(Source: Jalopnik,  Freep & World Car Fans)

Looks like American automakers have found at least one more buyer for their vehicles. The U.S. government is planning on the purchase of $285 million worth of fleet vehicles that get better gas mileage than the current fleet. Under the plan, the General Services Administration will purchase more than 17,500 vehicles as a part of their existing deals with Chrysler, Ford, and General Motors.

U.S. President Barack Obama, and his administration, have said the purchases will take place by 1 June. Although it is unclear what will happen to the older fleet vehicles being replaced, many will likely be sold at government auctions.

The purchase is hardly a surprise. In the much talked about stimulus package approved by Congress, $300 million was included for the automotive purchase. This is not a gigantic purchase in the grand scheme of things, as the Big Three sold a combined total of 380,000 vehicles for March 2009. Still, the move may help to bolster confidence in the sector, while even a marginal increase in revenue would be welcomed by the automakers.

More than 14% of the vehicles will be hybrid sedans. 2,500 orders for the vehicles, which will likely include the Chevy Malibu, Ford Hybrid Fusion, and Saturn Aura, will be placed by the end of next week.

Image: Jalopnik

If nothing else, the move underscores the administration’s willingness to put its money where its mouth is: Last week, Obama sent GM and Chrysler back to the drawing board, saying they needed more aggressive restructuring plans if they were to get more government loans to survive. 

But he also promised this big government buy of fuel-efficient vehicles and created a special office to help communities in Michigan and elsewhere struggling with the downturn in the industry. In a prepared statement released today along with details of the planned purchases, Obama said, “The problems that caused this economic crisis weren’t created in a day and it will take time and hard work to get our economy back on track. But I am 100% committed to a strong American auto industry, and we will stand with America’s auto workers and their families during these difficult times.”

(Source: Washington Post)

 WASHINGTON — Lying on her chest in a small crawl space, Staff Sgt. Dana Fernkas watches the gray Air Force jet emerge from the clouds and ease up just behind the rear window in the belly of her plane.

 (Source: Financial Times)

(Source: Infrastructurist)

Image: Infrastructurist

Everywhere you look, from Argentina to Saudi Arabia, there’s a country planning a new high-speed rail line.  Contributor Yonah Freemark offered this incredible, easy to understand graphical depiction on Infrastructurist, which compares seven lines on four continents that are either in the engineering phase or already under construction. They range in size from the diminutive 34-mile project that will connect Jerusalem and Tel Aviv to the gargantuan 818-mile link between Beijing and Shanghai. The variations in construction cost per mile and local meaning of the term “high speed” are almost as great.

(Source: Telegraph, UK) Germany is more than tripling the incentives on offer to buyers of new cars as it attempts to boost its auto industry, which employs around 15pc of the nation’s workforce.

The scheme offers German consumers €2,500 for trading in vehicles more than nine years old if they buy a car that is less than one year old.

Click here to read the entire article.  

TransportGooru has compiled several articles in the past reporting on similar efforts in UK (which is now contemplating introduction of  a similar program after watching the Germans successfully implement the program) & USA.  Here are the links to some of the earlier articles:

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”

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

Obama Favors “Cash for Clunkers”

(Source: Wall Street Journal)

(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.

(Source: Business Week)

Image Courtesy: African Development Bank

International donors and lenders on Monday pledged $1.2 billion for projects to improve road and rail links between eight southern African countries.

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.

 (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.

(Source: Associated Press via Yahoo! News)

WASHINGTON – U.S. highway deaths in 2008 fell to their lowest level in nearly 50 years, the latest government figures show, as the recession and $4 per gallon gas meant people drove less to save more. Safety experts said record-high seat-belt use, tighter enforcement of drunken driving laws and the work of advocacy groups that encourage safer driving habits contributed to the reduction in deaths.

Preliminary figures released by the government Monday show that 37,313 people died in motor vehicle traffic crashes last year. That’s 9.1 percent lower than the year before, when 41,059 died, and the fewest since 1961, when there were 36,285 deaths.

A different measure, also offering good news, was the fatality rate, the number of deaths per 100 million vehicle miles traveled. It was 1.28 in 2008, the lowest on record. A year earlier it was 1.36.

“The silver lining in a bad economy is that people drive less, and so the number of deaths go down,” said Adrian Lund, president of the Insurance Institute for Highway Safety. “Not only do they drive less but the kinds of driving they do tend to be less risky — there’s less discretionary driving.”

Fatalities fell by more than 14 percent in New England, and by 10 percent or more in many states along the Atlantic seaboard, parts of the Upper Midwest and the West Coast, according to the National Highway Traffic Safety Administration.

“Americans should really be pleased that everyone has stepped up here in order to make driving safer and that people are paying attention to that,” Transportation Secretary Ray LaHood said.