(Source: Autoblog; Photo: Benjamin Davidson@ Flickr)

Not surprisingly, officials from the Canadian and Ontario governments have followed the U.S. government’s leadby officially rejecting the restructuring plans of General Motors and Chrysler. The Canadian officials said the automakers’ current plans do not go far enough and will not be certified as they are. In fact, they’re basically copying and pasting the new deal for automakers announced by the U.S. government today, saying that GM has 60 days to redo its plan while receiving a portion of the C$3 billion it requested and Chrysler has 30 days to finalize its partnership with Fiat while receiving C$250 million of the C$1 billion it requested.  Click here read more.

(Source: AP)

The head of the Environmental Protection Agency wants to limit emissions along the nation’s coastline and within its seaports, just as the agency does along highways, with tougher pollution standards on large commercial ships.

 EPA Administrator Lisa Jackson said Monday that the United States and Canada have applied to the International Maritime Organization to create a 230-mile emissions control area around much of their coastline.

The move is intended to ensure the shipping industry does its part to improve the air quality of major seaport communities. Ships moving through the zone would be subject to the tougher emissions standards.

“This is an important and long overdue step to protect the air and water along our shores,” Jackson said, speaking in front of a row of cranes at a press conference in Port Newark.

Jackson estimated that 40 of the 100 largest U.S. ports are located in metropolitan areas that fail to meet federal air quality standards. One of them is the Port Newark facility, which is part of the Port of New York and New Jersey — the East Coast’s largest port complex.

The EPA estimates that 90 percent of the ships carrying cargo in and out of U.S. coastal ports are based in other countries.

Ships operating in the proposed zone would face stricter limits on the sulfur content of their fuel beginning in 2015, and new ships would be required to incorporate advanced emission-control technologies beginning in 2016, Jackson said. Sulfur content is directly related to the soot, or pollution, emitted after fuel is burned.

Image Courtesy: EPA - OGVs Are a Big Problem: US Ports and Nonattainment Areas

Jackson made the announcement at a news conference with the Coast Guard and other federal and state officials.   EPA estimates the new emission-control technology will cost shipping companies $3.2 billion. Jackson said that translates into an increased cost of about 3 cents for each pair of sneakers shipped into the United States.

Gov. Jon Corzine welcomed the proposal and recalled sending Jackson to Washington, D.C., to lobby for it when she headed New Jersey’s Department of Environmental Protection.

Mr. & Mrs. Wagoner- R.I.P (Relaxing in Propsperity)

(Source: ABC News)

(Relaxing in Prosperity)R.I.P Rick Wagoner – Gets $20Mil for losing tens of billions of dollars and tanking stock price from $60 (June 2000) to $1.27 (March 2009)

Rick Wagoner will leave his post as CEO of bailed-out General Motors with a $20 million retirement package, the company’s financial filings show.

Although the Treasury Department has barred GM from paying severance toWagoner or any other senior executive, Wagoner is eligible to collect millions in retirement benefits from his former employer, according to the documents reviewed by ABC News.

The Obama administration asked for Wagoner to resign Sunday, as part of its restructuring of the auto industry. President Obama said this morning that forcing Wagoner out indicated it was a time for new leadership. 

Under Wagoner’s leadership, GM lost tens of billions of dollars, took billions in taxpayer-financed aid, and announced plans to cut 47,000 employees by the end of 2009.

Click here to read the entire article.  For those interested in reading Wagoner’s farewell e-mail, please visit The Truth About Cars.  

For those who care to know, here is what GM’s Executive Officer Severance Policy  looks like (Thanks, an0nymous poster @EVcast): 

General Motors executive officers are generally at-will employees who serve at the discretion of the Board. In early 2005, GM adopted a policy applicable to executive officers requiring stockholder approval of any severance benefits if: 
• The executive’s employment was terminated prior to retirement; and 
• The present value of the proposed severance benefits would exceed 2.99 times the sum of the executive’s annual base salary and target annual incentive. 

Note: TransportGooru wonders if this culture of execessively compensating under-performing, over-paid must-be-retired executives will ever come to an end?   If Mr. Wagoner has any iota of ethics that his alma mater (Harvard Business School) tries to inculcate in its wards, he must politely decline and walk away without taking a penny from this $20mil payout.

(Source: Autoblog; Image: Doug Mills @ New York Times)

 

President Obama has just finished his press conference on the government’s determination of the viability of General Motors and Chrysler, and the gist is that both automakers have failed to convince the feds that their business plans deserve further investment. Obama and his task force will give GM enough working capital to survive another 60 days and prove its viability, though no dollar amount was given. Chrysler, meanwhile, is being given another 30 days and working capital up to $6 billion to finalize a partnership deal with Fiat. If a deal can’t be made and another partner is not found, Chrysler will get no more federal aid. Also, Fiat won’t be allowed to take a majority stake in Chrysler until the automaker repays all the money it has borrowed from the government so far. 

Perhaps the biggest news from the press conference is that the U.S. government will now fully back the warranties on vehicles sold by General Motors and Chrysler in the hopes that buyers will continue to consider their products amidst these tumultuous restructuring efforts. Also, the President has pledged to work with Congress to find funds to pay for a U.S.-version of the Cash for Clunkers program that has been so successful in Germany. 

BREAKING NEWS Report from WSJ: The Obama administration’s leading plan to fix General Motors Corp. and Chrysler LLC would use bankruptcy filings to purge the ailing companies of their biggest problems, including bondholder debt and retiree health-care costs, according to people familiar with the matter.

Click here to read the entire article.  Also, shown below is the PDF version of Restructuring Fact Sheet  compiled by The Truth About Cars.

(Source: The Transport Politic & Telegraph, UK)

With support from Tories and Labour, project construction is virtually guaranteed

The United Kingdom, despite its intense population concentration and relatively straight-shot connection between its biggest cities, has yet to invest in a major high-speed program, unlike its peers in France, Spain, and Germany. Beginning late last year, however, the Conservative Party, under leader David Cameron and shadow Transportation Minister Teresa Villiers, began pressuring the Labour-controlled government to begin planning a high-speed rail link between London and Manchester, via Birmingham, as a replacement for the planned third runway at Heathrow airport. Plans to route the line through the airport to allow easy connections to flights were incorporated into the proposal almost immediately.

Though in January Labour did approve the runway at Heathrow as a way to relieve the significant congestion there, the U.K.’s ruling party has come to see a high-speed rail program as politically advantageous – especially as Mr. Cameron’s party has risen in popularity in recent years. It’s not surprising, then, to see Lord Andrew Adonis, the nation’s Minister of State for Transport, endorsing the line’s approval by early next year, before the next general election. With support from both major parties, the line is unlikely to face major opposition – and will likely get government funding as soon as its route has been finalized.

The map above illustrates the general consensus on the routing of the full route (in red). Running northwest from London, the line would hit Birmingham and then Manchester, before heading north to Leeds, Edinburgh, and Glasgow. A spur line from Manchester to Liverpool is likely, and, if conservatives and engineering company Arup get their way, the line would be routed through Heathrow Airport before extending north. Planning on the service has begun by a company called High Speed 2; the name is a reference to High Speed 1, the company that completed the Channel Tunnel Rail Link in 2007 (in black on the map above). High Speed 1 carries Eurostar trains from London to Paris and Brussels in 2h15 and 1h50, respectively, down 40 minutes from pre-construction travel times.

Click here to read the entire Transport Politic article.

 (Source:  CNNMoney.com Video: MSNBC via YouTube)

GM chief out in bailout shakeout

Rick Wagoner forced out of top spot as Obama administration moves to overhaul automaker.

(Source: Bloomberg)

Cars and light trucks will be required to meet a U.S.fuel-economy average of 27.3 miles per gallon for 2011 models, a 2 mpg increase from the previous year’s level, the Transportation Department said.

The 8 percent gain announced today in Washington carries out a 2007 law intended to curb emissions and fuel use. The change, being put in place asGeneral Motors Corp. and Chrysler LLC face possible bankruptcy, isn’t as aggressive as the 27.8 mpg target that President George W. Bush proposed in April 2008.

“This isn’t going to be a stretch for them to meet this,” David Kelly, former acting head of the National Highway Traffic Safety Administration under Bush, said of automakers. New-car fuel economy already averaged 31.3 mpg by 2007, NHTSA said in today’s rule.

Cars must average 30.2 mpg, up from 27.5 currently, under the rule. Light trucks will average 24.1, up from 23.5 mpg for 2010 models. The December 2007 law called for vehicles to meet a 35 mpg standard by 2020 models, a 40 percent increase from the average in 2008.

“The bad news is that the 27.3 mpg standard means that they’ll have to make up for it in future years,” said Dan Becker, director of the Safe Climate Campaign, a group in Washington that works for environmentally “clean” cars. “The goods news is that they have promised that they will.”

President Barack Obama’s administration had a March 31 deadline for setting the standard, giving the industry about 18 months to prepare its 2011 models to meet the requirement. Bush never issued his proposed standard before he left office.

Click here to read the entire article.

(Source: Boston Globe)

Mass. officials say public works that would have the biggest impact – and create the most jobs – may be left out

(Source: Autoblog & Oregon Live)

Michael Harold Lynch was ticketed for doing 54 mph in a 35 mph area that was also a construction zone. The fine was $206. Lynch decided to let his anger flow by placing $206 in a plastic bag, peeing in the bag and sending it in. Upon receiving Lynch’s little care package, the courthouse staff gave it to a police officer and declined to accept the pungent payment to clear the ticket. 
“It was nasty. It reeked,” said Sgt. Phil Anderchuk.

Anderchuk called a U.S. postal inspector to see if federal law had been broken, and learned that it’s not against the law to mail a box of bodily fluids, as long as it’s properly packed and doesn’t emit an obnoxious odor. 

In explaining why the courthouse couldn’t accept Lynch’s payment, the sergeant wrote that “the pile of coins emitted a strong, pungent odor of stale urine. This was very concerning to me.”

Anderchuk reminded Lynch he still owed for the ticket.

“I encourage you to submit your payment in a more traditional form,” he wrote in a January letter. He told Lynch to expect a visit from a postal inspector, presumably to talk about how close he came to violating federal law.

Lynch apparently got the message, because a few weeks later a check arrived. But it was made out to the wrong agency. Courthouse staff sent it back. In February, a new check arrived, but this time it was made out for the wrong amount: $206, which didn’t account for $65 in penalties for arriving late. Last week, the state turned Lynch’s case over to a collection agency.

Click here to read the entire story. 

 (Source: The Transport Politic & GAO; Photo: Swanksalot@flickr)

General Accountability Office sees federal involvement in planning and financing as necessary for high-speed rail construction