American auto enthusiasts often bemoan the lack of diesel options offered on the US market, looking to Europe as the promised land of oil-burning efficiency. But Europe’s love affair with diesel, which has been manifested in a 50%+ diesel sales mix for years, may be coming to a close. The WSJ reports

The European Commission–which has executive powers in the European Union–will propose to levy a minimum EUR20 per metric ton of carbon dioxide emitted on products like gasoline, diesel, natural gas and coal starting in 2013. But it will also propose adjusting the existing legislation by gradually increasing a minimum levy on the energy content of diesel to bring it to the same level as that of gasoline starting in 2018

Here’s the key: in addition to basing taxes on C02 emissions, the EU tax structure shift will result in fuel taxation based on energy content rather than volume alone. Accordingly, diesel’s higher energy content means it will see a more dramatic increase in taxation levels. And this single common-sense proposal is unleashing an intense debate in Europe about energy, taxation and the future of the auto industry.

Read More >

The California Senate Appropriations committee voted 9-0 on March 29 to advance legislation that would alter the way red light cameras operate in the state. State Senator Joe Simitian (D-Palo Alto) re-introduced legislation that had stalled last year tweaking some of the more controversial aspects of automated ticketing programs.

Read More >

This is the first in an infrequent series of pieces that take a step back from breathless blogging. They look at a phenomenon over the longer term, they have more in-depth research, they are hence a bit longer. We will run them on weekends, when some may have the time for 1,200 or more words.

Imagine, if you dare, you live in China’s capital, Beijing. It’s a nice place, actually. The population of Australia crammed into one sprawling city. Good food. Nice people. Great nightlife. As cities go, it covers a lot of space. Beijing proper is a bit less the size of Kuwait.

Now imagine you have your eyes set on a new car. Chery QQ, Chevy Escalade, whatever. What do you have to do to get behind the wheel? You have to win the lottery. Not to buy the car, a QQ goes for a few grand. You need to win the lottery for the same thing that keeps felons employed back home: A small piece of blue and white tin, a license plate.

Your chances of winning are rotten. Imagine you go to Vegas, you put a chip on a single number. If that number comes up on the first spin of the wheel, you may buy a car. If not: Better luck next month, ta-dah!

Next! Read More >

Saab’s inability to pay suppliers led it to request a release of some of its debt collateral by Sweden’s National Debt Office, reports Reuters. The NDO has loaned Saab €400m, but with its Russian backer Vladimir Antonov still unable to inject cash into the company, Saab was forced to ask for some of its NDO loan collateral in order to cover its supplier debts. But, according to another Reuters report, NDO spokesfolks say

It is clear what the problem is and everyone possible is trying to solve the problem… a solution to the problem had seemed in sight, but that in the end it did not work out.

The NDO says it will keep working with Saab, and the automaker predicts a resolution by next week (without offering any further details). After a year of independence from GM, the Swedish brand could well be reaching the end of the line.

If there’s one factor that most dims enthusiasm for cars, it’s probably traffic. The frustration, misanthropy and waste engendered by traffic are such that it would come as no surprise to learn that traffic-related stress causes a number of health problems. But, according to a study by the World Health Organization [PDF here], you don’t even need to be stuck in traffic to be negatively affected by it. According to a WHO press release,

Traffic-related noise accounts for over 1 million healthy years of life lost annually to ill health, disability or early death in the western countries in the WHO European Region. This is the main conclusion of the first report assessing the burden of disease from environmental noise in Europe, released today by WHO/Europe. Noise causes or contributes to not only annoyance and sleep disturbance but also heart attacks, learning disabilities and tinnitus.

Traffic: the not-so-silent killer?

Read More >

How things change in a few years! Just a few short orbits of the sun ago, automakers like GM were some of the biggest boosters of ethanol subsidies. Now, the Detroit News reports

The Alliance of Automobile Manufacturers – the trade association representing General Motors Co., Ford Motor Co., Chrysler Group LLC, Toyota Motor Corp. and eight others – opposes a bill sponsored by Sen. Tom Harkin, D-Iowa, that would require 90 percent of all vehicles to run on E85 – a blend of 85 percent ethanol – by the 2016 model year.

Shane Karr, vice president for government affairs, said the mandate “would cost consumers more than $2 billion per year” for flex fuel vehicles if automakers passed on the full cost “even though consumers will have little or no access to alternative fuels. Therefore, such a mandate is essentially a tax with little consumer benefit.”

In the face of this new opposition, the Renewable Fuels Association has even taken to employing the rhetoric of market economics to justify market-manipulating ethanol subsidies. And it doesn’t seem to be convincing anyone. If anything, Harkin’s bill may just hasten the death of existing subsidies, which are under pressure as both Democrats and Republicans seek to trim the federal budget.

Members of the media and the legal profession who receive regular updates from the U.S. Department of Transportation were in for a shock this morning as they opened the last announcement from NHTSA. ZoneAlarm by Check Point Software, which claims market leadership in the firewall and security business, warns that a DOT press release is a “possible fraud attempt.” Read More >

The top legal speed in the state of Kansas is one signature away from becoming 75 MPH. State legislators on Friday gave final approval to a bill raising the limit from 70 to 75 MPH. If approved by Governor Sam Brownback (R), Kansas would join a dozen other states that have already made the move. Only Texas and Utah have a higher, 80 MPH limit.

Read More >

The NYT reports:

The Environmental Protection Agency has revised its alternative-fuel conversion regulations for light and heavy-duty vehicles, making it easier for manufacturers to sell conversions that are compliant with clean-air laws. The 186-page ruling provides an exemption from a Clean Air Act prohibition against tampering when converting an engine to run on alternative fuel.

In the past, a manufacturer of alternative-fuel conversion systems was required to certify its products in the same manner that a vehicle manufacturer certified its vehicles — an expensive and difficult process. The new regulations provide a way to comply with clean-air standards through streamlined testing.

In essence, the rule change creates a graded compliance structure, depending on the age of the converted vehicle, making it easier to retrofit older vehicles. Read all about it at the EPA’s website.

The Tampa, Florida city council tomorrow will consider adopting a contract granting American Traffic Solutions (ATS) the right to issue $158 tickets at intersections. At a meeting last month, half of the council’s members supported installation while the other half opposed — forcing the idea to be reconsidered at the upcoming meeting where a member absent from the last meeting is expected to cast the deciding vote. Opponents suggested the cameras had little to do with safety.

Read More >

We’ve long struggled with finding the right balance of recall coverage here at TTAC, as the sheer volume of them makes it extremely difficult to separate the life-saving wheat from the irrelevant chaff. Now, it seems the rental car industry is tired of struggling with the same challenge and is lobbying the government for reform of the recall system. Bob Barton of the American Car Rental Association explains the problem to the NYT

We can’t determine the significance of a recall and whether a vehicle is no longer safe to operate or whether it can continue to operate and then should simply be brought in for service at some point in time. We simply want the manufacturers to instruct us when a vehicle needs to be grounded and we will absolutely comply.

Fair enough. Recalls are carried out for plenty of non-safety-critical problems. But where do you draw that line? And, more importantly, does the rental industry enjoy enough of a reputation for safety consciousness to assure customers that their calls for reform won’t result in any increased danger?

Read More >

Judges in the country’s most activist federal circuit on Thursday ruled in favor of red light camera use in Washington state. A three-judge panel of the Ninth Circuit US Court of Appeals issued an unpublished memorandum order dismissing a state law challenge to the photo fine amounts and “cost neutrality” compensation arrangements of municipalities.

Read More >

The trade war that erupted between the US and China late last summer may have cooled to an angry simmer, but its effects are once again being noticed in the automotive industry. After President Obama slapped a 35% tariff on imports of Chinese-produced tires, the Chinese government started casting around for potential objects of retaliation, and, as Bertel reported, US auto exports to China made “a good tit-for-tat.” The US imported $1.8b worth of Chinese tires in 2009, while China imported $1.1b worth of US-built cars (including transplant brands) in 2008. You shoot our dog, we’ll kill your cat.”

Now, the Chinese Ministry of Commerce has concluded its “investigation” into US auto dumping and illegal subsidies  in the Chinese market, and it just so happens to single out the two automakers who are partially owned by the US. Coincidence? Not so much. [Hat Tip: Michael Banovsky]

Read More >

An Australian company has hired kingmakers from Chicago, Illinois to prevent Texas residents from being able to decide whether or not red light cameras should be used in their community. A “grassroots” group calling itself the Texas Traffic Safety coalition filed a lawsuit to stop the city of Port Lavaca, Texas from holding a referendum on the photo enforcement program run by Melbourne-based Redflex. Although no court order was issued in the case, the city council decided not to hold the election, despite the city charter’s instruction that the council must place a qualified petition on the ballot.

Read More >

Lawmakers in four states this week advanced legislation that would, if passed, either place mild restrictions on or outright ban the use of automated ticketing machines by municipalities. The Florida state Senate Transportation Committee on Tuesday voted 4 to 2 to approve an outright prohibition on the use of red light cameras — just one year after the legislature had given in to the lobbying effort of localities in authorizing their use. Senate Bill 672 must now clear the Senate Community Affairs Committee before being considered by the full Senate.

Read More >