The Dallas Morning News reports the Lone Star State is spending $100m to get gas-guzzling, smog-spewing old cars off the road in the metro DFW and Houston areas. The program, which began taking applications last December, provides vouchers to low-income families who have cars that are at least 10 years old. The vouchers can be used as a down payment on a new or late-model used car ($3K voucher) or up to one-year-old hybrid ($3.5K) at dealers who participate in the "Air Check Texas" program. It's a pretty popular program, as you can imagine. Freeman Toyota has sold 80 cars to voucher holders so far, and Lone Star Chrysler-Plymouth-Jeep has 50 sales completed or pending, most of them used car sales. The program is expected to exhaust its funds for this fiscal year by summer, but there are already funds set aside for FY09. Justifiable environmental intervention or a greenwashed subsidy for local car dealers? We report, you kvetch.
Posts By: Frank Williams
TTAC has finally hit the big time: we now have a listing on Wikipedia. Right now it's pretty basic. But we trust the worldwide web will nurture our entry and develop it into a listing that befits our no-holds-barred brand. We'll also update the user stats as our reader base grows. Let us know what you think; if there's anything else we should cover in our wikidness. And while you're sharing on meta issues, what's your take on TTAC listing everything on the front page in chronological order– instead of placing the reviews front and center? There would be direct links to items on the right like we have now. But as new content is posted, it would appear at the top of the column on page one. The upside: you'll see everything when you connect to the site. The downside: items will scroll off the page much faster than they do now. And while we're gearing-up for photo galleries, we're worried about the effect on page views. But never mind US. It's all about YOU. Which format would you prefer: the way we are now, or the way it was in our now defunct "classic" view?
It's the strangest form of worker buyout so far, Forbes reports that Ford sold off its driveshaft factory. And now they're offering 700 workers $140k if they stay with the plant under its new owner, Neapco. The money would be paid out over a two-year period– if the United Auto Works (UAW) agrees to the deal. The workers staying with Neapco will have to deal with a new labor contract between the UAW and the new owners; they'll most likely give-up whatever seniority they've amassed, and have a different (i.e. smaller) benefits package. Hence the "incentive." Ford is also considering offering the same deal to workers at an interior component factory they're in the process of selling to Johnson Controls.
Jerry York doubts Chrysler will make it on its own. According to Reuters, the former Chrysler CFO and GM Board member reckons "Chrysler as a stand-alone company is not viable." York doesn't believe Chrysler will last another five to ten years as an independent automaker. Flashing back to comments he made last November, York also said he thought Cerberus would "go as far as they could in terms of fixing [Chrysler] up, but then ultimately recognize that the company would have to be merged with a foreign producer." Although Chrysler has yet to announce the ten plus models it will slice from its lineup, York thinks Jeep will emerge from the bloodletting with just the Wrangler and Grand Cherokee. Coincidentally (or not), India's Economic Times reports Mahindra & Mahindra (M&M) is "reportedly in talks with Chrysler [to buy] its iconic Jeep brand." M&M would neither confirm nor deny the rumor, but the company began life as a Jeep licensee. And vice-chairman Anand Mahindra stated, "This is a great time to use Indian chutzpah, the strong PE ratio and rupee to buy American manufacturing assets." It's only a matter of time– and not much of it– before Cerberus begins its long-awaited strip 'n flip.
When it comes to sharing our feelings about the automotive buff books' advertising-tainted editorial, TTAC leaves no words unminced. However, every now and then, genuine journalism rears its feisty head. In the March issue of Motor Trend, Arthur St. Antoine speaks his piece about hybrids. The columnist calls them "nothing more than the four-wheeled equivalent of a yellow LiveStrong wristband- a conspicuous, self-satisfying, effort-free membership card into the 'I Care' club." The most egregious example of this hypocritical hybrid mindset? The Lexus LS 600hL. St. Antoine points out that the 600hL's hybrid premium ($33k) buys you a little extra power and minimal fuel economy gains. So why are the 600hL's moving at the rate of 1000 per month and other other hybrids are selling like Sno-cones in Hades? "The appeal of the LS 600hL (and, I fear, most other current hybrids) is simple sanctimoniousness… why, it's a hybrid. Pay no attention to the colossal luxury sedan behind the curtain! Cue the rainbow and the baby seals!" And here's the best part; the editorial's next to a special advertising section entitled "Chevy's Hybrid Revolution." This Motor Trend produced insert extols the virtues of the bargain-basement semi-hybrid Malibu (with its huge two mpg increase in fuel economy) and the super-sized, outrageously-priced Silverado and Tahoe hybrids. We reckon Angus should be getting "that" phone call any day now.
The AP reports that Porsche's U.S. sales are falling, particularly in the past two to three months. (As have sales of BMW, Ferrari, Lexus, Jaguar and Lincoln.) Porsche Prez and CEO Peter Schwarzenbauer reckons the luxury car segment will have a tough time compared to 2007. Meanwhile… Porsche has unveiled their latest Cayenne variant at the Chicago Auto Show. Automotive News [AN, sub] reports the Cayenne GTS is powered by a 4.8-liter direct-injected V8 putting out 425 hp (the Porsche press release says 405). Regardless, it'll be enough horsepower to slot the hotrod SUV between the Cayenne S and the Cayenne Turbo. The GTS will be available with a six-speed manual transmission, making it the first Porsche to offer both a V8 and a six-speed. While we're down with Porsche's commitment to vehicular evolution (however incremental), you have to wonder why the Sultans of Stuttgart are putting this much effort into an SUV– when the same drivetrain would be perfect for a resurrection of the 928. A move like that would make a lot more sense for the sports car brand than the hybrid Cayennes and four-door Panameras about to start rolling out of Stuttgart. Just sayin'…
A new reports in Science magazine [reported by Yahoo! News] claims that "using good cropland to expand biofuels will probably exacerbate global warming." The researchers worry that farmers looking to cash-in on ethanol will continue to plow-up more forests and/or grasslands. Biofuels boosters have cited studies stating corn-based ethanol produces 20 percent less greenhouse gases than gas, while celluosic ethanol results in a 70 percent reduction. The Science study says the analysis was "one-sided;" it didn't include the carbon costs of land use change. Factor in that variable, and corn-based ethanol production would increase greenhouse gases by 93 percent (compared to gasoline over a 30-year period). The Renewable Fuels Association dismissed the researchers' conclusions as simplistic. "Assigning the blame for rainforest deforestation and grassland conversion to agriculture solely on the renewable fuels industry ignores key factors that play a greater role." The ethanol industry cheerleadsers didn't speciify those "key factors."
Reuters reports that Chevrolet brand manager Ed Peper waxed downright Lutzian at the Chicago Auto Show. Peper said retail sales for Chevy's new Malibu rose 200 percent in January compared to the old model. WTF? Automotive News' data center [AN, sub] says Chevy sold 14,541 Malibus last month vs. 9,209 of the old model in January of last year. That's a 57.9 percent increase, not 200 percent. But it gets even more interesting. Peper denied that the new 'Bu had any effect on Impala sales. He attributed lower Impala sales in January to fleet sale reductions. In fact, he said Impala retail sales were up 44 percent. Uh, AN shows Impala sales were down 30.6 percent in January. If retail sales were up as much as Peper claims, and overall sales were nowhere near those levels, they must have been dumping one helluva lot of cars into fleets, as we suspected all along. If so, the trend could explain last month's huge surge in LaCrosse and Cobalt sales. [Thanks to starlightmica for the link]
If you can't get the whole car to market, sell the pieces. At least that's what Tesla's is thinking these days. According to CNET, Tesla is expected to announce that they will sell drivetrain components (presumably excluding transmissions) and software to other companies interested in developing their own electric car. Chairman Elon Musk (who already has his Roadster even if no paying customer does) indicated that Tesla might start peddling their technology by 2010 "or earlier." In addition to parting-out the Roadster, In an interview during this week's Clean Tech Investor Summit in Indian Wells, California, Musk also revealed that Tesla was trying to finish a styling prototype of their sedan (code named "Whitestar") in the second quarter. He suggested a working prototype would be "possible" by the end of the year. Based on Tesla's present nomenclature convention, "Tesla Sedan" seems the likely name for their unlikely machine.
As drivers replace their gas-guzzlers with more efficient vehicles, drive less and/or start using alternate transportation, gas tax revenues are dropping. The Seattle Post-Intelligence reports that Washington state is responding to this environmentally beneficial trend with an annual tax tied to a vehicle's EPA-rated fuel economy. Under Senate Bill 6923, a Prius owner will pay $60 per year, while an H3 owner would be dunned three times that amount. Bill sponsor State senator Ed Murray denies the measure is a greenwashed cash grab. "The (governor's) climate advisory team said that the biggest global warming problem in this state is actually from transportation." How a state can have a "global" warming problem isn't quite clear, but Ed claims Washington's industry is "fairly clean." The real problem? "The number of automobiles." Lower-income drivers will be hardest hit by the new rules, as they are least capable of switching to newer, more fuel-efficient vehicles. Estimates show they'll have to pay an average of $113 per year.
GM has released pictures of the new Chevrolet Outlook Traverse, set to start production this fall. In a press release, Chevy GM Ed Peper dismissed charges that Chevy's take on the Lambda platform should have been the first out of the box, rather than the last. (Never mind the only.) "We think the Traverse is the right vehicle at the right time." The new-ish CUV features styling cues "inspired by the acclaimed '08 Chevy Malibu." It comes in three trim levels (cheap, not so cheap and livable) and FWD or AWD variations. Chevy's offering a full complement of "amenities" to "enhance the driving experience for the driver and passengers alike" (how passengers could have an enhanced "driving experience" is a question left unanswered). The important thing is this: "the Traverse is following the formula that is bringing Chevy back to a new generation of consumers – great styling, loads of class-leading features and tremendous value." That's one way to describe a badge-engineered Chevy that will cannibalize sales from GM's other divisions. If the Saturn Outlook was doomed before, it's doomederer now. And the final indignity? The Traverse will hail from Saturn's Spring Hill factory, where the "different kind of car company was born."
Even before 2008 arrived, industry experts were predicting a bad, bad thing. So far, they haven't been disappointed. While January tends to be a low sales month, as everyone tries to recover from holiday overindulgence, this January was worse than expected. There were a few inexplicable bright spots (*cough* channel stuffing *cough* dealer fleet sales *cough*). Sales of the Dodge Caliber (up 25.5 percent over last January), Ford Focus (up 44.4 percent), Buick LaCrosse (up 69.3 percent) and Chevy Cobalt (up 32.9 percent) all shot up. But these four-wheeled anomalies weren't enough to salvage the month. Let's break it down…
If you build a "sport" version of a CUV does it then become an SCUV? Or is it a CSUV? Whatever you call it, Bloomberg tells us Ford's planning a sport version of the Edge CUV called, strangely enough, the Edge Sport. Just what constitutes a "sport" version is a matter of some debate. (Well it is now.) To pistonheads, a sport model usually implies more power, better brakes and improved handling. To Ford it means standard 20-inch wheels (optional double dubs) wearing low-profile, 40-series Pirelli Scorpion Zero tires. And an "eight-piece Edge Sport body kit… integrated fog lamps and a lower grille insert… sport badging, polished dual exhaust tips, 'foundry gray' smoked headlamp and taillamp lenses… dark gray leather seats [that] feature unique suede-feel patterned inserts in a combination of light and dark gray." Oh, and "an appealing etched metal effect on the instrument panel center console." After the Blue Oval Boyz introduce the Edge Sport at the Chicago auto show, the not-so-mean machine will go on sale later this year as a 2009 model, aimed at buyers who want their factory rides pre-pimped. Or it that semi-pimped? Semi-pre-pimped? Half caf semi-pre-pimped? Are we there yet?
Ford will build the Verve (or whatever they end up calling their subcompact) in Mexico. And we know this because…? The Detroit Free Press reports "two people with knowledge of Ford's production plans" told them so. Although Ford refuses to identify the location of their new subcompact's fabricator, it appears the concessions given by the UAW still don't make a U.S.-built economy car a profitable proposition. Global Insight's NA light-vehicle production managerdoesn't see "Made in America" making a comeback anytime soon. "In general we see capacity in the U.S. dropping," Haig Stoddard advised. "And continuing to gradually rise in Mexico." That's at least until the automakers replace most of their older UAW work force with cheaper new hires. But even at the lower $14.20 per hour rate, American workers still make a lot more than their Mexican counterparts. Between that and the Mexican government's willingness to contribute incentives, well, it's a slam dunk. No matter where it's made, Ford needs the Verve now. Arriba!
Think The Big 2.8 have it rough with new federal Corporate Average Fuel Economy (CAFE) standards? The ex-chairman of Shell Oil is calling for the European Union to ban all cars that get less than 35mpg. Pistonheads reports that Sir Mark Moody-Stuart told the BBC that "nobody needs a car that does 10-15mpg." An Aston is OK, "but only if it did 50 – 60mpg." Sir Mark doesn't agree that increasing road and fuel taxes is a better way level the proverbial playing field; the wealthy shouldn't be allowed to pay their way out of their responsibility for climate change. Sir Mark did relent a bit on the subject of older cars. Under his "If I ruled the world" plan, sub-35 mpg motors would be allowed to "die off" as they're replaced by newer high-mileage vehicles. And if you think Sir Mark is just another sherry-addled Lord, keep in mind that the EU in general, the UK in specific and London in particular are doing everything they can to tax low mileage cars off the roads. Sir Mark's ban is simply the logical progression of an existing policy.
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