(Source: Autoblog)

Germany recently began a scrapping incentive program that gives buyers €2,500 to get rid of their old cars and buy new ones. The plan helped create a 21% jump in car sales during the month of February, even though the plan didn’t take effect until February 20. It was the kind of success that has both the UK and the U.S. mulling over such a program, and has Germany considering doubling the incentive plan by adding another €1.5 billion of government money. 

 According to The Local, a Düsseldorf paper – Rheinische Post report says that car sales have reportedly increased significantly since the scrapping bonus came into effect on February 20, and now there is “department-wide agreement” that is should be extended, citing an anonymous government source. 

But the scheme was only set to be available as long as funds lasted. The paper said the government plans to discuss the extension during a coalition committee meeting after Easter, and that most of the finance and economy officials had already given their consent.

Click here to read the entire article. Also,  shown below are two related articles from TransportGooru archives:

Should the U.S. institute a vehicle scrapping plan?

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

New Database Tells Big Brother You’re Uninsured

(Source: Wired; Photo: Associated Press)

(Source: BBC Earth Watch)

So far, just about everyone seems to love the self-styled “world’s cheapest car”, the Tata Nano.

Writing on these pages, Indian motoring journalist Hormazd Sorabjee writes that “It thrilled me with its ‘proper car’ feel”; while for Adil Jal Darukhanawala of zigwheels.com, “The Nano has the makings of a mega winner.”

And what’s not to love? A five-seater car that does about 20 km per litre (that’s 56 MPG in old money) and costs $2,000 – come on! – and it’s not the end of the line, with Bajaj, the company that principally populates South and Southeast Asia’s roads with auto-rickshaws, planning to launch its own tiny car (the Pico?) within two years.

Just about the only people sounding a cautionary note on the tiny Nano’s giant appeal are environmental groups, notably the Delhi-based Centre for Science and Environment (CSE).

They judge it inappropriate for Indian cities, choked by traffic, where jams mean a journey across town can already be measured in hours.

“Cars may drive growth and aspirations, but they can never meet the commuting needs of urban India. Cars choke cities, harm public health and guzzle more oil.”

CSE’s simple prescription is more investment in mass transit schemes.

Although one can see the logic of their argument, it’s hard to imagine it prevailing.

Many Indian cities already have swarming bus networks and suburban rail networks. They’re slowly being supplemented by true mass transit rail systems – up and running inCalcutta and Delhi, under construction in Mumbai and Bangalore.

 (Source: CNN)

There’s probably no way to describe the feeling.  Joe Pirrone’s pride and joy, his F350 Super Duty turbo diesel truck, turned out to be a stolen “clone.”

One moment, Guiseppe “Joe” Pirrone was on a long weekend at the beach.

The next moment, he found out the pickup that he bought a year ago is stolen, and he is still on the hook for the $27,000 loan.

Stories like Pirrone’s are scattered across the country, and Tuesday the FBI announced that it has broken up one of the largest auto theft cases in the U.S.  Capping “Operation Dual Identity,” arrest warrants for 17 people were executed in Tampa and Miami, Florida; Chicago, Illinois; and in Mexico City and Guadalajara, Mexico. The suspects were accused of “cloning” vehicles, which is making stolen cars look like legal ones.

The FBI says that the ring was operating in the U.S. for more than 20 years. More than 1,000 vehicles were stolen in Florida, with more than $25 million in losses to consumers and banks.

“Individuals have been victimized at every level, from the average Joe, to the banks, to big companies,” said Dave Couvertier, of the FBI’s Tampa field office. Car theft rings clone vehicles by taking license plates, vehicle identification numbers (VIN), and other tags and stickers from a legal car and put them on a stolen vehicle of similar make and model.

“This does not just affect big business. Anyone could become an unwitting victim of this particular scam. It could happen to anyone,” said Couvertier.

Pirrone knows how it was done because it happened to him.

Last year, he bought a used 2005 F350 Super Duty turbo diesel pickup to use for his landscape business in Fort Myers, Florida. He bought it off a small used car lot and took out a $27,000 loan from a credit union.

“I had it for about nine months. It was a great truck,” he told CNN.

(Source: Wall Street Journal)

Last summer, when gas cost $4 a gallon, buyers snapped up small cars so fast that dealers couldn’t keep them in stock. Now, with gas prices half that level, almost 500,000 fuel-thrifty models are piled up unsold around the country.

The turnabout comes at a bad time for the struggling U.S. car industry, which has revamped factories and shifted product plans to produce more small cars in coming years. The moves are prompted by coming stricter federal fuel-economy standards and the Obama administration’s car-bailout plan, which encourages auto makers to boost their vehicles’ mileage.

 Practically every small car in the market is stacked up at dealerships. At the end of February,Honda Motor Co. had 22,191 Fits on dealer lots — enough to last 125 days at the current sales rate, according to Autodata Corp. In July, it had a nine-day supply, while the industry generally considers a 55- to 60-day supply healthy.For other models the supply situation is even worse. Toyota Motor Corp. has enough Yaris subcompacts to last 175 days. Chrysler LLC has a 205-day supply of the Dodge Caliber. And Chevrolet dealers have 427 days’ worth of Aveo subcompacts. At the current sales rate, General Motors Corp. could stop making the Aveo and it wouldn’t run out until May 24, 2010.

“I don’t think Americans really like small cars,” said Beau Boeckmann, whose family’s Galpin Ford in southern California is the country’s largest Ford dealer. “They drive them when they think they have to, when gas prices are high. But we’re big people and we like big cars.”

The logjam of small cars is caused in part by the recession, which has sapped sales of all types of vehicles. But it also underscores how badly gasoline prices have whipsawed the industry. A year ago, car companies rushed to react when Americans practically stopped buying large vehicles and flocked to hybrids and small cars.

Click here to read the entire article (Subscription Reqd.  Free Registration available).

Government’s Auto Task Force is hiring, looking for Wall Street experience

Curious what it takes to be a member of the recently-created Auto Task Force? Thanks to an email sent out by Harry J. Wilson, a newly-hired Task Force worker, there’s no need to wonder. Some knowledge of the auto industry would reportedly be helpful, though prospective applicants and their family members cannot currently own any stock in the Detroit automakers or serve on any of the D-3’s boards of directors. Would-be applicants would also need to be “sufficiently intellectually and professionally nimble,” whatever that means, and have 8-12 years of experience on Wall Street.

According the Detroit News, the source of the Autoblog article,   “Harry J. Wilson, a new member of the task force, recently sent an e-mail that circulated on Wall Street, seeking applicants for up to four jobs on the autos team. The task force’s findings will help chart the government’s role in the future of the U.S. auto industry.  That message said the team was looking for up to two hires in each of two job categories: principal/vice president level and associate/analyst level. Candidates should have eight to 12 years experience and be “sufficiently intellectually and professionally nimble.” The analyst would have “the same skills,” with less experience.

“Our team is quite small,” said Wilson, formerly of Silver Point Capital and the Blackstone Group, in the March 13 e-mail obtained by The Detroit News. “The work is incredibly intense. The amount of work is massive, the timelines are tight and the level of focus is also very high.”

Click here to read the entire article. 

(Source: Autoblog; Photo: emrank@Flickr)

(Source: Jalopnik)

Pre-orders are officially being taken today for the Tata Nano in India at an MSRP of 100,000 rupees (just under $2,000). That makes the Nano officially the cheapest automobile in the world.

The on-road price will be a little bit higher, probably around $2,400, once you factor in excise duty, education fees and road tax, along with transportation cost, local taxes, insurance and registration fees and “a lifetime parking fee” (applicable in some locations).