Another Massachusetts jurisdiction that uses the broadly representative “town meeting” form of government has said “no” to the use of red light cameras. Residents gathered at the annual meeting in Raynham on Monday voted 104 to 95 against the idea of petitioning the legislature for permission to install automated ticketing machines. The town has a population of about 11,000, and all qualified inhabitants are allowed to vote.
If you are looking for a growth market for cars, don’t look to Europe. In terms of car sales, the Old Country is going sideways with a negative bias. In April, sales of new cars in the EU was down 4.1 percent on the year. New registrations amounted to 1,089,118 units. For the first four months of 2011, registrations totaled 4,674,457 units, or 2.7 percent less than over the same period a year earlier. This according to data released by the European Auto Manufacturers Association ACEA. Read More >
“How will you sync the engines?” whined the naysayers when they heard about the plan to weld an ’89 Corolla front half to an ’87 MR2 rear half. “How will you cool it? The handling will be terrible! It’ll never work!” If there’s one thing that 24 Hours of LeMons racing has taught the automotive world, it’s that the experts’ preconceptions can be thrown right out the window when it comes time to drop a cheap race car into the crucible of an all-weekend-long road race. For example, who would have imagined that Chevy small-block and Honda B engines would turn out to be among the most fragile in the crapcan endurance racing world? And who would have imagined that the DoubleSuck MR2olla would do so well at the notoriously car-killing Reno-Fernley Raceway?
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Automakers in Japan are slowly crawling back to normal. However, they are in for another after shock, and this one could be quite serious: Yasushi Akao, President of chipmaker Renesas said today that supplies of microcontrollers from his company will be in serious trouble come June. According to The Nikkei [sub], “stocks are expected to run out next month as operations at the firm’s Naka plant in Ibaraki Prefecture have been suspended since the Great East Japan Earthquake on March 11.” Renesas microcontrollers are the chips of choice of many car companies who use them in their on-board electronics. Toyota is known to be a large customer of Renesas. Read More >
Pop quiz: when does an eight-month-old story generate a huge amount of interest? When it’s got political overtones, of course. And what better way to milk the last dregs of bailout resentment than by telling a story that seems too bizarre to be true: Cadillac is a “proud” chief sponsor of a Chinese Communist Party-produced film entitled “The Birth of a Party” (or “The Great Achievement of Founding the Party” depending on the quality of your translator). The story started last September, at ChinaAutoWeb.com, and was recently revivified by the Washington Times, Commentary Magazine, and Big Hollywood. Our main interest in the story has to do with its lessons about the rise of China, that country’s tortured relationship with luxury goods, its foreign (from the American perspective) political economy and Cadillac’s continued need for better momentum in China… but clearly others are more interested in it for different reasons.
The political point seems to be that government money is being funneled to the Chinese Communist Party via General Motors, an accusation that, though shocking, doesn’t hold up well to scrutiny. After all, nearly anyone doing business of any kind in China ultimately supports the political and economic structure created by the Chinese Communist Party, legitimizing it and lining its pockets. And surely nobody is suggesting GM abandon China altogether, thus eliminating its greatest opportunity for growth. Meanwhile, as the Freep helpfully points out, Caddy needs all the help it can get in China: without a single vehicle in the luxury car top-ten, Cadillac needs to be aggressive in marketing to China. Still, from a PR perspective, Cadillac clearly has a line to walk here… perhaps it should look for less visible (and risible) ways of building up guanxi (connections) with the powers that be in the world’s largest market for cars.
Does that headline seem ripped from the pages of TTAC’s 2008-2009 headlines, or what? But really, who’s shocked? Chrysler spent early 2009 trying to convince the government that it was worth a (second) taxpayer-funded second chance, and now that it’s looking for a private-sector bailout in order to escape the terms of its publicly-funded bailout, Chrysler’s still got some ‘splaining to do. The DetN reports:
Chrysler Group LLC does not intend to speed up plans for new cars despite media reports that investors see a high degree of risk in an automaker that has been so dependent on truck sales…
“Nothing has changed from the five-year plan,” [Chrysler Group VP of Design and Dodge boss Ralph Gilles] said.
New small and midsize cars for Chrysler, engineered by Fiat, “are coming strong and heavy,” Gilles told reporters following a speech. “There is no need to speed up.”
Now, nobody would suggest that Chrysler should mess with its product timing simply to please some bankers. If it’s even remotely possible to hurry new products to launch without cutting serious corners, Chrysler should/would be doing it anyway (ask Sergio). Still, Gilles’ “nothing has changed” sound bite isn’t exactly true.
Why do consumers like CAFE? Well, the short answer is that a gas tax (which is infinitely superior from a pure policy perspective) hits them directly in the pocketbook, while CAFE forces automakers to absorb the cost increases before passing them along to consumers in the form of higher MSRPs. But underlying this fact is a larger issue that’s driving support of increased emissions regulation: gas is getting more expensive. As I pointed out in my recent editorial on the subject, for all the automakers’ whining about CAFE increases, it seems that energy prices are moving the market in the same direction anyway (the average family will spend $3,100 on gasoline this year).
According to a Consumer Federation of America study [PDF], the steadily-rising price of energy has consumer’s even more concerned about gas prices and dependence on the volatile Middle East than they were during the height of the last fuel price shock in the Summer of 2008. As a result, support for a 60 MPG fuel economy standard doesn’t go below 49% (among Independents) even assuming a ten-year payback period, and earns the support of 63% of Democrats. And before you dismiss this support as hysteria, consider the underlying economics for a moment…
“Due to our proximity to the nuclear power plant in Fukushima, in the beginning, some suppliers and some contractors had problems coming to the plant because there was that uncertainty of radiation,” says Nissan CEO Carlos Ghosn today, standing in front of the final assembly station of Nissan V6 engines made in their plant in Iwaki. That plant indeed is only some 60 miles from the Fukushima power plant, and that’s where we are today.
Most Americans depend heavily on their license to drive – for their jobs, their family obligations and their recreational travel.
Naturally, some of our driving needs take us out of state. And as is well-known, traffic enforcement tends to focus on out-of-state drivers – maybe because it is that much harder for drivers to successfully contest out-of-state tickets…?
Compounding this problem is the fact that out-of-state violations almost inevitably impact the home-state driver’s license, sometimes even resulting in suspensions. And if out-of-state tickets are hard to contest, then clearing up interstate licensing actions can be nearly impossible.
In the nanny state’s never-ending battle to completely eliminate all driving risk, and its corresponding effort to make sure that every bit of your traffic record is available to every enforcement agency in the land, several compacts have been set up between the states for the sharing of motorists’ driving offense information.
This might be a good thing, if all transportation departments had fair, clear, and consistent rules and procedures for how out-of-state violations should impact home-state license privileges – and those agencies took responsibility for treating motorists fairly when problems arise.
The reality, though, is that such situations lead to vicious circles where neither the bureaucracy of the ticketing state nor the home state is willing to step up and unilaterally correct problems. Read More >
Who’s the most efficient automaker of them all? According to TrueCar’s projections for May, Smart, MINI, Hyundai, VW and Scion top the list for sales-weighted fleet fuel economy. Meanwhile, the industry average of 22.4 MPG might not sound like much, but when you convert it to the “unadjusted” numbers used for CAFE, that 22 MP turns into about 28 MPG. Considering the 2015 CAFE standard is 35.5 MPG between cars and trucks, that average shows the industry to be fairly well on-track to comply with the initial CAFE ramp-up. In fact, since 35.5. MPG CAFE equals about 27 MPG EPA, it seems that the top three brands on this list (Smart, MINI, Hyundai) can pretty much twiddle their thumbs between now and 2015, as they’re practically in compliance with the 35.5 MPG standard already.
Today’s sign of the times comes courtesy of the world of social media, and calls into question some of our most basic assumptions about the world of cars. France, it seems, experienced a 12.8% increase in on-road fatalities in the first quarter of this year, and the New York Times reports that the French government is responding by banning devices that scan the road ahead for speed camera radar waves.
A decade ago, the death rate on French roads was among the worst in Europe, and the government reacted in 2002 with what some drivers called repressive tactics. Radar cameras were erected at intersections throughout the country, which captured a motorist’s license plate if the car surpassed the speed limit by more than 5 kilometers an hour (3 m.p.h.), deducted points off a motorist’s license and sent a fine through the mail.
The measures were deemed successful. The International Transport Forum said France achieved a reduction of 47 percent in its road-death toll in the first decade of the century, relative to the 1990s. The ministerial report said the average speed in France also dropped 10 kilometers an hour since 2002, or 11.7 percent.
The radar cameras, however, spawned a thriving market in radar-warning devices. According to AFFTAC, 5.1 million drivers in France use them. Under the new law, users would face fines of up to 1,500 euros, or about $2,100.
The French government’s decision to not only ban radar detectors, but also to remove signs warning motorists of fixed radar cameras has generated some serious backlash. Apparently over 80,000 people “liked” the Facebook page of AFFTAC, a group opposing the measures and calling for nationwide protests, over the course of two days. By comparison, the most optimistic count of hand-raisers for a possible future Chevy El Camino is “possibly as high as 18,000 people.” Call us crazy, but we thought America’s oft-cited “love affair with the automobile” would have created some slightly different results.
TTAC reader civicguy writes:
My wife and I currently own an 04 Honda Civic EX (mine) sedan and an 03 Honda CR-V LX (hers). We have two Golden Retrievers who travel with us a lot to visit family, etc and we are expecting our first child this March and probably another child while we are driving this new car. This means we are running out of space and need something big, compared to the CR-V at least.
Despite deep skepticism about the value of Saab’s latest “alliance” with the Chinese dealer group PangDa, it seems that the Swedish automaker will restart production next Wednesday. SaabsUnited translates a DI.se report
“I expect the plant to begin production on Wednesday of next week since they’ve come to the Saab on Tuesday this week,” said Gunnar Brunius, Purchasing and Production Manager at Saab Automobile to DI.
On Tuesday, he initiates the process of agreeing with Saab’s 800 suppliers so that they start to deliver the components again after a six-week shutdowns.
The major suppliers, including IAC, Sweden, Plastal and car seat manufacturer Lear, are invited to personal meetings, while many other contacts are handled through e-mail.
Saab will reportedly restart production at a rate of 230-240 cars per day, but first it will have to pay off suppliers. We’ll see if that actually gets accomplished before we take this report too seriously, especially since CEO Victor Muller has admitted that negotiations with suppliers could take “several weeks.” But, Muller tells Saab employees that “we will never give up,” so who knows how long Saab’s death throes could last.
Yesterday we gave GM kudos for addressing its lingering vehicle weight issues by redesigning the head of its popular 3.6 liter V6, and shedding 13 lbs in the process. It was, we noted, the kind of news that showed GM is staying focused on the nitty-gritty of product development, sweating the details. But, according to a fascinating piece by GMInsideNews, new-product development at GM still has its issues. Specifically, Cadillac’s development of a new BMW 3-Series fighter, known as ATS after its “Alpha” Platform, has faced more than its fair share of what GMI calls “drama.”
Turf battles, unnecessary “wants” on checklists and ultimately a severe case of “Mission Creep” have created a vehicle that now needs a crash diet, according to GMI’s sources both within GM and at suppliers working on the Alpha/ATS program. For a vehicle that’s taking on an institution like the BMW Dreier (not to mention costing a billion dollars to develop), these are troubling signs indeed.
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A study released earlier this month by the Cascade Policy Institute questioned whether pricey mass transit options in Portland, Oregon are really being used by the public. The city has been a leader in securing funding for various forms of passenger rail and trolley systems. The Obama administration, for example, pledged $745 million in federal gas tax dollars to pay for the construction of a $1.5 billion, 7.3 mile light rail project connecting Portland to Milwaukie. Transportation Secretary Ray LaHood has singled out the city’s priorities as for praise.
“By adding innovative transit opportunities, Portland has become a model livable community, a city where public transportation brings housing closer to jobs, schools, and essential services,” LaHood wrote in March.
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