Corn-based ethanol took another blow from the scientific literature this week. University of Minnesota scientists published an article revealing that corn into E85 could require three times as much water as previously estimated. The bottom line: it takes more than 2,100 gallons of water to produce a single gallon of ethanol. That’s bad news for corn-etoh’s partisans; water supplies in the US are not exactly ample (as the NYT Mag pointed out a couple of years ago in its article, “The Future Is Drying Up“). Ethanol has also been bashed for competing with food, and for raising carbon emissions over a period of decades, rather than reducing them. The researchers, led by Sangwon Suh, note that the water needs vary widely depending on irrigation practices. In a dozen Corn Belt states, production of a gallon of E85 requires less than 100 gallons of water. I still wouldn’t buy any stock . . .
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One of the least publicized aspects of the “New” GM is how much of the old company remains on the books. More to the point, bad ideas with new window dressings still reign (Cutlass) supreme. But not the new 2006—sorry, 2010—Chevrolet Camaro: this idea had the right stuff. On paper. In the real world?
TTAC commentator Mark writes:
Mr. Farago, I’m an avid fan of your web site / blog. General Motors is a frequent subject, often in a negative light (typically, a well deserved negative light). I have owned and currently own GM vehicles. Why? My father worked for GM for 35 years, was paid well paid and has a good pension. GM helped put bread on our table, a car in our driveway and helped pay for my education. With all the issues and bailouts that GM has recently had, I would find it difficult to purchase another GM vehicle. What would sway me to purchase another GM vehicle? The company would have to change it’s philosophy and be accountable for the products they produce. Promote this via a marketing program centered on a specific model with the following four points:
Suzuki has been slapped around in the U.S. market for years. I mean, how long did it take for them to settle the Samurai rollover suit with Consumer Reports? Eight years. Damn that moose test. Yet seppuku has never been an option for Suzuki. To the contrary, they have decided to move the vehicle line upscale. Introducing the all-new Kashi bar. I mean the all-new Kizashi car. At least it’s all new for this market. The Kizashi has been the number one selling car for five years in a row in Japan, according to their microsite.
The good news, despite the Automotive News [sub] “Cash For Clunker Chaos” subhead, is that none of the automakers are completely out of cars. Regardless, clunkermania clearly took almost all of the OEMs by surprise. In July, Chrysler’s inventory reportedly plummeted from 71 days supply to 30, a huge reversal from the not-so-long-ago days of sales banks and channel-stuffing. But perhaps the biggest surprise is that Toyota was caught napping as badly as GM. Last month Toyota and GM both saw their inventories reduced by 18 days’ supply. But because Toyota started the month at a near-ideal 47 days’ supply, it now finds itself scrambling for vehicles with only a 29-day supply. Thanks to months of weak sales (and despite a long summer shutdown), GM started July with 82 days of supply. That number now sits at 64. Is GM saddled with inventory that doesn’t qualify for the CARS rebate? Possibly, but the only GM model cracking the top ten clunker models is the Cobalt. At number 10. Mind the perception gap!
The Insurance Institute for Highway Safety (IIHS) low-speed bumper repair data [download here] is good news for owners of the 2009 Honda Accord, Hyundai Sonata, Mazda 6 and Nissan Maxima: repair costs sank from 2007 levels. Moving beyond the headlines, the IIHS gives the Nissan a “poor” rating ($1,500 plus). And reports that the 2009 Chevrolet Malibu and 2010 Ford Fusion’s bumper repairs costs have soared. “Ford fit the Fusion’s front and rear with weaker bumper beams, and this had a big effect on the test performance,” IIHS Veep Joe Nolan’s PR flack writes. “The difference is easy to see in the 6 mph full rear test, which simulates a common parking mishap like backing into another vehicle. The Fusion’s bumper buckled, which caused it to underride the test barrier, resulting in twice as much damage as the 2007 model in the rear test. In the full front test, the Fusion had $2,529 in damage, more than any other vehicle.” Malibu misegos the jump.
“If it were up to me, I would ban drivers from texting,” the Secretary of Transportation tells the LA Times. Happily, LaHood does not have the authority to unilaterally enact laws, so, “that’s why I have decided to convene a summit of senior transportation officials, safety advocates, law enforcement representatives, members of Congress and academics who study these matters.” The conference is expected to yield “concrete steps” to curb the threat of distracted drivers. Like an education and awareness campaign. Meanwhile, the Avoiding Life-Endangering and Reckless Texting by Drivers Act (ALERT Drivers, geddit?) has been introduced to the Senate. This bill would force states to pass texting-while-driving bans (with DOT-set minimum penalties) within two years of its passage, or risk losing 25 percent of their federal highway funding. Just like the good old double-nickel days. Meanwhile, has anyone thought about the difficulty in enforcing such a ban?
Are consumers receiving a government “rebate” for their clunker paying LESS for their new car than they would have without the rebate? I know that seems like a no-brainer, but never underestimate the perfidy of car dealers. Or, to quote Shakespeare, there’s many a slip ‘twixt the cup and the lip. Equally salient (if less erudite), the laws of supply and demand can not be denied. With Cash for Clunkers hoovering-up the supply of applicable new cars, why would dealers give their best price on said new car? The statistical data on the question is out there, with hundreds of thousands of transactions logged at US DMVs. A new website and future TTAC partner is on the case. TrueCar.com will share the results of their data dive ASAP. Meanwhile, how about some anecdotal evidence or baseless conjecture from TTAC’s Best and Brightest? Did Cash for Clunkers participants get a better deal than they would have if the program had never existed?
“General Motors’ plug-in hybrid technology will be introduced in a new Buick crossover vehicle in 2011, Tom Stephens, GM vice chairman of product development, announced here today during the Management Briefing Seminars.” Did someone get paid to write that sentence? I prefer this “free” one from TTAC commentator MR42HH: “Slapping a Buick badge on a Korean engineered CUV with faux Opel styling is a good idea? To my eyes, this is pure ‘Old GM’ badge engineering mania. It’s the ‘Buick Opel by Isuzu’ all over again.” Did someone say Saturn Vue to a kill? No? So what’s the official explanation for adding another crossover—albeit one with a cord (so not a Cord)—to Buick’s moribund lineup?
In other words, TTAC commentator Stephen Teller has assembled a chart matching the amount of Cash for Clunkers money doled out per state, divided by population. [download here] Here are the top ten in reverse order:
10. Vermont – $3.82
9. Iowa – $4.06
8. Nebraska – $4.14
7. Maine – $4.14
6. New Hampshire – $4.16
Oh, to be the head of the Presidential Task Force on Automobiles (PTFOA). First, you have to pretend that you’re not running not one but two nationalized American automakers. Hands-on, hands-off, hands-on! Next, you have to beat off failing automotive suppliers with a baseball bat (so to speak). Automotive News [sub] reports that PTFOA jefe Ron Bloom told their Management Briefing Seminar that bankruptcy-bound suppliers get bupkis. But “We’re keeping a very close watch on the supply base.” That said, Bloom’s leaving such mission critical issues to the titular heads of GM and ChryCo—unless supplier meltdowns should suddenly be deemed a “core issue.” In which case, “If we felt it necessary, we might consider something.” But “at the moment, we don’t see that happening.” So it’s sink or swim, until they start to sink. Huh?
Is $2.00 gas killing the Middle East economy? Strolling through a Mercedes dealership in Abu Dhabi revealed this SLR Roadster priced at 2.44 million Dirhams. Think the exchange rate will help? Nope, try $667,000. Talk about mark-ups! When the salesman was asked about the tremendous mark-up, he suddenly forgot how to speak English and walked off. (That, or it was my Innova rental in the parking lot.) Still for this kind of money buyers get a red checkered top that looks like it was stolen off a pimp, and black wheels previously seen in a Tire Rack ad. Even if I was ultra rich, I may just have to pick up another vacation home and a Gallardo instead.
Motorists who passed by speed cameras and red light cameras yesterday in the province of Caserta, Italy were greeted by the sight of the devices shrouded in black plastic trash bags. They were not vandalized. The carabinieri — a national police force — affixed official warning notices explaining that the cameras were in “protective custody under Article 321.” An investigation is underway into possible fraudulent conduct on the part of local officials in thirty-three municipalities as well as fourteen private companies who operated the equipment under contract. In addition to seizing camera equipment, documents were taken from the offices of both photo enforcement companies and local police chiefs and mayors.
Bob from The Land Down Under writes:
G’day Sajeev, here is a question for you. In my ML320 (2001) the accelerator pedal has broken and for the life of me I cannot remove the pedal assembly from the bulkhead of the car. I have undone the two bolts I can see but it refuses to budge. No one in the Mercedes Benz forums can/will answer my question. Plus the actual workshop manual is held by Mercedes Benz, who will not part with it unless an inordinate amount of money crosses their palms. (The last time I checked they wanted about $400 Australian for the manual on DVD and I thought movie DVD’s were expensive!)
Thanks for the help, oh master of the wrenches, mystic diviner of the oil sludge.
Bob (from Oz)















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