Category: Government

By on September 20, 2010

This is a company that could not tell you, on any given day, within five hundred million dollars, how much cash it had… not only were they not prepared, but Rick Wagoner had very specifically said he didn’t want to prepare… frankly, it’s an irresponsible position [for a CEO to take].

What do you do when you’ve overseen a divisive bailout and an investment scandal all within the last year? Writing a book goes without saying, but it doesn’t hurt to bash on the executives you ousted while “Overhauling” the industry. That way, people who were (ahem) bearish on GM leading up to the bailout can at least be vindicated in their pessimism (and have the pleasure of imagining what might of happened if Ron Gettelfinger had been fired as Wagoner’s sacrificial lamb). In any case, that’s just what former auto bailout czar Steve Rattner has done in an interview with CBS News, and despite Rattner’s relentless striving to appear respectable and brave, it’s worth a watch. Especially in hindsight, pre-bankruptcy GM makes even Rattner look good.

By on September 20, 2010

Government’s solution to distracted driving: hold summits and tweet at Jersey Shore cast members. The OEM solution: run ads legitimizing unfocused driving and then sell an electronic solution (in the example above, a $2,950 “Driver Assistance Package” for the $49,400 Mercedes E350). Or argue that voice-controlled in-car Facebook updates pose no more of a distraction than, say, radios. Or roll out a “feature-disabling feature.” What Ray LaHood calls an “epidemic,” and “menace to society,” the automakers call big business. If LaHood is as serious about distraction as he says, should he not be calling out the trend towards increased in-car communication? And if he is exaggerating the problem, shouldn’t the automakers be more actively defending their decision to market distracting in-car technology?

If LaHood keeps his rhetorical War On Distraction alive long enough, the current OEM approach will inevitably come under the microscope. Given that private concerns generally prefer self-regulation to government regulation, what should the automakers do to keep the government off its back? Ignore LaHood and hope his crusade blows over? Fight him, commission studies, and definitively prove the safety of in-car communication? Or change course, risking a huge disadvantage but possibly carving out a new branding opportunity? Now that the least safe part of the modern car is the human doing the driving, everything has become a lot more complicated…

By on September 20, 2010

Transportation Secretary Ray LaHood’s second annual distracted driving summit begins tomorrow, and the party’s getting started right: with the release of 2009’s distracted driving fatality numbers. 5,474 Americans died as a result of driver distraction last year, according to NHTSA data [PDF here]. 448,000 “traffic injuries” were attributed to the distracted driving “epidemic,” an epithet LaHood has employed since his crusade against driver distraction began last year. Strangely though, distracted driving deaths remained flat as a percentage of overall traffic fatalities (16%) last year.

But, argues LaHood in an Orlando Sentinel op-ed, police often don’t report the role of distraction in traffic incidents, so the actual number could be higher. That’s an argument we’d expect from the guy hosting a database that is infamous for its inaccuracy, but we’re still struggling how a statistically flat phenomenon (in an environment of improving highway safety) qualifies as an “epidemic.” More importantly, we’re not sure that LaHood’s conference will have any more of an impact than last years. But hey, at least it’s better than scolding Snooki on Twitter. A cabinet Secretary can only do so much…

By on September 20, 2010

In order to produce and sell cars in China, foreign firms are required to form joint partnerships with a Chinese firm. With a ten-year, $15b government EV stimulus in the works, automakers are complaining that a requirement to build EVs in partnership with Chinese firms amounts to government-mandated barrier to market access. A foreign automaker executive complains to the Wall Street Journal that the draft version of the government plan is

tantamount to China strong-arming foreign auto makers to give up battery, electric-motor, and control technology in exchange for market access… We don’t like it.

China’s automotive market is projected to grow faster than most, and with $15b of government assistance, the Chinese government has a big carrot with which to tempt foreign firms into sharing their technology. But the backlash is already building…

Read More >

By on September 20, 2010

The Grand Terrace, California city council on Tuesday reluctantly voted to pay Redflex Traffic Systems $72,203.75 after the Australian company threatened to impose a $27,500 late fee on the city if it did not pay up immediately. Redflex operates the red light camera program at two intersections, and as of July 1 the company had mailed out 4283 fines worth $446 each. While Grand Terrace officials expected that the system would be a money-maker, the program to date has only enriched the county, the state, the courts and Redflex, which insisted on the additional cash payment.

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By on September 18, 2010

Since I’ve been writing for TTAC, I predicted that Chinese interests will eventually go for GM, if and when price and time are right. GM already sells more cars in China than back home.  GM expects that huge business to grow by 10-15 percent next year. It stands to reason that China wants on (the) board. There has been talk about limiting the share of “foreign investors” in the GM IPO. “Foreign investors” of course are Chinese, and the true number of foreign investors interested in the GM IPO probably comes down to one: China’s SAIC, GM’s Chinese joint venture partner for 13 years now. And now it’s official. Read More >

By on September 17, 2010

A notorious Missouri speed trap town was busted Wednesday by the state auditor for violating the law. Randolph, Missouri has a population of just 47 people, but the police department last year dished out 3132 fines — nearly all speeding tickets issued to motorists passing through on Highway 210. A formal examination of the city’s book uncovered the fact that Randolph made more than thirty-five percent of its revenue from freeway traffic ticket, in violation of the Macks Creek law, an anti-speed trap statute named for a town that went bankrupt after its ability to issue speeding tickets was revoked.

Read More >

By on September 16, 2010

As The Wall Street Journal‘s Dan Neil explains, pedestrians aren’t just annoying, they’re also responsible (in part) for some of the most astonishingly dull designs in all of autodom… like the 2011 VW Jetta. Trends towards rising beltlines, strangely high hoods, reduced visibility, and general carved-from-cheese-ishness in automotive design can all be tied to European pedestrian crash test standards. With a little help from unimaginative designers, global product strategies and consumer apathy, of course.

By on September 16, 2010

I know the readers of Autoblog understand the dangers of distracted driving because you’ve been sounding the alarm on this deadly epidemic for years, long before I became Secretary of Transportation. Most Autoblog readers know by now that real drivers just drive.

And, because I appreciate the heavy lifting Autoblog and its readers has been doing on this issue, I’m making my appeal to America’s automotive fans right here…

…Like you, I love driving. I have a 1998 Buick Regal in Washington, D.C., as well as a Ford Escape back home in Peoria. And, also like you, when I drive, I want to do so on roads that are not full of people who simply don’t pay attention to their driving.

But, the sad reality is that people who drive distracted are causing harm to the rest of us.

Secretary of Transportation Ray LaHood takes to Autoblog to recruit support for his forthcoming National Summit on Distracted Driving (Tuesday, September 21 in Washington DC. BYOB), the second such event of his tenure. And what better way to catch the attention of automotive enthusiasts than by professing your passion for the dynamic delights of a ’98 Regal? Meanwhile, enthusiasts who are taken in by LaHood’s crusade should take note: the last Distracted Driving Summit ended with a ban on in-car texting by federal employees, a measure TTAC described as

a bit like fighting an epidemic (to continue Secretary LaHood’s metaphor) by telling federal employees to take an aspirin.

By on September 16, 2010

The Michigan state House of Representatives yesterday voted unanimously to repeal its so-called driver responsibility fee program, an unpopular tax on traffic citations. State Representative Bettie C. Scott (D-Detroit) was the primary sponsor of legislation that will end most of the fees by January 1, 2012 and, before then, cut the amount motorists owe by half.

“Obviously we must do what it takes to keep our roads safe for all travelers, but driver responsibility fees place an onerous and unnecessary financial burden on too many Michigan drivers,” Scott said in a statement. “The Driver Responsibility Act is flawed legislation that has failed the test of time. It has unfairly penalized our hard-working residents during one of the worst financial crises we’ve ever seen.”

Read More >

By on September 15, 2010

The Minnesota Court of Appeals yesterday upheld the conviction of a motorist whose pants fell down after he was ordered to put his hands up. Judge Kevin Ross noted on behalf of the three-judge panel considering the case that previous courts had never considered a search quite like the one conducted on Frank Irving Wiggins as he was ordered out of his car in the parking lot of a St. Paul White Castle in November 2008.

Officer Kara Breci had seen Wiggins in his idling vehicle and assumed he was involved in a drug deal since he was not eating. Breci investigated. After she saw a rear-seat passenger with a bag that looked like it contained marijuana, she ordered Wiggins and two passengers out of the car with hands on their head. The loose-fitting jeans Wiggins had been wearing immediately fell to the ground. As Breci pulled up Wiggins’s pants, she felt an object that turned out to be a .380 pistol in his pocket. Because of his prior convictions, Wiggins was arrested and convicted by a district court for unlawful possession of a firearm.

Read More >

By on September 14, 2010

Meter maids employed by a for-profit, foreign company are confronting motorists and seizing disabled parking permits at the direction of the city of West Hollywood, California. Earlier this month, officials announced a “crack down” on the abuse of restricted-use parking spaces by having meter maids determine whether the users of disabled parking permits are legitimately handicapped.

“Under a program initiated by the city of West Hollywood’s Parking Division, drivers displaying disabled placards may be randomly approached to provide proof of placard ownership,” a city press release explained. “Failure to provide the required identification card will result in the confiscation of the disabled placard and a parking citation for misuse, which carries a $500 fine.”

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By on September 13, 2010

Confused by the EPA’s proposed letter-grade system for fuel economy labels [proposed rule in PDF format here]? Check out the letter grades given to the top-selling cars in America [via Automotive News [sub]].

By on September 13, 2010

The Washington state Supreme Court on Friday rejected the motion filed on behalf of a traffic camera company to block a public vote on the use of automated ticketing machines. In a two-sentence order, the court refused to intervene in the scheduled November 2 election in the city of Mukilteo where residents had signed a petition forcing a red light camera and speed camera ban onto the ballot. The denial of a motion for an emergency injunction came a month after the Snohomish County Superior Court also declined to stand between the voters and the ballot box (view decision).

Read More >

By on September 10, 2010


Yes, despite the ever-present dangers of distracted driving and demonically-possessed Toyotas, US highways are safer than ever [full PDF report here]. Overall deaths in 2009 were at their lowest levels since 1950, even as vehicle miles traveled increased. Highway fatalities have been falling for the past four years, and in 2009 even motorcycle fatalities decreased for the first time in 11 years. At 1.13 deaths per 100 million vehicle miles traveled in 2009, fatalities per VMT fell to another all-time low. Why? It could be the market-fueled arms race to stuff ever more standard safety equipment into cars, or incessant pressure on OEMs from the IIHS (and its ilk)… or, if you’re Transportation Secretary Ray LaHood, you might think that

the weak economy was a contributing factor as many Americans chose not to go out to bars and restaurants after work or on the weekend.

Yes, the man tasked with keeping our highway safe believes that his ongoing success is the product of Americans moping around the house because of a down economy. Even though VMT actually increased by .2 percent over 2008. In other words, despite “talking about safety more than anyone in Washington,” Ray LaHood is both clueless about the data, and convinced that a weak economy helps his crusade. Which makes you wonder what the man means when he says

While we’ve come a long way, we have a long distance yet to travel.

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