A committee of the California General Assembly last month began consideration of legislation that would make minor changes in the way red light cameras are used in the state. State Senator Joe Simitian (D-Palo Alto) introduced a bill that he believes will increase the fairness in the administration of automated citations. Simitian is a supporter of photo ticketing who nevertheless believes the existing system suffers from significant flaws.
A Florida state representative is standing athwart the legislative juggernaut that seeks to expand the use of red light cameras throughout the state. Representative Rob Schenck (R-Spring Hill) last month won approval by a 7 to 5 vote from the House Governmental Affairs Policy Committee for his bill expressly preempting the ability of local jurisdictions to operate automated ticketing machines.
Way back when the Chevy Volt was taking center stage in GM’s case for bailout (as in give us one, or you won’t get the Volt), the Obama Administration’s task force on autos was not amused. “While the Volt holds promise, it is currently projected to be much more expensive than its gasoline-fueled peers and will likely need substantial reductions in manufacturing cost in order to become commercially viable,” was just one of the knocks the pols gave the then-mule-stage Volt. And even though the Nissan Leaf has since proven that the Volt is also “much more expensive than its pure-electric peers” the White House’s official car guys have changed their tune.
The AP [via canadianbusiness.com] reports that two separate bills to make the Corvette Kentucky’s official state car appear to be dead in the state’s legislature. State Rep. C.B. Embry Jr., R-Morgantown, suggests that the failure of these bills would be perceived as a snub by GM, who builds Corvettes in Bowling Green. Not so, say GM reps.
With or without a bill, the Corvette is an iconic American sports car, and we’re proud to build it in Kentucky. It shouldn’t be perceived as a snub, and we don’t take it as that.
But GM’s downplaying of the news hides the possible cause for what otherwise would be a win-win political proposition.
Ohio.com reports that GM will miss a March 31 deadline for filing its first GAAP-compliant financial results since emerging from bankruptcy. According to an SEC 10k filing:
General Motors Company (the “Company”) is unable to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2009 (the “2009 Form 10-K”) by March 31, 2010, as the Company is still finalizing its fresh-start adjustments required by generally accepted accounting principles relating to the assets acquired and liabilities assumed from General Motors Corporation (“Old GM”) in connection with Old GM’s sale of assets under Section 363 of the United States Bankruptcy Code (the “363 Sale”) prior to such date. Due to the size of the Company, the global application of fresh-start reporting and the associated determination of the fair value of its assets and liabilities is a significant undertaking, which requires extra time
GM says it will be able to file within a 15 day extension period, which means there’s not too much longer to wait before we have our first “real” measure of GM’s post-bankruptcy performance. And because GM’s last results were accompanied by warnings that Q4 2009 results could be worse than November’s non-GAAP numbers (not to mention recent soft-pedaling by CFO Chris Liddell), there’s reason to believe that they won’t be particularly pretty. Either way, GM can only delay their release for so long. As 60 percent stakeholders in the artist formerly known as the world’s largest automaker, taxpayers have the right know just how their “investment” is panning out. I guess we’ll be seeing GM in line at the post office just before the midnight on the 15th.
With a mere $9b awarded so far, the Department of Energy’s Advanced Technology Vehicle Manufacturing Loan program is a long way from fulfilling its $25b promise to fund a turnaround in America’s green auto sector. So far, Ford has received $5.9b for a wide range of retooling projects (not a bailout, per Ford PR), Nissan has received $1.6b for Leaf production in Smyrna, TN, while startups Tesla and Fisker have received $465m and $529m respectively. According to the Detroit News, the rest of the 100-odd applicants for the $25b pool are stuck waiting, and with about $42b in total pending requests, not everyone is going to get a rose from the Feds. Predictably, the whining has begun.
Remember how the California Air Resources Board was contemplating banning black cars because air conditioning uses so much C02 (or not)? Well, the madness is over, as The Detroit News reports that California’s proposed “Cool Car” rules are dead. What killed them (besides common sense and the laws of diminishing returns)? Law enforcement, for one, which warned that (Read More…)
The DOT policy is to incorporate safe and convenient walking and bicycling facilities into transportation projects. Every transportation agency, including DOT, has the responsibility to improve conditions and opportunities for walking and bicycling and to integrate walking and bicycling into their transportation systems. Because of the numerous individual and community benefits that walking and bicycling provide — including health, safety, environmental, transportation, and quality of life — transportation agencies are encouraged to go beyond minimum standards to provide safe and convenient facilities for these modes.
Having spent most of his tenure chiding distracted drivers and hunting down demon-possessed Toyotas, Transportation Secretary Ray LaHood appears to be over the whole car thing. The policy statement above was just one element of his push to put bicycling and other car alternatives on an equal footing to cars in transportation planning, which he recently announced at the National Bike Summit.
The cities of Albuquerque, Las Cruces and Santa Fe have sixty days to pull down the red light cameras and speed cameras currently operating on state and federal roads in New Mexico. The New Mexico Department of Transportation (NMDOT) announced yesterday that transportation commission members unanimously decided to outlaw automated ticketing machines on thoroughfares within its jurisdiction.
From the “how did we miss this?” file comes this story of Russian police pulling motorists over and using them to create a human roadblock. This incident built on anger in the wake of another recent incident [via the NY Times] in which the vice president of Lukoil apparently bribed police to cover up an accident in which his Mercedes crashed into a Citroen, killing two passengers. That incident inspired Russian rapper Noize MC to make this song, cleverly named “Mercedes S666.” As we noted the last time we covered the messy confrontations between Russia’s motorists and police, these incidents put the political problems of American motorists into much-needed context. We still have a lot to be grateful for.
The Detroit News reports that the United Auto Workers are gearing up for battle for a surprising new cause: greenhouse gas emissions standards. Alan Reuther, Legislative Director of the newly-green union, wrote congress recently to warn against a bill authored by Sen. Lisa Murkowski which would prevent the EPA from declaring C02 a danger to public health, saying:
The UAW also is deeply concerned that overturning EPA’s endangerment finding would unravel the historic agreement on one national standard for fuel economy and greenhouse gas emissions for light-duty vehicles that was negotiated by the Obama administration last year
China has become a world automobile producing and consuming power, but it should also be noted that the industry still lacks core technology and has weak innovative capabilities… This creates hidden dangers for public safety
The closest thing Toyota has given to an explicit accounting of its unintended acceleration woes is the admission that rapid growth detracted from the company’s previously unquestioned commitment to quality. With the Chinese auto market growing even faster than Toyota was, the Chinese Central government is anxious to prevent such nasty side-effects of rapid volume growth from manifesting themselves in the domestic auto industry. And well it should be: with Chinese automakers like BYD poised to launch overseas sales campaigns, the Chinese auto industry is at a crucial stage in developing its international image. China’s Ministry of Information and Technology has released a statement [via DetNews] urging its domestic automakers to heed Toyota’s example, and adopt “new technology, new techniques, new equipment and new materials” to master the balance between profit and quality. And hopefully move past the image of hand-assembled batteries and carbon-copy design while they’re at it. Meanwhile, Toyota is feeling the hurt. Stung by calls by the government to compensate Chinese drivers, Toyota-FAW fell from China’s top ten sales list. Toyota China reported a 30 percent rise in sales in February, but at 45,400 units the firm was still way down from its 72,000 unit January performance.
Local governments that use red light cameras and speed cameras would be forced put the future of these efforts to a public vote under a proposal by a team of Louisiana state lawmakers. Led by Representative Jeff Arnold (D-Algiers), a bipartisan team of seven on Monday pre-filed legislation to rein in the use of automated enforcement systems.
Arnold’s preference is to ban them outright with House Bill 160, but he prepared an alternative measure designed to be more attractive to his colleagues with close ties to local government. House Bill 159 would require a referendum before any automated ticketing machine could issue fines in a local city or parish.
In a conversation with The WSJ [sub]’s Paul Ingrassia, former Car Czar Steve “Chooch” Rattner did some “back-of-the-envelope calculation” to show why he believes the US taxpayers will see their $50b “investment” in GM recouped when The General goes public sometime in the next year.
Here’s how Rattner gets to his latest calculation: Bonds of GM’s bankruptcy estate – known as Motors Liquidation – are currently trading around 30 cents on the dollar, according to Thomson Reuters. Those bondholders were owed $27 billion.
As part of GM’s restructuring, those bondholders were promised a 10% stake in GM when it goes public. In very rough calculations, those bonds are currently valued at about $9 billion (because they currently trade at around 30 cents and were originally worth $27 billion).
Assuming that $9 billion represented 10% of GM if it went public now that would imply GM had a value of around $90 billion. The taxpayer’s stake: 60% of that $90 billion, or $54 billion — Rattner’s magic number.
As an American citizen, it is tough on my part to pay tax dollars to an entity that can turn around and use those tax dollars to get my fellow American citizens to not do business with me. The government owns 60% of General Motors, and these American tax dollars are funding business activity for one company, with the express goal of negatively impacting another company
Paul Atkinson, President of Toyota’s National Dealer Council, manages to capture the central problem with government intervention in industry without resorting to the hyperbole that so often accompanies such lines of criticism [via Radio WAOI]. Examples?
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