Category: Government

By on January 4, 2012

A few days ago, the Washington  Post demanded the execution of the $7,500 tax credit for EVs. Republican Congressman Mike Kelly is ready to comply. He introduced H.R. 3768, legislation that would repeal the $7,500 tax credit for plug-in electric drive vehicles. The odd thing is: Kelly is owner of Kelly Chevrolet-Cadillac in Butler, PA. The not so odd thing is: He knows firsthand whether the car is worth tax payer money or not. Kelly does not think so: Read More >

By on December 27, 2011

After spending thirty years and $45 billion dollars encouraging the use of ethanol the United States Congress has adjourned for the year without extending tax subsidies to the to ethanol industry. The subsidy currently costs taxpayers $6 billion a year. A related import tariff on Brazilian ethanol was also allowed to expire. With a wide group of critics, cutting across political and ideological lines, the tax break had become unpopular in Washington. Business interests in the food and cattle industry as well as environmentalists opposed the law which paid 45 cents per gallon to fuel blenders to subsidize their costs for producing E10 gasoline/ethanol blend. The subsidy resulting in corn being diverted from feedlots and food processors to ethanol production, raising the cost of many foodstuffs. The environmental movement now opposes corn ethanol as a fuel it because it considers the fuel and its production to be “dirty”, in the words of Friends of the Earth.

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By on December 27, 2011



Cops in Ohio may not rip a motorist out of his vehicle to “check on his welfare.” The state court of appeals handed down a decision earlier this month in a case involving a man parked on the side of the road in a quiet Columbus residential neighborhood who was “helped” out of his car with physical force.

Al E. Forrest sat in the driver’s seat of a 2003 Ford Explorer with another man in the passenger seat as two police officers came up on either side of the vehicle. According to Officer Kevin George’s testimony, he just wanted to see if the Explorer driver was okay. The officers had no suspicion of any criminal activity prior to approaching the Explorer. When George poked his head into the driver’s window, Forrest looked surprised to see a cop staring at him through the window. George said this was a sign of “nervousness.” When George saw money in Forrest’s left hand, he ordered the man out of the SUV. This was the beginning of the legal problem for the Columbus officer.

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By on December 23, 2011

A pair of senior police officers in Brindisi, Italy were arrested Tuesday in a speed camera bribery scheme. The owner of a BMW X6 blew the whistle on officers Giuseppe Manca and Antonio Briganti after a speed camera accused him of driving 160km/h (99 MPH) on state route 16, where the limit is 110km/h (68 MPH).

The driver faced a fine of between 500 to 2000 euros (US $650 to $2615) plus license points. The officers offered to make the conviction disappear for payment of 250 euros (US $327) in cash. The officers were able to erase the conviction from the speed camera logs to prevent detection of their tactics.

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By on December 22, 2011
Automaker 2008 model year 2025 model year % Change
Aston Martin 1,370 1,182 -13%
BMW 353,120 550,665 56%
Chrysler-Fiat 1,659,950 768,241 -54%
Daimler 287,330 441,786 54%
Ferrari 1,450 7,658 428%
Ford 1,770,893 2,224,586 26%
Greely/Volvo 98,397 143,696 46%
General Motors 3,095,188 3,197,943 3%
Honda 1,511,779 1,898,018 26%
Hyundai 391,027 845,386 116%
Kia 281,452 460,436 64%
Lotus 252 316 25%
Mazda 302,546 368,172 22%
Mitsubishi 100,729 109,692 9%
Nissan 1,023,415 1,441,229 41%
Porsche 37,706 51,915 38%
Spyker/Saab 25,956 26,605 3%
Subaru 198,581 331,692 67%
Suzuki 114,658 124,528 9%
Tata/Jaguar-Land Rover 65,180 122,223 88%
Tesla 800 31,974 3897%
Toyota 2,211,500 3,318,069 50%
Volkswagen 318,482 784,447 146%
TOTAL 13,851,761 17,250,459 25%

Reasonable minds can disagree about the wisdom of the auto bailout, but according to analysis by the EPA and Department of Transportation (based on data from the Department of Energy and auto forecasters CSM), the Government’s rescue of GM and Chrysler may not have been the best idea (at least from a market perspective). According to data buried in the EPA/DOT proposed rule for 2017-2025 fuel economy standards [PDF here], Fiat-Chrysler is predicted to be the sick man of the auto industry by 2025, losing over half of its 2008 sales volume, while GM is expected to improve by only 3%, the second-worst projected performance (after Aston-Martin). In terms of percentages, even lowly Suzuki and Mitsubishi are projected to grow faster than The Mighty General. Ouch.

On the other hand, the proposed rule notes that data will be finalized before the final rule comes out. Besides, the agencies appropriately admit (in as many words) that projecting auto sales so far into the future is one hell of a crapshoot. Still, with the obvious exception of “Saab-Spyker” and with some skepticism about the projection’s optimism about overall market growth aside, these are not the craziest guesses I could imagine. Who knows what the future holds, but it certainly is a bit troubling that the government’s own data suggests the two automakers it bailed out may well have some of the weaker performances of the next 14 years. At least the Treasury could have sold off their remaining GM stock before this report was released…

By on December 22, 2011

The US Court of Appeals for the DC Circuit on Tuesday rejected a class action lawsuit filed against the speed camera program in the nation’s capital. Motorists Henry Dixon and Cuong Thanh Phung argued the city violated their constitutional guarantee to equal protection of law by treating drivers pulled over for speeding more harshly than drivers mailed photo tickets for speeding.

The US District Court for the District of Columbia ruled against Nixon and Phung, finding no violation of the Fourteenth Amendment (through the Fifth Amendment) because drivers apprehended for speeding by police officers are not similarly situated to motorists photographed and accused of speeding by a photo radar device. The district judge reasoned that the camera is unable to confirm that the owner was the driver, so the greater punishment should not be imposed. The three-judge appellate panel agreed with the lower court’s conclusion, but for a different reason. The speed camera law can stand under the “rational basis test” used to insulate government actions from constitutional challenge.

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By on December 21, 2011

As long as a police officer cites his own safety as the reason, he may frisk any motorist during a traffic stop and remove objects from his pockets, according to a ruling handed down Tuesday by the US Court of Appeals for the Tenth Circuit. A three-judge panel evaluated whether Officer Joe Moreno was following the law when he searched driver Ivan Rochin after he was pulled over in Albuquerque, New Mexico for driving with an expired registration.

“No one likes being pulled over for a traffic violation,” Judge Neil M. Gorsuch wrote for the court. “Still, for most drivers the experience usually proves no more than an unwelcome (if often self-induced) detour from the daily routine. But not every traffic stop is so innocuous. Sometimes what begins innocently enough turns violent, often rapidly and unexpectedly. Every year, thousands of law enforcement officers are assaulted — and many are killed — in what seem at first to be routine stops for relatively minor traffic infractions.”

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By on December 20, 2011

After performing a thorough performance audit, Denver, Colorado’s city auditor is no longer convinced of the value of red light cameras and speed cameras. The Denver Police Department (DPD) deputized the Dallas-based firm Affiliated Computer Services (ACS, a division of Xerox) to issue red light tickets at four intersections and speeding tickets throughout the city with five roaming vans. The program has little more to show for itself than a profitable bottom line.

“Unfortunately, DPD has not demonstrated that the photo radar program has a positive impact on public safety,” City Auditor Dennis J. Gallagher wrote. “Because these programs were sold as public safety enhancements but are widely viewed as a cash grab, it undermines public trust to maintain photo enforcement programs that are profitable but whose safety impact has not been conclusively shown. If this situation persists, then the photo enforcement programs should be shut down.”
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By on December 15, 2011

When we last checked in on the low-level trade war between China and the US, which was sparked by President Obama’s 35% tariff on Chinese tires, the Chinese government had ruled that American large cars and SUVs were being “dumped” on the Chinese market, but wasn’t doing anything about it. Now, Reuters reports that China is doing something about it, namely saying that it plans to impose tariffs of up to 22% on imports of American-built large cars and SUVs. And the “up to” is key: GM and Chrysler are being hit hardest (unsurprisingly), while American-made BMW, Mercedes and Acuras are receiving considerably lower tariffs.

Still, China only imports $1.1b worth of vehicles in this category, whereas the US imported some $1.8b worth of Chinese tires prior to the Obama tariffs.  Like most of the news around Chinese-American relations, this is more saber-rattling than substance. But with economic conditions still shaky in the US, and a Presidential election getting into full swing, small spats can escalate into larger confrontations. And with China surpassing the US as the largest market for cars in the world, it’s probably no coincidence that this simmering conflict largely involves cars and car-related products.

By on December 11, 2011

So what is all this talk about flex fuel being shoved down our the throats of our cars, and EVs driving up Xanax sales due to rampant range anxiety? Bloomberg brings us astounding news:

“Public charging stations for electric autos outnumber outlets for alternative motor fuels by almost two to one, even though there are hundreds of times more flex- fuel vehicles than plug-in cars on U.S. roads. “ Read More >

By on December 10, 2011

On my raceboat, we had one of those big red things pictured above. It was supposed to switch everything off when things went awry. The NHTSA now proposes something similar for cars with keyless ignition. It is intended to stop the car immediately in a panic situation. Of course it won’t be as intuitive as the big red switch pictured above. After all, the solution comes from Washington, DC.

Bloomberg reports:

“U.S. auto-safety regulators proposed standardizing keyless ignitions to allow drivers to turn off cars faster and more easily in incidents of unintended acceleration following Toyota Motor Corp.’s record recalls. “

If course, this is not entirely true. Read More >

By on December 8, 2011

 

The National Legal and Policy Center (NLPC) filed a Freedom of Information Act request with the National Highway Traffic Safety Administration (NHTSA), seeking:

“All records, documents, internal and external documentations between the National Highway Traffic Safety Administration and General Motors between June 1, 2009 and December 1, 2011. These requested records shall include communication regarding the Chevrolet Volt, also known as the Chevy Volt.”

That’s a lot of paper if the request will be granted. Read More >

By on December 3, 2011

For quite some time, Carlos Ghosn had been the booh-leader against the strong Japanese yen. At the sidelines of the Tokyo Motor Show, he launched into his so far strongest worded tirade against the “abnormal” yen. He told the Japanese government to learn from the Swiss, and to basically peg the yen to another currency. Read More >

By on December 1, 2011

The Florida legislature’s authorization of red light cameras last year was superfluous, a divided state Court of Appeals panel ruled yesterday. The majority sided with the city of Aventura in overturning a Miami-Dade County Circuit Court decision from last year that found Aventura had jumped the gun by giving American Traffic Solutions (ATS) a green light to mail out automated tickets without waiting for the state’s permission.

Florida law does not allow a city to adopt an ordinance in conflict with a state statute. The majority argued a provision requiring traffic officers only to issue traffic tickets for violations they personally observed is not in conflict because the same officers can “observe” the infraction on video under the Aventura photo ticketing ordinance.

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By on November 30, 2011

The American Civil Liberties Union (ACLU) succeeded Monday in having a license plate with the slogan “Choose Life” blocked in North Carolina. US District Court Judge James C. Fox granted the liberal group’s request for a preliminary injunction against issuance of the plate while the lawsuit makes its way through the court.

On June 30, Governor Bev Perdue (D) signed a law giving motorists the choice of paying $25 extra to have the plate instead of the standard-issue “First in Flight” logo on their license plate. Other available show a preference for individual NASCAR drivers or carry messages such as “Play Tennis,” “Save the Sea Turtle,” “I’d Rather be Shaggin’,” “Support Our Troops” and “Kids First.” The ACLU argues that the lack of an plate expressing support for abortion violates their First Amendment rights.

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