As Congress works on extending the authorization for transportation programs in the current session, thousands of lobbyists are investing millions in political donations and billable hours in the hopes of receiving a big payout in public dollars. The Center for Public Integrity, a left-wing watchdog group, last week released the results of an exhaustive examination of the financial ties between transportation lobbyists and lawmakers. In the first half of this year alone, 2100 lobbyists spent $45 million on influencing lawmakers who are busy dividing up an estimated $500 billion in funding (view lobbying map). “Over the past two decades, this is the way federal transportation policy has largely been made in America — by a quasi-private club of interest groups and local governments carving out something for everyone, creating a nationwide patchwork of funded bypasses, interchanges, bridges, and rail lines with no overarching philosophy behind it,” Center staff writer Matthew Lewis explained.

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In case you hadn’t noticed, Ford is in a [familiar] race against the clock. Pre-economic meltdown, it mortgaged everything up to and including their logo. Under ex-Boeing exec Alan Mulally, the Blue Oval Boys have cut costs, improved efficiency, launched new products and gained relative market share. But Ford’s still a gi-normous company that takes in less money than it spends. The Department of Energy’s $10 billion twenty-five year, no-to-low interest loan didn’t hurt The Glass House Gang’s bottom line, but there’s only one way for Ford’s going to become profitable, to begin to pay off their debt and stave off bankruptcy: volume. Specifically, they need the U.S. auto market to recover, in a big way, for them, and quickly. So it’s no surprise that that’s exactly what CEO Alan Mulally says is gonna happen . . .

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Rob writes:

I am a regular reader, and now I need some advice.  I have a 2000 Volvo S40 Turbo, with 106,000 miles.  Recently when I’m on the highway and go to increase speed the car vibrates really bad.  It will cruise with no problem, but the moment you try to pick up speed the vibration starts and continues till you let off the accelerator.

Another thing, I am living in Western KY [ED: sounds painful] and I have not even seen a Volvo dealer ship in this area.  So if anybody knows of an independent mechanic I would appreciate it.

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Elon Musk and Martin Eberhard, two of the co-founders of Tesla announced today that they have resolved their dispute.

Tesla Motors statement announcing that the firm’s feuding founders have decided to play nice with each other instead of suing each other. “Without Martin’s indispensable efforts, Tesla Motors would not be here today,” says Elon. “As a co-founder of the company, Elon’s contributions to Tesla have been extraordinary,” says Martin. Aren’t they adorable?

An advertising campaign in the UK began using automated number plate recognition (ANPR) cameras to identify passing vehicles and create personalized advertisements. The motor oil giant Castrol UK Limited yesterday activated a set of five electronic billboards in London that flash an image of the exact type of Castrol-brand motor oil appropriate for the nearest vehicle. “The right oil for your car is: Castrol Magnatec 5W-30 A1,” the advertisement reads for eight seconds as a Jaguar with the license plate 1DFL drives past. The roadside digital billboards, seventeen feet wide and eight feet high, are owned by Clear Channel Outdoor. Castrol’s campaign added the license scanning technology which ties into the official UK Driver and Vehicle Licensing Agency (DVLA) database. The agency provides private registration information to just about any company willing to pay the desired fee. According to Castrol, this particular campaign does not store any information about what vehicles or drivers pass the sign.

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Headline reference here. [Hat Tip: KatiePuckrick]

Retool this! Fisker will use the majority of its Advanced Technologies Vehicle Manufacturing Loan Program (ATVML) loan towards developing its next generation of plug-in, range-extended hybrids, according to the company’s press release [via Yahoo]. Preliminarily dubbed Project NINA, Fisker’s next vehicle range will be “affordable and fuel-efficient” vehicles with a similar drivetrain to its Karma sibling. Unfortunately, Fisker’s idea of affordable is $39,999 “after tax credit.” Sound familiar? Some portion of the AVTML money will go towards wrapping up Karma development, but it’s clear that Project NINA is the new priority. “Inspired by the ship belonging to explorer Christopher Columbus,” Fisker’s release intones, Project NINA “is symbolic of the automobile industry’s transition from old world to new.” Which is oddly appropriate. If it weren’t for state funding, that voyage would never have taken place either. [Thanks for the tips!]

I’ve long argued that if Detroit were to be nationalized (and it was, not that I’m arguing it was a good idea) the US government should make Detroit make it worth the taxpayers’ while and return production from low wage countries, such as Mexico, to the United States. This would have two effects: more US citizens would be hired and the government’s trade deficit would be reduced. Hey, if you’re going to make a private enterprise a government arm, then make that government arm contribute something positive to the country. Much of Detroit’s portfolio is made in Mexico: the Ford Fusion, the (yet to be released) Ford Fiesta, The Ford F-Series, the Chevrolet Silverado/GMC Sierra, the Chevrolet Aveo/Pontiac G3 and the Chevrolet HHR to name but a few. This has long been a practice of Detroit and some transplants (e.g., VW with the Jetta and Beetle; Toyota with the Tacoma). Exploit low wage countries for maximum profits in higher wage countries. Well, Honda didn’t get the message.

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Ever since Bob Lutz walked down from Mt. Lithium with the Volt’s Ten Specifications, the most potentially expensive and critical one was that the battery pack would have a ten year/100k mile warranty. No longer. Gm-volt.com reports that in a survey of potential Volt buyers, a number of Volt parameters were spelled out, in order to gauge how charged up they (still) are. The battery is described as having an eight year/100,000 mile warranty. That’s really going to help the economics, especially in light of a related announcement where the Father of the Volt preaches: “The Volt technology is very exciting, but costs will have to come down before it can become generalized . . . and US fuel prices will have to rise to world levels, meaning $5 or $6 per gallon.” Exciting indeed, despite being unprofitable for its maker, and un-economical for its buyers. One last detail: the survey also calls out the Volt’s price at “$32,000 to $38,000, after a $7,500 tax credit ($39,500–$45,500 MSRP).

GM Service Operations

**Urgent Message**

DCS 412

DATE: September 21, 2009

TO: All US GM Dealers, Service Directors, Warranty Administrators and Parts Managers

SUBJECT: Changes to the General Motors 100,000 Mile/5 Year Powertrain Warranty for 2010 Model Year Vehicles

This message is to provide information regarding the a few changes to the GM Powertrain Warranty for 2010 model year vehicles.  Previous model year vehicles are NOT affected by these changes.

For model year 2010, General Motors is announcing a slight change in the components that are covered under the 100,000 mile/5 year limited warranty on all light duty cars and trucks.  The Warranty and Owner Assistance Information booklets have already been updated with these changes in all New 2010 model GM vehicles.

The following items have been eliminated from the Powertrain portion of the coverage for 2010, however, they will continue to be covered for the entire length of the Bumper to Bumper Limited Warranty for all GM vehicles.  Select components may also be covered by Federal or State Emission coverage.  Please refer to the Labor Time Guide and Policies and Procedures (P&P) manual for further details.

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For those of you unfamiliar with the secret language of telephone-based customer service representatives, RTFM means “Read the F-ing Manual.” Only now, for Chrysler, it’s PTF-DVD: “Play the F-ing DVD.” Automotive News [sub] reports that “Chrysler Group is replacing its traditional owner’s manuals with DVDs and an abridged printed guide in an effort to reduce costs and save 930 tons of paper annually.” Wow! Can you imagine how much better off the planet would be if Chrysler stopped making cars? Just kidding. As for costs, well, taxpayers have sunk over $10 billion in this bad bad boy, so every penny ChryCo doesn’t spend on paper manuals goes to their “Save the Sebrings!” campaign. Uh, how many pennies is that, anyway? “Spokesman Bryan Zvibleman . . . declined to say how much will be saved by the change, which is taking effect with 2010 models.” Declined? As in refused? I like “demurred,” but then I like my euphemisms shaken, not stirred.

Is this a big deal? It sure was to Chrysler (the artist formerly known as “under private equity ownership, we can move much faster than our competition”)  . . .

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Not THIS HUMMER (that would be a bit of a stretch). But a HUMMER nonetheless. The Associated Press reports that “Data released late last week by the Department of Transportation shows that tens of thousands of trucks, minivans and SUVs with relatively low gas mileage were among the nearly 700,000 vehicles sold under the program in late July and August. It even included a handful of Hummers, a hulking vehicle not usually associated with fuel economy.” I guess the AP couldn’t say “including a big ass gas-guzzling military-themed HUMMER, the vehicle most reviled by people who thought (even for a second) that the $3 billion Cash for Clunkers program’s real goal was improving the fuel efficiency of America’s automotive fleet to help reverse the irreversible catastrophe of global warming.” Now, there’s a lot of parsing and wrangling and finger-pointing to be done here, as usual. But let’s not lose sight of the salient fact: A HUMMER! Why not? Lest we forget, “for buyers of SUVs, pickups and minivans, that difference [between the trade-in and the new vehicle’s mpgs] had to be only 2 mpg.”

In other news, the final sales numbers are out. The Chevy Silverado pipped the F-150 at the C4C post. The manly man’s pickup picked-up 16,330 sales, vs. 16,263 for the tuff enough [sic] F-150. What does that tell you? As the Silverado is a high profit vehicle for its nationalized manufacturer, the taxpayer-funded sales surge has certainly helped the taxpayer-funded automaker stay alive. How great is that? Oh, and HUMMER is still owned by GM, in case you (or GM’s management) forgot.

If there’s one thing that can be counted on in the world of investment, it’s that someone is bound to copy Warren Buffett’s latest move. The Oracle of Omaha has reportedly made a billion bucks in less than a year on his $230 mil investment in BYD, and that firm’s soaring stock price has other investors taking notice. Bloomberg reports that Goldman Sachs is looking at buying $250 mil worth of convertible bonds and warrants in Geely, in hopes of repeating Buffett’s success. With major global automakers (specifically GM, VW and Toyota) solidifying their dominance of the Chinese domestic market, Chinese automakers see the low-cost segments in other markets as their opportunity for growth, and Geely is no exception. The firm hopes to boost overseas sales to 66 percent of its annual sales by 2015, a goal that justifies its current pursuit of the Volvo brand (update from Thor Johnsen coming soon). Though a name-brand backer like Goldman could help Geely break into foreign markets, there are challenges aplenty for the planned investment.

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Go to any auto auction. Chances are you’ll see 2001 Accords and Camrys go for higher prices than 2003 Tauruses and Grand Prixs. Is that premium justified? Well, I’ll put it to you this way.

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