Tallying the toll of transportation privatization

May 6, 2009 at 6:37 pm

(Source: MSNBC)

Image: Indiana Toll Road

Photo: Joe Raymond / AP file. In 2006, the 157-mile-long Indiana Toll Road was leased to a private operator for 75 years for $3.8 billion. Novel approaches to funding offer insights on how the U.S. will fund, build and manage its transportation infrastructure for years to come.

Call it a tale of two airports.

In Missouri, a plan to open the nation’s first privately developed and operated commercial airport will come to fruition when the built-from-scratch Branson Airport opens on May 11.

In Illinois, a plan to lease Chicago’s Midway Airport that was seen as a model for privatization has collapsed in the face of the global credit crunch.

Two airports, two unique approaches and two completely different outcomes. Yet each in its own way may offer insights on how the U.S. funds, builds and manage its transportation infrastructure for years to come.

Crumbling infrastructure, creative financing
According to the American Society of Civil Engineers, the nation’s infrastructure is in such dire shape that it would take $2.2 trillion over the next five years to reverse decades of underfunding and neglect. The shortfall for transportation infrastructure alone is pegged at more than $800 billion.

State and local governments are simply unable (or unwilling) to fill the gap. The proposed solution: sell or lease public assets to private companies that would provide money upfront in return for the right to run the operation and keep most of the revenue.

In aviation, the Midway proposal — a 99-year lease in exchange for an upfront payment of $2.5 billion — would have constituted the first privatization of a public airport in the U.S. under an FAA pilot program announced in 1996. “It was going to be the grand demonstration of the viability of privatization,” says Joseph Schwieterman, a professor at DePaul University and proponent of public-private partnerships (P3). “But the consortium overbid, got cold feet and the thing unraveled.”

Which is not to suggest that airport privatization is dead (although there are currently no active projects in the FAA program). Instead, say proponents, future deals will likely revolve around smaller, lower-profile projects that are structured to ensure that public assets aren’t being sold off for one-time cash payments. “You have to give the public some value for their dollars,” says Steve Steckler, chairman of Infrastructure Management Group, a P3 advisory firm, “and not just take it from future users.”

Meanwhile, Branson Airport is getting ready to receive its first commercial flights next week. As a brand-new project built without government funding, it presents a completely different proposition, yet it also presents an intriguing option as the nation confronts its transportation needs. “Branson is unique,” says Schwieterman, “but the model is one that will surely be tried in other places.”

Turnpikes, tollways and the road ahead

In the interim, most travelers’ experience with privatized transportation systems will continue to come via the tolls charged on various highways and turnpikes. According to a recent report by the U.S. Public Interest Research Group (U.S. PIRG), 15 roads in the U.S. had undergone some form of privatization by the end of 2008, with another 79 projects currently under consideration.

Four years ago, Chicago once again proved to be a leader in the field when it leased the eight-mile Chicago Skyway to a private operator for 99 years in exchange for $1.8 billion. A year later, the 157-mile-long Indiana Toll Road was leased to the same group for 75 years for $3.8 billion. (Conversely, a proposal to lease the Pennsylvania Turnpike for 75 years for $12.8 billion fell apart last fall.)

Whether such deals are good for consumers remains controversial. According to proponents, privatization leads to more efficient operations and better maintenance. It also “provides cover” for local governments unwilling or unable to raise tolls on their own. (Historically, toll increases have lagged the cost of living, one reason most tollway deals allow operators to raise fees in step with inflation or GDP.)

Click here to read the entire article.

New York City Averts Transit Meltdown with New Payroll Tax

May 6, 2009 at 3:22 pm

 (Source: The Transport Politic)

State Senate finally comes to agreement on system’s adequate funding; will vote today

The Metropolitan Transportation Authority, which has been threatening huge fare increases and drastic cuts in service, will be able to rest easy tonight, because its multi-billion-dollar budget deficit will be covered by a new, more stable source of revenue: a region-wide payroll tax. There will be no bridge tolls, but a small fare increase. Though this is no panacea, and more funding is still needed, but this is huge news for New York City and means that the city will continue to be able to offer its citizens high-quality transit at a reasonable price.

The solution — held up for weeks by the demands of a few Democrats in the Senate (no members of the GOP are willing to vote for the program) — was found by agreeing to reimburse school districts that are affected by the tax. 

According to Gotham Gazette (via 2nd Ave Sagas), the plan to be voted on this afternoon will raise a total of $2.26 billion a year for the transit agency. This plan will cover the $1.8 billion MTA’s budget gap for FY 2009 and the $2 billion gap for 2010 as well as provide a small amount for capital expenditures. The New York Timesclaims that the taxes will be enough to cover the first two years of the agency’s 2010-2014 capital program. The state is likely to have to get going over the next few months to shape a funding system for necessary subway and commuter rail repairs as well as expansion needs.

Here are the basic conditions:

  • 34¢/$100 payroll tax in all 12 MTA counties, with no differences between them (meaning people in Manhattan pay the same amount as people in Nassau County, even though people in the former clearly are more likely to take advantage of the transit system than those in the latter): $1.5 billion/year.
  • 10% fare increase, will likely raise the cost of a single ride to $2.25 from $2 today; monthly unlimited cards will go from $81 to $89: $500 million/year.
  • 50¢ surcharge on taxi rides: $85 million.
  • $25 vehicle registration fee on the MTA region: $130 million.
  • Increase on car rental fee: $35 million.
  • Increase on driver’s license fee: $10.5 million.

The plan also foresees fare hikes of 7.5% in 2011 and 2013 to keep up with inflation.

Click here to read the entire article.

“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:

Scoopful of GM and Chrysler News – May 6, 2009

May 6, 2009 at 2:14 pm

GM adds shift at Oshawa to keep up with Camaro demand…enough that GM has asked workers at the assembly plant in Oshawa, Ontario, to work through the week of June 29, which had previously been scheduled as mandatory time off. Furthermore, Camaro orders are expected to be strong enough to keep the Oshawa plant’s flex line humming along on Saturdays in June, July and August, and that means overtime fo…

 Rumormill: Buick Astra coming in 2011?…products from GM‘s European Opel division are reports from GM Inside News indicating that a small car based on the Astra platform – initially planned for the now-defunct Saturn brand – has been transferred to Buick’s entry-level luxury division.Assuming these rumors are true, we can expect to see the new Buick in North America in late 2011 as a ..

REPORT: Renault after Saturn, Geely after Saab …deal with GM would allow Renault and its South Korean subsidiary, Samsung Motors, to sell its wares in the States though the existing retailers, possibly marketing the new vehicles as Saturns and building some of the vehicles using the General’s underutilized plants. How the deal would flesh out financially remains to be seen, but there’s a chan…

GM Oshawa Plant Adds Shift To Build More Presumably Non-Faulty Camaros [Chevy Camaro] GM‘s adding one more shift at its Oshawa, Ontario plant due to high demand for the recently released Camaro. Does this mean we’ll be getting more electrically-faulty Camaro SS units? Presumably not. The Peterborough Examiner reports demand has been so high that GM has scheduled the week of June 29th as a work week instead of the previously plann…
REPORT: GM voluntarily recalling Camaro for battery cable issue …but GM is reportedly offering two options for owners: a temporary fix that requires a second visit to a dealer and a permanent fix. The temporary fix involves wrapping the battery cable with protective insulating tape and rerouting it to ensure enough clearance between it and the starter. The permanent fix involves the same thing, except will us…
What’s The All-Time Greatest FWD Car? [Question Of The Day] GM wanted to compete with the Thunderbird and try out their newly-designed FWD platform. It just so happened a designer for the company put together a gorgeous coupe concept. One of the advantages of FWD is, theoretically, improved fuel economy. But this was the 1960s, so they stuffed a 7.0-liter “Super Rocket” V8 with 385 HP and 475 lb-ft of to…
REPORT: Renault A “Serious Suitor” For Saturn [Carpocalypse] …for GM‘s Saturn. Say that ten times fast. [WSJ]
GM trying to sell Opel, but will keep Ampera (the Opel Volt) …coming from GM troubles (Saturn hybrids? Say what?), there is one thing you can count on: GM is keeping the Volt. Of course they’re keeping the Chevy Volt – that was never in question – but things were just a tiny bit less clear regarding GM‘s possible sale of Opel. Whatever happens with the brand, the Opel Apmera, the European version of the Vo…
Camaro SS Recalled For Battery Cable Issue [Chevy Camaro] …now told GM‘s officially issuing a recall for the problem on the Camaro SS. UPDATE BELOW. Although we’re told it only takes about 30 minutes to fix, we’re being told GM‘s now issued a voluntary “official recall” on the 2010 Chevy Camaro SS over the battery cable issue that caused one Camaro5 member’s new Bumblebee-yellow mullet-mobile to die les…
Saab CEO Claims Not In Talks With Fiat [Carpocalypse]Saab CEO claims not in talks with Fiat. They’re the only brand that’s not. [Reuters] 
GM pledges to use plug-in hybrid tech in only one brand GM, SaturnThe Saturn Vue was supposed to be GM‘s first plug-in hybrid, but the pending loss of Saturn leaves the General’s upcoming plug-in tech without a vehicle or brand. The Vue plug-in was originally going to arrive in 2011 in a cooperative demonstration test fleet with the U.S. Dept. of Energy (DOE) and nonprofit Electric Power Research Ins…
 GM Plans To Wipe Out Current Shareholders [Carpocalypse]GM plans to wipe out current shareholders. Wait, more than they already have? [Reuters]
Plug-In Hybrids: More Hype Than Hope?…automakers like GM and Nissan. In the meantime, drivers like Morrison say they ferret out electrical outlets in parking garages and behind buildings so they can plug in as often as possible. EV advocates are quick to note the Prius wasn’t designed to be a plug-in hybrid, and in fact makes a lousy one. The biggest problem is the electric motor i…
Gallery: Goin’ Down the Road in Defunct Car Brands GM commissioned a young stylist named Harley Earl to design the car. What he came up with is widely considered the beginning of modern automotive styling. Photo: Flickr/Brian Toad Photography: Photo: Courtesy Nash MotorsNash may be the most innovative company only an auto geek has heard of. Wind-tunnel testing, flow-through ventilation systems,…
GM Will Apply Plug-in Hybrid Technology To One of Its Remaining Four Core Brands, Delivery Still in 2011
…post on GM’s FastLane blog, Vice Chairman Tom Stephens said that the company will apply plug-in hybrid technology to one of the four core brands remaining after the restructuring: Chevrolet, Cadillac, Buick and GMC. Saturn currently sells two hybrid vehicles (VUE and Aura with GM Hybrid System) and was scheduled to begin initially offering a …
Plug-in Saturn Vue not dead, will be revived (sorta) by 2011 …now own GM, it turns out that AutoblogGreen readers and GM executives think alike. In a poll we ran yesterday, the most popular choice for what to do with the Saturn hybrid powertrains was “Move the powertrain to the Equinox.” A GM spokesperson said today that, although the brand itself will indeed be sold, the powertrain – both the standard and…
Saab denies talks with Fiat…to acquire GM Europe while working on its partnership with Chrysler, according to Saab CEO Jan-Ake Jonsson, the Swedish automaker isn’t part of the deal.Jonsson said Saab is currently being courted by ten potential buyers, but Fiat isn’t one of them. Saab spokesman, Eric Geers went on to tell Reuters, “We now have ten very serious interested par…
Chrysler launches May incentives worth up to $6,000 Chrysler, LLC., Dodge, JeepChrysler doesn’t have time for assurance programs and payment protection plans. So unlike General Motors and Ford, the Auburn Hills-based automaker has launched a new incentive program for May that gives consumers back what they want most: money, and lots of it. Beginning today, Chrysler is offering $4,000 Consumer Cas…
Chrysler Offering $4,000 In Incentives On 2009 Models [Carpocalypse] Chrysler is offering up to $4,000 worth of incentives on 2009 model year vehicles in a bid to reduce inventory and counter its prolonged sales slump. One discarded sales idea? Building better passenger cars. The company says the incentives, which begin Wednesday, focus on the bottom-line price of the car as opposed to, you know, the interest con…
UAW will eventually sell Chrysler stock to keep VEBA going …New New Chrysler for very long. Outgoing UAW president Ron Gettelfinger confirmed in a press conference yesterday that the union’s Voluntary Employee Beneficiary Association (VEBA) will likely sell part or all of its 55% stake in the newly formed automaker once its stock appreciates, that is, if its stock appreciates. And why would the UAW want …
Gallery: Goin’ Down the Road in Defunct Car Brands…least until Chrysler goes under. : Photo: Flickr/Wigwam JonesThe Checker Marathon may be second only to the original VW Beetle as the most recognizable car in the world. The cars were ubiquitous as taxis and, like the Beetle, the first one to roll off the line in 1962 looked pretty much like the last one to roll of the line in 1982.: Photo; Cour…
Chrysler Maybe Not Canceling Wrangler So Much [Carpocalypse]…post on Chrysler considering killing the Jeep Wrangler, we circled back and actually read the source material Edmunds InsideLine links to and decided maybe Chrysler wasn’t looking at killing the golden goose after all. After looking over the statements from Robert Manzo, the executive director of Capstone Advisory Group LLC who’s been hired to c…
Daily U-Turn: What you missed on 5.5.09…What does Chrysler‘s restructuring plan have in store for the Viper?Long before bankruptcy and a Fiat partnership, Chrysler was looking to offload the Viper line. According to new bankruptcy documents, the Snake-badged stunner may finally face the axe. Rumormill: Nissan 370Z Hybrid for 2011?Reports ou…
Chrysler and Fiat: A merger of equally unreliable product?Chrysler, LLC., FIAT Familiarizing ourselves with Fiat – Click above for a high-res image gallery Chrysler‘s reliability ratings from Consumer Reports have been less-than-stellar in recent years. In its 2008 survey, where CR tallied up its subscribers’ experience with some 1.4 million vehicles among 34 brands, Jeep came in 28th, Dodge took the 3…
Court documention reveals which Fiats and Alfas are destined for U.S.Chrysler, LLC., Alfa Romeo, FIAT Fiat 500 – Click above for a high-res image gallery Curious which of its models Fiat plans to send over to the United States to sell through its planned partnership with Chrysler? Wonder no more. The most recent set of documents filed in Chrysler‘s Chapter 11 proceedings offer a number of intriguing clues as to w…
REPORT: Chrysler unlikely to pay back most recent $4.5 billion gov’t loanChrysler, LLC., UAW/UnionsRepayment of the $4.5 billion life-line in U.S. and Canadian loans that a federal bankruptcy court allowed yesterday is “highly unlikely,” according to Ron Manzo, a top company adviser. To Chrysler‘s bankruptcy legal team, that is not the issue. Urging the court “to let this company live,” automaker attorney Corinne Bal…
Saab denies talks with Fiat…partnership with Chrysler, according to Saab CEO Jan-Ake Jonsson, the Swedish automaker isn’t part of the deal.Jonsson said Saab is currently being courted by ten potential buyers, but Fiat isn’t one of them. Saab spokesman, Eric Geers went on to tell Reuters, “We now have ten very serious interested parties which have visited us in Trollhattan …
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Reauthorization and Reorganization in the works for USDOT – House Transportation and Infrastructure Committee Chairman James Oberstar wants to reorganize the U.S. DOT to streamline infrastructure spending programs

May 6, 2009 at 1:55 pm

 (Source: Reuters

WASHINGTON- The U.S. government would overhaul how it plans and manages big-ticket highway and transit projects in an ambitious proposal being drafted by a senior Democratic lawmaker who oversees transportation.

 House Transportation and Infrastructure Committee Chairman James Oberstar told the Reuters Infrastructure Summit on Tuesday that his plan would reorganize the U.S. Transportation Department in order to streamline infrastructure spending programs.

“It’s a complete restructuring of the thought process, the delivery system, the delivery mechanism, and the funding for it,” Oberstar, from Minnesota, said in his Capitol Hill office.

Oberstar’s proposal would be the centerpiece of a six-year highway and transit construction bill Congress will consider this year.

He estimates funding at $450 billion, but the figure has not been finalized. Oberstar, who will manage the highway bill in the House, hopes to propose his plan in the coming weeks.

The Senate is working on its own version.

The Oberstar measure would retain current federal funding sources as well as give more spending discretion to states. In addition, it would make room for private investment in infrastructure programs.

Lawmakers face a September 30 deadline to pass a long-term spending blueprint for new U.S. highway construction, road and bridge repair, and public transit.

That legislation, known as the highway bill, would be separate from the economic stimulus bill passed in February that provides $48.1 billion for transportation.

The current highway/transit construction law was approved in July 2005 with a price tag of $286.4 billion. That amount was considered by many in Congress and industry as inadequate to upgrade the country’s aging transportation infrastructure.

Industry leaders are pressing for the next bill to exceed $500 billion.

Highway spending is funded through a federal trust which draws from taxes on motor fuels. But recent shortages in gas tax receipts due to higher pump prices that have reduced driving and more fuel-efficient vehicles have prompted calls to find alternatives.

Oberstar’s plan would keep the Highway Trust fund, but would allow states to determine their spending priorities.

“They’ve had these responsibilities. They’ve just been straight-jacketed,” Oberstar said about the states. “We’re going to give the states broad discretion.”

Click here to read the entire article.

The Road Worrier: A Time To Stimulate, And A Time To Innovate

May 6, 2009 at 1:29 pm

(Source: Glenn Havinoviski, Columnist @ ITS Virginia)

Glenn N. Havinoviski is an Associate Vice President and ITS Group Director for HNTB Corporation in Arlington, Virginia.  In his recent column on ITS Virginia’s quarterly Newsletter, Glenn discussed his views on the stimulus funding towards transportation projects and their impact on ITS, jobs, etc.  Here is an excerpt from the PDF version attached here.  

You gotta hand it to the new President. In less than four weeks,he got his way, running roughshod over a political opposition unableto develop or convince others of their own vision and ideas. Uncle”O” signed into law a $785 billion stimulus, an ode to the power ofhope, change and the ability to print lots of money. In Virginia alone,some $700 million will be provided for “shovel-ready” transportationprojects, to be selected in the next few weeks by state officials.Among those projects will be several initiatives related to trafficmanagement, operations and ITS. While the purpose of the stimulusis first and foremost the creation of new jobs, closer to home I knowit may preserve some existing jobs.While I believe this example of Federal largesse will end upbeing more a historical exception rather than the rule, we’ve alreadythrown a like amount at the banks and the struggling auto industry,courtesy of Mr. Obama’s wayward predecessor.So far, it is unclear what that money has gotten us. Banks stillwon’t make loans, GM still can’t sell cars, and too many bank executivesare still partying in Vegas and elsewhere. The toxic assets arestill toxic, and still dwindling in value, seemingly by the hour.

With the horrendous transportation funding cut-backs at thestate level and limited support from elected officials, VDOT hasbeen forced to create an austere vision, one which emphasizesoperating what we have, as opposed to ramrodding a programcontaining projects which in many cases have been deferred acrossseveral lifetimes. The new-look Federal government may be seekingto bankroll a future transit and clean-energy vehicle utopia. But Virginia, as with many other states, has been economically forcedto be more pragmatic with their own money and make very hardbut practical choices.

With all the excitement over a suddenly activist Federal government,what is in danger of getting lost in the mix has been theprogress made in the last decade toward innovative use of resources- including partnerships to leverage both government and privateinvestment, using tolling and road pricing both as revenue streamand as demand management tool, and development of a networkof vehicle-roadside communications for both safety and mobilityapplications.Such approaches to transportation improvements heavily dependon collection and monitoring of real-time information, alongwith electronic payment services and dedicated short-range communications(DSRC). They also create new opportunities for jobs,as well as new markets for information and technology services.No question that they could benefit from, but are not completelydependent on, the largesse of the young handsome Uncle “O” anda largely (but not completely) sympathetic Congress. “

Scoopful of GM and Chrysler News – May 5, 2009

May 5, 2009 at 5:36 pm

 Rumormill: Vauxhall going after city car market with Trixx EV?GM‘s European arm put a toe in the water of the rapidly expanding city car market with its Opel Trixx concept. A few years later, though, GM‘s Carl-Peter Forster indicated that the automaker would not be entering that microcar market after all. Fast forward another couple of years and (surprise!) it looks as if GM may be once again reversing tha…

 REPORT: Penske lines up as potential Saturn suitorGM, SaturnThe typical relationship between automakers and dealerships, of course, is for the dealers to sell the cars that the automaker produces. But with General Motors shedding like a dog in springtime, it’s the dealers who have been looking to buy the brands themselves. Following interest expressed by German dealers to acquire Opel and a gro…

Test Drive A Chevy Traverse, Get A Massage [Carpocalypse]GM]

GM updates state of Saturn, potential buyers being reviewedGM, SaturnGeneral Motors is busy putting the finishing touches on its third (or is it fourth?) viability plan, part of which involves the sale or shut down of the Saturn division. While many were expecting GM to close down Saturn, GM has released a press release to tell the world that the fledgling marquee is on the block, and there are several …

GM Testing Indicates 2010 Chevrolet Equinox Will Offer Best-In-Segment Highway Fuel Economy of 32 mpg
…Internal GM testing of the new 2010 Equinox indicates that the front-wheel drive models with the direct-injected 2.4-liter I-4 engine will offer an EPA estimated 32 mpg on the highway and 22 mpg city. GM expects final official EPA estimates shortly. The 2010 Equinox will likely carry a 32 mpg highway rating. Click to enlarge.At 32 mp..

Magna Confirms Involvement in Potential Opel Transaction…acquisition of GM Europe.

Daily U-Turn: What you missed on 5.4.09
…Chrysler and GM EuropeFiat’s alliance with Chrysler is only the beginning, as the Italian automaker makes a bid at acquiring General Motors’ European operations, including Opel, Vauxhall and Saab. Other news of import Chrysler begins “New Car Company” ad campaign in newspapers 2010 Chevy E…

GM hopes to sell Saturn by the end of 2009
…That GM would sell Saturn has been floating around for what seems like ages now, but the most recent word from GM on the fate of the brand was that the “resolution” had been bumped up in the schedule to the end of 2009. GM just released a statement about the Saturn sale, saying that, “A number of potential buyers have surfaced and expressed inte…

Chrysler Predicts Profit by 2012 Chrysler lost $16.8 billion last year and expects to lose another $4.7 billion this year before turning profitable in 2012, a court filing shows.

Saab denies talks with Fiat…partnership with Chrysler, according to Saab CEO Jan-Ake Jonsson, the Swedish automaker isn’t part of the deal.Jonsson said Saab is currently being courted by ten potential buyers, but Fiat isn’t one of them. Saab spokesman, Eric Geers went on to tell Reuters, “We now have ten very serious interested parties which have visited us in Trollhattan ..

REPORT: Next Chrysler CEO salary capped at $500,000Chrysler, LLC., Earnings/FinancialsThe next chief executive of Chrysler will be tasked with bringing the company out of bankruptcy, restructuring into a profitable business, repaying government loans (if and when they do so at all), integrating Fiat technology and retaining jobs wherever possible. Oh, and he or she will have to do it all on no m…

Chrysler pursuing clause to award Fiat $35 million if deal falls apartChrysler, LLC., Earnings/Financials, FIATThink Fiat’s getting a pretty sweet deal with Chrysler? The Italian automaker is, after all, gaining a 20% stake in the troubled American automaker, plus local manufacturing capacity and access to its dealer networks, all without paying a thin dime. Not a bad deal, but Chrysler‘s hard at work trying to ma…

One Thing Separating Chrysler HQ From Most Malls [Carpocalypse]…explained earlier Chrysler‘s Auburn Hills, MI Headquarters was designed to easily convert into a mall if it needed the dues. However, there’s one thing we neglected to mention separating Chrysler‘s HQ from most malls. As you see below, if you scroll your Google map a little bit to the right you’ll find the 1.8 mile-long test track that sits adja…

What does Chrysler’s restructuring plan have in store for the Viper?Chrysler, LLC., Dodge, FIAT Dodge Viper SRT-10 – Click above for a high-res image gallery Long before factors like bankruptcy and Fiat’s involvement, Chrysler was looking to offload the Viper line. Several potential buyers were reportedly being considered, but months down the line no deal has been announced. In the meantime, of course, Chrysler …

Chrysler To Kill Jeep Wrangler? [Carpocalypse]…from the Chrysler bankruptcy cast doubt on the future of the Jeep Wrangler. Is somebody in Auburn Hills taking crazy-pills? Killing off weak models in order to save the strong is something Chrysler is going to have to do if it ever wants to be a profitable automaker again, but considering putting the Wrangler on such a sacrificial altar is somet…

Chrysler HQ designed for mall duty if automaker leavesChrysler, LLC., Humor Chrysler HQ a mall? Click above for high-res image gallery Leave it to our friends at Jalopnik to discover this most interesting fact about Chrysler‘s headquarters in Auburn Hills, Michigan. The 500-acre site that’s crowned by a glass tower with a 35-foot tall Pentastar window visible from I-75 was reportedly designed in su…

Fiat Delivers Custom Ducato For Papal Service [Custom Cars]…of the Chrysler faithful, Fiat has delivered a customized Ducato van to the Papal motorpool for use in touring parts of the Italian countryside destroyed by the recent earthquake. From the outside, the Ducato appears to be any other run-of-the-mill Italian Civil Defense Force vehicle, wearing the proper paint job to fit right in, but inside it’s…

Chrysler HQ Designed To Convert Into Shopping Mall [Carpocalypse]
Chrysler’s corporate headquarters in Auburn Hills appears to be a shopping mall. This is not an accident. BusinessWeek published an article two weeks ago about the value of Chrysler’s various assets in anticipation of its bankruptcy, which has since happened. Here’s the most interesting bit: The Chrysler headquarters building is a spectacular si…

UAW Wants To Get Rid Of Chrysler Share Quickly [Carpocalypse]
…t want Chrysler either. [Reuters]

President Obama & U.S. House members reach compromise on “cash for clunkers” deal

May 5, 2009 at 3:52 pm

(Source: Detroit Free Press & Image: Jalopnik)

WASHINGTON – The Obama administration and U.S. House members have reached a compromise over a “cash for clunkers” bill that would offer as many as one million vehicle buyers a voucher for up to $4,500 each to spur car and truck sales.

The bill still must pass Congress and its price tag was not immediately available. But the compromise gives the bill backing from Michigan representatives, several automakers and other groups who might have had enough opposition to block it.

The vouchers would apply to passenger cars, trucks and work vehicles. The old passenger cars and trucks being traded in under the plan would have to get less than 18 miles per gallon in combined driving. 

New cars would have to get at least 22 m.p.g. to qualify for a $3,500 voucher; if the new model gets 10 m.p.g. more than the old one, the voucher would increase to $4,500.

New trucks would have to get at least 18 m.p.g., and get at least 2 m.p.g. better than the old model to get the $3,500 voucher and 5 m.p.g. better for the $4,500 voucher.

The vouchers would be available for one year and up to one million customers.

Click here to read the entire article.

 FYI,  NY times has made available the following documents that can help you understand what vehicles are eligible in the competing version of the Cash of Clunkers legislation

List of Eligible Vehicles Under the Rep. Steve Israel Plan (from the American Council for an Energy Efficient Economy)

List of Eligible Vehicles Under the Rep. Betty Sutton Plan (from Representative Sutton’s office)

Bike Shop in the Office Means Sweet Rides for Software Company Employees

May 5, 2009 at 11:53 am

(Source: Logos Blog)

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Bellingham, WA – Equipment purchases at Logos Bible Software typically include laptops, servers, and networking gear. So company president Bob Pritchett was surprised to see an IT department purchase request that included everything necessary to set up a bicycle repair shop.

“It was a great idea. Many of our employees bike to work, and others go for rides during the day. Having a fully-equipped bike shop on site is a great way to encourage healthy habits that are good for the environment, too,” said Pritchett.

With more than 170 employees, Logos has a number of serious cyclists who work on their own bikes. Their willingness to help co-workers with everything from simple repairs to getting a long-unused bike back into shape is encouraging more employees to trade four wheels for two.

“Since installing the bike shop, I’ve been super motivated to ride to work,” said Jim Straatman, Logos’ IT manager.  “Also, my bike is running exceptionally smooth now that I have a place to work on it.”

Bellingham is a cyclist’s paradise, surrounded by bike lanes, mountain trails, and cliff-side drives. Logos’ on-site lockers and showers made it easy for employees to add their commute to their list of regular rides. The new bike shop and a bike-friendly downtown location provide a great motivation for those who haven’t ridden since childhood to get rolling again.

Logos Bible Software’s bike shop consists of an 8-foot workbench, a bike stand, and a peg board full of tools. The total investment was around $1,500, and occupies less than 100 square feet.
“In the space of a single office, and for less than it would cost to cater lunch for the company, we’ve been able to make a healthy investment that our employees really appreciate,” said Pritchett. “By making it easier to fix little things like a flat tire or squealing brakes, we’re getting more of us up from our desks and out of our cars.”

Hopefully Logos will see a big response from employees next Friday, and lots of folks will bike in to work.  For added motivation, that Friday will also be the day of Logos’ annual Chili Cookoff.  I am sure folks can enjoy an extra helping of chili without any guilt, knowing that there is an option to bike away the extra pounds on the way home from work.

Note:  Way to go, Logos! I only hope that other companies around the country would follow/adopt such practices, which not only contribute to a healthly way of life for  the employees but they also add to our country’s efforts to cut pollution from automobiles.  TransportGooru appreciates Logos’ efforts to assist its biking populace!

Job Impacts of Spending on Public Transportation: An Update – APTA study says $1B public transportation spending creates 30,000 jobs

May 4, 2009 at 6:39 pm

(Source: American Public Transportation Association via More Riders)

Many transportation industry minds are wondering what is the tangible benefits from all this investment in transit? After spending nearly one billion dollars through their public transportation agencies, what do the taxpayers stand to reap?

 According to a new report by the American Public Transportation Association, 30,000 jobs (besides better public transportation).   That comes out to one new job for every $33,333 in spending. Not bad at all, as economic development projects go.   

The study report released on April 29th shows that investing in public transportation provides jobs to the American workers who may need them the most.  Job Impacts of Spending on Public Transportation: an Update shows that two-thirds (67 percent) of the jobs created by capital investment in the public transit industry replaces lost blue-collar jobs with “green jobs” in the public transit sector.  The Economic Development Research Group prepared the study for the American Public Transportation Association (APTA). 

Overall, the study shows an investment of one billion dollars in public transportation supports and creates 30,000 jobs in a variety of sectors.  Based on these projections, the American Recovery and Reinvestment Act of 2009 (ARRA), which provides $8.4 billion for public transportation projects, will create approximately 252,000 jobs for Americans and help transit systems meet the steadily growing demand for public transit services.  APTA released the study at the U.S. House of Representatives Transportation and Infrastructure Committee hearing Recovery Act: 10-Week Progress Report for Transportation and Infrastructure Programs.

“The ultimate goal in any economic recovery plan should be to not create just any type of job, but rather to invest in and focus on areas particularly hit hard by the economic downturn,” said William W. Millar, APTA president.  “The investment in public transit not only produces green jobs but also provides for a more sustainable transportation system that will help reduce our dependence on foreign oil and lessen the transportation sector’s impact on the environment.”

The study reveals that two out of three (67 percent) of these new construction and manufacturing “green jobs” resulting from public transit capital investment typically fall in the category of Blue-Collar Semi-Skilled (59 percent) and Blue-Collar Skilled (8 percent).  These jobs include positions in manufacturing, service, repair worker, drivers, crew, ticket agents and construction. 

In addition, 33 percent of the new jobs as a result of public transit investment fall in the White-Collar Skilled (32 percent) or White Collar Semi-Skilled (1 percent) category.  These jobs include clerical, managerial and technical engineers.

Some of the key findings from this study are here:

  • The rate for federal funding of public transportation reflects a specific mix of capital investment and preventive maintenance funding as allowable by law.  Under current federal law, an estimated 30,000 jobs are supported per billion dollars of spending.

  • The national rate can vary from of 24,000 to 41,000 jobs per billion dollars of spending, depending on the spending mix.  The lower figure holds for spending on capital investments (vehicles and facilities), while the higher figure holds for spending on transit system operations. In reality, it is not logical to spend money on vehicles and not use them, nor is it logical to operate vehicles forever without any purchases of new equipment.  For these reasons, the average rate is a more meaningful number.

  • Looking across the entire $47 billion spent on public transportation in the US each year, there is an average rate of approximately 36,000 jobs per billion dollars of public transportation spending (i.e., 36 jobs per million dollars of spending).  This figure is based on the national mix of public transportation spending as of 2007.  It includes a direct effect of spending in transportation related manufacturing, construction and operations as well as orders to suppliers or by re-spending of worker income on consumer purchases.

The rate of jobs supported per billion dollars of spending will continue to change every year, as prices change and technologies evolve. 

Click here to read the entire report in HTML & to download a copy of the report in PDF format.  For those who like to stay without leaving this window, here is a read-only copy of the PDF report.