everything already pared to the bone, this may be the only financially viable option for some counties and municipalities. The gravel option is considered only a temporary fix until the financial situation in the state improves. However, there are currently no indications that will happen anytime soon. If they do start grinding up some roads, hopefully they will at least grade them periodically, in which case they may be smoother than they are now.
Judging by the vast array of plug-in hybrids at the past few auto show, it's reasonable to assume that at some point in the next ten to 15 years there could be millions of vehicles plugging into our nation's power grid. The Michigan Public Service Commission will be looking at this issue over the course of the next several years as part of its effort to assess the state and region's future power needs.
The MPSC will use real plug-in hybrid electric vehicles to judge how the vehicles will effect the power grid at different times of the day, and the study will also gauge the possibility of plug-ins giving power back to the grid during peak times. The MPSC is inviting Detroit automakers, the utility companies, advocacy groups and others to participate in the ongoing study, and the group's first report is scheduled to go public in June 2009.
If the plug-in electric vehicle is going to be a major means of future propulsion, it's good someone is studying whether our aging power grid can actually handle the extra load.
Photo for illustration purposes only, courtesy of JaySki.com
If you've ever lived in a cold climate, you might know the displeasure of having to scrape ice off your windshield and out of the keyhole to get to work. It's one thing when Mother Nature is the culprit, but it's quite another to deep freeze your wheels on purpose. But that's exactly what a couple of artists are planning to do in Michigan.
Sue Wrbican of George Madison University and Mary Carothers of the University of Louisville are preparing to display a circa-1970's Chevy Nova in a giant block of ice, which they'll display in front of the library at the Houghton campus of Michigan Tech. They've even enrolled the support of some teenagers from Hancock High School, who are using their shop class to craft the frame for the ice block into which the car will be placed before the water will be poured in. That ought to be enough to get the Nova onto Top Gear's "Cool Wall", if not right into the Sub-Zero section.
Detroit may be the host of one of North America's largest auto shows, but Cobo Hall is far from the continent's best conference facility. It's dated and small, and larger venues like Chicago's McCormick place and the LA Convention Center are more modern and accommodating to automaker displays. Officials from area counties are attempting to work together to expand and modernize the aging facility with plans that include an additional 120,000 square feet of floor space and a walkway between Cobo and the Renaissance Center. Said officials are currently bickering over the total cost of the plan, which ranges between $595 million and $846 million. The financially ailing state of Michigan is willing to contribute $150 million to the cause, but county executives need to bury the hatchet and hammer out a deal that greatly improves a building that in LA or New York would likely have been bulldozed or completely overhauled long ago. If area executives need any more incentive to move on a solution, this year's show features 58 major introductions, compared to 76 just three years ago.
Michigan residents should be excited about a new plan, but we've heard about a new plan every year since before anyone can remember. As Detroit loses some of its grip on the US auto industry, however, it seems to be becoming more and more evident to politicians that hosting North America's premiere automotive showcase isn't an inalienable right. If the movers and shakers in the Detroit area can't get the job done, it could soon be curtains for Detroit's single largest annual event.
As many states and local municipalities struggle to balance budgets and find funding for services like police protection, it seems like many are turning to alternative means of raising revenues. Since politicians are invariably loathe to actually raise taxes to pay for the services that people expect, speed traps are becoming increasingly popular. According to Detroit News columnist John McCormick, not only are more speed traps being used, the fines are getting increasingly punitive. Drivers in Virginia might want to be particularly watchful of speed limits. Surpassing the limit by 15 mph will now cost you $1,250 plus court costs. Topping 80 mph will cost you double that and possibly jail time. All this seems pretty extreme, especially if a driver isn't driving recklessly or the speed limit is set artificially low. Speeding in a residential area is unacceptable, but going 80 on a wide open highway in clear conditions is not necessarily dangerous.
Volkswagen of America is in the process of reinventing itself here in the U.S. in an effort to regain market share, while simultaneously trying to stem the losses caused by fluctuating exchange rates. As reported before, the first major step the automaker is taking here in the States is to relocate its corporate headquarters from Detroit to Herndon, Va. The move, according to VW, places the automaker in a good location to understand consumer's taste, while providing the company a fresh start. The move is scheduled to begin sometime in April, with completion by the end of 2008, and will result in the loss of some 400 jobs in Michigan.
Also under consideration is the possibility of making more vehicles here in the U.S., specifically tailored for the market. Production of models that take aim at the Corolla's and Accord's of the world is part of the strategy, along with new small-sized 'utes that will benefit from environmentally-focused powertrains (ahem, diesels?).
You can read Volkswagen's full press release after the jump and check out Michelle Krebs' article over at AutoObserver by clicking the "Read" link below.
Volkswagen may or may not be considering moving its operations, in part or entirely, to the East Coast. Washington D.C. or North Carolina are looking far more favorable to VW than its current digs in Auburn Hills, MI. Perhaps VW management thinks it can kick-start some new enthusiasm inside its US operations by heading to a part of the country where it's more appreciated (VW's assorted brands sell best on the coasts) and making space for new blood by leaving behind those unwilling to relocate. Being in a city with a more cosmopolitan perception may help VW entice employees to sign on for US duty, as well as making VW a big fish in its own pond, versus living in the shadow of the domestic brands in Detroit.
More justification for the move could be due to the allure of hanging out in D.C. versus Michigan. That's quite a snub to Auburn Hills, but Michigan residents may get the last laugh, D.C. has a larger crime problem than Auburn Hills. Every time an exec gets mugged, an angel in MI will get its wings. Speculation has been spreading through the company faster than food poisoning on a cruise ship, prompting Audi's US head Johan de Nysschen to blip off an email. In his communication to Audi of America's employees, de Nysschen couldn't really offer specifics to calm people down, but he did go on to say that things will be clearer once new CEO Stefan Jacoby lands on September 1 and initiates a restructuring. There seems to be plenty of desire to not be in Michigan, and in light of de Nysschen's further statement that "reality is not nearly as severe as some of the rumors would suggest," we're eager to see what the next move will be.
The "Way Forward" has claimed its latest victim, this time in the form of the 50-year-old Wixom plant in Michigan. The production center, tasked with building Lincolns since 1957, has built its final White Chocolate Town Car destined for a customer in Washington D.C.
However, the Town Car hasn't met its demise yet. Production will continue at the St. Thomas plant in Ontario, Canada, along side its Panther brethren, the Crown Victoria and the Grand Marquis.
Wixom was housed production in the recent past for the Lincoln LS, Continental and Ford Thunderbird. Even Ford's ultimate halo car, the GT, received its finishing touches at Wixom.
With all the news surrounding the possible sale of Chrysler, it's nice to know that the forlorn automaker is still looking to the future and revamping aging production centers.
An announcement is expected later this week regarding a new axle plant that will supposedly be built somewhere northeast of downtown Detroit. The $700 million plant, designed to replace another axle plant in Motown, is expected to be in operation by 2010 and will employ some 900 workers.
Information about the factory comes via the Detroit News, who's union sources indicate that the work rules for the new plant are up for a vote today, while at the same time, the Michigan Economic Growth Authority is mulling over tax incentives for Chrysler. If all goes according to plan, expect an announcement this Wednesday, as Governor Granholm, UAW Pres Ron Gettelfinger and Chrysler's CEO, Tom LaSorda take to the podium.