You may remember that TTAC almost just about virtually proved that Chrysler CEO Bob “I Heart Pasta” Nardelli jumped on a corporate jet to fly from Motown to the City of Brotherly Love (then was driven in an EV mule to D.C.), to attend the second round of bailout hearings. This after The Big 2.8 execs (as they were at the time) flew straight into “jet-gate,” where reporters hammered them for Gulfstreaming to the bailout buffet. Far be it for me to repeat such lazy journalistic innuendo (oops), but the thick plotzes, as the Detroit Free Press reports that ChryCo is asking permission to terminate its leases on not one but two mighty fine Gulfstreams: a $38 million Gulfstream 450 and a $55 million Gulfstream 550. Leases, eh? “Chrysler took possession of them Jan. 1, 2008. It put up a $3.6 million security deposit on the 450 and a $5.3 million deposit on the 550. The automaker is seeking to apply the deposits to its seven-year lease obligations.” Awesome.
Category: News Blog
Actor Tom Hanks recently defended himself against the New Yorker, who called him out on his appearance in “Who Killed the Electric Car?” Here’s his letter to the editor:
Peter J. Boyer, in his otherwise spot-on piece about the car industry, assumes that I once leased G.M.’s sadly fated EV1 electric car and, like other drivers of that twin-seat rocket of a vehicle, watched the emission-free car be wrested from my garage, towed away, and busted up into pieces of metal, glass, and rubber smaller than razor blades (“The Road Ahead,” April 27th). Luckily, I did not. The source of Boyer’s slight inaccuracy may have been the documentary film “Who Killed the Electric Car?,” which used a clip of a visit I made to the “Late Show with David Letterman,” during which I claimed to be saving America one electric car at a time. However, by the time I began shopping for an all-electric car, in 2003, the EV1 had already been yanked from showrooms as if the car had never existed. Instead, I found what was purported to be the very last electric car available for sale in the state of California—a Toyota EV. It had four doors, a rear hatch, room for my family, including a dog in the back, power windows, A/C, a great sound system, and the fastest, most effective windshield defroster known to mankind. When the car companies collectively, and, to some, diabolically, decided to take these cars back, the electric vehicles disappeared. But not mine. I have the pink slip. I own that car, and it is still driven every day, albeit by one of my crack staff of employees. My electric car recently crossed fifty thousand miles on the odometer with its original battery but without so much as a splash of gasoline.
Tom Hanks
Los Angeles, Calif.
New York state’s highest court ruled Tuesday that police can’t use GPS technology to track criminal suspects without a warrant in a decision at least one Long Island law enforcement official said would add an unnecessary step in an investigation. A spokesman for Nassau District Attorney Kathleen Rice said she disagreed with the decision of the state Court of Appeals, which ruled 4-3 that satellite tracking devices violate the rights of suspects unless authorized by a judge. But the ruling, in a case stemming from an upstate robbery investigation, won’t compromise current investigations in Nassau involving GPS devices, spokesman Eric Phillips said.
The Chinese “home grown” automaker Geely had been widely rumored to be highly interested in snapping up Volvo or Saab. Or both. They either have lost interest. Or they employ the stratagem usual in a Chinese market: Shout “Tai gui le!” (too expensive), make an indignant face, and walk away. If they run after you, the next round of haggling ensues.
Geely “has not submitted, and has no plans to submit, any bids concerning the takeovers of ‘Volvo’ or ‘Saab’ as stated in recent press articles,” said Geely in a notice to the Hong Kong stock exchange, and their stock price promptly jumped 13.6 percent, Gasgoo writes. It doesn’t mean they were not or are not interested. They just didn’t hand in a—formal—bid. They sure had been talking.
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There’s really only question remaining: can GM make it to the end of the month? As the artist formerly known as “the world’s largest automaker” augurs-in for its official face plant, the market is readying for a total wipe out, sending The General’s share price to a buck a pop. Which is, as we all know, about a dollar too much. “Experts have said that GM’s stock is overpriced,” USA Today reports, “considering that the automaker’s debt-restructuring plan will leave current shareholders with just a 1% stake in the reconstituted company.”
I’m beginning to like the environment. First, the greens spiked Charles “Double Nickel” Hurley’s nomination for the top slot at the National Highway Traffic Safety Administration (NHTSA). As we reported earlier, Hurley’s federal pension plans came a cropper for daring to suggest that larger cars were safer than fuel misers (at the IIHS, back in the day). Now, tree huggers have torpedoed the current cash-for-clunkers bill. Reuters reports that California Senator Dianne Feinstein, a friend of the Friends of the Earth, is not happy with the compromise cash-for-clunkers bill.
Voice-over translation (per saabsunited.com) after the jump.
The Detroit News reports that Michigan’s congressional delegation has secured an agreement with House Democrats that could send three percent of the revenue from carbon emissions permits to American automakers starting in 2012. That would amount to billions of dollars every year, says DetN, and that’s not all. The new compromise also includes changes to carbon-cap proposals that “could ease the impact on states such as Michigan that rely heavily on coal for electricity generation.”
The Wall Street Journal reports that (suprise!) transaction prices on new vehicles have fallen over the last six months. The average transaction price for a new vehicle is now $27,941. Why so slumptastic? With American consumers perceived to be in value shopping mode and the automobile industry in disarray, incentives are starting to pile up on new cars. And it’s not just OEMs offering factory cash. Dealer incentives are up as well. The WSJ cites TrueCar data showing that a full quarter of all 2009-model vehicles are being sold below dealer cost. And those aren’t all coming from troubled Chrysler dealers.
The latest statistics from the Energy Information Administration show that diesel is actually .03 cents per gallon cheaper than gasoline on a national average. Whereas gas prices have risen considerably since their December low, the drop in diesel prices was slower, making the bounceback less extreme. According to CNN, the price parity can be traced to inventory levels. Gasoline inventory has been dropping bringing prices up more sharply. Meanwhile, diesel-making distillate supplies are increasing. Longer term, the Department of Energy expects diesel and gasoline prices to rise but not by as much as had been previously anticipated.
Auto industry supporters claim the EPA’s new dominion over CO2 regulations could be disastrous for the troubled industry. The Office of Management and Budget (OMB) agrees. Well, they did. A freshly leaked Bush-era memo reveals the agency had a major beef or two with the EPA’s recent ruling that carbon dioxide is—and should be regulated as—a pollutant. According to John Broder of the NYT, the document concludes that the EPA’s CO2 ruling “was not based on a systematic analysis of costs and benefits and fell short of scientific rigor on a number of issues.” Complaints with the ruling range from insufficient proof of C02’s harmful environmental effects to the negative economic impacts of C02 regulation (there’s your auto angle again).
There’s a clever headline in there somewhere. Meanwhile, Automotive News [sub] reports that the Obama administration has abandoned plans to nominate the CEO of Mothers Against Drunk Driving (MADD) to head the National Highway Safety Transportation Administration (NHTSA). Although neither the White House nor Charles Hurley’s MADD men (and women) are saying Jack about the decision, it appears Hurley ran afoul of . . . environmentalists. “His potential nomination had been criticized by environmentalists such as Dan Becker, director of the Safe Climate Campaign. Becker cited Hurley’s work at the Insurance Institute for Highway Safety in the 1990s, when he said Hurley backed car companies that were fighting attempts to reduce vehicle size to improve fuel economy.” I guess they forget that TTAC took Hurley to task for his support of reintroducing the double-nickel speed limit, his close ties to the red light camera industry and his insistence that piloting a vehicle with a .04 BAC constitutes drunk driving. Still, the end result is what counts. Oh, and I nominate Bill Broadhead for the job.
The Daily Mail reports that the Gloucestershire police force has rolled out a new campaign urging citizens to turn in people they suspect of “living a lavish lifestyle from the proceeds of crime.” Chief Constable Timothy Brain explains, “in the current time of financial uncertainty, those who live a lavish lifestyle with no discernable, legitimate income become even more apparent. By flaunting their ill-gotten gains criminals signal contempt for everyone who works hard, and act as very poor role models for the younger members of society.” Based on this accompanying poster, it seems that Gloucesteshire MINI drivers should be prepared to prove that they can afford their gangsta whips at a moment’s notice.
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