Financial Gurus at Mint.com snap an awesome picture of the state of auto industry in the United States

September 6, 2009 at 11:12 am

(Source:  Mint.com via Autoblog)

Ever wondered what’s the state of the american auto industry? Over the past several months we came across several reports of the ailing American autopia, including those with horrific financial reports, Government bailout in billions, mergers and acquisitions that changed the auto industry landscape worldwide, the glorious performance of American automakers during the short lived Cash for Clunkers boost, etc.  Along the way, there were few attempts to depict the ever-changing amoebic state of the auto industry from a 30,000ft level, in an easy to understand format.  But so far (what little I have read), nothing comes close to what the brilliant folks at Mint.com have done.

Image Courtesy: Mint.com - Click the image to see an enlarged version

They say a picture is worth a thousand words, and we’d add that the above graph is tantamount to an engaging novella. It charts the massive brand exodus among the Detroit contingent, which looks like a quadruple reverse drawn up on the telestrator by John Madden. If that isn’t sobering enough, the text below shows just how much Detroit automakers have shrunk since 2006. Overall, attrition at Ford, GM and Chrysler accounts for an astonishing 144,600 workers in only three years. No wonder Michigan has the highest unemployment rate in the nation. The chart also gives a brief look at the up-and-coming members of the US auto industry, including Tesla, BYD, Tata and Smart, along with a quick blurb about the future of each of the automakers represented.

TranspotGooru Musings:    The only glitch that I spotted in the above graph is the introductory line on the blurb about Chinese Automaker BYD – “Recently bought by Warren Buffet….”  Actually, the company is publicly traded, and its major shareholder is Wang Chuan-Fu who started BYD (the letters are the initials of the company’s Chinese name).  Mr. Buffet’s Bekshire Hathaway has invested $232 Million  thus far and is consider to expand its investment further. Berkshire Hathaway first tried to buy 25% of BYD, but Wang turned down the offer. He wanted to be in business with Buffett – to enhance his brand and open doors in the U.S., he says – but he would not let go of more than 10% of BYD’s stock.

Inglorious “Cash for Clunkers” wrecks demolition derby vehicle market; Demolition Derby Drivers Association head says “Obama is an anti-demo-derby guy”

September 6, 2009 at 10:22 am

(Source: Time; Autoblog)

With 690,000 vehicles sentenced to one final gargle of sodium silicate, thanks to the now-defunct Cash for Clunkers program, demolition-derby drivers seem to have been left holding the short end of the driveshaft. What the government seems to have forgotten is that many cars, hobbling and sputtering as they near death, prefer to make one final trip to the local county fair (assuming they escape a 24 Hours of LeMons team). There, stripped of glass and with fuel tanks moved safely inward, the clunkers die an honorable death smashed gloriously to pieces in front of large (and often well-hydrated), cheering crowds.

There’s at least one group of people who are happy Cash for Clunkers is over: demolition-derby drivers. Participants in these events, in which drivers smash into one another until there’s only one engine left running, don’t enjoy the sight of old cars going out of commission without making a pit stop at the county fairground. “Obama is an anti-demo-derby guy,” says Tory Schutte, head of the Demolition Derby Drivers Association. “He’s targeting the cars we’ve been using.”

There’s at least one group of people who are happy Cash for Clunkers is over: demolition-derby drivers. Participants in these events, in which drivers smash into one another until there’s only one engine left running, don’t enjoy the sight of old cars going out of commission without making a pit stop at the county fairground. “Obama is an anti-demo-derby guy,” says Tory Schutte, head of the Demolition Derby Drivers Association. “He’s targeting the cars we’ve been using.”

There are an estimated 3,500 derbies in the U.S. each year, and they tend to be the main attraction at county fairs, where attendance has hit record highs in many places this summer. “It’s been a stellar year for fairs across the country,” confirms Marla Calico, spokesperson for the International Association of Fairs & Expositions.

The Last Mile Question Gets the Transport Politic Treatment – Concerns About End-Point Connectivity are Overreaching

September 5, 2009 at 2:31 pm

(Source:  The Transport Politic)

It would be nice to imagine effective mass transit connections at high-speed terminals, but they are not necessary to build ridership. Rather, we should focus on concentrating high-intensity development in station-area zones.

As the debate over spending on high-speed rail evolves into a full-fledged argument, opponents have focused in on the matter of connectivity to dispute the notion that U.S. railways would attract enough riders. American cities suffer from inadequate transit, and the thinking goes that people would as a result continue to choose auto and air travel even if high-speed trains provided excellent intercity service. The conclusion of this line of reasoning is that the government should invest in urban transit before it moves on to high-speed rail, though it should be noted that many of the same people fighting rail on these grounds have previously stated their opposition to spending on public transportation.

I discussed the basic fallacy in this argument last week — namely, that intercity and urban travel markets are different and that we have a responsibility to invest in both; we cannot simply abandon efforts to improve the ability of people to move between cities. But the point raised by rail opponents deserves to be adequately addressed. Will rail find riders even if no transit is available in the environs of stations? Should we invest in a travel mode that has been successful in densely developed regions in Europe or Asia when the U.S. is so sprawled out?

National Public Radio broadcast a sob story from a woman who traveled on Amtrak from Greensboro to Raleigh, North Carolina, only to find what she claimed was “no” bus service at the arrival station, requiring her to walk “along broken pavement on a street without a sidewalk” and then wait 15 minutes for public transportation. She stated that this process was so difficult that she would probably drive the next time she took the trip because of the difficulty of the end of the commute. The story’s conclusion was that the woman’s situation exemplified the state of transit in many cities and that future rail ridership might be hampered by these problems.

Leave behind for a moment the fact that the bus she took stopped literally one block away from the station, that it runs every 10 to 15 minutes throughout the day, that is it free, and that it serves Downtown Raleigh’s major museums the poor lady was hoping to visit with her nephew. The bus would qualify as good transit service in most American cities, so the woman’s experience may be more a reflection of the city’s bad signage and her limited experience in riding the bus than some systematic problem in transit provision.

Click here to read the entire article.

Event Alert! IBEC Seminar: Road Pricing – Beyond the Technology — September 20, 2009 @ Stockholm, Sweden

September 4, 2009 at 2:20 pm
IBEC Day Seminar
Road Pricing Beyond the Technology
Sunday 20 September, 2009
9:00-17:00

Radisson SAS Royal Viking Hotel
Vasagatan 1 (near Central Station) SE-101 24 Stockholm (Sweden )

Key Issues
– What are the economic benefits of road pricing and how can they be measured?
– Can road pricing provide large scale and long-term economic stimulus for a 21st Century economy?
– How should we inform and consult with stakeholders?
– What about social equity – do we understand the social distribution of costs and benefits?
– How should we manage politics and public expectations?
– Are HOT lanes a step in the right direction or a dangerous distraction?
– What have we learned from current efforts at implementation?
– Where have real benefits been delivered and what have we learned from the failures?

Registration
The registration fee is
Euros 75 (incl. taxes) and includes a buffet lunch and three coffee breaks.
An up-to-date programme and a registration form are available via the link “see attachment” below.
Registrations can be made either by email or fax. On-site registrations are also possible if seats are available.
Contact:
Mrs Odile Pignierodile@harmonised-events.com – Tel: +33 2 41 54 76 30 – Mob: +33 6 79 76 47 66

See Website
See attachment
See Access Map Details

Time.com slams Delta’s poor customer service; Laments the plight of aviation industry’s customer compliant handling process

September 3, 2009 at 12:44 pm

(Source: Time)

Time.com has featured the plight of an airline passenger, whose problems with the airline (Delta) started with a lost bag duringa  recent trip.  The efforts of the passenger and his multiple attempts to get reunited with his lost baggage are not so uncommon for many travelers.   Thousands of passenger go through similar ordeals and experience the agony of poor service and outdated operational systems, sucking up hours of their day(s), while waiting for airlines to do something to solve their problem. But what makes tihs Time.com story unique is the fact that the passenger in question happens to be a reporter and had a chance to air this miserable handling of the problem by Delta staff on a reputed platform.  It is appalling to see what a passenger has to endure,  that too when he is not the one who caused the problem in the first place.  What’s more pathetic is the fact that the Delta spokeswoman seems to be clueless about what reporting mechanisms are in place for her company to receive a customer’s complaint.  Shame on you, Delta!

Image Courtesy: Apture

Here are some excerpts from the Time.com article:

This is not a story about lost luggage. It’s a story about who to call at the airlines when you feel you’ve been mistreated. The answer, increasingly, is no one.

But it starts with a lost bag — the black duffel Delta Airlines lost on my recent trip from Kansas City to New York City after a nightmarish day of travel: a canceled flight on a perfectly clear morning; a cumbersome rerouting through Atlanta; arrival at LaGuardia after 6 p.m., more than five hours late. When my bag failed to show up, I faced yet another missed connection: to the bus I needed to catch for the two-hour ride to my final destination. So rather than wait in line at the lost-luggage counter, I took a phone number to call in the report later. Which I did — only to be told sternly that lost-baggage reports cannot be taken over the phone, only in person at the airport.

This seemed patently unreasonable. Delta had put me through a lot of trouble: canceling a flight, adding five hours of flying time to my day, losing my luggage. All I asked was the same courtesy accorded any passenger whose bag was lost by the airline: its return free of charge. But after three calls to the baggage folks, the best I could do was get the bag tracked (it eventually made it to LaGuardia). I was told that I had to either pick it up myself at the airport or pay a hefty delivery charge. Three times I asked for a supervisor to whom I could make an appeal. Three times I was told the person I was talking to was a supervisor. (Big labor news: at Delta Airlines, everyone is a boss!) Finally, I asked for a customer-service number so I could lodge a complaint. That’s when I found out how the airlines really feel about customer service: Delta no longer has such a number. An unhappy passenger’s only recourse is to go to the website and write an e-mail.

I spent half an hour filling out the online form, sent off an e-mail and got this response: “We are sorry but this service is unavailable at this time. Please try again later.” I managed to send the e-mail on a second try the next day. Still, I wanted a live human being to hear my case sooner. I called the main reservations line and wheedled a number at Delta’s corporate headquarters in Atlanta. But that only elicited a brusque gentleman who quickly swatted away my complaint. “That is Delta Airlines policy,” he said. “You just don’t like the policy.”Actually, airlines break their own policies all the time. Indeed, one of the few redeeming features of dealing with airlines is that, if you’re persistent and persuasive enough, you can usually find a representative willing to find you a seat on that sold-out flight, waive a change fee, ease your outrage by upgrading you to first class or give you a free meal voucher. When my flight was canceled, Delta waived the usual $15 fee on checked luggage. It’s actually smart business; even small gestures go a long way toward defusing consumer wrath.

At least, that’s the way it used to be. The major carriers have, quietly, made it steadily more difficult to air your complaints to a live human being. “The airlines don’t want to talk to their customers,” says John Tschohl, a consultant to businesses on customer service. American Airlines stopped taking customer complaints by phone several years ago, according to a spokesperson; putting the complaint in writing, he insisted, is more efficient. United used to have a customer-support number but dropped it “some months ago,” according to a reservations agent. (A corporate spokesperson didn’t return several phone calls asking for confirmation.) Even the few airlines that still have customer-service numbers, like Continental and Southwest, tuck them away deep within their websites, where only the truly obsessive can find them.

A Delta spokeswoman seemed perplexed by the whole question. First she said simply, “We direct customers to our e-mail.” After more checking, she reported that Delta does have a customer-care option on its toll-free number. When I couldn’t find it, she checked once more and clarified: the customer-care line is found on Delta’s main corporate phone number — but that number is not publicized and “it is not suggested” that customers call it. A representative at that number said they do not take customer complaints and directed me to the website.

Click here to read the entire article.

No more excuses to drive! DC Biking Infrastructure Gets A Sophisticated Addition; Bikestation Set for October Unveiling

September 2, 2009 at 2:16 pm

(Source: NPR)

Today, NPR had an interesting coverage of DC’s newest addition to its growing biking infrastructure.  Just outside Washington, D.C.’s central train station, construction is under way on a sleek, modern, glass-and-metal bike garage. Here is the audio snippet (via Apture):

“Some people say it’s a half-football or a shell,” says Mazen Soueidan, the project manager. “It has four sides [with] scalloped shells that overlap.”

Once completed, the Bikestation will hold 130 bikes, lockers and a small shop for repairs. Located next to the Metro subway exit at Union Station, the system will provide secure bike storage for commuters who want to cycle through Washington once they arrive from “feeder” cities like Baltimore.

Bike Station

Image courtesy: The City Fix DC

Of course, part of the appeal of bicycling is convenience — you can lock a bike to pretty much anything.

But if you lock your bike to a parking meter, you might come back to find it’s missing a seat or wheels, or it’s just gone. Soueidan says theft was an issue even while building the bike garage.

Set to open in October, the Bikestation will require either an annual membership or a daily usage fee.

Paine says introducing the system to Washington is part of a larger shift toward “dispelling the notion that the car is an essential part of our daily lifestyle.”

John Ciccarelli of Bicycle Solutions in San Mateo, Calif., agrees. “What’s growing is acceptance that the bicycle is a mode of transportation as well as recreation,” he said.

Levered arms inside the bike storage unit allow bicycles to be stored one on top of the other.

Image Courtesy: NPR - Levered arms inside the bike garage allow bicycles to be stored one on top of the other.

Click here to read the entire article.

Keep on Trucking – PBS’ Blueprint America explores the state of the freight trucking industry and its future

September 1, 2009 at 11:51 pm

(Source: PBS’ Blueprint America)

The majority of American goods are transported by trucks, even though freight trains are greener and more fuel-efficient. Where should America be placing its bets for moving our economy and what would you personally sacrifice for it?

Blueprint America — with NOW on PBS — in a report with correspondent Miles O’Brien looks at the massive amount of freight moved throughout the country — mainly by trucks on an aging highway infrastructure that’s crumbling and bursting at the seams. With projected population growth and a rebounding economy, experts say it is only going to get worse.

So as Congress begins a major rewrite of the nation’s transportation laws, many are asking if it is time to redirect freight traffic off congested highways onto more environmentally friendly and fuel efficient railroads. Sounds good, but there is a catch. Unlike highways that receive public funding, railroads are private. Should taxpayers sink public money into a private railway system? And where should the money come from?

Blueprint America Correspondent Miles O’Brien looks at the contemporary needs, challenges, and solutions for transporting vital cargo across America, and how those decisions affect the way you live, work, and travel.

Time.com explores the battle of zero-emission technologies in the automobile world

September 1, 2009 at 11:24 pm

(Source:  Time)

Q’Orianka Kilcher has never pumped a gallon of gasoline into her car. Never. Then again, she’s never owned a car that needed gasoline. You could say she is at ground zero of the ZE, or zero-emission, vehicle future.

A 19-year-old actress living in Santa Monica, Calif. (she played Pocahontas in the 2005 movie The New World), Q’Orianka (pronounced Quor-ee-anka) is on her second hydrogen-fuel-cell car, a Honda FCX Clarity, a four-door with a 200-mile range. “I don’t think I will ever buy a gas car,” she says. “I can go everywhere I want to go with this. Plus, it’s a guy magnet.”

Auto-marketing gurus take note: the brave new world of ZE cars is here, ready or not, and please make them sexy.

“ZEs are an entirely different paradigm,” says Stephen Ellis, manager of fuel-cell-vehicle marketing for American Honda Motor Co. in Torrance, Calif. Ellis manages the rare $600-a-month leases (including free hydrogen fill-ups) for the FCX Clarity. “Knowing how to integrate these new technologies into existing lifestyles and then building new infrastructures to make it work is the trick,” says Ellis. “It took a hundred years to create the gasoline infrastructure; this will be much faster.”

There are three types of zero, or near zero, emission cars: electric plug-ins, hybrid plug-ins and hydrogen fuel cells (which create power by having oxygen and hydrogen pass over electricity-generating electrodes). But each major automaker has its own take on which advanced technology will win 10 years down the road.

Nissan, for example, is pedal-to-the-metal with pure electric cars, having skipped fuel-cell technology altogether. It considers “interim hybrid technology,” like Toyota’s successful Prius, a mere passing phase. “The market-share winner will be the one that offers affordable, mass-market, zero-emission vehicles with a zero payback period for premium technologies,” says Mark Perry, director of the product planning and strategy group for Nissan North America.

In contrast to Nissan, Honda has passed up pure electrics, preferring instead to bank on lower-cost hybrids (Civic and Insight) and hydrogen fuel cells. Ellis, however, claims no distinction should be made between “FCs” and electrics, since a fuel-cell car is basically an electric car powered by hydrogen-created electricity.

Then there is Toyota, the 800-pound hybrid gorilla. Toyota has yet a third route to success: muscling up on its hybrid strength.

“We believe in not being first to market but being best to market,” says Mary Nickerson, who is in charge of advanced-vehicle marketing at Toyota Motor Sales, also in Torrance. Last year, Toyota reached the 1 million sales mark with its Prius hybrid (gas-powered with fuel-saving electric technology).

“Our strategy is to be the hybrid masters, no pure electrics, and to explore fuel-cell technology,” says Nickerson. “We feel it’s going to take a lot more than one technology to make this new market work.”

Some 21% of consumers will not consider a pure electric car because of the need to plug-in at home, according Nickerson. “We believe that 10 years out, the winners will be all new technologies, but hybrids will be the largest winner of them all.”

Then again, as Honda’s Ellis says, “It all depends on the price of gas.”

Click here to read the entire article.

German invasion in August! Audi posts 26% US sales gain to score second best August ever; Revs up 2010 action

September 1, 2009 at 10:37 pm

(Source:  Reuters,  Motor Authority)

Audi is moving from strength to strength the world over but especially here in the U.S. where for years brand prejudices has left it playing second fiddle to the likes of BMW, Mercedes-Benz and Lexus. The four-ring brand is in the midst of a transformation, however, and is set to launch a host of exciting models over the next 12 to 18 months so grab a seat and let’s look at the rundown.

Audi today reported its U.S. sales last month rose 26% to achieve its second-best August sales ever and its best month overall since June 2008. In August 2009, Audi sold 8,057 cars and SUVscompared to 6,406 vehicles sold in August 2008.  Audi posted the strong results despite offering only modest discounts toconsumers and seeing minimal impact from the federal government’s Car Allowance Rebate System. Fewer than 10% of Audi sales for the month can be attributed to the “Cash for Clunkers” incentives that were available throughout August. Audi discounts have ranked among the lowest in the luxury vehicle segment, according to third-party measurements. August was no exception to that trend.

“With each passing month it is clear that Audi is shaping the luxury vehicle conversation,” said Johan de Nysschen, President, Audi of America. “These August results are not figments of steep discounting or other sales gimmicks. They represent the reality that the performance orientation, the leading-edge styling, the attention to detail and efficiency found across the Audi lineup resonate with the priorities set by today’s luxury car buyers.”

August 2009 set a sales record for the Audi Q5 crossover vehicle, which has been met with positive critical reviews since its launch in February. For the month, Audi dealers sold 1,496 Q5 models, leaving a 21-days supply of unsold models. Typically, a 60-days supply of unsold models is considered normal.  Strong demand also tightened inventories of the Audi Q7 TDI(R) as American consumers are showing a new appreciation for the efficiency and emissions benefits of the world’s cleanest diesel technology. The inventory of unsold Q7 TDI models dipped to a mere 29-days supply.

During August 2009, Audi sold 6,167 cars and 1,890 SUVs. From January through August 2009, Audi sold 39,380 cars and 12,929 SUVs.   Audi is also optimistic about sales in the months ahead. At the end of August, dealership showroom traffic was up more than 20% from a year earlier and Internet leads were up 38.1% year-to-date from 2008 levels. What’s more, luxury consumer interest in the Audi lineup should intensify with the arrival of the Audi S4 Sedan, the S5 Cabriolet, the A5 Cabriolet and the redesigned Q7 models. Before the end of 2009, Audi will launch the new A3 TDI model, which gets a stunning 42 mpg of clean diesel fuel, according to the U.S. Environmental Protection Agency.  Audi recorded 2,642 Certified Pre-Owned (CPO) units sold in August, and has now achieved 21,187 CPO sales in 2009.

If this is not enough, Audi is upping the ante by introducing new models to beef up the market stake.  By the end of the year we should be seeing Audi’s awesome R8 V-10 supercar hitting the streets, as well as the S5 Convertible and S4 Sedan. However, the real action starts next year as Audi is planning to unveil a replacement for its A8 flagship sedan, the production version of its A7 four-door coupe and possibly the next-generation A6.

First comes the 2011 Audi A8. Speculation had put the world debut for the new aluminum space-frame sedan sometime this fall, but it’s now certain that the A8 will make its world debut at the 2010 Detroit auto show. The car will be “the first of a new styling language at Audi,” executives say. All-wheel drive will be teamed with dual-clutch transmissions and a range of diesel, turbocharged V-6, V-8 and possibly hybrid V-8 engines.

Next in Audi’s busy year will be the production version of the A7 concept, shown earlier this year in Detroit and expected at the 2010 Geneva auto show. The new vehicle is a four-door coupe based on the A8 architecture, and will share its aluminum space frame. The same powertrains from the A8 should cross over into the A7, while an S7 version may sport a V-10 sourced from Lamborghini.

Click here to read the entire article.

Fighting Fire from the Sky! World’s Biggest Fire Extinguisher Douses California Wild Fires

September 1, 2009 at 9:40 pm

(Source: Wired)

747

Image Courtesy: Evergreen via Wired

The deadly fires that have blackened more than 105,000 acres around Los Angeles prompted authorities to call in the world’s largest fire extinguisher — a Boeing 747 that can drop 20,000 gallons of retardant over a swath of land three miles long.

The plane made its first-ever drop in the continental United States when fire officials summoned it to the Oak Glen fire east of Los Angeles mid day on Monday. After the successful first drop, the Supertanker was called back into action Monday evening where it made further drops on the massive Station fire north of the city which grew to more than 164 square miles and threatened 10,000 homes. Nearly 2,600 firefighters from as far away as Montana are throwing everything they have at the blaze, and on Monday they called in the biggest tool in their inventory.

Supertanker, a 747-100 modified by Evergreen Aviation of Oregon, can deliver more than 20,000 gallons of fire retardant with considerable accuracy using its unique pressurized delivery system. Although Supertanker can’t snake through canyons like smaller aircraft, nothing can touch its payload or its ability to perform multiple controlled drops during a single flight. The Grumman S-2, a dedicated workhorse of California’s airtanker fleet, carries 1,200 gallons. That’s a thimbleful compared to the Supertanker.

Evergreen spent more than $50 million developing the Supertanker and hopes to sell it around the world as the premier aerial firefighting tool.

Besides being big, the Supertanker is persistent. The pressurized system can make several precision drops per flight. During the flight in Alaska, it dropped 17,000 gallons on its first pass over the fire, then returned to dump the rest of its payload. “If an incident commander says he wants a thousand gallons here, a thousand there and 15 thousand over there, we can do that,” Campfield says. “It’s like an aerosol can. You have much better control with a pressurized system.”

This kind of capability means Supertanker can fight several small fires, after a lightning storm for example, or cover a three-mile swath of property to protect a community. With a top speed in excess of 600 mph, Supertanker can get from its base to the fire line quickly. Currently the 747 is based at McClellan Airfield outside Sacramento. Once it’s over the fire, Supertanker can slow down to around 160 mph while making drops 300 feet above the ground. And unlike many other firefighting aircraft that are flying at or near their maximum weight, the 747 is flying well below its maximum providing an added safety margin for the pilots.

Click here to read the entire article.