(Source:  CNNMoney.com Video: MSNBC via YouTube)

GM chief out in bailout shakeout

Rick Wagoner forced out of top spot as Obama administration moves to overhaul automaker.

(Source: Bloomberg)

Cars and light trucks will be required to meet a U.S.fuel-economy average of 27.3 miles per gallon for 2011 models, a 2 mpg increase from the previous year’s level, the Transportation Department said.

The 8 percent gain announced today in Washington carries out a 2007 law intended to curb emissions and fuel use. The change, being put in place asGeneral Motors Corp. and Chrysler LLC face possible bankruptcy, isn’t as aggressive as the 27.8 mpg target that President George W. Bush proposed in April 2008.

“This isn’t going to be a stretch for them to meet this,” David Kelly, former acting head of the National Highway Traffic Safety Administration under Bush, said of automakers. New-car fuel economy already averaged 31.3 mpg by 2007, NHTSA said in today’s rule.

Cars must average 30.2 mpg, up from 27.5 currently, under the rule. Light trucks will average 24.1, up from 23.5 mpg for 2010 models. The December 2007 law called for vehicles to meet a 35 mpg standard by 2020 models, a 40 percent increase from the average in 2008.

“The bad news is that the 27.3 mpg standard means that they’ll have to make up for it in future years,” said Dan Becker, director of the Safe Climate Campaign, a group in Washington that works for environmentally “clean” cars. “The goods news is that they have promised that they will.”

President Barack Obama’s administration had a March 31 deadline for setting the standard, giving the industry about 18 months to prepare its 2011 models to meet the requirement. Bush never issued his proposed standard before he left office.

Click here to read the entire article.

 (Source: Business Week)

As the commercial model of India’s microcar is unveiled, U.S. carmakers would do well to learn from the innovations that brought it about

When Tata Motors (TTM) unveiled a prototype of its Nanomicrocar at the Delhi Auto Show in January 2008, auto executives around the world were aflutter. Quickly, they hustled teams to India to document the planned $2,000 “people’s car.” And industry watchers and innovation experts soon reported on the engineering and supply-chain breakthroughs behind the car.

Some 14 months later, Tata is set to show off the commercial version of the Nano, on Mar. 23. Today, the U.S. auto industry is struggling to survive, with General Motors (GM), once the world’s biggest carmaker, on the brink of bankruptcy. Look beyond the Nano halo and it’s clear that Tata Motors has problems of its own, from the $2.3 billion in debt it took on to purchase Jaguar and Land Rover from Ford Motor (F) last year to the sums sunk into the Nano assembly plant in West Bengal that had to be abandoned. On top of that, there are the Nano competitors in development.

Still, no one disputes that the Nano is innovative on multiple levels—from its engineering to its marketing to its manufacturing. So it’s hard to avoid the question: What can a humbled Detroit learn from the Tata Nano?

A lot. The lessons start with the vision of Ratan Tata, chairman of Tata Motors’ parent, Tata Group, to create an ultralow-cost car for a new category of Indian consumer: someone who couldn’t afford the $5,000 sticker price of what was then the cheapest car on the market and instead drove his family around on a $1,000 motorcycle. “Just in India there are 50 million to 100 million people caught in that automotive chasm,” says vice-president Vikas Sehgal, a principal at Booz & Co. And yet none of the automakers in India were focused on that segment. In that respect, the Nano is a great example of the so-called blue ocean strategy.

ROADS TO GREATNESS

“Great companies are built on creating new markets, not increasing market share in existing ones,” says Vijay Govindarajan, a professor at Tuck School of Business at Dartmouth College and chief innovation consultant at General Electric (GE), who quickly runs off 10 lessons for Detroit. Among them: U.S. automakers should focus less on incremental improvements to existing cars or adding a new model to the Cadillac line in order to compete against Lexus, and think more broadly about new market opportunities. Where, in other words, are Detroit’s blue oceans?

Click here to read the entire article.

(Source: Autobloggreen)

 

You know what state needs more smart fortwos? Texas. That must have been Daimler’s thinking before approving an expansion of the car2go carsharing service there. Daimler started car2go in Ulm, Germany last October and it will be coming to Austin, Texas – that little blueberry in the big red cherry pie of a state – this fall. There are now more than 200 fortwo cdi models that anyone in Ulm, visitor or resident, can rent by the minute, hour or day, 24/7. Costs range from 19 euro cents a minute to 9.90 euros an hour to 49 euros a day. Unlike other car-sharing services, registering for the car2go service is free. Daimler didn’t release any information on possible pricing for the U.S. service.

 

The Daimler press release available on Autobloggreen has some additional info. on this, including this nugget:

The capital of Texas with its 750,000 residents is appreciably bigger than Ulm and is distinguished by its open-mindedness and its very involved citizens. “We very much look forward to becoming the first international partner of car2go,” says mayor Will Wynn. “Our city is known for its strong sense of environmental responsibility. car2go fits this wonderfully because we can then offer the residents of Austin an intelligent mobility concept with a high positive environmental factor. The project has our full support.” 

As in the first phase of the German pilot project, car2go will begin in Austin with a defined group of users, for example city employees. It is then planned to make car2go accessible to the public in Austin in a second step.  Other factors predestining Austin to be the first international car2go city are the city’s size and its up-to-date economic structure. Among other things it is the location of the fourth largest university in the USA. Beginning in autumn 2009 a fleet expected to number 200 smart fortwo mhd vehicles with automatic start/stop function will be put into operation there.

Click here to read more and to view an awesome picture gallery showing more Smarts in Austin.

(Source: Autoblog; Picture: Autoblog)

 What can $50,000 can get you?

After a lot of hype and delivery of 250 Tesla Roadsters, the company’s Model S was unveiled today in Hawthorne, California.  It is expect that production will be ramped up to 20,000 units annually by the end of the first year of production; after the $7,500 tax break, the Model S will start at just under $50,000 – $49,900 to be exact; and 440-volt charging will be available. That base price is for the 160-mile range pack; a 230-mile range pack and a 300-mile range packwill also be available. The biggest hitch: the car doesn’t go into production until Q3 of 2011.

Transportgooru thinks this is a game changer and here is the “why”:

• According to Tesla’s numbers, buying a Tesla S will save you $10-$15K vs a comparably priced gas-powered sedan when gas is $4 per gallon. For an equivalent comparison, you’d have to lease a $35,000 gas-powered car. 
• The car fits seven people and their luggage: five adults and two children in rear-facing seats under the hatch inside, with luggage in the boot up front.
• If not people, it can fit a mountain bike with its wheels still on, a surfboard and a 50-inch television at the same time.
• On a 220V outlet, the car can be recharged in 4 hours.
• The quickness: the standard S will get to 60 in 5.5 to 6.0 seconds. A coming sport version will get to 60 in “well under five seconds,” the company’s folks say.

These facts are what one would come to expect from a conventiona, gasoline powered automobiles that rules the roads today.   As more charging stations pop-up around the country, these vehicles will make transportation seamless.  The few cons  that could be obviously recognized are the re-charging times and the lack of charging stations at public locations (Gas stations, parking lots, etc).  With the conventional gasoline cars, refuelling is quick and doesn’t take more than 5 minutes at the gas stations, which means you can continue travelling without enduring massing delays while traveling longer distances.   It can be expected that unveiling of such cars renders a wonderful opportunity for regional electric companies to enter a niche market to provide “electricity” through charging stations in the service areas along highways, just like a gas station.  Or even better if these charging stations are added to existing gas stations.   If charging times can be shortened with the advent of new technology (See the TransportGooru article about MIT’s breakthrough research on batteries, allowing for lightening quick charging times) 

Click here to read the entire post on Autoblog’s site anddon’t forget to check out the eye popping Tesla Gallery.  Here is Wall Street Journal’s interview with Tesla at the North American Int’l Auto Show (via YouTube):

(Source: Jalopnik); Pictures: The Mirror)

The 43-year old Brit was heading for a friends home near Todmorden, West Yorks when the system took him down a steep and treacherous footpath. His mindless progress stopped as his car hit a fence planted at the edge of a 100 ft cliff which Jones would have probably happily driven off if his navi had told him to. On his He-Man scale feat of stupidity, Robert said, “I just trusted the satnav. It kept insisting that the path was a road even as it was getting narrower and steeper. I rely on my satnav, I couldn’t do without it for my job. I guess I’m lucky the car didn’t slip all the way over the edge. But it has been a bit of a nightmare.”

Locals gathered during the nine hours it took for a crew to pull the car from its predicament, no-doubt snickering at the idiot in the BMW the entire time.

Click here to read the entire Jalopnik article.

Note:  The source article on the British Daily, The Mirror, reports that it is not the first time our British drivers had many such disastrous affairs with Satellite Navigation. It has compiled the Top 10 Sat-Nav disasters on its website and it is worth reading it.

(Source:  Autocar via Autoblog/Jalopnik)

Autocar’s review:  Riding on small 12inch wheels and tubeless tyres, the Nano rides surprisingly well. Most bumps are rounded nicely, but as the speeds climb the ride can get a little choppy. The steering has a little vagueness around the centre position, dial in more lock; it feels direct and provides good feedback as well. Grip levels are decent but are limited by the narrow tyres. Straightline stability is also commendable.

Here is the verdict: 

So is it a proper car? Yes, it definitely is. It offers better space than even a Santro at the front, while backseat space is quite decent. Comfort levels are good and it will come with an efficient engine as well. It isn’t perfect; owners will want more power and a 5-speed gearbox. But Tata has achieved what it had set out to do – Affordable motoring for the masses. 

Our good friends at Jalopnik say this after watching the review from Autocar:   The reviewers seem amazed the car is able to drive down the road and not feel like it’s going to roll over at any moment. Sort of like Sarah Palin in Vice Presidential debates, if you set the bar so low you’re only expecting to see a human being able to put a three-word sentence together, you can’t not clear it. Thus, the reviews are filled with notes galore on the tiny wheels, flat seats, and comparisons to the Model T.  

(Source:  Tree Hugger) 

(Source: Jalopnik & Daily Telegraph; Photo Courtesy: Jalopnik )

Clocked by police driving at 173mph in a 50mph zone, the Brit avoided jail after his defence team said his sports car was incapable of travelling that fast.

Tex O’Reilly, winner of the award for least Britishly-named man ever, was ticketed for 173MPH in a 50MPH zone while driving his Lotus Elise. One problem? The Lotus Elise tops out at a leisurely 127MPH.

Click here to read the entire article.

(Source: Autoblog)

Aftermarket group warns Cash For Clunkers legislation will expand landfills

The House is currently looking at a Cash for Clunkers bill that would give owners of eight-year or older vehicles up to $5,000 to turn in their car or truck for a more fuel efficient vehicle. The deal sounds great for the owners of beaters, and automakers wouldn’t complain much either. The most politically friendly aspect of the legislation, though, is the perceived positive impact on the environment. More fuel efficient vehicles emit less CO2 than an older model, and less oil use means less drilling. Less drilling means a decreased dependency on foreign oil. That sounds like a win, win, win, win proposition, but one organization isn’t so sure.

The Fight Cash For Clunkers group claims that the legislation would do more harm to the environment than good. Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association, says Cash For Clunkers will lead to more vehicles being scrapped, which would then lead to more car waste in landfills. The group would rather owners of older vehicles take steps to improve the efficiency of the vehicles they already own. 

Click here to read the entire article and don’t forget to register your comments below on tihs very important issue.  Take action!

Note: Transportgooru wonders how other Governments such as Germany are able to successfully implement similar programs ( while battling this environmental/recycling challenge ).  Instead of fighting the Government, can Fight Cash for Clunkers work with the Government and find meaningful ways to approach this issue.  Failure to understand and implement this program soon, may soon lead to behemoth challenges, both economically and environmentally.  Here are some related  articles from the Transportgooru.com archives:

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

(2) Should the U.S. institute a vehicle scrapping plan?

(3) Germany plans to extend Abwrackprämie aka “Environmental Bonus” (in plain english, car scrapping program)