The Obama administration went here before, when it tried to quantify how much worse things would have been without its stimulus bill. And considering the task force has enjoyed access to GM and Chrysler’s business plans, it’s surprising that this graph (from the Auto Task Force’s just-released Bailout “report” [PDF]) is based on notoriously iffy BLS data. Instead of projecting how many jobs were saved by Detroit’s $86b life raft, couldn’t the White House have cited GM and Chrysler’s pre-bailout Chapter 11 plans? Or were there pre-bailout bankruptcy plans? Either way, the Task Force’s claim that 56k jobs have been created in Automotive since mid-2009 is a bit hard to swallow given the SIGTARP’s recent finding that
Treasury made a series of decisions [regarding the bailout-era dealer cull] that may have substantially contributed to the accelerated shuttering of thousands of small businesses and thereby potentially adding tens of thousands of workers to the already lengthy unemployment rolls.
By narrowing a broad bailout to just the manufacturing side (the report leaves out dealer cuts and the GMAC rescue), the Task Force is simply defining its way to victory. Besides, the problem is that there’s really no way of knowing what might have happened without last year’s landslide of government sugar. For all we know, Fiat might have bought a bankrupt Chrysler with its own money. GM might have shuttered dying brands and cut its bloated capacity of its own volition. Both might even be in mediocre-to-OK shape right now. The only thing we know for sure is that the auto bailout has been a qualified success at best so far. Luckily for the bailout boosters, it will be years before Treasury fully divests from GM and Chrysler, so there will be plenty of other opportunities to declare victory.
The idea behind the Automotive X-Prize was to prove that 100 MPGe (miles per gallon equivalent) is attainable in practical, daily-driver-type cars. And with competition moving into the final stage, 15 cars are still in the running. But how good are those cars actually? With only $10m in prize money, the X-Prize attracted few established OEMs to the competition, and as a result only a single car has made it through to the finals in the Mainstream class. This class was the main focus of the competition, as its requirement that each car “must seat at least four passengers, have four wheels, and have a minimum 200 mile range” meant Mainstream entries could be alternatives to “real cars.” Instead, the competition is being dominated by the “Alternative” class (two passengers, 100 miles range and any amount of wheels), which was included to open the competition smaller teams. And despite the fact that most of the entries had few restrictions on their designs, you might assume that they have performed impressively. The numbers, however, paint a very different picture. Read More >
Long time listener, first time caller. I find myself in the yuppie’s dilemma – $18k to spend and infinite possibilities.
Some background: I’ve always loved a great ride and I’ve been promiscuous….my last five cars have been a 1991 535i, a Nissan 200SX, Mazda Millenia, 1997 740il, and I currently drive a 2008 Subaru WRX under lease ($260 a month with $0 down, about the only time a lease has ever made sense to me). When the lease is up, so is the jig. I’m a newly minted lawyer at a large law firm making way more money than I should at 27, and my wife’s a nurse doing just the same. We want to keep the purchase under $20K and I’ve seriously toyed with everything from a 2011 Sonata to a Z3 to 530xi to an A8 and everything in between.
Some folks are convinced that EVs are taking over the world. So convinced they are that they are already publicly worried about peak Lithium. Lithium is found in unstable places. An internal Pentagon memo states that Afghanistan could become the “Saudi Arabia of lithium,” writes the New York Times. Then there are distressing news that countries like Chile, Bolivia and China sit on piles of lithium. Should we be worried? Nein, says a study from Germany. Read More >
Things did quiet down since March after Geely signed the contract to buy Volvo from Ford. A lot of people think Geely already owns Volvo. Geely doesn’t own Volvo until the deal is closed. But Geely might own Volvo as early as next week. Read More >
A motorist who avoids a police car is inherently suspicious, according to a ruling handed down by the Minnesota Court of Appeals on Tuesday. A three-judge panel found that even if the officer observed no illegal conduct, a traffic stop and interrogation is justified when a driver seems not to want to be around a patrol car.
I’m still shaking when I think back to my first ride in the passenger seat of a brandnew Phaeton. It was piloted by a known reckless high executive of Volkswagen. Near Hannover, we barreled down the Autobahn, with the speedo indicating something above 250 km/h. I didn’t dare to inspect it closer, because I was scared to death. We were in the thickest of fogs. Visibility zero. “Aren’t you worried?” I inquired with a shaking voice. “Nope. We have RADAR.” Actually, it was called Abstandswarnung (distance warning). Now, Nissan will make it available to the common Joe. Read More >
Did we mention that there is a remake of the economic miracle in Europe going on? Despite tanking car sales, despite daily stories about near bankrupt EU-countries, European manufacturers are in high gear. Did we mention that despite imploding sales at home, Volkswagen delivered 16 percent more units to customers in the first six months of 2010? One would think that might have some bearing on VeeDub’s financials. It sure did. Read More >
With Chevy’s Volt priced at an eye-popping $41k before tax breaks, those tax breaks are now more important than ever. The first 200k Volts will qualify for up to $7,500 in federal credits, but Chevrolet had to be hoping for state incentives on top of the federal credit, especially in the key launch state of California. For a number of reasons though, the Volt doesn’t meet California’s requirements for Advanced Technology-Partial Zero Emissions Vehicles, and will lose out on a $5,000 tax credit that’s available to its cheaper competitor, the Nissan Leaf. As a result, the Leaf will cost Californians who qualify for both full credits about $20k, while the Volt will cost about $33,500. Moreover, the Leaf will have full access to California’s High Occupancy Vehicle lanes while the Volt will not, unless a pending bill before California’s state Senate passes. Together, these developments represent a serious advantage for the Leaf over the Volt in what is almost certain to be the world’s largest market for electric cars in the short-to-medium term. So how did GM let this happen? Read More >
Today, Porsche decided what everybody thought they would decide: They will build the mid-engined plug-in hybrid 918 Spyder. After all the pomp and circumstance at the auto shows in Geneva and Beijing, it would have been a big let-down if they would have said: “Sorry, it was just an idea. We didn’t really mean it. How about that Cayenne?” Read More >
Hi! I really enjoy TTAC and especially the Piston Slap feature. I have a 2005 Ford Mustang Convertible with the V-6/Automatic “poseur” package (super optioned out with a lame ass driveline). Despite the slushbox, I really enjoy this car. It’s been 100% problem free.
I work from home, so the car only has 23,400 miles on it. Most maintenance schedules are stated by mileage, but my car is driven so little, it has original brakes, tires, etc. To my credit, I have been religious about oil changes every 3 months (regardless of mileage).
Now that the car is nearing 6 years of age, do you have any recommendations on maintenance I should perform based on age as opposed to mileage? I’m getting ready to drive from Florida to California, so this seems like good timing to be pro-active to avoid any breakdowns.
The Chinese market keeps going, and going, and going. It was up 47.7 percent in the first six months of 2010. Can’t be, you say? Well, the rest of the Asian markets are not far behind. The six major ASEAN countries (Indonesia, Thailand, Malaysia, the Philippines, Vietnam and Singapore) bought 41 percent more cars in the first six months of 2010 than in the year before. Read More >
Our Korea-based contributor Walter Foreman already suspected that the new Hyundai Avante might be one of the world’s first mass-market compact car with a self-parking feature (similar systems are offered on the Toyota Prius and Euro-market VW Golf), and this video proves that he was dead right. What’s still not clear is whether self-parking is standard on the new Avante (launching August 2 in Korea), or whether it will be offered when it comes stateside as either the 2011 or 2012 Elantra. This would be the ultimate challenge for such technology, as legal concerns allegedly kept Volkswagen’s pioneering system out of the US. Still, Hyundai had the cojones to equip its mass-market C-segment car with technology that just a few years ago was available only on the Lexus LS. That’s exactly the kind of decision that has Hyundai raising eyebrows across the industry.
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