(Source: Autoblog;  Detroit Free Press; US Infrastructure;  Autoblog Green)

Cash for Clunkers over, dealer deadline for filing extended indefinitely

The website has been down since yesterday morning, and the Transportation Department has officially extended the deadline for dealers to file their reimbursement requests twice now – once yesterday to noon today and again late last night. The second extension is open ended until the site comes back online and is able to handle the influx of dealer submissions.

The government website went down at some point before noon on Monday morning, presumably when dealers nationwide began submitting their final reimbursement requests from last weekend’s bonanza sell-a-thon. All the government is saying right now is that dealers will have any time lost while the site was down to submit their final paperwork.

The U.S. Department of Transportation said as of this morning 665,000 deals had been entered, for claims totaling $2.77 billion. That would mean about $130 million remains of the $3 billion set aside for the program, after $100 million the government expects to spend overseeing the program.

After thousands of dealers complained of being unable to enter deals before Monday’s 8 p.m. deadline, federal officials said the system would not be fully functional until today, and that dealers would be given additional time to submit papers. Click here to read the entire article.

Most fuel efficient cars available in the ‘Cash for Clunkers’ scheme (Not sure how useful this is anymore for buyers since c4c expired)

However, if you’re more environmentally conscious, you may want to know which are the most fuel-efficient cars available under the program.  To qualify as ‘eco-friendly’, new vehicles must get at least a EPA rating of 22 MPG combined to be eligible. Now that’s pretty bad, but it’s not like there’s a ton of car choices that get great MPG (at least in America). Click here to read the entire article.

Image Courtesy: US Infrastructure (click to enlarge)

Dealer poll calls Cash for Clunkers a ‘Nightmare,’ four out of 10 didn’t want program extended

A recent (admittedly unscientific) survey conducted by Automotive News shows that 44% of the 800 dealers polled wouldn’t want C4C to be extended again, even if the program was modified. Only 3% felt that the program should have been extended without being modified. The biggest issue dealers have with C4C is, unsurprisingly, its lack of timely payment. Some multi-store dealers have millions invested in the program, while little or no money has come in yet. An alarming 23% of dealers say they have had to borrow money to cover the cash crunch left in the wake of the Clunkers program, while an additional 10% say the program has actually sucked enough cash from the coffers that it has put the dealership at risk.  Click here to read the entire article.

Sen. Bill Frist uses Cash for Clunkers, junks Suburban for Prius

Apparently, it’s a common misconception that all Prius drivers are Democrats. Not true. In fact, recently retired Senator Bill Frist (R-Tenn.) just got himself a shiny new hybrid hatchback from Toyota. The former senator even got a few thousand dollars off the price of his new eco-friendly ride courtesy of the just-concluded Cash for Clunkers program here in the United States.  In an interview on Larry King Live, Frist responded to King’s quip that “You don’t see a lot of Republicans driving a Prius” with the response that the hybrid’s 50 miles per gallon along with the fact that “the taxpayer gave me $6,000 to do it” as reasons for the Prius purchase.  Click here to read the entire article.

Contributing Sources: CNN Money; Jalopnik ; LA Times & Autoblog Green)

This post is sponsored by LemonFree.com

Finito!  Finished! Over! Gone! Done! End of the Road! Swan Song!  Whatever the buzz word you would like to use for marking the end of the “successful” Cash for Clunkers Program, please feel free to do so.  Many buyers made it out of the dealers with a sigh of relief while many dealers are still left wringing their hands over the delays in the Government’s administrative machine that processes the vouchers.

Amdist all this madness and hype surrounding the C4C,  for many of us in the transportation business might take a couple of days (or even weeks) to understand the full impact of the program’s final days.  Hopefully it is all good.  In the meanwhile,  TransportGooru went looking for the statistics on how the programs as well as the vehicles tallied up so far and found it for you from the reliable sources in our Automotive web reporting sphere (including Autoblog, Jalopnik, etc).

The ever popular Website, Jalopnik reports that as of Friday morning the number of transactions submitted numbered 489,269 with a dollar value of $2.04 billion. This morning the number reached 635,186 transactions with a dollar value of $2.65 million.  So far (as of 7:47 AM August 24, 2009) the number of vehicles purchased have overwhelmingly been passenger cars (283,104) and category 1 trucks (166,686), with just a few category 2 (31,862) and category 3 (1,300) trucks. On the other end, the majority of vehicles turned in are category 1 trucks (318,249) and category 2 trucks (81,599) with just 78,265 passenger cars. Was there a surge of sales over the weekend? How successful has the program been?  Once the deadline has passed, it’ll be interesting to see where the final MPG improvements and rankings of purchased and clunked cars end up. Shouldn’t have to wait long.

It would be hard to have a popular program without any drama, right?  The New York Times reports that auto dealers swimming in applications for the “Cash for Clunkers” program now have a little extra time to fill out those forms.   The Web site that dealers use to submit rebate applications crashed this afternoon, the Department of Transportation said. As a result, dealers can file for rebates until noon on Tuesday, though the deadline for sales is still 8 p.m. Monday. Car shoppers flooded sales lots this weekend after the announcement Thursday that the program was ending.

The Transportation Department said that despite a large increase in the system’s capacity, the website was down temporarily Monday. By then, dealers had submitted 625,000 applications worth more than $2.5 billion.

The department’s website, which has had problems throughout the program’s short life, was down for at least six hours Monday amid a last-minute rush to submit rebate applications, said Bailey Wood, a spokesman for the National Automobile Dealers Assn.

Glitches aside, Transportation Secretary Ray LaHood spent Monday taking a victory lap.   “This program has been a lifeline to dealers,” Mr. LaHood said in Norristown, Pa. “It’s been a lifeline to the scrapyards who are getting these cars and can sell water pumps, and batteries and other parts. It’s also been a lifeline to the credit unions and banks processing all these loans. It’s been a win-win-win all around.”

AutoNation (AN, Fortune 500), the country’s largest dealership chain, stopped doing Cash for Clunker transactions after Friday. AutoNation had completed over 12,000 deals, according to spokesman Mark Cannon.

“It’s been a great run,” Cannon said.

Under Clunkers, which launched July 27, vehicles purchased after July 1 are eligible for refund vouchers worth $3,500 to $4,500 on traded-in cars with a fuel economy rating of 18 miles per gallon or less.

here is an updated list of traded-in and purchased cars  (curtesy of our friends at Jalopnik).

Top 10 New Vehicles Purchased

1. Toyota Corolla
2. Honda Civic
3. Ford Focus FWD
4. Toyota Camry
5. Hyundai Elantra
6. Toyota Prius
7. Nissan Versa
8. Ford Escape FWD
9. Honda Fit
10. Honda CR-V 4WD

Top 10 Trade-In Vehicles
1. Ford Explorer 4WD
2. Ford F150 Pickup 2WD
3. Jeep Grand Cherokee 4WD
4. Jeep Cherokee 4WD
5. Ford Explorer 2WD
6. Dodge Caravan/Grand Caravan 2WD
7. Chevrolet Blazer 4WD
8. Ford F150 Pickup 4WD
9. Chevrolet C1500 Pickup 2WD
10. Ford Windstar FWD Van

This list is subject to change as the final numbers come in.  So stay tuned for further updates.

(Source: Daily Mail, UK)

Millions of motorists are being ‘legally mugged’ by cowboy clampers whose antics are ‘out of control’, a damning report by the AA reveals today.

Growing parking enforcement in private car parks and the huge amounts of money being taken from drivers has reached ‘epidemic’ level, says the AA. More than one in 10 drivers say they have been issued a private parking ticket over the last year* and tens of thousands of people have had their car clamped or removed from private car parks.

An ‘epidemic’ has seen nearly £1billion being taken from half a million drivers a year in private car parks by an army of 2,000 clampers.

Motorists routinely pay in excess of £500 to retrieve their clamped and towed away cars with no way to challenge the fines independently except expensive battles in a county court.

Private parking enforcement is riven with ‘bad and immoral’ wheelclamping practices that are ‘frightening and often bordering on criminality’, says the AA, with women motorists in particular feeling ‘menaced’ and intimidated.

The organisation adds that anyone may set himself up as a parking enforcer and ‘start to cash in’.

Alarmingly, clampers are allowed to exploit the Government’s supposedly confidential DVLA database to get drivers’ names and addresses at £2.50 a time.

The AA wants the Government to make it illegal in England and Wales to clamp on private land, as it is in Scotland where it has been considered ‘extortion and theft’ since a 1992 court ruling.

About one in 17 motorists have been clamped, says the RAC Foundation, which also believes the law to be ‘suspect’ and open to legal challenge.

The Government estimates there are between 100 and 200 clamping companies. Some 1,900 individuals have valid licences from the Security Industry Association (SIA). Since May 2005 only 16 have been revoked and 233 refused.

The AA’s Press Release points to some recent incidents, some of which are shocking nonetheless unacceptable to any motoring public (unless, you are not from a civilised part of the world, where anything and everything goes):

The prevalence of bad and immoral practices is now shocking and unacceptable. Whilst the AA accepts that some enforcement is justified, the scale of private enforcement and level of punishment meted out by an army of private enforcers is frightening and often borders on criminality.

In recent examples:

• An elderly pensioner and her sick husband who were wrongly ‘doubled charged’ £370 by a clamper/tower (who belonged to the ‘trade association’ and breached its code despite having declared it would abide by its rules) – they have now recovered their cash after threats of legal action.
• A lady who stopped, literally for seconds, heard a noise at the rear of her car. Someone said ‘I won’t be a moment’ and clamped her car while she sat in it with the engine running – before ‘double-charging’ her £300.
• A lady who was given a ticket in a free car park for straddling lines. The ticket could not be paid as there were no details on it, and then she was sent a ‘£100 Charge Certificate’ after the parking firm obtained her details from DVLA despite inadequate signing in the car park
• A lady, on her own, whose car was clamped and removed in Enfield at night and was charged £527 to get her car back – the clamper belonged to the ‘trade association’ and breached its code despite having declared it would abide by its rules.

Private enforcers can either wheel clamp and remove or issue ‘parking tickets’, usually by accessing the car owners name and addresses from the DVLA’s vehicle database.

Read more at Mail Online.  Also click here to read the entire AA press release.

TransportGooru Musings: It would be in the best of the Government and the Transportation officials to take a look at the interesting results from the online poll published on the Daily Mail’s website, which has almost 87% of the public showing their dislike for this practice.

(Source: NPR & SFChronicle.com)

Several hundred auto workers rallied near New United Motor Manufacturing Inc. in Fremont Thursday afternoon in support of an incentive plan, backed by Gov. Arnold Schwarzenegger, designed to persuade Toyota to keep building cars at the plant.

The rally drew local business leaders and elected officials who are working with the governor’s office and state legislators, as well as with the Port of Oakland and PG&E, on a plan that includes tax breaks, improved transportation facilities, and lower electricity costs to make it economical for Toyota to stay in Nummi.

During the boom years of the U.S. car business, California was dotted with auto plants. Now the sole survivor may be on the verge of closing.

The New United Motor Manufacturing Inc., or NUMMI, was a unique joint venture between General Motors and Toyota, but the partnership is now history, and thousands of jobs are on the line in Fremont, which can’t afford to lose them.

The NUMMI plant sits in the middle of Fremont, a bedroom suburb of San Francisco. It has cranked out cars such as the Toyota Corolla and, until recently, the Pontiac Vibe for the past 25 years.

It is a point of pride among members of the United Auto Workers that their plant, which can produce abut 400,000 vehicles a year, is known for its high-quality cars. NUMMI began as an experiment tying unionized U.S. workers with Japanese management practices.

“It was a big question for both sides,” says Harley Shaiken, a labor expert at University of California, Berkeley. “The result was NUMMI, and the result was an extraordinary success story.”

Toyota could now decide, however, that the cost of going it alone is too much to bear.

Ever since GM went bankrupt, Toyota has been left negotiating with what’s left of the U.S. automaker. News reports in Japan say that Toyota is ready to pull out, though the company insists no decision has been made.

NUMMI is Toyota’s only unionized shop in the U.S. and also the only factory in North America where Toyota would have to deal with the UAW, and industry observers have suggested that union concessions would have to be part of any deal to keep the plant open and is widely believe that this fact could affect Toyota’s decision.

Click here to read the entire article.

(Source: Transit Wire & Progressive Railroading)

Amidst the flurry of negative publicity surrounding Washington, DC’s Metro rail system, there was some good news shining like a lone star in the dark sky! Metrorail passengers will soon be able to go online while underground. Four major cell phone providers have started to install the hardware that will enable riders to make calls, surf the Web, or send text messages from many of the Washington (DC) Metropolitan Area Transit Authority’s busiest stations starting in October.

Verizon Wireless, Sprint Nextel, AT&T and T-Mobile recently began installing hardware at the 20 below-ground stations and expect to complete work by Oct. 16. According to the WMATA press release, during the next two months, the companies will install a wireless network at the following Metrorail stations: Ballston, Bethesda, Columbia Heights, Crystal City, Dupont Circle, Farragut North, Farragut West, Federal Triangle, Foggy Bottom-GWU, Friendship Heights, Gallery Pl-Chinatown, Judiciary Square, L’Enfant Plaza, McPherson Square, Metro Center, Pentagon, Pentagon City, Rosslyn, Smithsonian and Union Station.

The companies will build, operate, maintain and own the new wireless network, as well as establish a second wireless network that WMATA will own, operate and maintain. The wireless contract will generate a minimum of $25 million during the initial 15-year term and an additional $27 million during renewal terms, according to the transit agency.

Customers at those stations will begin to see large, cabinet-like enclosures that will house the hardware at the ends of station platforms or on mezzanines, in areas that will not impede the flow of customers or impact the safe operation of the Metrorail system. New cables and antennae also will be installed as part of this work, which will take place late at night when the Metrorail system is closed.

“This is the first phase of Metro’s effort to bring expanded cell phone carrier service to the entire Metrorail system by 2012,” said Suzanne Peck, Metro’s Chief Information Officer. “After we complete the first 20 stations this fall, the carriers will install service at the remaining 27 underground stations by the fall of 2010. Customers will be able to use these carrier-provided wireless services in tunnels between stations by October 2012.”

Riders can now receive cell phone service from multiple providers at above ground stations, but the current underground wireless network only supports Verizon customers and Sprint phones that roam onto the Verizon network. In 1993, Metro agreed to allow Bell Atlantic Mobile Systems, which later became Verizon Wireless, to build and maintain the current wireless network. In exchange, Verizon built a public safety radio communications system for Metro. Verizon also pays annual fees to Metro.

“Customers have been asking for expanded cell phone and Internet access in the Metrorail system for a long time,” said Metro General Manager John Catoe.  And now they are finally getting what they pleaded, fought and begged for years!

(Source: Washington Post, New York Times, Bloomberg, The Detroit News, Autoblog)

The federal government’s Cash for Clunkers program began with a bang on July 24th and, despite the original plan having it last until Labor Day, will officially end next Monday night (August 24th) at 8PM. The end date was announced today by U.S. Transportation Secretary Ray LaHood and takes into account what he calls conservative sales estimates that have the pot running dry sometime over the weekend.

“This program has been a lifeline to the automobile industry, jump-starting a major sector of the economy and putting people back to work,” LaHood said in the statement.

As of today, C4C has recorded 457,476 sales worth $1.91 billion in rebates. The feds estimate about $400 million worth of rebates have yet to be submitted and are reserving another $100 million for administrative costs. That leaves $600 million left for what should be a very busy weekend on dealer lots.

After just a week, the program, which began July 24 and was expected to last until Nov. 1, ran out of the $1 billion originally appropriated by Congress. An additional $2 billion was approved two weeks ago, and it was supposed to last until Labor Day. Now that’s almost gone, too.

With the end in sight, many dealers are preparing for a flurry of last-minute customers over the weekend, and some are calling and e-mailing customers who were on the fence, perhaps threatening a surfeit of business.

“It’s not clear at all if there’s enough of the $3 billion to last through the weekend,” said John McEleney, chairman of the National Automobile Dealers Association. “My concern is if we go past the $3 billion between now and Monday.” He said, however, that he had been assured that the government has done calculations to make sure there is enough money left to get through the weekend.

In the days leading up to Thursday’s announcement, dealers and dealer groups said that uncertainties about the program’s ultimate conclusion were creating financial hardships and confusion. Among the organizations pressing for a resolution to the program was the National Automobile Dealers Association (NADA), which warned its members that “dealers who accept additional ‘clunker’ deals face a growing risk that they may not be reimbursed.”

Senate Majority Leader Harry Reid, a Nevada Democrat, asked LaHood in a letter today to speed up payments, saying “dealers have been forced to effectively finance the CARS vouchers for buyers until the dealers are reimbursed by the federal government, placing a strain on dealers’ balance sheets that, if prolonged, could eventually offset some of the benefits of the program.”

More than 1,000 people are processing the applications, LaHood said yesterday. That compares with fewer than 200 when the program began. The agency is training more of its staff and is using Citigroup Inc. contractors to handle the paperwork.

Also late today, Chrysler Group LLC joined General Motors Co. in announcing they will advance funds to dealers who are awaiting payment from the government for clunkers deals. The administration disclosed that it has paid just $145 million of the $1.9 billion in vouchers submitted — or less than 10 percent of the funds requested.

LaHood has been holding two or three meetings daily on the progress of the program in an effort to ensure an orderly shutdown.

The Alliance of Automobile Manufacturers, the trade association that represents General Motors Co., Chrysler Group LLC, Ford Motor Co., Toyota Motor Corp. and seven other automakers, praised the government’s handling of the program.

Click here to read the entire article.

(Sources: WSJ, NPR, LA Times)

Hundreds of auto dealers in the New York area have withdrawn from the government’s Cash for Clunkers program, citing delays in getting reimbursed by the government, a dealership group said Wednesday.  The Greater New York Automobile Dealers Association, which represents dealerships in the New York metro area, said about half its 425 members have left the program because they cannot afford to offer more rebates. They’re also worried about getting repaid.

“(The government) needs to move the system forward and they need to start paying these dealers,” said Mark Schienberg, the group’s president. “This is a cash-dependent business.”

Many dealers have said they are worried they won’t get repaid at all, while others have waited so long to get reimbursed they don’t have the cash to fund any more rebates, Schienberg said.  Schienberg said the group’s dealers have been repaid for only about 2 percent of the clunkers deals they’ve made so far.

“The program is a great program in the sense that it’s creating a lot of floor traffic that a lot of dealers haven’t seen in a long time,” he said.  “But it’s in the hands of this enormous bureaucracy and regulatory agency,” he added. “If they don’t get out of their own way, this program is going to be a huge failure.”

In contrast, today’s LA Times article notes that in California, which tops the list of states in terms of clunker transactions, most dealerships appear to be sticking with the program. The frenzy of buyer interest that greeted the program when it kicked off July 24 has dropped considerably partly because of shortages of popular cars such as the Toyota Corolla, Honda Civic and Ford Focus.

“The gold rush is over,” said Eric Choi, fleet manager at Hollywood Ford. “We’re still getting some business from it, but like every other dealer, we’re pretty much out of cars.”

Transportation Secretary Ray LaHood sought to reassure auto dealers Wednesday that they would be reimbursed for discounts given to customers under the program. With weeks-long delays in processing reimbursements, many dealers have feared the program’s $3 billion funding would run out before they received the money owed them.

An administration official said on Monday that the Transportation Department hoped to have 1,100 public and private sector workers processing the vouchers by the end of the week, up from a work force of about 350 through the end of last week.

Employees at a department service center in Oklahoma City have taken the lead in processing the vouchers, the official said, and workers have responded to calls for voluntary overtime to process the forms.

Meanwhile, Wall Street Journal reports that Obama administration will wind down its popular “cash for clunkers” incentive program on auto sales — and may do so as soon as early September, according to one person familiar with the matter.

When to end the program is a tricky question. The administration is closely watching the money remaining in the program, and expects there to be a surge in last-minute clunker deals once an end date is announced, said the person familiar with the matter. The administration wants to avoid having dealers agree to sales after all the funds have been used up, this person said.

Through Wednesday morning, dealers had submitted requests to be reimbursed for roughly 435,000 vouchers totaling more than $1.81 billion, though many of those hadn’t yet been approved.

The backlog at the National Highway Traffic Safety Administration also has dealers worried that authorities won’t know when the funding is gone, he said. “That has clearly been something that the industry has been constantly asking: When is it at $3 billion and one and there’s no money left? You need to have a soft landing kind of approach.”

Click here to read the entire article.

Date:  August 19, 2009

Time: 3:00 PM -4:30 PM EST

Speakers:

• Balaji Prabhakar, Stanford University
• Nicholas W. Ramfos, Director, Commuter Connections, National Capital Region Transportation Planning Board

This webinar will examine a project in India, led by Dr. Balaji Prabhakar, where a variety of payments and lottery awards were tested to encourage bus commuters to shift their schedules to just outside of peak periods. Dr. Prabhakar’s presentation will discuss the specific tests that were conducted and the results of each.

Closer to home, Dr. Prabhakar is also beginning to help try to solve some of Stanford University’s parking and commuting challenges in a policy climate that leaves little room for error¿the university is subjected to heavy penalties if the campus exceeds its allowance for peak-period car commuters.

Dr. Prabhakar has some very creative ideas for testing incentives related to parking at Stanford, which he plans to share in this Webinar, and the technological know-how to implement them and determine their effects.

The webinar will also provide a brief look at incentive programs implemented in the Washington DC metropolitan region to help reduce congestion. Nicholas Ramfos, the Director of the Commuter Connections program at the Metropolitan Washington Council of Governments will highlight incentives including a region-wide Guaranteed Ride Home Program, free consulting services and equipment lease reimbursements to employers that start or expand a telework program, and a new demonstration program that will be launched this fall which will pay commuters to carpool in designated congested corridors in the region. Nicholas Ramfos’ brief presentation will focus mostly on this newest demonstration program.

Click here to Register and for additional information on the event.

(Sources: Motor Authority, WSJ, Reuters Blogs)

In late July Porsche announced Wendelin Wiedeking would be leaving his position as the company’s CEOto be replaced by Michael Macht, clearing the way for the supervisory board atVolkswagen to lay the foundation for an integrated company with underVolkswagen leadership. Today that merger has moved forward, and reports indicate the Auto Union name could be revived to brand it.

A Reuters report says that details of a deal between Volkswagen and Porsche have been broadly agreed, with VW set to buy a stake of up to 49 percent in the sportscar maker.  The supervisory boards of the German auto makers are expected to vote Thursday morning on a so-called memorandum of understanding, which would be a precursor to a more detailed and firm merger agreement, one of the people said.

The crucial point here is that the family-owned holding company Porsche Automobil Holding SE will get a much-needed cash injection from the sale – anywhere between 4 and 5.5 billion euros –  as well as an additional 5 billion euros from selling a package of options on VW shares to the Gulf state of Qatar.

The Porsche clan has already agreed to sell shares to raise at least 5 billion euros, so it should finally be in a position to pay off debts of more than 10 billion euros it stacked up building up a stake of just over 50 percent in VW.  Stuttgart-based Porsche ousted its chief executive, Wendelin Wiedeking, in July and is working to pay down a debt pile of more than 10 billion euros ($14.13 billion).

After the successful completion of the VW deal, the Porsche marque will then enter into a new “Auto Union” as the 10th brand, under the leadership of VW CEO Martin Winterkorn.

The Auto Union name was originally given to a merger of four German carmakers – Horch,  DKW and Wanderer – in 1932. The brand went on to fame in motorsports through the 1930s, but was disrupted by World War II, and subsequently went through a number of reformations, eventually ending in a renaming to  AG in 1985.

The integrated automotive group will be formed from the progressive participation of  in AG and the subsequent merger of Automobil Holding SE and  VolkswagenAG.  Porsche will remain an independent company headquartered in Stuttgart.” Today’s report re-affirms  independence, and the Auto Union name is apparently being considered to help preserve the idea that it’s not running the whole show.