(Source: Spiegel Online via Business  Week)

To boost ailing carmakers, the British government is expected to offer customers a premium to exchange clunkers for new vehicles—as Germany has done

The paper writes that Darling and officials in the Treasury have been impressed by the results the programs have delivered in other countries. Last month, Britain experienced a 30 percent drop in new car registrations at a time when Germany recorded 40 percent more vehicle sales than during the same period a year earlier. In Germany, Treasury officials noted, the precipitous drop in auto sales has been reversed.

The Times reported that details are still being hashed out between the Economics Ministry and the Treasury in London, but that the plan will look a lot like Germany’s. According to the paper, a £2,000 (€2,200) scrapping premium is to be given on trade-ins of any car over nine years old.

In contrast to Germany, though, Darling and Economics Minister Peter Mandelson are also seeking industry participation in the program. At the very least, they want a binding commitment that existing rebates will not be dropped because of the government program. So far though, the paper reports, the British automobile industry is resisting the government’s push for it to support the program with its own means.

In addition to Germany, a number of European countries including Austria, France, Italy, Portugal and Spain also have stimulus programs in place for carmakers suffering from thecredit crunch and global financial crisis—and the success of these stimulus efforts has been measurable. China and Brazil have also succeeded in increasing car sales again.

“A scrapping scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand,” Britain’s Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt told the Times. “The UK is the only major European market not to implement a scheme.” SMMT estimates the one-year program would cost about £160 million.

Last week, the United States also said it would adopt the successful European recipe. During a dramatic speech to the auto industry, US President Barack Obama praised the scrapping premiums as exemplary and “successful” and pledged to introduce a similar program in the US. But the program could be a lot more expensive for the United States than Britain: Already, an estimated 250 million cars and trucks are driven in America. Of those, close to 30 percent are at least 15 years old, meaning the country could have as many as 75 million candidates for scrapping.

In Germany, demand has been so strong that the government plans to extend its scrapping bonus through the end of the year. Last week, Chancellor Angela Merkel’s cabinet moved to extend the scheme until Dec. 31 and to provide €5 billion in government funding—enough to cover up to 2 million cars.

Click here to read more.   Transportgooru has already published a number of articles on this topic in earlier months.  Please feel free to explore them:

Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”

Germany increases subsidy to 5 Billion Euros, tripling incentives for its “Cash for Clunker” (Abwrackprämie) program

(Source: Wall Street Journal)

DALLAS — Since Henry Ford began mass production of the Model T nearly a century ago, car-loving Americans have gulped ever-increasing volumes of gasoline. A growing number of industry players believe that era is over.

Among those who say U.S. consumption of gasoline has peaked are executives at the world’s biggest publicly traded oil company, Exxon Mobil Corp., as well as many private analysts and government energy forecasters.

The reasons include changes in the way Americans live and the transportation they choose, along with a growing emphasis on alternative fuels. The result could be profound transformations not only for the companies that refine gasoline from crude oil but also for state and federal budgets and for consumers. Much of contemporary America, from the design of its cities to its tax code and its foreign policy, is predicated on a growing thirst for gasoline.

 As Americans commute less, use more fuel efficient cars and take more public transportation, gas stations have shut down. There are 11% fewer places to pump gas in the U.S. today than there were a little over a decade ago.

In the vast market for crude oil, American gasoline consumption matters. One of every 10 barrels of crude ends up in U.S. gasoline tanks, more than is used by the entire Chinese economy.

Right now, the recession is curbing U.S. gasoline consumption, as laid-off workers stop commuting and budget-conscious families forgo long road trips. Drivers filled their cars with 371.2 million gallons of petroleum-based gasoline every day in 2007, according to the U.S. Energy Information Administration. It expects that to fall 6.9% to 345.7 million gallons in 2009, as demand at the pump declines and the use of plant-based ethanol increases. Even if usage climbs after the recession ends, it won’t exceed 2007 levels, according to EIA forecasts.

Demand for all petroleum-based transportation fuels — gasoline, diesel and jet fuel — fell 7.1% last year, according to the EIA. This is the steepest one-year decline since at least 1950, as far back as the federal government has reliable data.

Many industry observers have become convinced the drop in consumption won’t reverse even when economic growth resumes. In December, the EIA said gasoline consumption by U.S. drivers had peaked, in part because of growing consumer interest in fuel efficiency.

Exxon believes U.S. fuel demand to keep cars, SUVs and pickups moving will shrink 22% between now and 2030. “We are probably at or very near a peak in terms of light-duty gasoline demand,” says Scott Nauman, Exxon’s head of energy forecasting.

If Exxon is right, the full impact of falling demand for fuel would take years to be felt. But some deep changes are under way.

Click here to read the entire article.    Also, don’t forget to explore the interactive graphic that offers some stunning statistics.  Below is a video report from WSJ for this story. 

(Source: TED)

Forget about the hybrid auto — Shai Agassi says it’s electric cars or bust if we want to impact emissions. His company, Better Place, has a radical plan to take entire countries oil-free by 2020.

Just over a year ago, BusinessWeek ran a great piece aboutShai Agassi and his audacious plans to produce a mass market electric vehicle and thereby revolutionize the auto industry. So it was great to get an update from the former software entrepreneur turned zero emission transport guru on the main TED stage earlier today.

Business Week’s report on Mr. Agassi’s TED presentation offers this:  “Much of what Agassi had to say was familiar, but it was fascinating to hear how the Better Place project is scaling to places such as Australia and Hawaii (it started life in Israel, with the support of politician Shimon Peres.) The emergence of Car 2.0, as Agassi described it, entails an entirely new business model for car ownership, whereby drivers will pay for miles as they currently pay for minutes on a phone. And Agassi, who cut an imposing and definitive figure on stage, professed to be interested in only two figures: Zero, as in zero emissions; and infinity, as in this model should be available for every driver, worldwide.”

The quote from Wired Magainze nicely captures Mr. Agassi’s personality – Charismatic &  convincing. 

“Shai Agassi has only one car, no charging stations, and not a single customer—yet everyone who meets him already believes he can see the future.” – Wired

Here is Mr. Agassi’s presentation at TED. 

(Source: Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation)

This report is intended to provide timely, easily accessible information for the transportation community. It was developed by the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation (DOT), and is updated on a regular basis on the BTS website.

The indicators fall under two broad categories: those that provide context about the economy and society in which transportation functions, and those that convey information about an aspect of transportation. To the extent possible, these latter indicators are transportation-wide in scope; however, some apply to only part of the transportation system. Reference tables at the beginning of the document provide key statistics about U.S. social and economic characteristics, and about the extent of the transportation system.

For indicators that are highly seasonal, the current value of that indicator is compared to the same time period in the previous year (e.g., April 2001 compared to April 2000). Otherwise, the tables show a comparison of the current value to a comparable preceeding period of time (e.g., the data for the month of April 2001 compared to that of March 2001).

 Click here to read the report in HTML.

WHOOSH! The mid-eighties pickup passed to my right with barely two inches between us. Evidently my 70 mph clip in the number two lane of the freeway barely passed muster for this dude, because as he maneuvered his truck directly in front of me he thrust his hand out the window and gave me the “one-finger salute.”

 Every single one of us motorists has ended up on the butt end of such activity at one time or another. But why all the anger? What causes ordinary citizens to morph into fist waving maniacs?

Raymond Novaco, Ph.D., former Professor of Psychology and Social Behavior at the University of California at Irvine, provided some answers in a study entitled Automobile Driving and Aggressive Behavior.

• To start, Novaco pointed out that cars are marketed to appeal to our combative instincts. The ultimate driving machine, own the road, and “an aggressive multi-valve engine” are perfect examples of catch-phrases used in automobile advertisements that support this theory. 

• Additionally, model names like Viper, Cougar, Prowler, Jaguar, Stingray, and Challenger fit themes of power and competition.

• Novaco also reasoned that following through on assertive behavior becomes much easier behind the wheel because of the protection afforded by two tons of steel.

• Besides, cars provide a certain degree of anonymity. Knowing we can’t be readily identified increases the likelihood that we will resort to offensive behavior that we would never attempt on a face-to-face basis.

• Finally, our vehicles guarantee a quick escape. This ability to beat a hasty retreat almost encourages a transgression or two.

When you mix in the stresses of a long and frustrating drive with all of the above, you have some pretty strong predisposing factors for road rage. Add a precipitating factor such as a honking the worn, flipping the bird, waving a fist, etc. — what Novaco refers to as “cues for aggression” — and the results can get rather ugly.

Given all of the above, it’s no wonder we get dumped on by other drivers. But how can we keep this from happening to us in the first place? Luckily, the AAA Foundation for Traffic Safety offers several valuable tips in an eight-page brochure entitled Road Rage — How to Avoid Aggressive Driving.

• First and foremost, don’t offend. Tops on the list of offensive behavior is driving too slow in the fast lane. Heck, this is where the Type-A motorists hang out. For anyone who insists on cruising below 60 there, what are you thinking!

• The brochure also advises that you always signal when making lane changes, don’t cut people off, never tailgate, don’t flash your high beams, and keep your horn use to a minimum. Transgressions here rank high on the list of cues for aggression. In the case of a packed freeway where no one will willingly (if anything, we speed up) let you in if you signal in advance, merely give a courtesy flash of your blinker as you make your move when room allows.

• Don’t engage. In other words, give angry drivers plenty of room. Don’t make direct eye contact if you can help it. And unless you’re Mike Tyson, never accept an invitation to pull over to the side of the road.

• Lastly, adjust your attitude. Forget about “winning.” Trying to race everyone to the next stoplight or off-ramp invites confrontation.

Considering all this, it now seems obvious that I was partly to blame for the state of affairs that occurred when the pickup driver flipped me off, as described above. Discretion would dictate that I should have quickly pulled into a slower lane upon first sight of a fast approaching vehicle. Maybe then the guy would have raised his index finger, as well as his middle finger, and flashed the peace sign.

But then again, maybe I’m dreaming of another planet. The guy would have been just as likely to separate his four fingers in the middle and give me the Star Trek Vulcan sign.

©2009, Dr. Roadmap®

————————————————————————————————————————————————–

David Rizzo, better known as Dr. Roadmap,  a Commute Management expert who writes about issues such as improving gas mileage (mpg), alternate routes, traffic congestion, ridesharing, commuting behavior and intelligent transportation systems on California’s Orange Country Register.  He is well known for his comprehensive guide ever written on off-freeway commuting in Southern California, published in 1990.  Two years later he became the first traffic reporter to offer daily alternate routes in real time over the air on one of the most popular morning radio shows in Los Angeles.  His bi-weekly columns appear exclusively for TransportGooru.  This is copyright-protected content.  Please contact Transportgooru if you like to use this article or portions of this article. 

(Source: TreeHugger)

President Barack Obama’s trip to Turkey may prove to have been a similar turning point for Istanbul.

Image: Thingermejig@ Flickr

(Source: New York Times)

 BEIJING — Senior Chinese officials on Friday outlined how they aimed to turn their country into the world’s largest producer of electric cars, including a focus on consumer choice rather than corporate subsidies.

Speaking at a conference at the government’s prestigious Diaoyutai guesthouse here, the officials acknowledged that their efforts faced challenges in terms of the cost and safety of electric cars. They promised a nationwide effort by manufacturers, universities, research institutes and government agencies to overcome these obstacles.

(Source: Jalopnik,  Freep & World Car Fans)

Looks like American automakers have found at least one more buyer for their vehicles. The U.S. government is planning on the purchase of $285 million worth of fleet vehicles that get better gas mileage than the current fleet. Under the plan, the General Services Administration will purchase more than 17,500 vehicles as a part of their existing deals with Chrysler, Ford, and General Motors.

U.S. President Barack Obama, and his administration, have said the purchases will take place by 1 June. Although it is unclear what will happen to the older fleet vehicles being replaced, many will likely be sold at government auctions.

The purchase is hardly a surprise. In the much talked about stimulus package approved by Congress, $300 million was included for the automotive purchase. This is not a gigantic purchase in the grand scheme of things, as the Big Three sold a combined total of 380,000 vehicles for March 2009. Still, the move may help to bolster confidence in the sector, while even a marginal increase in revenue would be welcomed by the automakers.

More than 14% of the vehicles will be hybrid sedans. 2,500 orders for the vehicles, which will likely include the Chevy Malibu, Ford Hybrid Fusion, and Saturn Aura, will be placed by the end of next week.

Image: Jalopnik

If nothing else, the move underscores the administration’s willingness to put its money where its mouth is: Last week, Obama sent GM and Chrysler back to the drawing board, saying they needed more aggressive restructuring plans if they were to get more government loans to survive. 

But he also promised this big government buy of fuel-efficient vehicles and created a special office to help communities in Michigan and elsewhere struggling with the downturn in the industry. In a prepared statement released today along with details of the planned purchases, Obama said, “The problems that caused this economic crisis weren’t created in a day and it will take time and hard work to get our economy back on track. But I am 100% committed to a strong American auto industry, and we will stand with America’s auto workers and their families during these difficult times.”

 (Source: Financial Times)

(Source: Telegraph, UK) Germany is more than tripling the incentives on offer to buyers of new cars as it attempts to boost its auto industry, which employs around 15pc of the nation’s workforce.

The scheme offers German consumers €2,500 for trading in vehicles more than nine years old if they buy a car that is less than one year old.

Click here to read the entire article.  

TransportGooru has compiled several articles in the past reporting on similar efforts in UK (which is now contemplating introduction of  a similar program after watching the Germans successfully implement the program) & USA.  Here are the links to some of the earlier articles:

Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

The bickering starts over the implementation of the Cash for Clunkers legislation

Obama Favors “Cash for Clunkers”