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.

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.

Click here to read the entire article.

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.

Click here to read the entire article.

Transport for London moves ahead with testing of Intelligent Speed Adaptation Technology

May 12, 2009 at 6:39 pm

(Source: Green Car Congress)

Transport for London (TfL) will begin a six-month trial ofIntelligent Speed Adaptation (ISA) technology which aims to reduce road casualties and help drivers avoid speeding penalties.  As part of the trial, which will start this summer, a London bus will be fitted with ISA.   The trial will monitor driver behavior, journey times and the effect that driving within the speed limit has on vehicle emissions. ISA uses the digital speed limit map of London which TfL launched on 29 January 2009. This is the first time all of London’s speed limits have been mapped accurately with regular updates.

It is estimated that if two thirds of London drivers use the ISA system, the number of road casualties in the Capital could be reduced by 10%

This innovative technology could help any driver in London avoid the unnecessary penalties of creeping over the speed limit, and at the same time will save lives. We know the technology works, and now we want to know how drivers in all types of vehicles respond to it. ISA is intended as a road safety device, but if Londoners embrace this technology we may well see additional benefits including reduced congestion as a result of collisions and reduced vehicle emissions as drivers adopt a smoother driving style.

—Chris Lines, Head of TfL’s London Road Safety Unit

Isamap

The UK government’s Commission for Integrated Transport (CfIT) and the Motorists’ Forum (MF) recently issued a joint report evaluating the impact of implementing an Intelligent Speed Adaptation (ISA) system across the entire road network on reducing deaths and injuries on the UK roads and on reducing fuel consumption and emissions of CO2 and criteria pollutants.  Of the two proposed benefits of ISA—GHG emissions reduction and increased road safety—the report concluded that the calculated social benefits of the accident savings far outweigh the values of fuel or CO2 saved.

The intelligent technology, which works in conjunction with a GPS, enables drivers to select an option where acceleration is stopped automatically at the speed limit specific to any road in London within the M25 area. The unit can be disabled at the touch of a button, at which point it reverts to an advisory status where the current, legal speed limit is simply displayed as a driver aid. There is also a complete over-ride switch with disables the system entirely.

The practical uses of the technology will be tested in the six month trial after which a report will be submitted to the Mayor of London, and the technology will be made available to external organizations.

High maintenance: Tata motors looking to raise £1 billion to keep Jaguar, Land Rover going

May 11, 2009 at 2:45 pm

 (Source: Autoblog)

We don’t know how many times through the millennia one gentleman has told another, “Be careful with her – she’s beautiful, but she’s expensive.” We would like to know if Alan Mullaly offered that warning to Ratan Tata (above) before the latter bought Jaguar and Land Rover (JLR). As with the Blue Oval before it, Tata Motors is about to throw billions at the English luxury marques and it is looking for help doing it.

Tata wanted the British government to guarantee a £340 million loan ($515M USD) Tata received from the European Investment Board. The government refused to underwrite the entire amount, and it was written that the government additionally wanted Tata to invest up to another £400M ($605M) in JLR (on top of the £900M ($1.36B) Tata pitched in last summer) and put £50M ($76B) on the table before it would underwrite anything. The government is also said to have wanted veto power on top executive choices and labor plans. 

Spiffy Ride – French Nuclear Power Cleans Up Eurostar High-speed Rail Network; 3-years ahead of schedule to beat CO2 reduction goals

May 7, 2009 at 6:29 pm

(Source: Green Inc, NY Times)

Eurostar,  the high-speed rail link between Paris, London and Brussels, says it met its carbon-dioxide reduction goals three years ahead of schedule .  In 2007, EuroStar annoucned that it would aim to reduce carbon-dioxide emissions by 25 percent per passenger journey over then-current levels — and do so by 2012. 

Previously, half of the energy in the tunnel came from Britain, which relies more heavily on coal and gas-fired power.
France generates about 80 percent of its electricity from a fleet of nearly 60 nuclear reactors — which produce little CO2. The company said the speedier-than-expected reductions could be attributed to a number of factors — from more efficient train driving and turning off half of all on-board lights, to increasing the number of people riding each train.
But the vast majority of reductions were achieved by switching to France as the primary provider of electricity for trains traveling the undersea tunnel between Britain and Paris, according to a spokesman, Richard Holligan.  
Not content with its progress, Eurostar is now moving ahead to raise its target to further cut emissions because it had already reached its original goals.  The new target: reducing CO2 emissions by 35 percent per passenger journey by 2012.

I plans to achieve its new reduction target by improving the efficiency of its air-conditioning and heating systems, further reducing the energy consumption of its lighting systems, and introducing more tools to assist drivers to drive the trains efficiently.

Note: Europeans are leading by example in the fight against global warming by switching to technologies that yield “green” power, while folks in the US are still bickering over “clean coal”.   We have a long way to go!

“Cash for Clunkers” Update-2: More details on the Energy & Commerce Democrats Agreement

May 6, 2009 at 3:13 pm

As reported in yesterday’s post, the House Energy and Commerce Committee Chairman Henry A. Waxman, Subcommittee Chairman Edward J. Markey, Chairman Emeritus John D. Dingell, Congresswoman Betty Sutton, Congressman Jay Inslee, and Congressman Bart Stupak reached an agreement on a “Cash for Clunkers” program that will help the auto industry while cleaning our air. This agreement is based on H.R. 1550, introduced by Congresswoman Sutton, and H.R. 520, introduced by Congressman Inslee.  The fact sheet published on the Committee’s website offers the following detail:

Consumers may trade in their old, gas-guzzling vehicles and receive vouchers worth up to $4,500 to help pay for new, more fuel efficient cars and trucks. The program will be authorized for up to one year and provide for approximately one million new car or truck purchases. The agreement divides these new cars and trucks into four categories. Miles per gallon figures below refer to EPA “window sticker” values

• Passenger Cars: The old vehicle must get less than 18 mpg. New passenger cars with mileage of at least 22 mpg are eligible for vouchers. If the mileage of the new car is at least 4 mpg higher than the old vehicle, the voucher will be worth $3,500. If the mileage of the new car is at least 10 mpg higher than the old vehicle, the voucher will be worth $4,500.

• Light-Duty Trucks: The old vehicle must get less than 18 mpg. New light trucks or SUVs with mileage of at least 18 mpg are eligible for vouchers. If the mileage of the new truck or SUV is at least 2 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck or SUV is at least 5 mpg higher than the old truck, the voucher will be worth $4,500.

• Large Light-Duty Trucks: New large trucks (pick-up trucks and vans weighing between 6,000 and 8,500 pounds) with mileage of at least 15 mpg are eligible for vouchers. If the mileage of the new truck is at least 1 mpg higher than the old truck, the voucher will be worth $3,500. If the mileage of the new truck is at least 2 mpg higher than the old truck, the voucher will be worth $4,500.

• Work Trucks: Under the agreement, consumers can trade in a pre-2002 work truck (defined as a pick-up truck or cargo van weighing from 8,500-10,000 pounds) and receive a voucher worth $3,500 for a new work truck in the same or smaller weight class. There will be a finite number of these vouchers, based on this vehicle class’s market share. There are no EPA mileage measures for these trucks; however, because newer models are cleaner than older models, the age requirement ensures that the trade will improve environmental quality. Consumers can also “trade down,” receiving a $3,500 voucher for trading in an older work truck and purchasing a smaller light-duty truck weighing from 6,000 – 8,500 pounds.

Here is a PDF copy of the Fact Sheet:

Chief executive of speed camera firm banned from driving for speeding at 100mph

May 6, 2009 at 12:16 pm

(Source: Guardian & Photograph: Chris Radburn/PA)

‘Embarrassed’ Tom Riall caught by police flouting 70mph limit

Tom Riall, speed camera boss admits speeding

The chief executive of the company that installs the majority of speed cameras on Britain’s roads was banned from driving for six months today after admitting driving at more than 100mph.

Tom Riall, the boss of Serco‘s civil government division, which supplies and installs the Gatso fixed radar cameras to police forces, was travelling at 102.9mph on the A14 in Newmarket, Suffolk, just before 1pm on 4 January, magistrates in Sudbury heard. The speed limit on the dual carriageway is 70mph.

Riall, 49, had two other driving convictions from the last three years, including another speeding offence, the court heard, meaning the six-point penalty imposed by magistrates took him past the 12-point mark, incurring the ban. He was also fined £300.

Riall, who took part last year in a road safety campaign called Safe Drive Stay Alive, told the court he would like formally to apologise, saying: “In my role I am all too aware of the consequences of speeding.” Riall said he was driving to visit friends in Newmarket before a business meeting in Norwich and the road was clear.

He asked magistrates not to impose a ban, saying it would cost about £30,000 to employ drivers to take him on business trips during the six months, and that the speeding offence had already caused “some considerable personal embarrassment”.

He said: “Of course, while I have had a number of fixed penalty notices in the past, this is the first time I have exceeded the speed limit to this degree.” The magistrates rejected this, saying a six-point penalty was fair.

Statutory Warning! British Labour MP says cars should carry climate health warnings

May 6, 2009 at 12:06 pm
(Source: Autobloggreen & Guardian)

Way back in 1965, the Federal Cigarette Labeling and Advertising Act required cigarette manufacturers to place those little blurbs warning smokers of the dangers of using their products. Might a similar label be placed on advertisement from the auto industry? Don’t laugh – if Colin Challen, chair of the all-party climate change group in the UK, gets his wish, just such a thing might happen. He says:  

You maybe have 25 or 35% of the space of any promotional material given over to a health warning. These warnings would be graded depending on the emissions from the vehicle, with the worst gas-guzzlers carrying the most severe warnings. It would have to counter the impression given by some manufacturers that their vehicles are greener.

In his column on Guardian, Colin writes:  “So why can’t we do more to encourage immediate, low-tech behavioural changes? If there were a conspiracy theory as to why a government that has recently committed itself to a massive renewal of the nuclear power industry would want to promote the idea of electric vehicles, then the cynical explanation is obvious. Alternatively, without spending a penny the government could introduce tobacco advertising-style health warnings on all car promotional material. That might introduce some honesty into the green claims made by manufacturers. I discovered that the motor industry before the recession spent £800m a year on advertising in the UK alone. In the three-year period of the government’sActOnCO2 campaign, which cost £12m, the competition will have spent £2.4bn. It’s no contest and wholly counter-intuitive to expect people to change their behaviour when most of the daily messages they receive tell them it’s business as usual.

We are in a four-stage process of addressing the challenge of climate change, as Britain was in a four-stage process meeting the challenge of Adolf Hitler: denial, appeasement, phoney war then total war. I believe we are staggering between appeasement and phoney war at the present time. Our effort is improving, but in dribs and drabs, suggesting that we’ve not entirely convinced ourselves that the threat is real. It is as if we have grasped that the scientific debate has been settled but the hard, practical choices still have to pass through a multitude of sceptical arguments.”