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By on September 18, 2008

Say what you want about oil tycoon-cum alt-energy evangelist T. Boone Pickens, the man has some instincts on him. Wal-Mart has been studying ways to reduce its energy usage (for purely altruistic reasons, of course) and Pickens smells blood in the water. Reuters reports that the Texan CNG honcho has convinced Wal-Mart CEO Lee Scott to consider retrofitting its entire diesel truck fleet with CNG power as an energy-saving, cost-cutting measure. Wal-Mart currently operates some 8,500 diesel trucks in its supply-chain network, and a presentation by Pickens to a Wal-Mart associates meeting has convinced Scott to consider the retrofit. According to a weekly Pickens email, Scott was “impressed by the Pickens Plan.” The email continues, “to have America’s largest retailer looking into shifting their trucking fleet to run on natural gas is a major step towards our country’s energy independence.” And a major step towards making Mr Pickens a boatload of cash. Pickens has invested his oil fortune in wind power and CNG, and a Wal-Mart retrofit could mean a huge contract and increased media exposure for CNG as a transportation alternative. Like Pickens though, every decision at Wal-Mart comes down to dollars and cents. We still don’t know how much a CNG fleet conversion would cost or save Wal-Mart. Until we do, there’s no telling whether Pickens’ CNG revolution will get off the ground.

By on September 18, 2008

If you fail to pay your toll on Delaware’s I-95, the state could confiscate your car without any due process. This cheery news comes to us from motorist watchdogs extraordinaire, thenewspaper.com. Your license plate number will be recorded if you drive through an automated toll point without paying, and police can run your plates through a database to find out if you have evaded your toll-paying responsibilities. If you show up on one of these databases, your car can literally be confiscated on the roadside, meaning you have to prove your innocence to a civil hearing officer to avoid paying hefty fines and towing fees. And automated toll roads are hardly without their errors; one Texas system overcharged some 50k motorists, Virginia falsely accused 8k of skipping toll payments, and a Harris County audit showed that as many as 67k drivers are wrongly accused of not paying tolls. But that’s not stopping Delaware from stranding you on the side of the road and forcing you into a Kafka-esque bureaucratic labyrinth to get your car back, whether you’re guilty or not. Just another reason to avoid that particular slice of purgatory they call Delaware.

By on September 18, 2008

While American automakers struggle to find something small and profitable to sell, the UK has been forcing people into teeny tiny passenger cars for decades. As a result of high gas prices, speed camera fines, insurance, VAT, insane repair and maintenance rates and motoring taxes that would make an American drive his car straight into Boston harbor, British motorists can choose from a huge range of really small, really slow, really frugal cars. AutoExpress, which never met a car it didn’t want to take home to mother, offers a run-down on its top five four-wheeled “penny pinchers.” Despite the fact that some American pistonheads [claim to long] for small, cheap, fun, Euro-style cars, the chances of these glacial yet parsimonious machines making it In The Land of the Free are somewhere between “not on your Nelly” and “only when U.S. gas prices triple.” Still, it’s nice to know they’re out there, somewhere.

By on September 18, 2008

So far, just a blurbette. “Reuters reported that Ford Motor Company has had exploratory talks with Renault SA to sell Volvo, but the initial talks broke down due to price differences. The two parties have spoken again after their initial discussions, which were held last fall.” So that’s why Ford CEO Alan Mulally was telling the world that Volvo wasn’t for sale back in November: he couldn’t sell it. So I guess Volvo still isn’t for sale– unless someone like Renault wants to buy it. Makes sense to me. Just for fun, here’s Edmunds’ take at the time. “What this means to you: Despite ongoing financial uncertainties, Ford does not appear willing to give up all of its “halo” brands just yet. — Anita Lienert, Correspondent” TTAC’s take: say halo to my little friend!

By on September 18, 2008

TTAC commentator, Buick dealer and GM stockholder activist Jim Dollinger (a.k.a. Buickman) has long argued that Wall Street’s money men have been running GM into the ground accidentally on purpose. While we understand his POV– who could possibly be this stupid?– The Detroit News reveals that Goldman Sachs and JPMorgan Chase are working “back channel negotiations” to protect their asses from a Motown C11 (i.e. get your elected representatives to give American automakers $25b+ in low-interest federal loans that the banks can’t or won’t give). That’s because both of these “august” financial institutions own big chunks of Ford and GM {the exact “vig” in the comment below). Only time is running out, as bailout fatigue grows. Oops, sorry, this isn’t a bailout. Not that you’d know it from JP Morgan’s pleas. “Beyond the need to provide a safety net for workers, we believe the automotive industry is critical to national security. Not only does the automotive sector support the steel infrastructure that is critical to manufacturing defense weaponry, but the automotive sector also provides about 1 out of every 12 jobs in the U.S., is a key factor in getting the U.S. independent from foreign oil and is essential toward cleaning up the environment,” wrote JP credit analyst Eric Selle. All done? No, I didn’t think so.

By on September 18, 2008

Acura has released pricing on the all new 2009 TL, and it ain’t pretty. Nor cheap. The days of an Acura TL in the low 30s are long behind us (though the Acura TSX will happily take your dough), as their “mid-range” sedan is now starting at $35,175. The previous model Acura TL started at $34,485. Should you want to give Acura more of your money, you can opt for a whopping $4270 technology package that includes navigation and hopefully some kind of guided missile system. If the base 3.5-liter V6 with 280 horsepower just doesn’t cut it for you, and front wheel-drive is too 1998, then you can shell out $39k, 265 for the 305 horsepower 3.7-liter V6 featuring SUPER HANDLING ALL WHEEL DRIVE. Should this all be chump change to you because you really wanted a BMW 335i, you could consider the $43,995 TL SH-AWD with the bigger engine, technology package and 19 inch wheels with high performance tires. While this pricing is consistent with the TL’s competitors, it really underscores how this market moved from $30k -$40k, to $35k to $50k. That’s market segment inflation for ya.

By on September 18, 2008

As many of our Best and Brightest have pointed-out, all the hype surrounding the Chevrolet’s plug-in electric gas hybrid Volt obscures the fact that General Motors’ future depends on selling what it’s got right now, right here. Whether that’s intentional or not is a debate for another post. Suffice it to say, this. We flagged the arrival of the badge-engineered Chevy Aveo back in June. Canadians have already been “enjoying” the G3 as the Pontiac Wave, and now it’s here. Well, not yet. Later this year, as an ’09, at a yet-to-be-announced price. Meanwhile, in a desperate bid to link this POS with U.S. Pontiac’s former “We Build Excitement” strapline (now “Pontiac is car”), the official press release touts the G3’s “sporty functionality” (see: fender vent). “More than ever, fuel economy is an important factor in Pontiac’s formula of style and performance,” claims Susan Docherty, vice president of Buick-Pontiac-GMC. “The Vibe, G3, G5, and G6 prove that you don’t have to sacrifice sporty design and responsive driving to achieve impressive fuel economy.” Is that what they prove? Who knew?

By on September 18, 2008

Halleluiah! Oil prices are falling. Despite Nigerian revolutionaries attacking Royal Dutch Shell facilities. Despite hurricanes Gustav and Ike disrupting gulf production. And despite all of the hysteria of the last six months trumpeting the end of the era of cheap oil, oil prices have fallen as much as $55 per barrel after being pushed to a peak of $147.27 in July. Once the residual shock to gasoline refining by Ike dissipates over the next couple of weeks, consumers will begin to see a substantial difference at the pump. So is it safe for Americans to recommission their mothballed SUVs and muscle cars? A close look at financial events in recent days indicates otherwise.

By on September 18, 2008

Ooooh. Ford. You ARE a tease. But hey, at least we don’t have to endure the glacially slow PR drip-feed and premature full revelation blighting the new Chevrolet Camaro. Or do we? When is the new ‘Stang set to romp into showrooms anyway? The Motor Authority reckons we’re looking at sometime late in that most magical of model years, 2010. Is it possible that Ford could mess with the numerical mojo and delay the launch (a la F-150) to clear the lots of unloved last generation ‘Stangs? In this market who knows? But while we’re speculating, the Aussie authority in these matters highlights the fact that FoMoCo’s design guy Peter “Call me Dave” Horbury’s mob have endeavored to make the new iteration look slimmer and more fuel efficient, in keeping with the temper of the times. Even though it isn’t and is. Vive la evolution!

By on September 18, 2008

In true Colbert Report fashion, a “tip of the hat” to the General Motor’s spinmeisters for letting GM Car Czar Bob Lutz walk into the lion’s den, knowing full well Colbert would make him look like an idiot. Mission accomplished. For example, Mr. Colbert pushed Maximum Bob on his stance on global warming, forcing the winner of our annual Bob  Lutz Award to claim the Volt was for people interested in operating “cost per mile,” not the environment. Bob’s request for a change of subject was far from elegant (somebody help me, please!). Although Colbert managed to make Lutz look tongue-tied, nervous and shifty– only one of which you’ll see in person– the interview never got to the heart of the matter. So a “wag of the finger” to Stephen Colbert for not asking the obvious questions: is the Volt currently for sale? How much?  Does GM have the financial liquidity to make it happen? On that note, Mr. Colbert should take a gander at GM’s market share slide before suggesting (however saracastically) that Lutz should take over the U.S. financial system (shiver). And to think I once compared Stephen Colbert’s passion for truth to the honest goodness of a Ford Ranger. Fake news should be ashamed of themselves.

By on September 17, 2008

Holy shit! Who elected these people? I mean, OK, ever since the so-called “debate” over the Energy Bill’s $25b low-interest federal loans to Detroit was first mooted, we figured Motown would get its pound of taxpayer flesh. Right from the git-go, we said the American automakers’ [remaining] political muscle and Michigan’s position as a “battleground” state during this presidential election season sealed the deal. And we predicted the only possible barrier to bonanza billions: bailout fatigue. And lo, Uncle Sam’s $85b AIG bailout is upon us. But as long as there are no more shocks, and The Big 2.8 can keep up the big Mo, the money will still flow freely from your pocket. BUT never underestimate Detroit’s ability to snatch defeat from the jaws of victory. For example, Senate Majority Leader Harry Reid seems Hell bent on getting his picture in Bartlett’s Famous Quotations, under “Who needs enemies when you have friends like these?” The Detroit Free Press got the money shot (and buried it at the bottom of the piece). “’It’s extremely important we try to do something,’ [Senator] Reid said, adding that compared with the cost of the Wall Street bailouts, the cost of the $25-billion loan program — estimated at $7.5 billion — is ‘small change.'” The fact that he’s right is more galling than the idea that he isn’t.

By on September 17, 2008

Great news for all you auto-industry bailout fans! The Ukrainian Journal (what, you don’t have a subscription?) reports that Ukraine’s Industry Ministry and the Ukravtoprom Car Producers Association (acronym unknown) have proposed allocating UAH 3.884 billion ($826m) from the national budget to finance the development of the car industry by 2015. And guess what? It’s not a bailout! The appropriation will simply secure nearly $12b in financing to help its industry adapt in a changing global market. Where in the Hell do they get those crazy ideas? But one crucial point differentiates the Ukrainian loans and the bailout currently being sought by Detroit: the Ukrainian car market isn’t up effluence creek. Just-auto [sub] reports Ukrainian Q1 sales are up a tidy 61 percent over last year. The moral of the story? The government helps those who help themselves. Or Detroit desperately needs to master the art of the bribe. Oh wait…

Warning! Video unsafe for narcoleptics or readers enraged by elevator music

By on September 17, 2008

Just when Farago begins to question his ongoing coverage of the UK’s obsession with speed cameras, thenewspaper.com proves the significance of the story… Redflex and American Traffic Solutions (ATS) are already raking in tens of million of dollars of loot from dubiously justifiable red-light cameras; corrupting officials, invading privacy and subverting government accountability along the way. But they’re thinking bigger than that. WAY BIGGER (Brother). “We are moving into areas such as homeland security on a national level and on a local level,” boasts Redflex regional director Cherif Elsadek. New “optical character recognition” technology could be integrated with existing red light camera and speed camera systems, allowing full video records to be kept of passing motorists. Add that to ATS’s proposal to integrate Arizona’s speed cameras to a national database, and you can see where this is going. Or just ask Elsadek. “Imagine if you had 1500 or 2000 cameras out there that could look out for the partial plate or full plate number across the 21 states where we do business today. This is the next step for our technology.” Why? Amber Alerts and tracking stolen cars, of course. Nothing to see here.

By on September 17, 2008

Original Autoblogger Reverend David Thomas over at Cars.com has been combing through HR 6899 (warning: 290 page pdf), a Democratic-sponsored energy bill passed last night by the House of Representatives. Included in the text: provisions for limited offshore and Alaskan drilling and oil shale field exploitation exploration. A provision starting on page 177 requires that gas stations owned by Big Oil companies each have at least one alternative fuel pump by 2018. There’s a carrot ($50k tax-credit) and stick ($100k penalty) for each station. Alt-fuels are defined as E85 (or even more ethanol), compressed natural gas (CNG), diesel (of at least 20 percent bio or other renewable source) and hydrogen. So, where to begin with this lobbyist and re-election friendly clause? We’ve already stated the reluctance of independent chains to fork out the $50k cost of installing E85 pumps. CNG and hydrogen face huge chicken-and-egg problems: you want to buy or lease a new vehicle right now? (How much above MSRP?) Honda will produce just 1500 CNG-inhaling Civic GX’s for MY2009, and forget about getting a Clarity FCX unless you already own won a pair of Golden Globes. Anyhow, ExxonMobil is planning to get out of the gas station business because it’s not profitable enough. If the bill becomes law, don’t be surprised if the other majors follow suit to avoid having to fork out millions. Big if: the bill has yet to be voted on by the Senate. President Bush has promised a veto in the bill’s current form, and it passed the House by a less than a 60 percent (veto-proof) majority.

By on September 17, 2008

We reported previously that the McLaren Mercecdes partnership was in trouble because (amongst other things) Mercedes didn’t want an SLR replacement messing with its forthcoming gullwinged SLC (actual name may vary). Nicht wahr, says July’s print edition of Auto Motor und Sport. Mercedes doesn’t want to match the $115m the royal family of Bahrain paid for 30 percent of McLaren, and it’s getting petulant. According to AM und S, “a racing car for the streets doesn’t fit with Daimler’s corporate politics.” If Daimler lets McLaren build sports cars, there’ll be no Mercedes engine or star on the hood. This from the folks who brought us the CLK-GTR, AMG Black Series, Zonda engine, etc. Persistent rumors of a technical hook-up with Aston Martin may mean Mercedes has already made an exclusive deal for its best engines. But spurning McLaren for Aston (if that is what’s happening) doesn’t make much sense. The McLaren-Mercedes racing partnership is a halo exercise for Daimler, and a mid-engined McLaren (already in development) would add to that even without a Mercedes badge. Meanwhile, Aston is never going to start embossing “powered by AMG” into its fine Connolly leather. Besides, DB9s start at $170k, which is bound to be closer to the new SLC’s $150k target price than a mid-engined McLaren would be. Which might explain why renderings of the SLC in AM und S show it going all anti-retro despite the obvious gullwing heritage. So, is Aston going to become the “retro” Mercedes brand? Does McLaren need to find another royal family to buy its freedom from Daimler? Will the SLC still sound like “death on a stick” when it gets to market? As usual, there are more questions than answers.

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