Cash for Clunkers Update: Bill hits Speed Bump in the Senate;Hyundai Top Beneficiary of UK’s”scrappage” plan; Global sales slump reported

June 18, 2009 at 2:32 pm

(Source: Detroit Free Press, The Detroit News, The Auto Channel, The Examiner, EEtimes.com)

Cash for Clunkers hit a speed bump Tuesday, June 16, 2009, in the U.S. Senate. It appears some Senators have “bailout fatigue” in general and “auto industry bailout fatigue” in particular. According to The Detroit News, Republican Senators are pushing back, citing the $85 billion in aid already provided to prop up ailing and bankrupt GM and Chrysler.

Image Courtesy: Apture

Some Democrats, including Diane Feinstien (D-California) also oppose the bill in its current form because they think it does not go far enough to improve fuel economy of vehicles on American Roads (there are, of course, Republicans in the opposition, but they oppose the measure because they think we’ve already spent too much money on the auto industry). As reported earlier, a Cash for Clunkers provision was added last week to a $106 billion bill to fund the wars in Iraq and Afghanistan. The idea was to attach a Cash for Clunkers provision to an existing bill already moving through the Senate so quick passage could be assured. Wrong.

Senators who support Cash for Clunkers need 60 votes to keep the Cash for Clunkers provision from being removed from the wartime funding bill. That could prove to be a problem.

Just hours after Sen. Judd Gregg, a New Hampshire Republican, denounced the inclusion of the cash-for-clunkers amendment as “unfunded baggage” on the war spending bill this evening, Senate Majority Leader Harry Reid delayed a vote until Thursday.

“It passes on new debt. Why would we do that?” Gregg asked in a floor speech. He said he would challenge the measure “at the appropriate time.” Senate Majority Leader Harry Reid delayed voting on the bill until Thursday.

Democrats control 58 seats in the Senate. But two — Edward Kennedy of Massachusetts and Robert Byrd of West Virginia — are ill. And Democrats led by Diane Feinstein of California have opposed the legislation as it stands, saying it does not do enough to boost fuel efficiency.

The legislation narrowly survived in the House, but for reasons mostly unrelated to the car-sales measure. Republicans were near unanimous in opposing the spending bill, objecting mostly to a provision that would boost International Monetary Fund lending.

“This bad legislation runs a con game on the American taxpayers and America’s military men and women,” said Rep. Mike Rogers, R-Brighton. He and five other Michigan Republicans voted no.

Michigan Democrat Debbie Stabenow urged quick passage of the stimulus.

“It will not help as a stimulus if it is done six months or a year from now,” she said.

If the Senate approves it, the measure will go to President Barack Obama for his signature. Then the National Highway Traffic Safety Administration will have 30 days to put regulations in place for the program which – under the war spending provision – will expire on Nov. 1.

In a related news item from across the Atlantic, Phakamisa Ndzamela writing for Reuters reported that South Korea’s Hyundai Motor Company has so far received the lion’s share of new car orders under the British government’s vehicle scrappage scheme, with sales boosted by an interest in smaller cars, according to figures obtained by Reuters.

The 300 million-pound ($491.9 million) scheme invites motorists to trade in cars more than 10 years old in return for a 2,000 pound subsidy to buy a new vehicle, in an effort to help an industry which has been severely dented by the recession.

The government earlier in the week said the scrappage scheme had resulted in 60,000 new orders in the period from April 22 to June 7.  Out of the 15 car companies in the UK that Reuters contacted, Hyundai was in pole position, stating that its latest figures, which covered the period from April 23 to June 7, amounted to 8,246 new orders

Ford came second in the number of car orders at 8,050 followed by Toyota at about 7,800 vehicles.  Following are company estimates of scrappage scheme new car orders covering the period April 22 to June 17:

  • Hyundai 8,246
  • Ford Motor Company 8,050
  • Toyota Motor Corp 7,800
  • Kia Motors UK 7,300
  • Volkswagen 4,591
  • Vauxhall 3,909
  • Nissan 3,202
  • Renault 2,600
  • Peugeot 2,500
  • Citroen 2,500
  • Honda 2,335
  • BMW and MINI 1,722
  • Mazda 1,355
  • Volvo 1,161
  • Chevrolet 950

EETimes.com reports thatcrisis in the global automotive market is far from over. In May, the European market fell by 5 percent against the same month last year. Nevertheless, within the region, local markets developed extremely different, with Germany adding 40 percent (in terms of units) and Russia declining 57 percent. The reason for the hefty differences were the public incentives for buyers who scrapped their old car and bought a new one in some countries.  The US market has declined by 37 percent over the first five months this year. In may, sales for light vehicles declined by almost 34 percent to 923.000 units.  In contrast to other countries, the incentives in the United States will be connected to the fuel efficiency difference between old and new car.  Japan also fared weak, with sales declining 17 percent in May and 22 percent for the first five months.  the emerging markets, the crisis was far less pronounced. Brazil added 3 percent, boosted by an incentive program. India declined 1 percent in May, but over the first five months the market developed slightly positive with a plus of 2 percent. In China, the economic stimulus package and the reduction of sales tax on cars led to an increase by 55 percent in May. In that month, in China 728.000 light vehicles were sold. Thus, the Chinese market has become extremely relevant for European and Japanese car exporters. As a comparison: The entire European market (not restricted to EC countries) had a volume of 1.3 million units.

In light of all that’s reported, it seems the U.S. politicans needs to do everything to promote Automobile sales, including the passage of this Cash for Clunkers bill.  Wrangling over the details of a bill that can spur auto sales could have some severe consequences on the economy.  Will they do it?  Let’s hope so!

“Greener Aviation” Technologies and Alternative Fuels Head AIAA List of Top 10 Emerging Aerospace Technologies

June 10, 2009 at 12:43 pm

(Source: Green Car Congress)

Image: via Apture

Off late, there is a big push within the Aviation industry towards a “greener future.”   More airlines are starting to test technologies and tweak approaches (such as use of biofuels) to attract the environmentally-conscious consumer. According to 700-page Stern Report on the economics of climate change, CO2 emissions from aviation are about 600-700 megatonnes per year, or about 2-3% of total global CO2 emissions.   Giovanni Bisignani, IATA’s Director General and CEO, in his State of the Industry address at the 65th IATA Annual General Meeting and World Air Transport Summit in Kuala Lumpur said the international airline industry is committed to achieving carbon-neutral growth by 2020.

Amdist all the buzz and fervor building up around the greening of aviation, the American Institute of Aeronautics and Astronautics (AIAA),  the world’s largest technical society dedicated to the global aerospace profession, with more than 35,000 individual members worldwide, and 90 corporate members, has released its first annual list of top emerging aerospace technologies.  Developed by AIAA’s Emerging Technologies Committee (ETC), the 2009 list comprises the following:

  1. “Greener Aviation” Technologies, including emission reduction and noise reduction technologies as usedin the Federal Aviation Administration’s Continuous Low Emissions, Energy and Noise (CLEEN) program, and the European Environmentally Friendly Engine (EFE) program and “Clean Sky” Joint Technology Initiative.
  2. Alternative Fuels, including biofuels, as promoted by the FAA’s Commercial Aviation Alternative Fuels Initiative (CAAFI), and the recent FAA grant to the X Prize Foundation to spur development of renewable aviation fuels and technologies.
  3. High Speed Flight Technologies, such as supersonic and hypersonic aerodynamics, sonic boom reduction technology, and thermal management aids.
  4. Efficient Propulsion Technologies, including open rotors and geared turbofans, such as those used in the European DREAM (valiDation Radical Engine Architecture systeMs) program.
  5. Active Flow Technologies, such as plasma actuators.
  6. Advanced Materials, such as nanotechnology and composites.
  7. Active Structures, such as shape memory alloys, morphing, and flapping.
  8. Health Management, such as monitoring, prognostics, and self-healing.
  9. Remote Sensing Technologies, including unmanned aerial vehicles and satellites such as those used inNASA’s Global Earth Observation System of Systems (GEOSS) program.
  10. Advanced Space Propulsion Technologies, including plasma-based propulsion such as the Variable Specific Impulse Magnetoplasma Rocket, and solar sail technologies.

AIAA’s list reflects the expertise of the members of the Emerging Technologies Committee, as well as the results of a specially commissioned study. The ETC is composed of three technical subcommittees: Aviation, Space, and Multidisciplinary and System Technologies.  ETC chair Dan Jensen stated, “The list provides guidance to AIAA for its institute development strategy, while helping shape the annual input AIAA provides to the United States Air Force Scientific Advisory Board. The technologies listed represent the aerospace technologies in which research and technology development is most active from a global perspective.”

International Benefits, Evaluation and Costs (IBEC) Working Group Seminar: Road Pricing Beyond the Technology – September 20, 2009 @ Stockholm, Sweden

June 9, 2009 at 11:39 am

Road Pricing Beyond the Technology

Sunday 20 September, 2009 @ 9.00 – 17.00

Radisson SAS Royal Viking Hotel, Vasagatan 1 SE-101 24 Stockholm, Sweden

PRELIMINARY PROGRAMME

(As of 4 June, 2009; Subject to Change)

Road Pricing is an economic instrument that can be part of a package of measures to address overall mobility. This is not a seminar about the technology of road pricing but about strategic objectives, policy, monitoring, measuring and managing of road pricing schemes which are the core values of IBEC. Be prepared for frank discussions!

The benefits of pricing include the immediate traffic impacts but also the economic and social benefits that effective pricing can generate. Of course these benefits vary widely depending on the type and scale of pricing. Systems that provide a « guaranteed » level of service, such as those that involve some form of variable pricing should help business and individual travellers to solve a key transportation problem of the 21st Century – reliability. Then, there are the environmental concerns; to what extent does road pricing provide a useful contribution to greenhouse gas reduction? But, it’s all got to be implemented, and road pricing has a public image problem to address also.

Key Issues

● What are the economic benefits of road pricing and how can they be measured?

● Can road pricing provide large scale and long-term economic stimulus for a 21st Century economy?

● How should we inform and consult with stakeholders?

● What about social equity – do we understand the social distribution of costs and benefits?

● How should we manage politics and public expectations?

● Are HOT lanes a step in the right direction or a dangerous distraction?

● What have we learned from current efforts at implementation?

● Where have real benefits been delivered and what have we learned from the failures?

Time Schedule

9:00 Welcome

9:15 Session 1: What each region is doing in Road Pricing

This session will provide an international survey of Road Pricing policies and activities from around the world. More than being descriptive, each speaker will put developments into context by explaining transport objectives and how pricing is seen as a tool to address the transport challenges faced.

Chaired and coordinated by Alan Stevens, TRL, UK

10:45 Break

11:00 Session 2: Deployment challenges in relation to Stakeholders

Public acceptance is crucial for road pricing success. In this session, experts from the Road Pricing community will describe the challenges of informing and consulting stakeholders, particularly transport users, about the benefits of pricing.

Coordinated by Jane Lappin, Volpe National Transportation Systems Center, USA and Amy Ellen Polk, Citizant, Inc., USA

12:30 Buffet Lunch at the Fisk restaurant

13:15 Session 3: Evaluation challenges

This session will consist of presentations and discussion of Road Pricing deployment and evaluation challenges and how can these challenges be overcome. This will include a wide range of issues and all workshop attendees are invited to participate in the lively discussion that is anticipated.

Chaired and coordinated by Steve Morello, Egis Projects, France

14:45 Break

15:15 Session 4: Business case for society

This session will tackle the broad macro view of the economic and other benefits to society of road pricing and how we can tell if we are doing a “good job”.

Chaired by Kevin Borras, Thinking Highways, UK – Coordinated by Dick Mudge, Delcan, Inc., USA

16:45 Wrap-up

17:00 End of seminar

Registration Fee and Payment:

Fee: € 75 incl. taxes (approx. SEK 793 based on 5 May, 2009 exchange rates on www.xe.com).  It includes seminar materials, 3 coffee breaks and lunch at the venue restaurant.

For registration and other related event information, please contact:

Odile PIGNIER – Harmonised Events – Email: odile@harmonised-events.com

Tel: +33 (0)2 41 54 76 30 – Fax: +33 (0)2 85 52 00 08

Find more information @: www.ibec-its.org

The International Benefits, Evaluation and Costs (IBEC) Working Group is a cooperative working group set up to coordinate and expand international efforts, to exchange information and techniques, and evaluate benefits and costs of Intelligent Transportation Systems (ITS). IBEC brings together the best knowledge and experience and is the focal point for discussion and debate of interest to the international ITS evaluation community. IBEC encourages more effective use of ITS evaluation information so that decision-makers can make more informed ITS investments.

Tata Nano Likely U.S. Bound in Just Over Two Years

June 7, 2009 at 10:55 pm

(Source: Autoblog & Autoweek)

Americans may have the opportunity to welcome the Tata Nano to their shores in just over two years, according to a confirmation from David Good, a U.S. rep for the Indian automaker. Before it arrives, Tata assures that the ultra-cheap compact with a base price of just $2500 will be configured to meet all emission and crash standards. If successful, we could see see versions of the Indian microcars running on biofuel and diesel.  This begs the question whether the price point will continue to stay around $2500 even after meeting such stringent safety and emissions requirements? Probably not! It is safe to say that the price would be a little less than $5000  – the expected price of the Euro version.

But who will distribute the teensy Tatas? Well, that’s up in the air right now. A brand-new dealer network for the brand has been discussed. Another option would be selling the Nano through Jaguar and Land Rover dealerships — the Indian automaker owns both, after all.  But this option seems highly unlikely,  according to Stuart Schorr, a spokesman for Jaguar Land Rover, who dismissed the rumours.

A larger European version is slated to debut in 2011, and has an upgraded engine that could get 67 mpg. That car is still expected to come in at less than $5,000.  Tata would be the second Indian company with cars on U.S. streets. Global Vehicles U.S.A. Inc. of suburban Atlanta plans to introduce pickups made by Mahindra & Mahindra Ltd. later this year.

Now pay $7.50 for printing your airline ticket at your own home! Another Ridiculous Fee From the World’s Cheapest Airline

May 18, 2009 at 11:25 pm

(Source: Wired & TimesOnline, UK)

The tightwads at Ryanair have found yet another fee to foist upon customers already nickeled and dimed to death.

The airline widely renowned for being the cheapest thing going says it will start charging passengers £5 ($7.50) for the privilege of printing their boarding passes at home. It’s the latest brilliant idea from the folks who earlier this year suggested charging passengers to use lavatories. What makes this idea so absurd is it replaces Ryanair’s previous practice of offering free online ticketing as an alternative to checking in at the ticket counter – which costs you £10. Leave it to Ryanair to sell the new fee as a way to save money.

Image: Gizmodo

“For some passengers, yes, the price has gone up,” spokesman Stephen McNamara told the Times of London. said. “But for those used to paying the £10 airport check-in fee, the price has actually gone down.”

Unless you can’t print out your boarding card. Or you lose it. Then you’re looking at a £40 fee.

The airline says anyone who doesn’t have a printer should get a friend to print the pass for them or go to an Internet cafe in order to avoid a £40 fee.

“Online check-in is the future,” McNamara said, according to the Times. “My mother doesn’t have a computer, but would a person without an ATM card have been allowed to hold up the automation of the banking system?”

Ryanair’s move comes as the European Union forces the airline to be more honest in disclosing some of the fees and taxes it slaps on every ticket. Many of them are impossible to avoid, but Ryanair doesn’t make that clear when advertising its super-cheap fares. The Independent notes Ryanair will tack a £10 fee onto its “free” tickets if they’re purchased with normal credit or debit cards, but it doesn’t disclose that charge in the initial price. Combine that with other stealth fees and your free Ryanair flight can end up costing as much as £80 ($120).

According to the EU, the days of the £1 flight that ends up costing £59.99 after the taxes, fees, check-in and baggage charges are over — for half the airlines identified, anyway — and the opt-in boxes for extras such as insurance and priority boarding are no longer ready-ticked. In theory, consumers should see all taxes, fees and other compulsory charges at the beginning of the booking process and not on the bottom line.

“It is unacceptable that one in three consumers going to book a plane ticket online is being ripped off, misled or confused,” said the EU’s commissioner, for consumer protection, Meglena Kuneva. “There are serious and persistent problems with ticket sales throughout the airline industry as a whole. My message to industry is clear: act now or we will act.”

Ford and Honda reject UK’s ‘bangers for cash’ scheme

May 18, 2009 at 3:56 pm

(Source: Timesonline, UK & Autocar, UK)

A £2,000-a-car scrappage scheme aimed at kick-starting Britain’s depressed motor industry has hit trouble after a dispute between car companies and the Government over costs.

Manufacturers, including Ford and Honda, have told dealers not to register any new vehicles under the scheme, which is starting today.

Consumers are being offered £2,000 towards a new car if they trade in a motor that is at least ten years old.

The car companies said that they were seeking “clarification” from the Department for Business, Enterprise and Regulatory Reform (BERR) over “administrative” details.

The Government insisted that it had been clear on details of the scheme, under which manufacturers would pay £1,000 and the Government £1,000 towards the cost of the incentive.

However, the car manufacturers want dealers to share the cost.

The eleventh-hour hitch will come as a huge embarrassment to the Prime Minister, who had heavily promoted the “bangers for cash” scheme as the route to revitalising Britain’s depressed motor industry.

Gordon Brown and Lord Mandelson, the Business Secretary, visited a Nissan dealership today to talk to consumers signing up to the scheme.

Mr Brown said the £300 million project would prove “very popular” and “a great help to the British car industry.” It would help the economy to “move forward,” he said.

A BERR spokesman said: “Thirty-eight manufacturers have signed contracts with the Department which set out clearly that manufacturers provide £1,000 and the Government matches it.

“We understand several dealers are unhappy about the idea they should share the costs. The Government also needs to ensure VAT is paid in accordance with the scheme.”

Though the scheme was revealed in the Budget the final details emerged only at a meeting on Thursday, manufacturers said.

However, President of the AA Edmund King has pointed out that the £2000 incentive can be used as a deposit to help car buyers get finance. He added that the scheme would “transform the chances of survival in a crash for thousands of car owners” whose current old cars offer substantially less protection than newer models.

But Friends of the Earth executive director Andy Atkins said the scrappage scheme was “a lost opportunity”.

“A well-designed scheme could have played a limited role in cutting emissions from our roads,” he said. “But, unlike some other countries, the UK scheme doesn’t prevent motorists part-exchanging an old, small model for a brand-new gas guzzler.”

Business secretary Peter Mandelson visited a car dealership today to launch the scheme and said there has been a positive response from the industry.

“I am delighted by the response of the motor industry. Thirty-eight companies have signed up – all the major UK car manufacturers and a number of other companies. This means more choice for consumers and a boost for British brands. 



“The scheme has been met with a flood of enquiries from customers. It will provide a boost to the industry and kick-start sales.” 



The confirmed list of manufacturers who have signed up to take part are: Allied Vehicles, Bentley, BMW, Chevrolet, Citroen, Daihatsu, FIAT, Ford, Honda, Hyundai, Isuzu, Jaguar, Kia, Land Rover, London Taxis International, Mazda, Mercedes Benz, MG Motor, Mitsubishi, Nissan, Perodua, Peugeot, Porsche, Proton, Renault, Rolls Royce, SAAB, SECMA UK, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen, Volvo, Koelliker UK Ltd, Iveco Ltd, Chrysler and Renault Trucks UK Ltd.

Norway leaps ahead with its love for Hydrogen fuel – Dedicates 580 kilometer hydrogen highway

May 16, 2009 at 11:02 pm

(Source: Autobloggreen) & HyNor)

As the US government is cutting down its funding and research/deployment interest in Hydrogen-based transportation systens, Norway is thinking the exact opposite.  In an all out push, Norway is moving ahead with the deployment of a 580 kilometer highway peppered with hydrogen fueling stations.  One of the biggest questions surrounding hydrogen-powered vehicles right now is where to find an appropriate hydrogen pump, and looks like Norway has moved to answer that question by opening it up its first hydrogen highway.

This hydrogen highway is part of Norway’s HyNor project and stretches for 580 kilometers from Oslo on the eastern coast to Stavanger on the western North Sea coast. So far, the route consists of 12 hydrogen pumps, which is apparently sufficient to allow the Mazdas to be refueled along the way.

It is worth something and appropriate to mention a recent New York Times article titled “Norway Thrives by Going against the tide“, which articulates how Norway’s investment decisions for its future saved its economy from going bust, while the recession monster is shaking up the financial foundations of many Western economies, including those of US and UK.  The article points out “With a quirky contrariness as deeply etched in the national character as the fjords carved into its rugged landscape, Norway has thrived by going its own way. When others splurged, it saved. When others sought to limit the role of government, Norway strengthened its cradle-to-grave welfare state. And in the midst of the worst global downturn since the Depression, Norway’s economy grew last year by just under 3 percent. The government enjoys a budget surplus of 11 percent and its ledger is entirely free of debt.”

If the above mentioned investment decision is a good indicator to go by, Norways decision to invest in a hydrogen based transportation future seems foretelling and something worth noting, especially for the United States which just dealt a blow to hydrogen research by cutting down the investment.   The HyNor website notes the following: The HyNor Partnership and StatoilHydro are pleased to announce the official opening of the Norwegian hydrogen highway, HyNor, on 11 May 2009 at StatoilHydro’s new hydrogen station at Økern in Oslo. HyNor was opened by Norway’s Minister of Transport and Communications, Liv Signe Navarsete. H.R.H. Crown Prince Haakon of Norway joined the first stage of the EVS Viking Rally, from Oslo to Lier, together with internationally renowned race car driver Henning Solberg. The governing mayor of Oslo, Erling Lae, opened StatoilHydro’s new hydrogen service station at Økern, and Navarsete opened the hydrogen station at StatoilHydro’s service station in Lier.

The first hydrogen station was opened at Forus in Stavanger in 2006, the second in Porsgrunn in 2007, and now the two new stations are open in Oslo and Lier. HyNor has some 50 partners and manages a fleet of more than 50 hydrogen vehicles made by Mazda, Toyota and Think.

“We are very pleased to open up this hydrogen infrastructure for testing and demonstrating hydrogen cars. By doing this, we nurture our ambition to help implement hydrogen as a fuel in the transport sector,” says Anne Marit Hansen, Chairman of the board in HyNor. 

The EVS Viking Rally vehicles are the first to drive the Norwegian hydrogen highway. The rally commences with H.R.H. Crown Prince Haakon racing together with the famous Norwegian race car star Henning Solberg. 14 hydrogen vehicles, two plug in hybrid cars and 14 battery electric vehicles are starting in Oslo and will reach the beginning of the EVS (Electrical Vehicle Symposium) 24 in Stavanger on 13 May. Events will take place along the way in Porsgrunn, Grimstad, Arendal, Kristiansand, Lyngdal and Egersund. Another 10 battery electric vehicles will join the rally in Egersund. 

This is reportedly the first integrated network of hydrogen pumps in the world, and it’s a creation of Norway’s StatoilHydro, the company that installed the underlying structure as well. Future plans call for the highway to extend into the rest of Scandinavia, as shown in the map to the right. Afterward, the alliance intends to extend into Germany. For your information, Mazda has shipped the first Hydrogen RX8 REs to Norway, indicator of a strong response to the government’s interest in Hydrogen vehicles.  

Note:  A related article from NY Times articulates how California’s efforts to build a similar Hydrogen Highway has fallen behind. One of the leading investors in Hydrogen fuel research was the State of California.  Soon after Gov. Arnold Schwarzenegger (R) took office in 2003, he set in motion a campaign promise to build, by 2010, a “hydrogen highway” composed of 150 to 200 fueling stations spaced every 20 miles along California’s major highways.  In spite of the great interest, the hydrogen infrastructure has not expanded much since its inception.   the program has fallen short of expectations. With less than 10 months until the end of the decade, 24 hydrogen fueling stations are operating in California, most of them near Los Angeles.State officials say all this is part of what they now view, in the words of ARB spokesman Dimitri Stanich, as a “retooled” hydrogen highway.

“It’s very much alive,” Stanich said of the program. “This vision is still there. It’s just being groomed.”

Q&A: How the ‘cash-for-clunker’ plan would work

May 14, 2009 at 7:41 pm

(Source: USA Today & Image: Jalopnik)

As the American lawmakers are getting ready to pass the landmark “cash for clunkers” legislation, many of you are still left wondering what this legislation entails and how it will affect you.  The media chatter in the past has offered very little except that the legislation would provide federal vouchers of up to $4,500 for people to trade in their older vehicles for new ones that get better mileage.

Talk of the vouchers has kept some would-be new car and truck buyers on the sidelines, waiting to see whether they’d qualify for government help. So, for the moment, the idea is hurting sales. Based on interviews with lobbyists and congressional offices, the USA Today captured the details of this legislation in a nice Q & A format:

Image: Newsday

Q: What’s the idea behind “cash-for-clunkers”?

A: Supporters say it would replace older vehicles with new ones that use less fuel, are safer and pollute less. And it would give the struggling auto industry a sales boost.

Q: What’s the bill’s status?

A: It’s in a House committee and backed by the president. Senators from both parties are prepared to co-sponsor similar legislation as soon as this week.

Q: Sounds like a sure thing.

A: Not so. Environmental lobbyists, who don’t think it boosts fuel economy enough, might derail it or get it changed enough in the Senate that a compromise would take awhile.

Q: Any groups trying to keep it from being derailed?

A: You bet. Car companies, autoworkers, component suppliers and car dealers, among them. The House bill “will help jump-start auto sales and the U.S. economy, while also providing environmental benefits and increasing energy security,” says Ziad Ojakli, Ford Motor spokesman.

Q: What’s the price tag?

A: About $4 billion. The money is currently proposed to come from Energy Department funding included in the already enacted $787 billion economic stimulus package.

Q: If the House bill becomes law, how would it work?

A: The government would send up to $4,500 to the selling dealer on your behalf, if you:

1. Trade in a car that — this is a key point — has been registered and in use for at least a year, and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon.

2. Buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one (gets a $3,500 voucher). If the new one gets at least 10 mpg better, you get the full $4,500.

Example: Trade that well-worn 1985 Chevrolet Impala V-8, rated 14 mpg, for a 2009 Impala V-8 rated 19 mpg and the government will kick in $3,500. Downsize to Chevy Cobalt (27 mpg) or even a larger Honda Accord (24 mpg) and get $4,500.

Mileage ratings back to 1985 are at www.fueleconomy.gov.

Q: What about trucks?

A: It’s more complicated.

For standard-duty models — most SUVs, vans and pickups:

1. The old one must be rated 18 mpg or less.

2. The new one must be at least 2 mpg better for $3,500 or at least 5 mpg better for $4,500.

For heavy-duties (6,000 to 8,500 pounds gross vehicle weight rating):

1. The old one must be rated 15 mpg or less.

2. The new one must be rated at least 1 mpg better for $3,500, or 2 mpg or more for $4,500.

Work trucks (8,500 to 10,000 lbs.) don’t have mpg ratings, so age is the criteria. The old one has to be a 2001 model or older. And only $3,500 is available.

Q: Is it worth it for $4,500?

A: The assumption is that the people most likely to use the program would trade in cars worth less than $4,500. Thus, while not necessarily clunkers, most would be at least 8 years old.

Q: Can I combine these incentives with other offers?

A: Yes. For instance, you could trade for a hybrid and get the voucher, claim the hybrid tax credit and get dealer or manufacturer discounts. You also could deduct the sales tax, if any, on your next federal tax return.

Q: Would I ever see the $3,500 or $4,500?

A: No. It’s an electronic transfer from the government to the dealer. Dealers want to be sure the amount can be counted as cash from the buyer, which would help buyers get credit because they’re financing less.

Q: What does the dealer do with my trade-in?

A: Gives it to a salvage operator. The engine, transmission and some other parts must be destroyed so they can’t be reused. The idea is to cull fuel-thirsty, polluting drivetrains. Operators can resell other parts, however.

Q: What’s to keep me from buying a junkyard car for a few hundred bucks, getting it barely running and trading it?

A: The one-year-in-service requirement noted earlier. Lawmakers wanted to exclude the revival of so-called junkyard dogs, because they’ve already been taken off the road.

Q: What do I get if I recently bought a car that would have qualified?

A: The bill contemplates making the incentives retroactive to March 30, but it’s unclear how to find and junk cars that were traded in that long ago. Some might already be back on the road, driven by new owners.

Q: What’s wrong with environmentalists’ idea that the new car or truck should get much better fuel economy than the House bill currently requires?

A: Opponents say the environmentalists’ fuel-economy improvement thresholds are so high that foreign brands benefit disproportionately, because their lineups tend now to have more small, fuel-efficient vehicles.

But the American Council for an Energy-Efficient Economy complained in a statement criticizing the House bill that the proposal as it stands now is way too lenient.

The council charged that the bill “aims primarily to clear Detroit’s unsold inventory from the storage lots,” rather than to seriously cut fuel use.

Q: How soon could this become law?

A: Depends on how much critics can sway the Senate, and to what piece of legislation this “fleet modernization” bill is attached.

If it becomes part of a larger bill that’s likely to get lots of debate, it could take awhile. If it’s attached to urgent, must-pass legislation, such as an appropriation bill, it could move quickly to the president’s desk.

A current plan is to add the program as an amendment to climate change legislation now being considered.

As proposed, it would be in effect for just one year.

Congress set to OK cash-for-clunkers bill

May 14, 2009 at 7:21 pm

(Source: Detroit Free Press & Image: Jalopnik)

WASHINGTON — Congress appeared ready Wednesday to move forward on a bill to pay people to surrender their old gas-guzzlers for new, fuel-efficient models — but the auto industry hasn’t decided what it wants out of the program.

While backers of a cash-for-clunkers plan announced a deal earlier this month, the final bill has yet to be crafted because of a last-minute dispute between foreign and domestic automakers over incentives for leasing. Environmental groups aren’t thrilled with the compromise, saying it is weighted too heavily toward truck buyers.

But with House and Senate leaders, along with President Barack Obama, voicing support, industry officials say they are hopeful a bill that will boost a lethargic market for new vehicles will get through Congress in weeks. Backers say the compromise would cost about $4 billion — paid for by money from the economic stimulus plan passed earlier this year — and could boost sales by 1.3 million vehicles over a year, according to industry officials.

Owners of cars and trucks that get less than 18 m.p.g. could get a voucher of $3,500 to $4,500 for a new vehicle, depending on the mileage of the new model, but no trade-in value because the vehicles would be scrapped.

“This is a jobs bill that helps the environment,” said Ziad Ojakli, Ford’s group vice president for governmental affairs.

The plan does have several hurdles that will keep some potential buyers on the sidelines. The clunker being traded in has to be kept off the road — meaning it will have no trade-in value beyond the voucher. Far more trucks on the road will qualify for the vouchers than cars: even 15 years ago, only five models of midsize sedans managed just 18 m.p.g.

And while the compromise among U.S. House members was unveiled earlier this month, the actual bill will be kept under wraps until it is introduced with the House Democrats’ plan to control carbon emissions through a cap-and-trade system, expected no later than Monday.

Although cash-for-clunkers programs in other nations have been motivated by environmental goals to improve the mileage of vehicles on the road, environmental groups are lukewarm about the U.S. compromise.

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California’s Electric bikemaker woos commuters in Europe

May 13, 2009 at 11:50 am

(Source: BBC)

The need for speed is not normally a selling point for commuters who buy electric vehicles. But it could be.

Zero Motorcycle unveiled its  “insanely fast” electric motorcycle in the UK and other European countries.  The BBC has a lengthy write-up that offers a lot of details on this two wheel marvel.

And you better believe it – this bike moves.

“You can accelerate faster than any car,” says Neal Saiki, who invented the electric motorcycle.

“You’ve got all kinds of power, and it is totally quiet. I think it is a lot like flying.”

Image Courtesy: The Motor Report

A gentle turn of the throttle and the force of the lithium-ion battery pack is transferred directly to the back wheel, sending the bike rocketing down London’s Kings Road.

The experience is vastly different from the ride of a conventional bike. There is no clutch and no need to change gears. Turning the throttle instantly delivers powerful torque, along with just enough chain rattle to remind you that this is still a motorcycle.

Change the software settings, explains Mr Saiki, founder and chief technology officer of Zero Motorcycles, and the bike will deliver zero to 50mph in just five seconds.  While still at college in California, he designed the world’s first helicopter powered by a human.

The invention eventually helped him become a designer of “high altitude research vehicles” for US space agency Nasa, a job he left to start building motorcycles.

“What we’ve done here is to combine the world’s smallest, lightest battery pack with a revolutionary 28 pound (12 kilogramme) frame,” says Mr Saiki, who invented the battery himself and designed the frame from aircraft grade aluminium.

Consequently, he insists, this is the “quickest production electric motorcycle in its class”.

Enough, perhaps, to convince thrill-seeking commuters, though at an expected price of some £8,000 in the UK and a maximum range of 60 miles per charge, the bike may struggle to attract people away from established motorcycle communities.

Zero Motorcycles is pitching the bike as an environmentally friendly alternative to conventional motorcycles.

In terms of fuel economy, there is probably not that much in it, since motorcycles tend not to be all that thirsty in the first place.

But when it comes to emissions it is a clear winner, the company insists, even in countries with coal-fired power stations.

“Although there is some pollution associated with the production of electricity, a Zero motorcycle produces less than an eighth of the CO2 pollution per mile at the power plant than a petrol-powered motorcycle,” Zero declares.  In the video below, you can hear about the Zero S from Neal Saiki himself as he walks through various aspects of its innovative  design & cutting edge technology.  

 It is a claim the conventional bike makers will find hard to refute, not least since they tend not to publish any CO2 figures at all.

Many commuters will be more interested in data on battery charging times, though.

Zero says a four-hour charge using an ordinary household socket will cost six pence and deliver 60 miles of motoring, and Mr Saiki insists the battery pack should be able to deliver such performance for about five years.

“You charge it in the morning and it’ll be ready for lunch,” he says.

“It would cost you $30 (£20) to go from California to New York,” observes Zero’s PR man.

Though allow for the frequent recharging, and the journey would take a long, long time.

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