Under current Cuban law, only cars built before the 1959 revolution can be legally bought and sold. This has kept Cuba’s pre-revolution American cars running, creating the island nation’s unique automotive landscape. But now, reports NPR, proposed liberalizations of Cuba’s property laws might threaten Cuba’s fleet of classic American cars. Though reforms could bring much-needed investment to Cuba, they would also mean an end to the laws that have kept Cuba’s streets looking like a time capsule from the late 1950s. But luckily Cubans have come to feel deeply attached to their classic American cars, vowing to keep them running as symbols of Cuba’s history.
As for Cuba’s classic cars, mechanic Jorge Prats says he thinks they’ll be around for at least another 50 years.
“These cars are a part of our national identity now, like rice and beans, or roast pork,” Prats says as he shows off his two-toned, bright red-and-white 1955 Chevrolet Bel Air coupe. “We take care of these old American cars as if they were another member of the family.”
Users of the Dulles Toll Road in Northern Virginia filed a federal class action lawsuit yesterday seeking refunds from toll hikes imposed to fund a $7 billion mass transit project. Great Falls resident John B. Corr and Hillsboro resident John W. Grigsby argued that the Metropolitan Washington Airports Authority (MWAA) has no authority to set toll rates and that the diversion of over $130 million from motorists constitutes an illegal tax.
Back in November of 2009, when GM announced that it would repay its government loans, it didn’t take much investigation to realize that The General was simply shuffling government money from one pocket to the other and that true “payback” was still a ways off. The New York Times asked me to write an op-ed on the subject, and I took the opportunity to point out the reality of the situation and note
G.M.’s global interests are far too diverse for it to serve its taxpayer owners faithfully, and it can’t afford to subjugate its business prerogatives to the political needs of its major shareholder in the White House. So, unless Americans develop a sudden obsession with G.M.’s $40,000 Volt electric car just in time for an I.P.O., taxpayers will be stuck with tens of billions of dollars in losses.
Afterward, while our government contemplates its runaway deficit and getting rid of its 8 percent of Chrysler’s equity, perhaps we’ll get an admission that General Motors still owes the American people. Without one, the relationship between the public and the automaker, and the Obama administration as well, may never be the same.
And now that our government finds itself “contemplating a runaway deficit and getting rid of its 8 percent of Chrysler’s equity,” would you believe that a similar federal money-shuffle is under way? Believe it.
Over the weekend, Chinadaily [via CarNewsChina] reported that China’s General Administration of Quality Supervision, Inspection and Quarantine had halted imports of Jeep Wranglers due to what was reported as
fires [caused by] a problem in the vehicles’ automatic transmission and related systems.
And though for some this story’s value may begin and end with the ironic humor value of China recalling unsafe American products, there’s more to this than meets the eye. As it turns out, NHTSA has investigated a suspiciously similar transmission-related fire risk in Wranglers, and made Chrysler fix it. What’s not clear is why China-bound Jeeps don’t appear to have received the upgrade that US regulators required for American-market sales.
In the grand old days of the European auto industry, rival houses would battle for supremacy in endurance, road, rally and formula racing, the results of which were treated as far more important than (or, at least the basis for) such prosaic concerns as sales volume or profitability. In the modern era, this fierce competition slacked, as racing became about brand-building and competition moved into the arenas of sales and profits. Now, however, a new competition has erupted between every brand with a presence in the European market, only this time participation is compulsory and the stakes are survival in a super-competitive, mature market. And neither speed nor endurance will win this race against time: only reaching an EU-mandated carbon emissions goal by 2015 will do.
Exactly a week ago, Fiat said it would up its stake in Chrysler “within weeks,” and according to the Detroit News, the deed is now done. Having earned 5% of Chrysler’s equity by building a FIRE-family engine in the US (for use in the Mexico-built Fiat 500), Chrysler had to confirm that it has brought in $1.5b in non-NAFTA foreign revenue, and (according to Chrysler’s LLC agreement [PDF])
[execute] one or more franchise agreements covering in the aggregate at least ninety percent (90%) of the total Fiat Group Automobiles S.p.A. dealers in Latin America pursuant to which such dealers will carry Company products
in order to bring its stake up from 25% to 30%. We already know that Fiat will achieve this goal by rebadging Chrysler vehicles as Fiats for Latin American markets, a move that is technically compliant with the letter (if not the spirit) of the LLC agreement. But, it turns out that Fiat still had to get the Treasury to amend its agreement in order to bend the rules just a little bit more.
Activists in Winnipeg, Canada have hounded city officials about problems with the photo radar program. The group WiseUpWinnipeg caught the city using improper warning signs, hiding information from freedom of information requests and exploiting short yellow timing at intersections. The group’s leader, Larry Stefanuik, believed it was time to “amp it up” after his findings have been ignored.
After several abortive attempts over the last several congresses, the “Right To Repair” Coalition for Auto Repair Equality has had a new bill introduced in the 112th Congress with the goal of
requiring that car companies provide full access at a reasonable cost to all service information, tools, computer codes and safety-related bulletins needed to repair motor vehicles.
The auto industry has long opposed such bills, which have been passed on the state level but have never been passed into federal law. Back in 2009, then-head of the Alliance of Automobile Manufacturers lobby group, Charles Territo, argued against Right To Repair legislation in a TTAC editorial, calling it “a solution in search of a problem.” More recently, the AAM opposed a Massachusets Right To Repair bill on the grounds that it would increase Chinese piracy of auto parts. Needless to say, now that CARE has finagled HR 1449 into Congress with bipartisan sponsorship (from Todd Platts (R-PA) and Edolphus Towns (D-NY)), the debate is about to get fired up all over again.
American auto enthusiasts often bemoan the lack of diesel options offered on the US market, looking to Europe as the promised land of oil-burning efficiency. But Europe’s love affair with diesel, which has been manifested in a 50%+ diesel sales mix for years, may be coming to a close. The WSJ reports
The European Commission–which has executive powers in the European Union–will propose to levy a minimum EUR20 per metric ton of carbon dioxide emitted on products like gasoline, diesel, natural gas and coal starting in 2013. But it will also propose adjusting the existing legislation by gradually increasing a minimum levy on the energy content of diesel to bring it to the same level as that of gasoline starting in 2018
Here’s the key: in addition to basing taxes on C02 emissions, the EU tax structure shift will result in fuel taxation based on energy content rather than volume alone. Accordingly, diesel’s higher energy content means it will see a more dramatic increase in taxation levels. And this single common-sense proposal is unleashing an intense debate in Europe about energy, taxation and the future of the auto industry.
The California Senate Appropriations committee voted 9-0 on March 29 to advance legislation that would alter the way red light cameras operate in the state. State Senator Joe Simitian (D-Palo Alto) re-introduced legislation that had stalled last year tweaking some of the more controversial aspects of automated ticketing programs.
Saab’s inability to pay suppliers led it to request a release of some of its debt collateral by Sweden’s National Debt Office, reports Reuters. The NDO has loaned Saab €400m, but with its Russian backer Vladimir Antonov still unable to inject cash into the company, Saab was forced to ask for some of its NDO loan collateral in order to cover its supplier debts. But, according to another Reuters report, NDO spokesfolks say
It is clear what the problem is and everyone possible is trying to solve the problem… a solution to the problem had seemed in sight, but that in the end it did not work out.
The NDO says it will keep working with Saab, and the automaker predicts a resolution by next week (without offering any further details). After a year of independence from GM, the Swedish brand could well be reaching the end of the line.
If there’s one factor that most dims enthusiasm for cars, it’s probably traffic. The frustration, misanthropy and waste engendered by traffic are such that it would come as no surprise to learn that traffic-related stress causes a number of health problems. But, according to a study by the World Health Organization [PDF here], you don’t even need to be stuck in traffic to be negatively affected by it. According to a WHO press release,
Traffic-related noise accounts for over 1 million healthy years of life lost annually to ill health, disability or early death in the western countries in the WHO European Region. This is the main conclusion of the first report assessing the burden of disease from environmental noise in Europe, released today by WHO/Europe. Noise causes or contributes to not only annoyance and sleep disturbance but also heart attacks, learning disabilities and tinnitus.
How things change in a few years! Just a few short orbits of the sun ago, automakers like GM were some of the biggest boosters of ethanol subsidies. Now, the Detroit News reports
The Alliance of Automobile Manufacturers – the trade association representing General Motors Co., Ford Motor Co., Chrysler Group LLC, Toyota Motor Corp. and eight others – opposes a bill sponsored by Sen. Tom Harkin, D-Iowa, that would require 90 percent of all vehicles to run on E85 – a blend of 85 percent ethanol – by the 2016 model year.
Shane Karr, vice president for government affairs, said the mandate “would cost consumers more than $2 billion per year” for flex fuel vehicles if automakers passed on the full cost “even though consumers will have little or no access to alternative fuels. Therefore, such a mandate is essentially a tax with little consumer benefit.”
Members of the media and the legal profession who receive regular updates from the U.S. Department of Transportation were in for a shock this morning as they opened the last announcement from NHTSA. ZoneAlarm by Check Point Software, which claims market leadership in the firewall and security business, warns that a DOT press release is a “possible fraud attempt.” (Read More…)
The top legal speed in the state of Kansas is one signature away from becoming 75 MPH. State legislators on Friday gave final approval to a bill raising the limit from 70 to 75 MPH. If approved by Governor Sam Brownback (R), Kansas would join a dozen other states that have already made the move. Only Texas and Utah have a higher, 80 MPH limit.
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