GM prepares its getaway (i.e., IPO) – The @Economist reads the future

August 13, 2010 at 4:35 pm

Alright..That’s two straight quarters of stellar performance in a crazy economic climate with consumers holding onto their wallets tightly. Does this mean GM got out of the dark? Probably! But the million dollar, unanswered & unclear question: – what’s next for the behemoth as it gets ready to jettison the old image and launch into the future? The economist dives into educating us with what’s ahead for GM…

Amplify’d from www.economist.com

ED WHITACRE, a former head of AT&T who took over the reins at General Motors last December and who yesterday announced his own imminent departure, deserves a small round of applause for what he has achieved. Just over a year ago, GM was taking its first faltering steps on the road to recovery, as it emerged from its government-orchestrated “quick-rinse” bankruptcy. But despite shedding debt, dropping several brands, shrinking its bloated dealer network, cutting jobs and securing concessions from those workers who remained, there were still plenty of sceptics.

Could a company that had lost $88 billion in the four years to 2009, had only been kept afloat with $60 billion from American and Canadian taxpayers and which had become known as “Government Motors” really shuffle off its culture of failure so easily? However, after reporting net earnings of $1.3 billion for the three months to the end of June yesterday—the carmaker’s second profitable quarter in a row and its best since 2004—the evidence that “New GM”, as it likes to call itself, is a different business is mounting. So much so that later today or early next week, the company is expected to file an S-1 registration document with the Securities and Exchange Commission, paving the way for an initial public offering before the end of the year.

Read more at www.economist.com

 

TransportGooru Exclusive: The Road Worrier Column by Glenn Havinoviski — Business as Unusual…

October 9, 2009 at 2:57 pm

Glenn N. Havinoviski is Associate Vice President for Transportation Systems with Iteris, Inc. in Sterling.  He was President of ITS Virginia from 2006 to 2007 and has been a columnist for the ITSVA Journal since 2002.

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Imagine, if you can…

Intelligent transportation systems are on their last legs in Virginia.  There is no political support for congestion reduction measures that require any kind of budgetary investment.  There is no popular desire for new measures to provide more travel choices, like express buses, rapid rail, or HOT lanes.  No one really cares to see travel time information along the road or any information about accidents or closures.  We’d rather spend more time in traffic so we can talk and text and Tweet on our cellphones, thus causing more accidents.

And hey, now they’ve got iPhone apps for traffic information, which give you nice green, orange and red lines over Google Maps!  COOL!  Who needs those electronic signs and cameras and service patrols and control centers that are run by the Marxists anyway?

Hey!  Let’s get rid of VDOT!   And how about that big Federal bureaucracy which doesn’t do anything!  We Virginians are resourceful.  The roads might crumble but we can all buy big American SUV’s again and go off-roading and impress each other at church on Sundays!  And they can tow boats too, for when all the bridges fall down. Look at all the American jobs this creates! We can take our kids to our private schools in the woods that don’t require state funding, which is fine since we also want to get rid of those so-called public schools anyway!  All kids need to learn is the Bible and the Constitution, except for those last 15 amendments!

And who needs to worry about oil?  We’ll just drill here, drill now, on the shores of the Potomac!  Heck, let’s drill off Virginia Beach!  We all go to the Outer Banks and Hilton Head anyway!  We can deport all the immigrants, and suddenly it won’t  be so crowded on the roads!  No more smelly buses either! Let the French have their trains! We won’t need any more Statist engineers and planners to tell us what to do! Problems solved!  “Carry me back to old Virgininny….”

Scary, huh? What about this scenario instead?

(Approved Press Release) The USDOT Office of Public Benefit, as directed by the President upon his signature of the Omnibus Reauthorization Welcoming Enhanced Life and Liberty in 2010 (ORWELL 2010),  has suspended all transportation projects funded in part or entirely by private sector entities, except for those providing rail-based transit services to corridors of population density less than 50 persons per square mile. In all cases, maximum fares and rate of return for shall be unilaterally set by the President’s Private Sector Compensation Czar.

Under the provisions of ORWELL 2010, all road tolling in the United States shall be ceased as of March 12, 2011, at which time all state departments of transportation and public, semi-public and private transportation authorities and their assets will become subject to USDOT jurisdiction.

All traffic signals, cameras, sensors and other electronic infrastructure commonly associated with so-called “Intelligent Transportation Systems” that are not powered by recyclable farm organisms shall be removed from public right-of-way by January 1, 2011.

ORWELL 2010 has decreed that all limited-access highways which have not otherwise bio-degraded or collapsed onto themselves shall be redesignated as Advanced Non-Individual Managed Access Lanes (ANIMAL) facilities.  An ANIMAL shall not permit access to individually-driven vehicles, via tolls or otherwise,  but will permit properly-licensed buses, bicycles, solar powered vehicles, Harley-Davidsons, and Toyota Priuses.

Henceforth, on all non-ANIMAL facilities, all travel containing less than four passengers in (or on) a motorized vehicle will be permitted between the hours of 10 pm and 5 am Monday through Friday, and for six non-contiguous hours on Saturday and Sunday to be individually approved by someone in USDOT.

ORWELL 2010 has mandated that all residents of a State, US territory, or possession, shall reside in an urban center of 50,000 population or more unless they can demonstrate they are excluded or protected entities including organic dairy farmers, custodians of wind farms, Native Americans, Members of Congress, or mammals.

All fuel taxes will be increased to a nominal rate of $25 per gallon also effective January 1, 2011, the proceeds of which will be used to build passenger rail lines on urban streets and also to demolish any housing more than 10 miles from an urban center of more than 50,000.  All families will be given 6 months to acquire dwellings within government-designated smart-growth areas,  with dwelling sizes not to exceed 150 square feet per human, or 250 square feet per dog, up to a maximum of 826 square feet.

All cats shall be permitted to roam freely within the smart growth zone (please refer to ORWELL 2010’s companion legislation, “Pelosi-McCain Feline Freedom Act”).

All broadcast, satellite and cable television and radio stations along with electronic and material mailings which present viewpoints which are contrary to the regulations and mandates stipulated in ORWELL 2010 shall be reported within 4 hours to the Office of Public Benefit, under penalty of prosecution.

“Kumbaya….”

How far are we from either of these?  Really!

After all, we are in a battle for hearts and minds,  not to mention money.  ITS and congestion management seems to be lost in the shuffle here.  Take a look at what is really happening.

For example, Arlington County has recently sued the Feds and the Commonwealth over the proposed project on I-95/395 to expanding and convert the existing HOV lanes to High-Occupancy Toll lanes, demanding the overturning of the project’s environmental Categorical Exclusion and suspending the project until their objections (notably not enough emphasis on transit, potential harm to air quality, concern about congested interchanges and local roads as a result of the project) were satisfied.

And, although years ago families saw that Arlington had run out of room and housing stock and had no choice but to move farther out, the County said “the project actually encourages additional sprawl, further exacerbating traffic congestion and harmful air emissions.”  Chickens or eggs first?

(I can’t help but think back to that California Air Resources Board study in the 1990’s which effectively said that congestion was good because fewer cars can use the road and people travel slower.  Guess we can’t win now.)

On the other hand, several freedom fighters from the “additional sprawl” in Prince William County have complained that HOT Lanes would endanger their sluglines, as people who picked up riders for their trips to the Pentagon would now selfishly pay tolls and drive by themselves, while the jilted slugs had to make do with taking the lowly bus instead.

Never mind all this counterpunching flies in the face of the HOT lane successes (from both a revenue and a congestion reduction perspective) in California, Utah, Colorado, Texas, Washington and Minnesota,  a coalition of red and blue states if I’ve ever seen one.  And the I-495 HOT lanes construction, which has a much larger impact on the surrounding communities than 95/395 would, is surging forward.

But then again, we shouldn’t worry.  After all, we all know that ITS and congestion management are a significant means of reducing greenhouse gases and improving our environment, right?  It must be true, because we’ve been saying so for years.

Well, witness the big brouhaha over the “Moving Cooler” study for Urban Land Institute with support from USDOT, the Environmental Defense Fund, EPA, ITS America, and others, which was to provide some ammunition on projected benefits of various transportation and land use strategies in curbing greenhouse gases.  The study,  to many, has left more questions than answers.

The estimates for ITS, and operations benefits were said to be a cumulative 0.3 to 0.6% reduction over 50 years for all such systems deployed together, which angered many experts, including AASHTO.  But the other individual benefits for road pricing,  transit  and land use changes did not exceed 4.4% each, and for the most part averaged 1 to 2%.

So how, when the four areas are combined, was there a cumulative 18% to 24% reduction in GHG?  And how much will individual activities cost, especially when cumulative investment would be $50 to $80 billion per year for 40 years?!  The benefits, including “reduced travel and reduced fuel consumption” did not get contrasted with any opportunity costs (e.g., relocations, additional percentage of income devoted to taxes, job shifts or losses, etc) associated with redefining our life styles. So the actual personal costs may add to the already substantial investment, either by or mandated from government.

Considering Virginia legislators haven’t been willing to make the investment in even a rudimentary transportation improvement program in the state,  this would mean we’re headed toward a giant Federal involvement in our society with all the attendant issues that brings, like constitutionality.

I attended the “Moving Cooler” media and political event in Washington in late July, presided over by several legislators (notably Rep. Oberstar-MN, Rep. Blumenauer-OR, and Sen. Menendez-NJ).  I was also surrounded by many people in small bow ties and luminescent plastic bicycle medallions on their lapels, so we do know that land use, bicycles and transit were a big deal, and we were repeatedly told that the Dutch and the Danes do over 30% of travel by bicycle, and that the Spanish and Chinese had exemplary national rail investment programs.  And we all need to be just like Portland, Oregon,  OK.

So do we only have a choice between “spend no money, everyone on their own, God Bless America”  and  “shame on you, greedy and slothful suburbanite, come live in our dense community, ride your bikes and take the trolley powered by electricity produced by some coal plant far enough away it doesn’t impact us”?    In reality,  we are faced with both situations happening, depending on what state or community you live in.  There may be a choice between these two.  But if we are not careful, there may not be any choices in between.

This combination of willful abandonment of a public sector role in our infrastructure (right wing) and direct control of our private lives and wealth (left wing) are a scary combination, and one we have to address with reasonableness, pragmatism, and the best that technology can offer.  As always, we need to push some simple facts about ITS and clear-headed transportation management strategies, which I think more than other can provide tools that keep us from descending into an abyss we cannot control.  In other words, Virginia (and other states) must step up, or get stepped on.

The key words we must use are CHOICES,  QUALITY, SAFETY and MOBILITY.   ITS enables all of these things.

ITS provides the information so travelers can make choices on when, where and how to travel, and can achieve them through alternatives that are priced based on relative convenience and utility.

ITS improves the quality of transportation services by providing timely information about their operational status, as well as actively managing the operation of the freeway, the arterial (including the bike lane or bike path) or transit service through messaging, signals, vehicle monitoring, dynamic road pricing, etc. to reduce delays.

ITS improves safety by improving information by advising of the otherwise unexpected (incidents, delays,  speed reductions needed because of weather/pavement/operational conditions, and if IntelliDrive becomes reality, various warnings of conflicts at intersections).

And finally,  all of this facilitates the ability for individuals to travel when and where they want or need to, enhancing personal mobility. It also enhances interstate commerce, which is an integral purpose of our Federal government.  It says so in our Constitution.

To me, mobility is an essential part of freedom, whether you are red or blue.

Some places may choose to barely maintain their overworked, underfed transportation networks and not invest. Some others may be willing to make enormous investments which may impact the public significantly, and force them to make lifestyle changes which may or may not be in their own self-interest.  Either way, we have to balance self-interest and the common good.  And ITS should be a part of the overall solution.

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Disclaimer: All opinions expressed are those of the author.  TransportGooru is proud to invite anyone and everyone who wishes to use this platform to engage the community in a social dialogue, there by creating a healthy debate on some of the pressing transportation issues that affect our quality of life.   Please register your comments below for the author so that he can hear the community’s voice on the issues he has addressed in the above paragraphs.

A (Temporary) End of Privatization? Politics and the Financial Crisis Slow the Drive to Privatize

June 9, 2009 at 10:44 pm

(Source: New York Times & Planetizen)

It was hailed as the solution to America’s infrastructure spending deficit, but the influx of private funds has come to halt along with the failure of banks and the huge investment from the Recovery Act. Plus, many schemes aroused taxpayers wrath.

“Privatization, the selling of public airports, bridges, roads and the like to private investors, looks like a boom that wasn’t.

What happened? The financial crisis, for starters. The easy money that Wall Street was counting on to finance its purchases has largely disappeared. Then the Obama administration unintentionally damped interest with its $787 billion economic stimulus package, a windfall that local governments are now racing to spend.

Now the deals are falling apart. In April, a much-anticipated $2.5 billion plan to privatize Midway Airport in Chicago collapsed after a group of investors was unable to obtain debt financing. The deal, which had been in the works for four years, was to have been the first in a Federal Aviation Administration project that would have allowed up to five major airports to move into private hands.

The biggest was the failure last fall of the largest deal proposed to date — a $12.8 billion lease of the Pennsylvania Turnpike. Postmortems into that failed effort show that privatization advocates vastly underestimated the political opposition the deal would stir up in the Pennsylvania legislature.

Late last month plans to privatize “Alligator Alley,” a 78-mile stretch of Florida highway that connects Fort Lauderdale with Naples, collapsed when no bidders showed up. The failure has had a ripple effect — in Mississippi, state officials have pushed back the bidding schedule for a new 12-mile toll road.

Then there is the $1.2 billion privatization of 36,000 parking meters in Chicago. In the five months since the deal took effect, widespread complaints about poor service and rising parking rates have created a political firestorm for the Chicago City Council. Public opposition was so strong that on Wednesday the council approved a delay in voting on any future asset sales.

Chicago public officials have called the work of the private operator, Chicago Parking Meters L.L.C., “simply unacceptable.” For its part, the operator has apologized and announced it would delay price increases at the meters.

Proponents of public-to-private asset sales point to the $1.8 billion lease of the 7.8-mile Chicago Skyway in 2004 and the $3.8 billion raised by Indiana through a 75-year lease of its toll road in 2006 as successful pioneering efforts.

In Indiana, the money went to pay for a 10-year highway infrastructure program, and Gov. Mitch Daniels was re-elected last year promoting the lease, despite bumper stickers that read “Keep the Toll Road, Lease Mitch.”

The stimulus money, as well as other infrastructure money promised by Congress, has provided temporary relief for cash-poor municipalities. But this situation will not last forever.

“They still have expenses, and revenues will not keep up,” Scott Pattison, executive director of the National Association of State Budget Officers, said of state and local governments. “Some states will have to look at asset sales and decide. Once we step back from this crisis mode, I think they will be looked at again.”

Click here to read the entire article.

Scooters, motorcycle makers get stimulus shot

May 11, 2009 at 1:01 pm

Roger Taillon test drives a new at Vespa at Vespa of Newport Beach in Newport Beach, Calif., Saturday, April 18, 2009. Under the federal stimulus package, taxpayers can deduct sales and excise taxes on the purchase of a new motorcycle or scooter, and get a 10 percent federal tax credit if they buy plug-in bikes. (AP Photo/Chris Carlson)

(Source: AP)
Sales of motorcycles and scooters shifted into high gear last year when gas prices soared. Then recession-wary consumers hit the brakes.
Now, like so many other industries, the makers of two-wheeled, fuel-efficient bikes are relying on tax breaks offered in the federal stimulus package and other incentives to get sales moving again, while easing gas consumption.

“Even before we quote the price, we tell people how much they can get off the bike,” said Jeff Bosco Biafore, a salesman at the San Jose Motorsport Scooter Center in Northern California.

Under the stimulus plan, the same provision that lets taxpayers deduct sales and excise taxes on the purchase of a new car or truck also applies to a motorcycle or scooter. They also can get a 10 percent federal tax credit if they buy plug-in bikes.

Before the federal incentives kicked in Feb. 17, California offered a $1,500 rebate for certain electric scooters, but there were so many applications that funding for the $1.8 million program for alternative fuel vehicles ran out.

Recently, state air quality regulators approved an additional $5 million in grants for plug-in cars and motorcycles.

With a new job that stretched her commute from 10 to 40 miles a day, freelance film and television editor Cindy Parisotto says she is considering an electric scooter to reduce her commuting costs and carbon footprint.

She’s interested in an electric scooter from Vectrix Corp. that has a top speed of 62 mph and a range of at least 35 miles per charge. She would need to charge the bike everyday, but Parisotto says she figures her electricity bill will be lower than what she spends on gas.

The $10,000 bike also comes with a $450 rebate from the company, meaning she could save about $2,000.

One analyst says the tax breaks, especially for non-electric models, aren’t enough to make a difference.

“It’s a bit of a break, but it may not be enough if you lost your job or if there’s a lot of pressure on your paycheck,” says Robin Diedrich, senior consumer analyst for Edward Jones. “You don’t buy a motorcycle because of $300 in tax savings.”

The cost of a new scooter ranges from $1,000 to $10,000, while motorcycles can cost anywhere from $3,000 to more than $10,000, depending on the model.

The Road Worrier: A Time To Stimulate, And A Time To Innovate

May 6, 2009 at 1:29 pm

(Source: Glenn Havinoviski, Columnist @ ITS Virginia)

Glenn N. Havinoviski is an Associate Vice President and ITS Group Director for HNTB Corporation in Arlington, Virginia.  In his recent column on ITS Virginia’s quarterly Newsletter, Glenn discussed his views on the stimulus funding towards transportation projects and their impact on ITS, jobs, etc.  Here is an excerpt from the PDF version attached here.  

You gotta hand it to the new President. In less than four weeks,he got his way, running roughshod over a political opposition unableto develop or convince others of their own vision and ideas. Uncle”O” signed into law a $785 billion stimulus, an ode to the power ofhope, change and the ability to print lots of money. In Virginia alone,some $700 million will be provided for “shovel-ready” transportationprojects, to be selected in the next few weeks by state officials.Among those projects will be several initiatives related to trafficmanagement, operations and ITS. While the purpose of the stimulusis first and foremost the creation of new jobs, closer to home I knowit may preserve some existing jobs.While I believe this example of Federal largesse will end upbeing more a historical exception rather than the rule, we’ve alreadythrown a like amount at the banks and the struggling auto industry,courtesy of Mr. Obama’s wayward predecessor.So far, it is unclear what that money has gotten us. Banks stillwon’t make loans, GM still can’t sell cars, and too many bank executivesare still partying in Vegas and elsewhere. The toxic assets arestill toxic, and still dwindling in value, seemingly by the hour.

With the horrendous transportation funding cut-backs at thestate level and limited support from elected officials, VDOT hasbeen forced to create an austere vision, one which emphasizesoperating what we have, as opposed to ramrodding a programcontaining projects which in many cases have been deferred acrossseveral lifetimes. The new-look Federal government may be seekingto bankroll a future transit and clean-energy vehicle utopia. But Virginia, as with many other states, has been economically forcedto be more pragmatic with their own money and make very hardbut practical choices.

With all the excitement over a suddenly activist Federal government,what is in danger of getting lost in the mix has been theprogress made in the last decade toward innovative use of resources- including partnerships to leverage both government and privateinvestment, using tolling and road pricing both as revenue streamand as demand management tool, and development of a networkof vehicle-roadside communications for both safety and mobilityapplications.Such approaches to transportation improvements heavily dependon collection and monitoring of real-time information, alongwith electronic payment services and dedicated short-range communications(DSRC). They also create new opportunities for jobs,as well as new markets for information and technology services.No question that they could benefit from, but are not completelydependent on, the largesse of the young handsome Uncle “O” anda largely (but not completely) sympathetic Congress. “

US Transportation Secretary LaHood cites stimulus money success

April 29, 2009 at 7:07 pm

The federal government has already committed nearly $11 billion in stimulus money to help get road, bridge and environmental projects off the ground, administration officials told Congress on Wednesday.

“I believe we have already achieved enormous success,” Transportation Secretary Ray LaHood told the House Transportation Committee, giving a progress report on infrastructure money allotted under the $787 billion economic stimulus bill passed in February.

Lahood, a former Republican congressman from Illinois, told the panel his department had made decisions on $9 billion dollars in projects around the country out of Transportation’s $48 billion share of the stimulus package.  However, he was less specific about the jobs directly resulting from stimulus spending.

It was originally estimated that the $64 billion in the stimulus for infrastructure — for transit, high speed rail, aviation, federal buildings and Army Corps of Engineers projects as well as roads and bridges — would create or sustain 1.8 million jobs.

But so far, reports on new jobs were mostly anecdotal. The Transportation Committee said its survey of state and local transportation officials revealed that work had begun on 263 highway and transit projects in 30 states, putting about 1,250 workers back on the job.

D.J. Stadtler, Jr., chief financial officer for Amtrak, said it expected to produce about 4,600 jobs in the first year of the stimulus with investment of $1.3 billion.

Unemployment in the construction industry soared to nearly 2 million in March, about 21.1 percent compared with 13 percent a year ago.

Rep. John Mica of Florida, top Republican on the committee, questioned the job-creation effectiveness of the program, saying some projects might take three to four years to get off the ground. But he said he would withhold judgment, saying, “We have to give folks a pass at this juncture.”

The Government Accountability Office, in a report prepared for the hearing, also raised questions about the ability of states and Washington to track how the money is being spent. But it gave some states high marks for moving the money quickly.

The Transportation Committee said that, as of April 17, states had received approval for 2,163 projects, about 25 percent of the $27.5 billion.

Also:

_The Federal Transit Administration has awarded five projects totaling $48.6 million and has another 109 grants totaling $1.47 billion pending review.

_The Federal Railroad Administration has approved 52 Amtrak capitol improvement projects worth $938 million.

_The administration is to announce plans by this summer on awarding projects for $8 billion in high speed rail development.

_The Federal Aviation Administration has announced more than $1 billion in tentative spending for runways, aprons and terminal improvements.

_The General Services Administration has a plan for investing $5.55 billion, including $4.3 billion for a green building program.

(Source: AP)

Sprinting for “green” stimulus dollars, plug-in hybrid manufacturer brings vehicles to Washington, DC; invites law makers to test drive

April 20, 2009 at 6:52 pm

(Source: New York Times)

AFS Trinity

The chase for stimulus dollars now includes a sprint up Capitol Hill, quite literally.

The stimulus package has $2.5 billion for batteries and hybrids, and one of the many companies seeking a slice, AFS Trinity, arrived in Washington on Sunday with two Saturn Vue S.U.V.’s — “crossover” vehicles that General Motors sells as hybrids, but which AFS Trinity has extensively modified as plug-in hybrids.

The company is inviting members of Congress and their employees to drive them, and a favorite stretch is a steep hill up Constitution Avenue on the north side of the Capitol building.

AFS Trinity, of Bellevue, Wash., added two kinds of batteries to the Vue: A bank of lithium-ion batteries with 16 kilowatt-hours of usable storage (enough to go more than 40 miles), and a small bundle of ultra-capacitors — devices that hold only a little bit of energy, but can deliver or accept it very quickly.

The ultra-capacitors smooth out the start-and-stop flow of that comes with everyday driving, buffering the main batteries in a way that extends their lifetime. And they deliver real “vroom,” even though the electric drivetrain is silent.

The original Saturn comes with a four-cylinder, 170-horsepower gasoline engine. As a plug-in, normal practice would be to charge the battery overnight and drive around without the engine for the first 40 miles or so, but AFS Trinity put a button near the cigarette lighter. Push it, and the electric motor kicks in, creating a 370-horsepower street rod.

The vehicle can also run in gasoline–only mode. And it can run in something called “charge-depleting mode,’’ in which it uses electricity from the battery to assist the gasoline engine. In that mode, it gets 68 miles a gallon, the company said, and it can operate that way for 60 miles — far longer than most peoples’ daily drive. 

From the outside, the prototypes look like ordinary Saturn Vue’s, except for the big lettering on the side that announce them as 150-mile-per-gallon vehicles (that number assumes the owner drives it in all-electric mode most of the time).

Edward W. Furia, AFS Trinity’s chief executive, is looking for $40 million to build 100 cars, probably for use by a government agency like the Postal Service, then $200 million for the next thousand vehicles. Eventually he would like $1.3 billion to re-tool a GM factory to produce hundreds of thousands of plug-in hybrids. The company’s long-term plan is to produce vehicles with a price premium of $8,000 above the cost of the regular, nonhybrid version. If it could reach that point, the consumer’s extra investment might be quite small, after federal and state tax credits.

Japanese stimulus: Government subsidizes tollroad travel

March 31, 2009 at 5:12 pm

(Source: TOLLROADSnews.com)

Japanese tollroads have put into effect discounted tolls under a huge subsidy program from the central government. The discounts came into effect on bridges March 22 and on most expressways March 28. The discounted tolls were a centerpiece of an economic ‘stimulus package’ prime minister Taro Aso announced last October.

The traffic stimulus measure is touted as helping revive highway travel which is down about 4%, and to revive associated spending on gasoline and diesel fuels, car service, hotels, new cars and electronics. However it is also obviously influenced by lobbying and PM Aso’s desire for public acclaim. 

The measure announced as lasting two years and Y500b ($5b) has been set aside in a supplementary Japanese Government budget, but the subsidy program may end up costing a whole lot more. Meanwhile airline and rail interests complain the measure will take customers away from them.

The most spectacular discounts come on the interurban ticket or trip-based toll system run by the three regional expressway companies. Here a maximum toll of Y1000 ($10) is now in effect weekends and holidays for vehicles equipped with a transponder. This greatly encourages long trips by car.

Shinkansen or ‘bullet train’ bookings are expected to drop away.

Tokyo to northern Honshu, for example, a distance of over 400 miles (700km) normally costs about Y14k ($140) for a car but will be tolled the new maximum Y1000 toll or $10 at weekends. There are also major savings on a popular interurban run between Tokyo and Nagoya of 325km (200 miles) on the Tomei Expressway. It usually costs Y7100 ($71) in tolls so there’s a saving of Y6100 ($61) or 86%.

On many urban expressways with a single barrier toll on entry the toll is being reduced from Y700 ($7) or Y800 ($8) to Y500 ($5). Under the crude toll-on-entry ramp the toll paid is already a flat rate regardless of distance traveled. 

The government’s aim in paying for the toll discounts is apparently to generate more travel when roads are relatively uncongested. 

The discounts range in size. Some Tokyo metro area tolls are only discounted at night 10pm to 6am, some Sundays and holidays.

On Sundays and holidays, the Tokyo Metropolitan Expressway will charge Y500 ($5) on several Tokyo routes, down from the current Y700 ($7). The toll on its Kanagawa ‘lines’ will be cut to Y400 ($4) from Y600 ($6), while on the Saitama line will be reduced to Y300 ($3) from Y400 ($4).

Tolls on the Hanshin Expressway in the Osaka region will be discounted on full weekends and national holidays. Hanshin’s east lines will be Y500 ($5) from the current Y700 ($7), and the west and south lines will be Y350 ($3.50) from Y500 ($5).

In April there will be more discounts in the form of credits for tolls paid on other systems for long journeys through multiple toll companies roads. 

Click here to read the entire article.

Ultimatum Issued: Gov’t rejects automaker restructuring plans, new deadlines set

March 30, 2009 at 12:41 pm

(Source: Autoblog; Image: Doug Mills @ New York Times)

 

President Obama has just finished his press conference on the government’s determination of the viability of General Motors and Chrysler, and the gist is that both automakers have failed to convince the feds that their business plans deserve further investment. Obama and his task force will give GM enough working capital to survive another 60 days and prove its viability, though no dollar amount was given. Chrysler, meanwhile, is being given another 30 days and working capital up to $6 billion to finalize a partnership deal with Fiat. If a deal can’t be made and another partner is not found, Chrysler will get no more federal aid. Also, Fiat won’t be allowed to take a majority stake in Chrysler until the automaker repays all the money it has borrowed from the government so far. 

Perhaps the biggest news from the press conference is that the U.S. government will now fully back the warranties on vehicles sold by General Motors and Chrysler in the hopes that buyers will continue to consider their products amidst these tumultuous restructuring efforts. Also, the President has pledged to work with Congress to find funds to pay for a U.S.-version of the Cash for Clunkers program that has been so successful in Germany. 

BREAKING NEWS Report from WSJ: The Obama administration’s leading plan to fix General Motors Corp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter.

Click here to read the entire article.  Also, shown below is the PDF version of Restructuring Fact Sheet  compiled by The Truth About Cars.

Stimulus rules may stymie transportation projects; State recipients worry

March 26, 2009 at 6:10 pm

(Source: Boston Globe)

Mass. officials say public works that would have the biggest impact – and create the most jobs – may be left out

Governor Deval Patrick’s administration has determined that dozens of worthy projects are not eligible for federal stimulus money because the US government has dictated that only certain types of public improvements can be funded, even if they have limited economic potential.

That means the initial round of stimulus spending may generate fewer jobs than Massachusetts officials had expected.

When it approved the stimulus package, Congress restricted the use of about $800 million of transportation funds to projects that have been included on a list of public improvements states put together annually. It often takes years for a project to work its way onto that list.

In Massachusetts, many of those projects are simple jobs – paving roads or fixing sidewalks – and usually do not trigger another round of associated development that would employ a larger number of people. The congressional restriction prevents Patrick from using the money for some larger highway and transit upgrades that aren’t on the list but that would spur development of homes, office parks, and retail stores.

Click here to read the entire article.