As mentioned in an earlier article, I’m getting old. Far too old to understand the younger generation. But with experience comes cynicism (maybe that should be a TTAC slogan?). The more things change, the more things stay the same. In the recent cutbacks, which the new UK government introduced, a fund called the “Grant for Business Investment Scheme” (GBI) is to be phased out by 2012. The fund was used by Nissan for their plant up in Sunderland, Tyne and Wear. Production of the Leaf came to the UK on the back of a £20.7m grant from the GBI fund. Well, Nissan didn’t take too kindly to the news of the dry money well, says the Daily Mail. Read More >

The rest of the world is busy tearing down tariff borders by entering free trade agreements, such as the one between South Korea an the EU. Japan doesn’t want to stand on the sidelines and is in FTA negotiations with the EU. At the same time, the U.S. and Korea yesterday shitcanned their free trade plans. The reason? Cars. Allegedly. Read More >

Did you know that all drivers in Germany are potentially subject to an Idiotentest? Well, “Idiot Test” is the popular term; technically it’s called the Medizinisch-Psychologische Untersuchungen (Medical-Psychological Test) and it’s administered to some 100,000 Germans each year by the Bundesanstalt für Straßenwesen (Federal Highway Research Institute). The point is, if a German driver does something colossally stupid, like run a red light, wreck while racing, or get caught driving drunk,  the Bundesanstalt makes him or her take a test to determine that they are medically and psychologically capable of driving safely. If you fail, either get sent back to (mandatory) driving school, or you lose your license (and gain the sneaking suspicion that your high school counselor was right, and you really are an idiot). Anyway, while you’re pondering the pros and cons of this system compared to America’s lassez-idiot approach, consider this: the number of idiot tests administered to German drivers was up three percent last year, the first time in years that the number went up. Apparently you can’t keep automotive idiocy down. Read More >

The Auto Prophet brings up a point that completely escaped our discussion of General Electric’s EV mega-buy:

By gobbling up EVs, GE certainly helps to jump-start the industry, but they also gobble up future tax credits that consumers would have gotten, unless GE opts to forego the EV tax credit. Which would be bad business.

Yup, GE’s huge EV buy will be good for GE… but it won’t be so great for the 25,000 Americans whose tax credit will slurped up in the process. After all, the credit expires after a manufacturer sells 200k qualifying vehicles, so every credit GE uses brings GM and Nissan that much closer to the day they have to ask consumers to pay full price for their pricey EVs. No wonder GM is already pushing for an extension of the credit past 200k units.

We’ve heard a lot of arguments on all sides of the bailout, but we had yet to hear anyone call for prolonged government ownership and involvement in General Motors… until now. What follows is a letter from Ralph Nader, former NHTSA boss Joan Claybrook, Center for Auto Safety honcho Clarence Ditlow and Public Citizen president Robert Weissman, urging the Obama administration to suspend GM’s IPO and take firmer control of the government-owned automaker’s decisions on a number of issues including lobbying, employment and the environment. Because, despite appearing to be stuck in the 70s, Nader and company have never heard of British Leyland. Taste the madness below.

Dear President Obama,

The U.S. government bailout of, and acquisition of a majority share in, General Motors was anexceptional action, taken in response to exceptional circumstances. The U.S. stake in GM obviously poses novel managerial challenges to the government. The appropriate response to those challenges, however, is not to run from the responsibility through passive ownership and premature sale at a loss to taxpayers.

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With news reports filtering in about an industry-mounted offensives against the Motor Vehicle Safety Act and proposed increases to CAFE standards, we thought we’d take a look at how much the industry spent in the recent midterm election cycle. According to Opensecrets.org, the chart above shows the biggest spenders in “Automotive,” and industry sector that includes OEMs, suppliers, rental companies and just about anything else related to four-wheeled motorized transport. Charged up by the bailout-era dealer cull, it’s not surprising that NADA took the top spot, and with a hotly-contested Korea free trade agreement under negotiation, the AFIT PAC is a logical number two. But Enterprise beating out Ford? Didn’t see that one coming. Still, the contributor breakdown for the “Auto Manufacturer” sector is even more interesting…

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America’s Baby Boom generation turns 65 next year, which means it’s only a matter of time before America’s roads are clogged with self-satisfied drivers in total denial about their rapidly deteriorating vision, reaction time and decision making abilities (Gosh, is there anything as satisfying as generational bashing?).  Everyone knows that old drivers are bad drivers, but they’re also more likely to be injured due to their physical frailty. Drivers over 70 are three times as likely as those aged 35-54 to sustain a fatal injury in a crash, and the National Transportation Safety Board is worried enough about the prospect of an aging demographic bulge to hold a conference on the topic in DC. According to the DetN, conversation there centers on a number of potential measures for curbing the impacts of aging drivers, including “Michigan lefts,” which move left-hand turns out of major intersections, traffic circles, and improved safety equipment like inflatable seatbelts. But the real elephant in the room is restrictions on licensing, including mandatory eye testing, restrictions on license renewal by mail, shorter renewal periods, and even additional testing for drivers over a certain age.

Needless to say, Americans tend to think of driving as a right rather than a privilege, but if states restrict license rights for new drivers, there’s no question that senior drivers should face some kind of oversight. Especially in the context of tragedies like the Santa Monica Farmers Market incident. But how much? And what kind? And at what age?

Another state court of appeals on Friday saw no problem with police attaching a GPS tracking device to an automobile without first obtaining a warrant from a judge. Idaho’s second highest court denied the appeal of Filip Danney who was convicted on marijuana charges based on evidence gained from the spying device.

In March 2007, Ada County Detective Matt Taddicken received an anonymous tip about Danney and decided to investigate. Two months later, he went to Danney’s work and placed a GPS tracker on Danney’s parked car. Within a few days, the device showed Danney was returning to Boise from a trip to Arcata, California. This was enough to have Taddicken order Danney stopped and searched. Ada County Sheriff’s Office Deputy Matthew Clifford claimed that Danney failed to “signal for five seconds prior to changing lanes,” and used this as a reason to pull him over. While Danney was detained, a drug dog was brought in to search the vehicle. The dog found the marijuana.

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Yes, our recent acquisition of complete 2009 fleet sales data came a little late in the game, but we’re still finding all kinds of fun facts buried in it. For fans of limited government, perhaps the most interesting revelation is that the government fleet sales data shows that American governments (it’s unclear whether these are state, local or federal agencies) bought some sweet cars last year. Some sweet, expensive cars. Let’s take a look at some of the most surprising government fleet purchases of 2009, accompanied by our guesses for how each purchase was used.

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Automotive News [sub] reports that the new GOP majority in the house of representatives will likely mark a shift in the political dynamic between the industry and the US government, as Republicans shift from noisy protest of government support for the industry towards orchestrating reductions in industry regulation. And, according to the Alliance of Automotive Manufacturers, the first victim of the new Republican House could be the Motor Vehicle Safety Act, a set of sweeping regulations aimed at preventing recall scandals like the Toyota unintended acceleration fiasco that took place earlier this year. House Republicans plan on holding hearings on that bill, which has passed committees in the House and Senate but has not yet faced a full vote by either full body. Says National Auto Dealers Association lobbyist Bailey Wood

There will be much more oversight, and the process will slow down

But House Republicans will also face their own challenges. With Democrat JerryBRown winning California’s gubernatorial race, national lobbyists will have a harder time resisting ever-increasing emissions standards, as California is the sole state with authority to independently regulate auto emissions. Though Republicans are likely to support the industry’s resistance to increased fuel economy standards, they will require help from the White House in order to, as the AAM’s Dave McCurdy puts it

rein in some of the more exuberant tendencies in California

With battles brewing over safety and emissions legislation, 2011 is shaping up to be an interesting year for followers of the politics of automobiles.

A federal class action lawsuit seeks to take advantage of last month’s California Supreme Court’s red light camera decision. The high court let stand a lower court ruling that invalidated citations on the ground that the city of Santa Ana’s failed to provide the legally required warning periods before activating the automated ticketing machines (view ruling). Motorist Robert Plumleigh was forced to pay $480 on March 17, 2008 after a camera accused him of turning right at a red light at one of the sixteen intersections where the city failed to provide the required thirty-day warning period. He wants Santa Ana to refund all illegally issued tickets. US District Court Judge Cormac J. Carney on Wednesday gave Plumleigh’s lawyers an extra thirty days to file for class certification.

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The Freep says GM has appointed a Vice President of diversity. And they’ll need one. GM’s post-IPO ownership roster shapes up to be quite, well, diverse. China’s SAIC appears to be gung-ho for the IPO. And it’s not just the Chinese government that likes the idea of owning a little bit of America. Read More >

Despite the riproaring profit numbers, there is trouble in Toyota City. The ever appreciating yen is gobbling up ToMoCo’s profits. Message from Toyota to the Japanese government: “Do something, or we leave.” Read More >

Toyota and Fiat may not be setting European sales charts alight, but according to a recent analysis of per-vehicle CO2 output, the two automakers are on the cusp of meeting the EU’s stringent 2015 standard. Automakers competing in Europe will have to reduce their carbon emissions to 130 gm/km by 2015, a huge challenge for firms like BMW, Mercedes and Volkswagen, which currently have average emissions of 151, 167 and 153 grams per km respectively. Fiat and Toyota, on the other hand, have already reduced their emissions to 131 and 132 grams per km, putting them within a sneeze of the 2015 standard. But the auto industry never though that any of its firms would be on track for overcompliance. In fact, the AFP reports

In 2008 carmakers successfully pushed back from 2012 to 2015 the deadline for technological innovation, allowing them to meet stipulations, in exchange for a commitment to drop to 95 g/km by 2020.

Despite not insignificant loopholes, they can be heavily fined if they miss these targets as the EU strives to meet wider aims in reducing emissions of harmful gases blamed for negative climate change effects.

Nearly three out of every four Anaheim, California residents voted Tuesday to ban the use of red light cameras in the city. Twenty-five miles away in Gardena, the police chief warned the city council in February that the devices lack public support. Gardena began using automated ticketing machines five years previously. As the contract came up for renewal, city councilmen asked during a Finance Committee meeting for the police chief to report on the public perception of the camera program. Chief Edward Medrano’s assessment was brutally honest and did not tend to support the notion that the program was put in place to reduce accidents.

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