Autoblog

Cash for Clunkers lives on: Senate passes $2B refill of popular program

Chris Shunk — Thu, 06 Aug 2009 20:30:00 EST

Cash for Clunkers lives on. The Senate passed a $2 billion extension late tonight with a vote of 60/37, giving customers the opportunity to purchase about 500,000 more vehicles through the program. The Obama administration estimates that most or all of the original $1 billion was spent in a matter of only ten days and it's expected the additional $2 billion will only last through Labor Day.

Before voting on the bill, several amendments to the program were shot down. One amendment, which sought to relegate the program only to lower and middle income families, was denied with a vote of 65/32. Another amendment to make up the $2 billion by cutting from other programs lost by a 51/46 vote.

So far, Detroit automakers have received the majority of C4C deals, with 45.3% of overall sales, followed by Japanese automakers who've amassed 36.5% of the market. General Motors has the highest overall share of C4C transactions, at 18.7%, followed by Toyota at 17.9%. The majority of C4C purchases have received the full $4,500 subsidy, which requires a vehicle to achieve at least ten mpg better fuel economy than the scrapped clunker. The $3,500 subsidy is for vehicles that have a fuel economy improvement of four-to-nine mpg. The Obama administration estimates that the average fuel economy improvement under the C4C program has improved by 61%, saving the average consumer $700 - $1,000 in fuel over the life of the vehicle.

[Source: Associated Press | Image Source: Ethan Miller/Getty]

Cash for Clunkers lives on: Senate passes $2B refill of popular program originally appeared on Autoblog on Thu, 06 Aug 2009 20:30:00 EST. Please see our terms for use of feeds.

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Transportation Secretary LaHood calls for September 'distracted driving' summit?

Chris Shunk — Thu, 06 Aug 2009 09:30:00 EST

Filed under: Government/Legal, Safety

A recent study from Virginia Tech showed that texting while driving makes you 23 times more likely to get into a crash and Transportation Secretary Ray LaHood is looking to address the problem head-on with a September summit to study distracted driving. LaHood plans to to use the summit with law enforcement, safety advocates and transportation officials to come up with a series of concrete steps to curtail distracted driving. The Los Angeles Times reports that LaHood would like to ban text messaging, though the Secretary says enforcement and education is key.

The Senate is already looking at the possibility of a nationwide ban on text messaging while driving. Since states typically mandate such laws, the federal government is looking to enact a set of restrictions that states will have to enforce, or risk losing 25% of their federal road improvement funding.

While a ban of text messaging would likely curtail such behavior, we're wondering how such a law could be properly enforced. It would likely be difficult for officers to know definitively if a driver was text messaging while driving, unless the phone is confiscated or phone records are checked. Of course, the same could also be said for areas in which talking on the phone while driving is illegal (without a hands-free device), and we haven't heard of any major legal challenges issued on that front.

[Source: The Los Angeles Times | Source: Michael Smith/Getty]

Transportation Secretary LaHood calls for September 'distracted driving' summit? originally appeared on Autoblog on Thu, 06 Aug 2009 09:30:00 EST. Please see our terms for use of feeds.

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REPORT: Toyota Corolla passes Ford Focus as top C4C car; program extended thru September

Jonny Lieberman — Thu, 06 Aug 2009 09:00:00 EST

Filed under: Car Buying, Government/Legal

2009 Toyota Corolla XRS - click above image for high-res gallery

The more things change, the more they change back again. Or something. As of August 3, Reuters reports that the number one car Cash for Clunking consumers were purchasing was the long-in-the-tooth Ford Focus. Well, just two short days later, the Focus has been dethroned and Toyota's Corolla - the best selling car in the history of the world - has reportedly taken the crown. Two fun piece of relevant (if tangential) trivia - Corolla means "little crown" in Latin, and one example is sold about every 40 seconds, meaning that by the time you finish reading this post, two more will have found homes. In case you were wondering, Ford's price leader drops to number two and the Honda Civic has shifted into third place. Toyota has two other cars rounding out the top five, the Prius and the Camry. And just over 80% of the clunkers being traded-in are still trucks.

To date, 180,000 new cars have been sold as a result of the C4C program. So far, the program's total government expenditure amounts to just over $775 million. Late Wednesday, the Senate reached an agreement that would pour an additional $2 billion into C4C coffers. Additionally, consumers will now have until September 1 to trade in their old cars and receive a voucher for between $3,500 to $4,500. The new plan was largely pushed through by Senate Majority Leader Harry Reid, who pointed out that Democrats have enough votes to approve the new plan as well as reject any changes to it. Cheers to Matt and several others for the tip.

Gallery: Review: 2009 Toyota Corolla XRS

Photos Copyright (C)2008 Dan Roth / Weblogs, Inc.
[Sources: Reuters via CNN Money; Fox News]

REPORT: Toyota Corolla passes Ford Focus as top C4C car; program extended thru September originally appeared on Autoblog on Thu, 06 Aug 2009 09:00:00 EST. Please see our terms for use of feeds.

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REPORT: D.O.T. withholding Cash For Clunkers info; Senate warming to more funding

Sebastian Blanco — Tue, 04 Aug 2009 17:29:00 EST

Another day, another bunch of news items about Cash For Clunkers (a.k.a. C.A.R.S.). With Friday's Senate recess date fast approaching, the Obama Administration is reportedly pushing the body's 100 members there to get their acts together and vote for more funding to keep the program alive. Two senators who had been seen as potential roadblocks to getting C.A.R.S. the quick $2 billion that the House has approved, Dianne Feinstein (D) and Susan Collins (R), have now said the Administration had "eased their concerns" and are now in favor of granting the funds.

Not everyone is pleased with how the White House is dealing with the program, though. After campaigning on a platform of more transparency, the Obama Administration is reportedly now refusing to release C.A.R.S. records on the 157,000 rebate requests that it has received thus far. The Department of Transportation is still saying it will make this information available "soon," but hasn't given any specific time at to when it will do so. Without a glimpse into the full details of which cars are being sold and which are being traded in - and where all of this is happening - it won't be truly clear to see who is winning and who is losing with the initiative. We have some ideas, of course, but we'd like to see the big picture already.

[Sources: The Associated Press; Reuters | Image: Kevork Djansezian/Getty]

REPORT: D.O.T. withholding Cash For Clunkers info; Senate warming to more funding originally appeared on Autoblog on Tue, 04 Aug 2009 17:29:00 EST. Please see our terms for use of feeds.

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Senators mulling a nationwide ban on texting while driving

Jonathon Ramsey — Wed, 29 Jul 2009 18:28:00 EST

Filed under: Government/Legal

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.

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Cash for Clunkers passes Congress, awaits President's signature

John Neff — Fri, 19 Jun 2009 12:58:00 EST

Filed under: Car Buying, Government/Legal

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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Senate saves Cash for Clunkers, remains in war-spending bill

John Neff — Thu, 18 Jun 2009 18:00:00 EST

Filed under: Government/Legal

Yesterday, the U.S. House of Representatives just voted in favor of a war-spending bill that contains the hotly debated Cash for Clunkers amendment. The bill was on its way to the Senate for a vote, but Republican Senator Judd Gregg tried to get the Cash for Clunkers program stripped from the bill that would continue funding the military efforts in Iraq and Afghanistan. That effort was quashed today when the Senate voted 60-36 to keep the $1 billion Cash for Clunkers bill attached to the $106 billion war-spending bill.

The Cash for Clunkers program will allow anyone to trade in a vehicle that gets 18 mpg or less in exchange for a $3,500 voucher towards the purchase of a new car that gets at least 22 mpg. The voucher increases to a maximum of $4,500 if the new car gets at least 10 mpg more than the clunker being traded in. Truck owners will get $3,500 for trading in and buying a new truck or SUV that is 2 mpg more fuel efficient and $4,500 for one that's at least 5 mpg better.

The Senate could vote on the war-spending bill that contains provisions for the Cash for Clunkers program as early as tonight, so stay tuned.

[Source: Boston Herald | Image: Theo Heimann/Getty]

Senate saves Cash for Clunkers, remains in war-spending bill originally appeared on Autoblog on Thu, 18 Jun 2009 18:00:00 EST. Please see our terms for use of feeds.

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House narrowly passes scaled-back 'Cash-for-Clunkers' legislation

Damon Lavrinc — Wed, 17 Jun 2009 10:27:00 EST

Filed under: Government/Legal

After the House and Senate agreed on the terms of a cut-down version of the Cash for Clunkers legislation, it passed the house on Tuesday by a narrow margin (226-202) after being added as a supplemental appropriations bill to continue funding the wars in Afghanistan and Iraq.

Per the previous agreement, the new bill only contains $1 billion for the program, about a quarter of what was originally proposed, and will only extend through the 2010 fiscal year, ending on September 30.

The $3,500 and $4,500 vouchers for consumers remain intact, along with the 18 mpg provision, and there's a movement underfoot to get the legislation prolonged passed the 2010 fiscal year. The Senate is expected to vote on the bill later today and if all goes well, it should land on the President's desk this week.

[Source: Automotive News - Sub. Req. | Image: Theo Heimann/Getty]

House narrowly passes scaled-back 'Cash-for-Clunkers' legislation originally appeared on Autoblog on Wed, 17 Jun 2009 10:27:00 EST. Please see our terms for use of feeds.

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BREAKING: House, Senate reach terms on 'Cash for Clunkers' program - but only with $1B in funding

Chris Paukert — Fri, 12 Jun 2009 10:26:00 EST

Filed under: Car Buying, Government/Legal, Green

According to The Detroit News, the House and Senate came to terms late last night on a $1 billion 'cash for clunkers' initiative. Part of a larger $106 billion wartime spending bill, the program is not yet law, as the finalized bill must be passed by Congress (it is expected to be voted on next week) and signed into law by President Obama.

Under the terms of the compromise, vouchers worth up to $4,500 would be distributed to those who turn in old vehicles. The program's $1B backing figures to be well short of the $4B it is estimated to cost, meaning that the funding is expected to run out after September 30, the end of the fiscal year. As the theory goes, getting the program approved was the first big step - the DetNews says that key supporters believe that additional funding could be agreed upon subsequently.

As you may recall, the House approved the measure earlier this week, but there were reports of some significant troubles in the Senate where funding and mileage requirements were concerned. In the end, the same mileage figures were reportedly agreed upon, meaning vehicles that return 18 mpg or less in combined city/highway are eligible to turn in their vehicle for a cash voucher. If the new car replacement achieves at least 4 mpg better, a $3,500 voucher would be awarded, and if the new car achieved at least 10 mpg more, the credit would be $4,500. Trucks figure to be a bit different, however, with replacement vehicles needing to net at least 18 mpg, with figures at least 2 mpg better than the soon-to-be-scrapped turn-in. In order to receive the full $4,500 voucher, however, truck buyers' new vehicle would have to improve their fuel economy figures by at least 5 mpg.

[Source: The Detroit News | Image: Theo Heimann/Getty]]

BREAKING: House, Senate reach terms on 'Cash for Clunkers' program - but only with $1B in funding originally appeared on Autoblog on Fri, 12 Jun 2009 10:26:00 EST. Please see our terms for use of feeds.

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Auto Task Force says no more money for auto bailouts... probably

Chris Shunk — Thu, 11 Jun 2009 19:03:00 EST

Filed under: Government/Legal, Chrysler, GM

To date, the U.S. government has reportedly given General Motors, Chrysler, their financial institutions and various industry suppliers about $80 billion in taxpayer money, and Congress wants to know when we're going to get that money back. The Senate Banking, Housing and Urban Affairs Committee held a hearing with the Auto Task Force for the first time to discuss the state of the government loans, as well as whether or not taxpayers will ever be paid back.

According to task force senior adviser Ron Bloom, there is "a reasonable probability" that some or all of the money will be paid back, but he was by no means "highly confident" that the money would be returned to taxpayers. He does, though, see "reasonable scenarios where taxpayers get their money back."

Bloom was a bit more certain, however, about the prospects of the auto industry receiving still more money from the government. Bloom said that it was the Obama administration's "absolute intent" not to provide future funding to the bailed out automakers, but he followed that with "never say never." That's far from a guarantee, but it would appear that more money doesn't seem to be in the plans.

During his testimony, Bloom also reiterated that the administration was a "reluctant shareholder" in the automakers, and that the government intends to get out the car business as soon as possible. When Alabama senator Richard Shelby (R) pressed for a timeline for the government to exit GM ownership, Bloom admitted that there was "no specific target" set.

[Source: The Associated Press via MSNBC | Image: Chip Somodevilla/Getty]

Auto Task Force says no more money for auto bailouts... probably originally appeared on Autoblog on Thu, 11 Jun 2009 19:03:00 EST. Please see our terms for use of feeds.

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BREAKING: House passes 'cash for clunkers' legislation

Damon Lavrinc — Tue, 09 Jun 2009 18:37:00 EST

Filed under: Car Buying, Government/Legal

The U.S. House approved the "cash for clunkers" legislation earlier today, paving the way for consumers to snag up to $4,500 for trading in their older vehicles for new, more fuel efficient transport.

The bill, which passed 298-119, drew overwhelming support from automakers, local business groups and dealers who claimed the passage could boost sales - further aiding GM and Chrysler's "reinvention" - during the economic downturn.

Although politicians and pundits are sure to weigh-in on the merits of the bill, the specifics appear clear: if your car gets 18 mpg or less and you trade in for a new vehicle the achieves at least 22 mpg, you receive a $3,500 voucher, or $4,500 if the mileage of the new vehicle is 10 mpg higher than your previous heap. SUV, pickup truck and minivan buyers are eligible for a $3,500 voucher if their vehicle gets at least two mpg higher than their trade-in and $4,500 if the vehicle gets five mpg more than their older model. The vehicle has to have been insured for the last year and there is no trade-in value beyond the voucher. The program is also available for leases. Dealers are required to provide proof that the vehicle (1984 MY or later) has been crushed or shredded, and the government estimates that around 25 million vehicles are eligible.

[Source: AP | Image Source: Theo Heimann/Getty]

BREAKING: House passes 'cash for clunkers' legislation originally appeared on Autoblog on Tue, 09 Jun 2009 18:37:00 EST. Please see our terms for use of feeds.

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Senate to vote on 'Cash for Clunkers' today?

Michael Harley — Wed, 03 Jun 2009 13:27:00 EST

Filed under: Car Buying, Government/Legal

A vote could come today on a bill designed to offer credits of up to $4,500 for consumers to trade-in gas-guzzling older vehicles. The so-called "cash for clunkers" legislation is designed to stimulate auto sales, but it also stands to effectively remove gross polluters from the roads and put drivers in safer and more fuel efficient vehicles.

As you would expect, the legislation is supported by automakers and dealers - both consider the program crucial to helping them weather the current sales environment. President Barack Obama has urged Congress to pass such a bill, and the Alliance of Automobile Manufacturers has also petitioned in its favor. Similar "cash for clunkers" programs have already proven effective in many other countries. About the only thing standing in the way of this bill appears to be a competing measure, proposed by Sen. Dianne Feinstein (D-Calif.), that appears to prioritize environmental goals over automotive sales.

[Source: Detroit News]

Senate to vote on 'Cash for Clunkers' today? originally appeared on Autoblog on Wed, 03 Jun 2009 13:27:00 EST. Please see our terms for use of feeds.

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GM and Chrysler CEOs called to D.C. to explain dealer closings

Jonathon Ramsey — Tue, 26 May 2009 08:29:00 EST

Filed under: Government/Legal, Chrysler, GM, Earnings/Financials

The situations with GM and Chrysler are beginning to look like what happens after a fumble in an NFL game: a dozen men pile on top of each other all trying to get the ball. The difference in the case of GM and Chrysler is there are far more than two teams struggling for the prize. The latest to hop on and shove a hand in is the Senate Commerce Committee, which wants the CEOs to testify "early next month" regarding the planned dealership closings.

Chrysler's sent 789 dealers eviction notices, GM is out to dispatch 1,124 dealers in the US and about 245 in Canada. The GM dealers won't have their franchises renewed as of October 2010, and are said to be staying in operation until they sell the last of their inventory. Chrysler dealers are expected to board up the windows by June 9, although Jim Press recently gave assurances that there will still be help given to those dealers after that date. The Commerce Committee isn't moved by either proposal, citing what it calls "the short and insufficient transition period given to dealerships for franchise terminations."

The hearings would be chaired by Senators John Rockefeller and Kay Bailey Hutchison, and will address what happens to dealer inventory and jobs and consumer needs like warranties and servicing. Hutchison was working on legislation to force automakers to give dealers 60 days notice before closing their franchises (which GM has done) or else go without government help. That legislation was put on hold after Press' letter, but now Nardelli and Henderson will need to go explain things to the principal in person.

For GM it's just one more thing to lump into the impending bankruptcy in-box. For Chrysler, every additional delay in sorting out its business situation only gives Fiat more of those pre-wedding jitters.

[Source: Automotive News - Sub. Req.]

GM and Chrysler CEOs called to D.C. to explain dealer closings originally appeared on Autoblog on Tue, 26 May 2009 08:29:00 EST. Please see our terms for use of feeds.

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Repercussions of failed automaker bailout spreading quickly

Damon Lavrinc — Thu, 11 Dec 2008 23:32:00 EST

Filed under: Car Buying, Government/Legal, Hirings/Firings/Layoffs, Plants/Manufacturing, Earnings/Financials

Nekkei index plumments, GM retains the services of bankruptcy advisors

Late Thursday evening, the U.S. automaker bailout bill failed to pass through the Senate. The legislation is dead and there are no plans for another bill to go through the process until the end of the year. To quote Senate Majority Leader Harry Reid, this will be "a very, very bad Christmas" for many Americans.

Over the past day, Senators have tried to resolve the House-approved bill so it could pass Senate Republican muster, but reports suggest that the UAW was unwilling to accept GOP demands that workers agree to parity in pay and benefits.

News of the failed bill has already spread to markets across the Pacific, with the Nikkei index nose-diving over 6%. Things on this side of the world are bound to be worse when trading on the New York Stock Exchange begins tomorrow.

According to reports, General Motors has got bankruptcy and restructuring advisors on speed-dial in preparation for the bad news and Chrysler has already retained CH11 counsel.

Countless economists and industry analysts are warning that if any one of the Detroit 3 goes under, it will spell disaster for an economy already suffering in a recession. Video of the vote is embedded after the jump. More to follow tomorrow.

[Sources: Reuters, Detroit News, Automotive News - Sub. Req.]

Continue reading Repercussions of failed automaker bailout spreading quickly

Repercussions of failed automaker bailout spreading quickly originally appeared on Autoblog on Thu, 11 Dec 2008 23:32:00 EST. Please see our terms for use of feeds.

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BREAKING: Automaker bailout agreement reached in Senate, still not a sure thing [UPDATE]

John Neff — Thu, 20 Nov 2008 13:33:00 EST

Filed under: Government/Legal, Earnings/Financials

CNBC is reporting that four U.S. senators have reached a bipartisan agreement on a bill to help the Big 3 automakers in Detroit. Those senators include Michigan Democrats Carl Levin and Debbie Stabenow, Ohio Republican George Voinovich and Missouri Republican Christopher Bond. Details of the bill are not yet available, but a news conference is scheduled for 2:30PM EST, at which time we should learn more. It will likely be some compromise between the Democrats' wish for taking an extra $25 billion out of the $700 billion financial bailout fund and the plan supported by the White House that would allow automakers to use the already approved $25 billion in low interest loans for anything they wanted rather than just investing in green technology.

Still, CNBC says the bill faces some big procedural hurdles, not the least of which is that senators want to go home soon for the Thanksgiving holiday. Trying to squeak in a vote before the break will be tough, and lawmakers may have to reconvene in December to vote on the bill. Plus, there's no guarantee the House of Representatives will pass it even if the Senate would.

Regardless, Wall Street seems pleased with the news as shares of General Motors and Ford have jumped, with the latter hitting as high as $4 after ending the day yesterday at $2.79.

Stay tuned, we'll bring you all the details on the new automaker bailout bill when they become available. Thanks for the tip, everyone!

UPDATE: Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi have held a press conference in which they said that the compromise agreement reached by the above senators would not be approved, and instead that Congress will come back in December and hold more hearings with the CEOs of the Big 3. Each automaker has been charged with the task of showing "accountability and viability" at this second round of hearings, specifically telling Congress exactly how they plan to use any bailout money they might be given.

UPDATE 2: For details on the compromise bill, click here.

[Source: CNBC]

BREAKING: Automaker bailout agreement reached in Senate, still not a sure thing [UPDATE] originally appeared on Autoblog on Thu, 20 Nov 2008 13:33:00 EST. Please see our terms for use of feeds.

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The Skinny: Automaker aid from the Feds

Jonathon Ramsey — Tue, 18 Nov 2008 14:31:00 EST

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

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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Senator calls for 50-mpg mandate for Detroit to receive aid

Jonathon Ramsey — Mon, 17 Nov 2008 19:29:00 EST

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

"Thick and fast." That's the phrase that describes the opinions, pleas, advice, denunciations, and WTF? going on around the U.S. auto industry right now. Enter Congress, which is trying to figure out how to give Detroit automakers the $25 billion they were promised a few months ago. Congressmen are sounding off almost daily on what kinds of stipulations they want to attach to the loan/bailout/whatever you want to call it -- and that's just the ones who would vote for it at all.

Next up is Senator Bill Nelson, a Florida democrat, who wants U.S. automakers to achieve a fleet average of 50 mpg by 2020. Right now, the CAFE target is 35 mpg by 2020 -- a goal agreed upon only after a huge amount of jockeying in and out of Congress. Nelson asked, "Why should we be pouring taxpayer money into an automobile industry that has continued to resist higher miles per gallon, which has led us in part to the problems we're in?"

While that might sound like a great idea to some, it would cost a terrific sum of money to achieve. The Detroit Three need the money they're asking for just to get to Q2 of 2009, not to create a range of cars that would represent magnificent advances -- based on where we are right now -- in 11 years. There's a good chance nothing will be decided until the president-elect takes office, and by then, who knows what other requests Congress will have.

[Source: Automotive News - Sub. Req.]

Senator calls for 50-mpg mandate for Detroit to receive aid originally appeared on Autoblog on Mon, 17 Nov 2008 19:29:00 EST. Please see our terms for use of feeds.

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Two down, one to go: Senate approves $25 billion for Big 3

Jonathon Ramsey — Mon, 29 Sep 2008 10:29:00 EST

Filed under: Government/Legal, Chrysler, Ford, GM

Last week, the House of Representatives passed a bill approving a $25 billion loan for the Detroit 3. Now the Senate, by a similar margin, has passed the bill, which means it needs George W. Bush's John Hancock in order for the automakers to see their funds.

The process actually began last year when Congress put the language for the loan into an energy bill, but didn't allocate the money for it. Now that the actual sum has been "found" and approved, the details of the loan and repayment need to be sorted out. The energy department has 60 days to do the math once the loan becomes law, but the Energy Secretary said it could still take 18 months or more for GM, Ford, and Chrysler to get the money.

Michigan Congressional reps have cried foul, especially because the bill also included $10 million for the Energy Department to hire outside consultants to speed things up. The department probably won't want to waste time, because Michigan Senator Carl Levine has already pledged to begin work on another round of $25 billion loans for 2009 and 2010. But when the checks finally do come, you can probably expect to see automaker reps waiting outside E-Z Check Cashing.

[Source: Detroit News]

Two down, one to go: Senate approves $25 billion for Big 3 originally appeared on Autoblog on Mon, 29 Sep 2008 10:29:00 EST. Please see our terms for use of feeds.

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Senate passes legislation including PHEV tax credits

Jeremy Korzeniewski — Wed, 24 Sep 2008 07:27:00 EST

Filed under: Car Buying, Hybrid, Government/Legal, Green

Click above for high-res gallery of Chrysler's three new EVs

Legislation that includes tax credits for plug-in electric vehicles has passed the Senate. Now the House gets a chance to look things over and put it to a vote. The tax credits allow buyers of PHEVs to receive a credit as high as $7,500 and as low as $2,500 depending on the capacity of the vehicle's battery. Toyota had raised concerns that the bill focused solely on battery capacity, as its currently announced hybrid plans do not include anything that would approach the maximum credit. In fact, the Chevy Volt sits alone as the only product that has enough battery capacity for the top tier. Chrysler's recently shown electric vehicles would theoretically qualify if they ever see the light of day.

Once 250,000 qualifying PHEVs are sold, the credits begin to get smaller until they go away completely. At this point, the legislation -- and the vehicles -- have a long way to go before anybody could actually purchasing a qualifying car, but the framework is now in place.

Gallery: Dodge EV, Jeep EV and Chrysler EV

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

Senate passes legislation including PHEV tax credits originally appeared on Autoblog on Wed, 24 Sep 2008 07:27:00 EST. Please see our terms for use of feeds.

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California law proposes ban on lap pets in car

Damon Lavrinc — Wed, 07 May 2008 15:28:00 EST

Filed under: Government/Legal, Safety

Drivers give in to a lot of distractions behind the wheel. Phone calls, eating, drinking, and slapping the kids around are one thing, but something that's always irked us is drivers traveling with pets on their laps. Aside from the possibility of Fluffy freaking out and doing its doggone best to create a crash, we've always envisioned a Chihuahua-sized cavity in someone's chest after the airbag deploys. Well, California Assemblyman Bill Maze shares our concern and has proposed a bill to make it illegal for an animal to be held on a driver's lap while behind the wheel. The bill passed the Assembly on Monday by a vote of 44-11 and is on its way to the state Senate before landing on Arnie's desk. Here's hoping that the Governator does what's right for man and his best friend.

[Source: AP]

California law proposes ban on lap pets in car originally appeared on Autoblog on Wed, 07 May 2008 15:28:00 EST. Please see our terms for use of feeds.

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