The “Chosen One” – NY Times profiles Obama’s Car Czar-lite, Mr. Steven Rattner

April 8, 2009 at 12:01 am

(Source:  New York Times; Photo: Jay Mailin/Bloombern News)

Obama’s Top Auto Industry Troubleshooter

After 26 years as one of the most politically connected investment bankers on Wall Street, Steven Rattner finally took a job in Washington — only it is not quite the one friends and business associates thought it would be.
Washington buzzed that Mr. Rattner, a big name in the New York media world who, friends say, aspires to a cabinet post like Treasury secretary, would be named the car czar of the Obama administration. Instead, he is one of 14 people on a committee that is orchestrating the rescue of the giant automakers.

Still, Mr. Rattner, a well-known media banker, is playing a central role as car czar lite, traveling to Detroit to visit plants, meeting with the automakers’ bankers, unions and bondholders, and advising the White House on which companies seem salvageable and how. If he succeeds, he may get a chance at a larger job in the administration.

That is a big if. He has to push the car companies to overhaul decades-old practices, persuade his former colleagues on Wall Street to lower their demands on the automakers’ debt payments and appeal to union leaders who may be turned off by Mr. Rattner’s financial success.

Mr. Rattner said in an interview that he has long been interested in returning to Washington, where he worked as a newspaper reporter 30 years ago, and that he hoped to stay on for some time to work on aspects of the financial crisis.

“In the fall, as the economic crisis intensified, it became clearer and clearer to me that this was a moment of historic importance,” Mr. Rattner said, “and if one was ever to have an interest in serving your country in the area of economic policy, this was the moment.”

Mr. Rattner has been among the most politically connected people in the banking industry. He and his wife, Maureen White, who together have been referred to by New York magazine as the “D.N.C.’s A.T.M.,” have hosted many Democratic fund-raisers at their lavish apartment on Fifth Avenue. They were initially Clinton supporters, but they hosted events for Barack Obama after he sealed the nomination.

Click here to read the entire article.

Donors pledge $1.2 billion for transportation improvments in eight African countries

April 6, 2009 at 6:56 pm

(Source: Business Week)

Image Courtesy: African Development Bank

The aim is to reduce transportation bottlenecks and bring down costs along the main trading routes through South Africa, Zimbabwe, Zambia, Tanzania, Democratic Republic of Congo, Malawi, Botswana and Mozambique.

Bad delays at national border crossings, along with road taxes, have led to high prices for shipping products to regional and international markets, especially from landlocked countries like copper-rich Zambia. Vehicles also require frequent repairs due to poor road quality.

World Trade Organization director-general Pascal Lamy told participants at a two-day conference that there was an urgent need for Africa to speed up the completion of a North-South transportation corridor.

International lending institutions and donor governments promised $1.2 billion toward the project — with half coming from the African Development Bank over the next three years.

The World Bank pledged $340 million, with additional support from the European Union and Britain.

Fraud erodes trust in Turkish transportation

April 6, 2009 at 6:39 pm

 (Source: Hurriyet Daily News)

ISTANBUL – In an attempt to escape banks, some transportation firms change their vehicle identification numbers and the color of the trailers in their fleet. Such irregularities are eroding trust in the industry as a whole, says Murat Tokatlı, chairman of the Association of Trailer Manufacturers. ’Our customers are unable to obtain funding for trailers,’Tokatlı complains

Some transportation companies that are in distress and unable to pay their loans resort to fraud, eroding confidence in the sector, the head of a Turkish association has warned.

These firms change their vehicle identification numbers and colors of the trailers in their fleet in order to escape from banks. Such irregularities erode financial institutions’ trust in the transportation industry, said Murat Tokatlı, chairman of the Association of Trailer Manufacturers, or TREDER. “Therefore, customers are unable to obtain funding for trailers. This forces producers to shoulder costs and risks.” 

Tokatlı said 1,000 trailers and 300 trucks are “lost” at present due to the irregularities. He also said some firms have new traffic registrations for previously-used vehicles after having small producers change their vehicle identification numbers and colors. 

Erosion of confidence 

“Such irregularities started six months ago. The losses deriving from this have reached 25 million euros. The vehicles we produced get lost, and another brand new vehicle emerges. Such moves are completely in violation of the manufacture, amendment and assemblage regulations for vehicles,” said Tokatlı. 

Irregularities in type approval certificates have also been an ongoing issue in the sector, Tokatlı said. Despite obtaining just one type approval certificate, some firms produce many vehicles, he said. 

Explaining the irregularities, he said; “Some producers manufacture a type of product without having its certificate. Then they purchase the certificate and have the vehicle’s traffic registration. Besides being against the law, this also is a threat for safety. It is crucial to establish an audit mechanism.”

Commenting on financing problems stemming from the irregularities, he said; “The irregularities have eroded the trust of finance institutions into the transportation sector, which is the purchaser of trailers. The customers are unable to obtain financing for trailers. Maybe half of the trailer sales in Turkey are made with producers’ loans. The sector is under threat, and therefore we are obliged to provide the funding. Producers shoulder the cost and risk of the financing.”

Click here to read the entire article.

McKinsey Quarterly: Andy Grove, former CEO of Intel, proposes an electric plan for energy resilience

April 3, 2009 at 1:04 pm

(Source: McKinsey Quarterly ;Video:  The Auto Channel @ YouTube)

The fastest way to reduce America’s dependence on oil imports is to convert petroleum-driven miles to electric ones by retrofitting the SUVs and pick-ups now on the road with rechargeable batteries. Here’s how.

Our aim should not be total independence from foreign sources of petroleum. That is neither practical nor necessary in a world of interdependent economies. Instead, the objective should be developing a sufficient degree of resilience against disruptions in imports. Think of resilience as the ability to absorb a significant disruption, bigger than what could be managed by drawing down the strategic oil reserve.

 Our resilience can be strengthened by increasing diversity in the sources of our energy. Commercial, industrial, and home users of oil can already use other sources of energy. By contrast, transportation is totally dependent on petroleum. This is the root cause of our vulnerability.Our goal should be to increase the diversity of energy sources in transportation. The best alternative to oil? Electricity. The means? Convert petroleum-driven miles to electric ones.

Electric miles do not necessarily mean relying on all-electric cars, which would require building an extensive and expensive infrastructure. They can be achieved by so-called plug-in electric vehicles (PEVs). (Since many plug-in cars are modified hybrid automobiles, they are sometimes called PHEVs.) PEVs have both a gasoline-fueled engine and an electric motor. They first rely on the electricity stored onboard in a battery. When the battery is depleted, the vehicle continues to run on petroleum. The battery then can be charged when the vehicle is not in service.

The engineering and organizational issues involved in retrofitting on a large scale are far from trivial. The biggest problem, however, is the availability of batteries. The most suitable battery technology, which offers both a sufficient range and enough power to provide the acceleration required by today’s drivers, is the lithium-ion battery system. Current battery-manufacturing capacity is limited, and nearly all of it is dedicated to supplying batteries for the nearly 200 million laptop computers and other handheld electronic devices built each year. Making the batteries required for one million vehicles would mean doubling current manufacturing output.

Click here to read the entire article (Register for Free to read and hear the entire discussion).
NOTE:
TransportGooru is proud to share Andy Grove’s keynote address on the critical importance; and business opportunity and viability; of moving transportation from oil to electricity.

 

“Rushed” into judgement – “Republican God” Rush Limbaugh blasts green car movement – “nobody” wants hybrids

April 2, 2009 at 8:09 pm

 (Source: AutoBlogGreen)

In an attempt to stay politically neutral, we’re going to stop short of offering opinions about Rush Limbaugh’s recent statements regarding hybrid automobiles and the intent of automakers like Ford and Honda to “please politicians overseeing the industry’s multibillion-dollar bailout.” What we will say, though, is that Limbaugh’s a little off when he suggests that hybrid vehicles are entirely unwanted. So sayeth Rush:

Nobody’s buying ’em. Nobody wants them! The manufacturers are making them in droves to satisfy Obama! Sorry for yelling. Nobody wants them!

While it’s true that hybrid vehicle sales tend to rise and fall with the ebb and flow of fuel prices, which are currently down from the record highs from a year ago, Edmunds’ Green Car Advisor points out that 1.3 million hybrid vehicles have been sold in America since 1999, the first year the fuel-saving vehicles entered the market. Obviously, there are more than a few people out there who want to cut down on their fuel usage. Further, these hybrid vehicle programs have been in development since well before President Obama was elected.

When TransportGooru took a sneak peek into the trascripts posted on Mr. Limabugh’s website, the following golden statements caught the attention:   “I will only say that those people have probably given up their individuality for what they think is a larger cause, but nobody wants them.  That doesn’t matter, because as I mentioned earlier in the program, a couple hundred more million acres placed off-limits, energy rich, shale oil, natural gas, placed off-limits by the US Congress.  We’re gonna become more dependent on foreign oil, more dependent on foreign oil.  Gasoline prices are going to go through the roof at some point, Big Oil will be blamed by the Obama administration, and then you will be forced to start considering cars you do not want and you are not buying.  Good-bye freedom.  We have got to drive these people out of office before it’s too late. 

TransportGooru’s research found another rushed judgement on this issue back in June 2006 , as described in a Huffingtonpost article and the author David Franklin offers his counter along the way:

Rush says that, “Contrary to any loose statements made by our marketing partners in the environmental community and media, petroleum not consumed by Prius owners is not ‘saved.’ It does not remain in the ground. It is consumed by someone else. Greenhouse pollutants are released.” I find this statement baffling! Is there a backlog of “oil orders” that lies unfulfilled somewhere that I am unaware of? Are there companies out there just waiting for people to buy more hybrids, so that they can have their oil orders taken off backorder? Not to my knowledge. Logic would dictate that if demand for oil decreases, drilling and production of oil will decrease as well!

Perhaps if it was put another way it would be easier for Rush to grasp the cold hard logic behind what hybrids can do for this nation; “If every privately owned vehicle in America was traded in today for a Prius, it would reduce the amount of oil our nation requires to a level that could be fully supported by our own resources!”

Let me say that again in case it didn’t sink in fully the first time; “If every privately owned vehicle in America was traded in today for a Prius, it would reduce the amount of oil our nation requires to a level that could be fully supported by our own resources!” (and that’s without having to drill in Alaska!)

NOTE 1: Rush Limbaugh is slowly but steadily moving himself towards a spectrum of insanity that only he can fathom. TransportGooru is perplexed by his stands on this issue.  Look, it is very simple, Mr. Limbaugh:  Every drop of fossil fuel we don’t consume saves a whole lot for our future generation.  Trust me! You are not speaking for the republican masses here, at least on this one issue.   BTW, Mr. Limbaugh, start planning your “objections” for the upcoming electric vehicle revolution, spearheaded by Tesla.
Note 2: The above shown picture of Rush and the golden words inscribed in them are too golden to pass.  It clearly demonstrates how Mr. Limbaugh can quickly drive himself off a cliff on certain topics, like Iraq’s Abu Graib prison abuse! 

CNN’s “State of the Union” explores the impact of transit cuts on communities across the U.S.

April 2, 2009 at 6:27 pm

(Source: Transportation For AmericaCNN via Youtube)

As painful transit cuts cripple more and more agencies across the country, major national networks are gradually tuning in to the story and seeing just how bad things are. CNN is the latest to cover the transit cuts phenomenon that’s wreaking havoc on the largest and smallest of our public transportation systems.

In a four-minute segment last week, CNN used Transportation for America’s handy map — which we created to document the 85 communities that are being forced to either cut service, increase fares, or lay off workers due to budget crises at the local and state level — and took an in-depth look at some of the impacts of cutting back public transportation at a time when Americans are riding transit in record numbers.   This peice on transit is part of CNN’s “State of the Union,” in which host and chief national correspondent John King goes outside the Nation’s  to report on the issues affecting communities across the country. 

 

At one stop Wednesday, a handful of developmentally disabled passengers boarded outside a local facility where they work. One told CNN she optimistic “something will get done about it” but said she isn’t sure how she is supposed to get around after Friday.

Kimberly Barge is a staff attorney at Paraquad, the gym where the Falks and other local disabled residents attend classes.

“People are frustrated, angry — almost to the point of hopeless in some cases because there aren’t many other alternatives for the disability community as far as transportation goes,” Barge told CNN.

Jean McPherson boarded the bus with her infant daughter. The 20-year-old is going back to school to get her high school diploma and though short on cash, she says she is now forced to explore buying a used car.

“I might end up losing my job or not being able to take my daughter to day care,” is how she sees the consequence of her bus route being shortened so that it no longer stretches out to her community. “You can’t afford a car; that is why you use public transportation. So a lot of people are going to be in a bad situation.”

 

Click here to read more.

“Are We There Yet?” – AASHTO launches national campaign to build awareness and provide information on the critical needs of our nation’s transportation system

April 2, 2009 at 4:31 pm

(Source: AASHTO)

Photo: Zen Skillicorn@flickr

Washington, DC – “Are we there yet? The perennial question asked by kids on a long car trip is the same one all Americans should be asking about our entire transportation network,” said John Horsley, Executive Director of the American Association of State Highway and Transportation Officials (AASHTO). “Improving our transportation system must be a top priority for all of us since we are only investing half of what it would take to meet the needs of our nation’s growing population, demand for freight, and aging roads, bridges, and transit.”

 With the expiration date looming for the current federal transportation authorization, AASHTO has today launched a national campaign to build awareness and provide information on the critical needs of our nation’s transportation system.

Are We There Yet? We Can Be! is designed to be a one-stop shop for current information on the condition of the country’s infrastructure, state examples of successful projects, innovative technology, and focused solutions that can be shared with the public, the media, business and community groups, and lawmakers. The website highlights AASHTO’s proposals for the upcoming authorization, developed during the past year by representatives of the state departments of transportation.

“By working collaboratively across the nation – using common language and themes, we can ensure that our messages will be heard,” Horsley said.

The campaign stresses three key points: State DOTs are accountable; their projects are community-driven; and their work is performance based – on-time, on-budget and using the most innovative technologies.

The campaign website, AreWeThereYet.transportation.org, outlines the AASHTO authorization proposals and includes facts about America’s transportation infrastructure as well as a host of examples and information on issues ranging from safety and congestion, to freight and transit. AASHTO’s new television webchannel,www.TransportationTV.org, offers interviews with key Members of Congress, information on issues such as the Highway Trust Fund, backgrounders, and a weekly news show devoted to transportation issues.

Click here to explore the campaign.

Oregon’s mileage-based taxation experiment declared a roaring success; Final Report now available

April 2, 2009 at 12:04 pm

(Source: Streetsblog & WorldChanging)

The Oregon Department of Transportation (ODOT) has compiled a 100-page report on the experiment that covers a lot of ground, but basically describes the trial as a roaring success. A few interesting features of this report :

  • Overhead is low. Because the mileage tax piggybacks on the existing gas tax collection system, it’s easy and cheap for the state to administer.
  • Payment is simple. From the driver’s perspective, the mileage tax differs little from the gas tax, other than the fact that their gas station receipts contain interesting information on miles driven.
  • Privacy is protected. The state only gets odometer information, not information about vehicle location.
  • Evasion is difficult. Even if you tamper with the GPS receiver, you’re still going to pay the gas tax.
  • Phased implementation is possible. Oregon doesn’t foresee a complete changeover to mileage taxes happening until 2040. This is a bit too slow for my taste (I really hope gas stations don’t exist in 2040), but the point is that gas taxes and mileage taxes can happily coexist as the vehicle fleet turns over.

Technically, the system worked. Just as importantly, public acceptance was high. 91% of [self-selected] test participants preferred the system to paying gas taxes.… Before the experiment began, media portrayals of the system were almost uniformly negative — and inaccurate. By the middle of 2006, media coverage ranged from neutral to positive, and were far more accurate. Citizen comment reflected this broader trend. ODOT concludes, “Effective communication can lead to public acceptance.”

Click here to read blogger Adam Stein’s take on this subject at WorldChanging.com.  For those interested here is the final report in PDF form. 

 

China Invests to Be Leader in Electric Vehicles

April 1, 2009 at 8:04 pm

(Source: New York Times)

China wants to raise its annual production capacity to 500,000 hybrid or all-electric cars and buses by the end of 2011, from 2,100 last year, government officials and Chinese auto executives said. By comparison, CSM Worldwide, a consulting firm that does forecasts for automakers, predicts that Japan and South Korea together will be producing 1.1 million hybrid or all-electric light vehicles by then and North America will be making 267,000.

TIANJIN, China — Chinese leaders have adopted a plan aimed at turning the country into one of the leading producers of hybrid and all-electric vehicles within three years, and making it the world leader in electric cars and buses after that.

The goal, which radiates from the very top of the Chinese government, suggests that Detroit’s Big Three, even as they struggle to stay alive, will face even stiffer foreign competition on the next field of automotive technology than they do today.

“China is well positioned to lead in this,” said David Tulauskas, director of China government policy at General Motors.

To some extent, China is making a virtue of a liability: it is behind the United States, Japan and other countries, when it comes to making gas-powered vehicles. But by skipping the current technology, China hopes to get a jump on the next.

Japan is the market leader in hybrids today, which run on both electricity and gasoline, with cars like the Toyota Prius and Honda Insight. The United States has been a laggard in alternative vehicles. G.M.’s plug-in hybrid Chevrolet Volt is scheduled to go on sale next year, and will use rechargeable batteries imported from LG in South Korea.

China’s intention, in addition to creating a world-leading industry that will produce jobs and exports, is to reduce urban pollution and decrease its dependence on oil, which comes from the Mideast and travels over sea routes controlled by the United States Navy.

Premier Wen Jiabao highlighted the importance of electric cars two years ago with his unlikely choice to become minister of science and technology: Wan Gang, a Shanghai-born former Audi auto engineer in Germany who later became the chief scientist for the Chinese government’s research panel on electric vehicles.

Beyond manufacturing, taxi fleets and local government agencies in 13 Chinese cities are being offered subsidies of up to $8,800 for each hybrid or all-electric vehicle they purchase. The state electricity grid has been ordered to set up electric car charging stations in Beijing, Shanghai and Tianjin.

Click here to read the entire article.

Obama Favors “Cash for Clunkers”

April 1, 2009 at 7:43 pm

(Source: TreeHugger); Video: YouTube)

 Yesterday President Obama told Chrysler and GM that it is time to shape up or ship out. He also said he supports a program that would pay people to trade in older cars for newer, more fuel efficient vehicles. Europe has successfully tried this, but could it work here and would it be good for the planet? 

Speaking about a so called “cash for clunkers” program, Obama said:

“Such fleet modernization programs, which provide a generous credit to consumers who turn in old, less fuel-efficient cars and purchase cleaner cars, have been successful in boosting auto sales in a number of European countries.”

Here is an analysis from a News portal on what it could mean for consumers.

This is especially true in Germany, where new auto sales are said to have risen 20 percent last month. Of course, Europe has much higher gas prices than we do, increasing the desire to go with a greener car. They are also taxing people for their carbon output, again incentivizing people to get rid of heavier, more inefficient cars and trucks., A gas tax and other complimentary taxes that would bring our prices in line with Europe’s is politically unlikely, so a trade-in program may have some political legs given Congress’s new found attention on the climate. 

Another supporter is Ohio Rep. Betty Sutton, who sponsors the CARS Act, which creates vouchers of between $3,000 and $5,000 for people to trade-up. Given the president’s announcement yesterday, it’s suddenly a viable question to ask if there will be any American cars to buy if a cash for clunkers plan was enacted.

Here are some of the related posts from TransportGooru:

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

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

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