Where the US stands in pushing “Cash for Clunkers”- Four bills in Congress; Details Needed

April 13, 2009 at 4:09 pm

(Source: Tree Hugger)

Congress to Buy Old Cars.jpg

There are currently four bills in Congress focused on stimulating car sales by allowing people to trade an old car for a new one. There’s been lots of buzz, but not so many details. That’s starting to change as people such as Rep. Betty Sutton goes on the offensive for her own proposal .

There are currently four different proposals in Congress to stimulate stimulate car sales by way of incentives from the government to buy older, less fuel-efficient vehicles. Three are from the House of Representatives and one from the Senate . Already the topic has lit up the blogosphere with buzz about the opportunity for people to get $3,000.00 to $5,000.00 for exchanging that junker for a shiny, new automobile.Rep. Betty Sutton was on CNBC’s Squawk on the Street today talking about her version of the bill. With an official title of “To accelerate motor fuel savings nationwide and provide incentives to registered owners of high polluting automobiles to replace such automobiles with new fuel efficient and less polluting automobiles or public transportation” it’s easy to see why few details are in the media as of yet. The bill’s short title as introduced is Consumer Assistance to Recycle and Save Act of 2009. Anchors Mark Haines and Erin Burnett posted questions about how the proposal may work.

Leader in the Pack 
Rep. Sutton’s Consumer Assistance to Recycle and Save (CARS) Act would give consumers incentives of $3,000 to $5,000 for turning in vehicles that are 8 years or older to buy more fuel-efficient vehicles or to obtain a transit voucher. She says that support is growing every day. The bill has gathered 21 co-sponsors so far, up from 19 a couple of weeks ago. The bill is still working out the metric of how cars would need to be traded in and what fuel efficiency would need to be for the new car. Sen. Dianne Feinstein has a similar proposal (with a short title of Accelerated Retirement of Inefficient Vehicles Act of 2009) that would mandate that the new car be 25% aboveCAFE standards . There has not been anything mentioned about how many cars one person or family can switch for the credit. Also, some states already have incentives for buying cleaner cars, so will individuals be able to get both state and federal credits? If so, in places like Texas , a person could get a combined total of as much as $8,500.00 for a new car.

Click here to read the entire article.  Here is the CNBC video of  the Cash for Clunkers featuring industry experts Dave McCurdy, Alliance of Automobile Manufacturers and John Wolkonowicz, IHS Global Insight.

 Note:  Below is a list of articles published on TransportGooru, offering insight into state of various “Cash for Clunkers” style programs implemented (or currently being debated) across the globe (Germany, UK, etc,).

 

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”

Germany increases subsidy to 5 Billion Euros, tripling incentives for its “Cash for Clunker” (Abwrackprämie) program

Britain mulls implementation of “Cash for Clunkers” scheme to boost ailing auto sales

Britain mulls implementation of “Cash for Clunkers” scheme to boost ailing auto sales

April 13, 2009 at 3:23 pm

(Source: Spiegel Online via Business  Week)

To boost ailing carmakers, the British government is expected to offer customers a premium to exchange clunkers for new vehicles—as Germany has doneClick here to find out more!

The paper writes that Darling and officials in the Treasury have been impressed by the results the programs have delivered in other countries. Last month, Britain experienced a 30 percent drop in new car registrations at a time when Germany recorded 40 percent more vehicle sales than during the same period a year earlier. In Germany, Treasury officials noted, the precipitous drop in auto sales has been reversed.

The Times reported that details are still being hashed out between the Economics Ministry and the Treasury in London, but that the plan will look a lot like Germany’s. According to the paper, a £2,000 (€2,200) scrapping premium is to be given on trade-ins of any car over nine years old.

In contrast to Germany, though, Darling and Economics Minister Peter Mandelson are also seeking industry participation in the program. At the very least, they want a binding commitment that existing rebates will not be dropped because of the government program. So far though, the paper reports, the British automobile industry is resisting the government’s push for it to support the program with its own means.

In addition to Germany, a number of European countries including Austria, France, Italy, Portugal and Spain also have stimulus programs in place for carmakers suffering from thecredit crunch and global financial crisis—and the success of these stimulus efforts has been measurable. China and Brazil have also succeeded in increasing car sales again.

“A scrapping scheme will provide the incentive needed and the evidence is clear that schemes already implemented across Europe do work to increase demand,” Britain’s Society of Motor Manufacturers and Traders (SMMT) chief executive Paul Everitt told the Times. “The UK is the only major European market not to implement a scheme.” SMMT estimates the one-year program would cost about £160 million.

Last week, the United States also said it would adopt the successful European recipe. During a dramatic speech to the auto industry, US President Barack Obama praised the scrapping premiums as exemplary and “successful” and pledged to introduce a similar program in the US. But the program could be a lot more expensive for the United States than Britain: Already, an estimated 250 million cars and trucks are driven in America. Of those, close to 30 percent are at least 15 years old, meaning the country could have as many as 75 million candidates for scrapping.

In Germany, demand has been so strong that the government plans to extend its scrapping bonus through the end of the year. Last week, Chancellor Angela Merkel’s cabinet moved to extend the scheme until Dec. 31 and to provide €5 billion in government funding—enough to cover up to 2 million cars.

Click here to read more.   Transportgooru has already published a number of articles on this topic in earlier months.  Please feel free to explore them:

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”

Germany increases subsidy to 5 Billion Euros, tripling incentives for its “Cash for Clunker” (Abwrackprämie) program

OPEC’s Nightmare! Oil Industry Braces for Drop in U.S. Thirst for Gasoline

April 13, 2009 at 2:55 pm

(Source: Wall Street Journal)

DALLAS — Since Henry Ford began mass production of the Model T nearly a century ago, car-loving Americans have gulped ever-increasing volumes of gasoline. A growing number of industry players believe that era is over.

Among those who say U.S. consumption of gasoline has peaked are executives at the world’s biggest publicly traded oil company, Exxon Mobil Corp., as well as many private analysts and government energy forecasters.

The reasons include changes in the way Americans live and the transportation they choose, along with a growing emphasis on alternative fuels. The result could be profound transformations not only for the companies that refine gasoline from crude oil but also for state and federal budgets and for consumers. Much of contemporary America, from the design of its cities to its tax code and its foreign policy, is predicated on a growing thirst for gasoline.

 As Americans commute less, use more fuel efficient cars and take more public transportation, gas stations have shut down. There are 11% fewer places to pump gas in the U.S. today than there were a little over a decade ago.

In the vast market for crude oil, American gasoline consumption matters. One of every 10 barrels of crude ends up in U.S. gasoline tanks, more than is used by the entire Chinese economy.

Right now, the recession is curbing U.S. gasoline consumption, as laid-off workers stop commuting and budget-conscious families forgo long road trips. Drivers filled their cars with 371.2 million gallons of petroleum-based gasoline every day in 2007, according to the U.S. Energy Information Administration. It expects that to fall 6.9% to 345.7 million gallons in 2009, as demand at the pump declines and the use of plant-based ethanol increases. Even if usage climbs after the recession ends, it won’t exceed 2007 levels, according to EIA forecasts.

Demand for all petroleum-based transportation fuels — gasoline, diesel and jet fuel — fell 7.1% last year, according to the EIA. This is the steepest one-year decline since at least 1950, as far back as the federal government has reliable data.

Many industry observers have become convinced the drop in consumption won’t reverse even when economic growth resumes. In December, the EIA said gasoline consumption by U.S. drivers had peaked, in part because of growing consumer interest in fuel efficiency.

Exxon believes U.S. fuel demand to keep cars, SUVs and pickups moving will shrink 22% between now and 2030. “We are probably at or very near a peak in terms of light-duty gasoline demand,” says Scott Nauman, Exxon’s head of energy forecasting.

If Exxon is right, the full impact of falling demand for fuel would take years to be felt. But some deep changes are under way.

Click here to read the entire article.    Also, don’t forget to explore the interactive graphic that offers some stunning statistics.  Below is a video report from WSJ for this story. 

President Obama, Vice President Biden, Transportation Secretary LaHood Announce 2,000th Transportation Project Under Economic Recovery Act

April 13, 2009 at 11:59 am

(Source: USDOT Press Release)

 President Barack Obama today announced funding for the 2,000th transportation project under the American Recovery and Reinvestment Act (ARRA), only six weeks after approving the first project.  The President made the remarks at the U.S. Department of Transportation with Vice President Biden and Transportation Secretary Ray LaHood.

“Just 41 days ago we announced funding for the first transportation project under ARRA and today we’re approving the 2,000thproject,” said President Obama.  “I am proud to utter the two rarest phrases in the English language – projects are being approved ahead of schedule, and they are coming in under budget.”

“The Recovery Act is being implemented with speed, transparency and accountability,” said Vice President Biden.  “Don’t take my word for it – just look at what’s happening today. We have the 2000th transportation project now underway – that’s going to help create jobs, make it easier for folks to get to the jobs they have, and improve our nation’s infrastructure all at the same time. The Recovery Act is full- steam ahead on helping us build an economy for the 21st century.”

“This is the government working for the people, creating jobs today and laying the foundation for a bright economic future,” said Secretary LaHood.

The 2,000th project is in Kalamazoo County, Michigan.  The $68 million project involves widening of I-94 from two lanes both east and westbound to three lanes in each direction.  The project will improve safety and ease congestion by providing a more efficient interchange.  

State departments of transportation around the country have reported to FHWA intense competition by contractors for ARRA projects.  Bids have been roughly 15 to 20 percent lower on average, and as much as 30 percent lower in some cases, than engineers anticipated.  For example, in Colorado, the state’s first five ARRA transportation projects announced on April 2 were 12 percent lower than anticipated.   In Maine, one bridge project was 20 percent lower than estimated.  In Oregon, during February and March 2009, bids have averaged 30 percent lower than expected. 

President Obama secured passage of the ARRA and signed it into law on February 17, less than one month after taking office.  Less than two weeks later, on March 3, the President, Vice President Biden and Secretary LaHood released the first funding to the states and localities for highways, roads and bridge projects.  That release of funds came eight days earlier than required by law.   

ARRA provides a total of $48.1 billion for transportation infrastructure projects to be administered by the U.S. Department of Transportation.  Of that $27.5 billion is for highways and bridges, $8.4 billion is for transit, $8 billion is for high speed rail, $1.3 billion is for Amtrak, $1.5 billion is for discretionary infrastructure grants $1.3 billion is for airports and Federal Aviation Administration facilities and equipment and $100 million for shipyards.   

In early February, prior to the passage of the ARRA, Secretary LaHood established within the U.S. Department of Transportation the TIGER (Transportation Investments Generating Economic Recovery) team to ensure that economic recovery dollars for transportation infrastructure projects is rapidly made available and that project spending is monitored and transparent.  On March 3, the President unveiled a TIGER logo, as well as an ARRA logo, that will be placed on construction signs across the country, to mark projects being built and jobs created with Recovery Act funds. 

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Due to heightened competition among contractors for recovery construction work, Transportation agencies across the nation are receiving project bids substantially lower than engineers’ initial estimates.  These lower than expected bids are allowing states to stretch economic recovery funds to pay for additional projects, which the Department of Transportation predicts will create even more jobs and yield further infrastructure repair nationwide. Below is a sampling of state transportation projects set to break ground across the country at a fraction of initial estimates. 

“At Baltimore-Washington International Marshall Airport, a recent project to reconstruct the area around Piers C and D received six bids instead of the usual two or three. The result: The estimated $50 million project will be built for $8 million less than was budgeted, and the savings will be allocated to other projects. There were 21 bidders for a $200,000 drainage project in Carroll County, more than anyone could remember.” [Washington Post, 4/8/09] 

Click here to read the entire presser.

Car 2.0 Update from TED: Electric vehicle proponent Shai Agassi, founder of Better Place, outlines his vision for a oil-free nation by 2020

April 13, 2009 at 11:42 am

(Source: TED)

Forget about the hybrid auto — Shai Agassi says it’s electric cars or bust if we want to impact emissions. His company, Better Place, has a radical plan to take entire countries oil-free by 2020.

Just over a year ago, BusinessWeek ran a great piece aboutShai Agassi and his audacious plans to produce a mass market electric vehicle and thereby revolutionize the auto industry. So it was great to get an update from the former software entrepreneur turned zero emission transport guru on the main TED stage earlier today.

TransportGooru is a big fan of TED and of Mr. Agassi.  For those who have not heard about Mr. Agassi, here is a brief bio of from the TED website.  

Business Week’s report on Mr. Agassi’s TED presentation offers this:  “Much of what Agassi had to say was familiar, but it was fascinating to hear how the Better Place project is scaling to places such as Australia and Hawaii (it started life in Israel, with the support of politician Shimon Peres.) The emergence of Car 2.0, as Agassi described it, entails an entirely new business model for car ownership, whereby drivers will pay for miles as they currently pay for minutes on a phone. And Agassi, who cut an imposing and definitive figure on stage, professed to be interested in only two figures: Zero, as in zero emissions; and infinity, as in this model should be available for every driver, worldwide.”

The quote from Wired Magainze nicely captures Mr. Agassi’s personality – Charismatic &  convincing. 

“Shai Agassi has only one car, no charging stations, and not a single customer—yet everyone who meets him already believes he can see the future.” – Wired

Here is Mr. Agassi’s presentation at TED

USDOT Publishes Report on Key Transportation Indicators for March 2009

April 13, 2009 at 11:21 am

(Source: Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation)

This report is intended to provide timely, easily accessible information for the transportation community. It was developed by the Bureau of Transportation Statistics (BTS) of the U.S. Department of Transportation (DOT), and is updated on a regular basis on the BTS website.

The indicators fall under two broad categories: those that provide context about the economy and society in which transportation functions, and those that convey information about an aspect of transportation. To the extent possible, these latter indicators are transportation-wide in scope; however, some apply to only part of the transportation system. Reference tables at the beginning of the document provide key statistics about U.S. social and economic characteristics, and about the extent of the transportation system.

For indicators that are highly seasonal, the current value of that indicator is compared to the same time period in the previous year (e.g., April 2001 compared to April 2000). Otherwise, the tables show a comparison of the current value to a comparable preceeding period of time (e.g., the data for the month of April 2001 compared to that of March 2001).

 Click here to read the report in HTML.

TransportGoooru Exclusive from Dr. RoadMap: Road Rage – A “swift” analysis

April 12, 2009 at 12:30 pm

WHOOSH! The mid-eighties pickup passed to my right with barely two inches between us. Evidently my 70 mph clip in the number two lane of the freeway barely passed muster for this dude, because as he maneuvered his truck directly in front of me he thrust his hand out the window and gave me the “one-finger salute.”

 Every single one of us motorists has ended up on the butt end of such activity at one time or another. But why all the anger? What causes ordinary citizens to morph into fist waving maniacs?

Raymond Novaco, Ph.D., former Professor of Psychology and Social Behavior at the University of California at Irvine, provided some answers in a study entitled Automobile Driving and Aggressive Behavior.

  • To start, Novaco pointed out that cars are marketed to appeal to our combative instincts. The ultimate driving machine, own the road, and “an aggressive multi-valve engine” are perfect examples of catch-phrases used in automobile advertisements that support this theory. 

  • Additionally, model names like Viper, Cougar, Prowler, Jaguar, Stingray, and Challenger fit themes of power and competition.

  • Novaco also reasoned that following through on assertive behavior becomes much easier behind the wheel because of the protection afforded by two tons of steel.

  • Besides, cars provide a certain degree of anonymity. Knowing we can’t be readily identified increases the likelihood that we will resort to offensive behavior that we would never attempt on a face-to-face basis.

  • Finally, our vehicles guarantee a quick escape. This ability to beat a hasty retreat almost encourages a transgression or two.

When you mix in the stresses of a long and frustrating drive with all of the above, you have some pretty strong predisposing factors for road rage. Add a precipitating factor such as a honking the worn, flipping the bird, waving a fist, etc. — what Novaco refers to as “cues for aggression” — and the results can get rather ugly.

Given all of the above, it’s no wonder we get dumped on by other drivers. But how can we keep this from happening to us in the first place? Luckily, the AAA Foundation for Traffic Safety offers several valuable tips in an eight-page brochure entitled Road Rage — How to Avoid Aggressive Driving.

  • First and foremost, don’t offend. Tops on the list of offensive behavior is driving too slow in the fast lane. Heck, this is where the Type-A motorists hang out. For anyone who insists on cruising below 60 there, what are you thinking!

  • The brochure also advises that you always signal when making lane changes, don’t cut people off, never tailgate, don’t flash your high beams, and keep your horn use to a minimum. Transgressions here rank high on the list of cues for aggression. In the case of a packed freeway where no one will willingly (if anything, we speed up) let you in if you signal in advance, merely give a courtesy flash of your blinker as you make your move when room allows.

  • Don’t engage. In other words, give angry drivers plenty of room. Don’t make direct eye contact if you can help it. And unless you’re Mike Tyson, never accept an invitation to pull over to the side of the road.

  • Lastly, adjust your attitude. Forget about “winning.” Trying to race everyone to the next stoplight or off-ramp invites confrontation.

Considering all this, it now seems obvious that I was partly to blame for the state of affairs that occurred when the pickup driver flipped me off, as described above. Discretion would dictate that I should have quickly pulled into a slower lane upon first sight of a fast approaching vehicle. Maybe then the guy would have raised his index finger, as well as his middle finger, and flashed the peace sign.

But then again, maybe I’m dreaming of another planet. The guy would have been just as likely to separate his four fingers in the middle and give me the Star Trek Vulcan sign.

©2009, Dr. Roadmap®

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David Rizzo, better known as Dr. Roadmap,  a Commute Management expert who writes about issues such as improving gas mileage (mpg), alternate routes, traffic congestion, ridesharing, commuting behavior and intelligent transportation systems on California’s Orange Country Register.  He is well known for his comprehensive guide ever written on off-freeway commuting in Southern California, published in 1990.  Two years later he became the first traffic reporter to offer daily alternate routes in real time over the air on one of the most popular morning radio shows in Los Angeles.  His bi-weekly columns appear exclusively for TransportGooru.  This is copyright-protected content.  Please contact Transportgooru if you like to use this article or portions of this article. 

Chinese government outlines Incentive Plan for Electric Cars

April 10, 2009 at 12:26 pm

Image: Thingermejig@ Flickr

(Source: New York Times)

 BEIJING — Senior Chinese officials on Friday outlined how they aimed to turn their country into the world’s largest producer of electric cars, including a focus on consumer choice rather than corporate subsidies.

Speaking at a conference at the government’s prestigious Diaoyutai guesthouse here, the officials acknowledged that their efforts faced challenges in terms of the cost and safety of electric cars. They promised a nationwide effort by manufacturers, universities, research institutes and government agencies to overcome these obstacles.

Wan Gang, a former Audi engineer in Germany who is now China’s minister of science and technology, portrayed the country’s electric car initiative as central to China’s international competitiveness, but said that there were environmental goals as well.

“We need to be sustainable in different sectors, particularly in the auto sector,” he said.

Zhang Shaochun, a vice minister of finance, said that the government wanted to let the market determine which electric vehicle models would become popular. So while the government is providing some research subsidies, the main step will be to provide very large subsidies for buyers of electric cars — already up to 60,000 yuan, or $8,800, for purchases by taxi fleets and local government agencies.

“The fiscal subsidy gives voting rights to the consumer,” he said.

China also has a 10 billion yuan ($1.46 billion) program to help the industry with automotive innovation.

In the United States, the government is providing $25 billion to help cover Detroit’s research costs in the coming years.

Mr. Zhang said that with a greater emphasis on incentives for electric car buyers, “we will cut back on the discretionary power of government agencies — otherwise, the companies will just fight for subsidies.”

Chinese and foreign automakers have embarked on a slew of demonstration projects for electric cars, with Nissan announcing one Friday in Wuhan, a city in central China. But very few electric cars are on the road in China yet.

While electric cars are rapidly improving, they remain roughly twice as expensive as similarly sized gasoline-powered cars that also provide greater range, higher top speeds and better records for reliability. Mr. Wan, the minister of science and technology, raised another concern Friday when he noted that the industry had to look at safety as it seeks to make electric cars ever lighter.

Click here to read the entire article ( Free registration requ’d).  

DIY – Hawaii Style: Fed up by Government’s inaction, Kauai residents repair road in 8 days – for free

April 10, 2009 at 11:38 am

(Source: CNN)

Their livelihood was being threatened, and they were tired of waiting for government help, so business owners and residents on Hawaii’s Kauai island pulled together and completed a $4 million repair job to a state park — for free.

Volunteers bring in a heavy crane for work on a bridge to Polihale State Park on Kauai last month.

Volunteers bring in a heavy crane for work on a bridge to Polihale State Park on Kauai last month.

Polihale State Park has been closed since severe flooding destroyed an access road to the park and damaged facilities in December.

The state Department of Land and Natural Resources had estimated that the damage would cost $4 million to fix, money the agency doesn’t have, according to a news release from department Chairwoman Laura Thielen.

“It would not have been open this summer, and it probably wouldn’t be open next summer,” said Bruce Pleas, a local surfer who helped organize the volunteers. “They said it would probably take two years. And with the way they are cutting funds, we felt like they’d never get the money to fix it.”

And if the repairs weren’t made, some business owners faced the possibility of having to shut down.

Ivan Slack, co-owner of Napali Kayak, said his company relies solely on revenue from kayak tours and needs the state park to be open to operate. The company jumped in and donated resources because it knew that without the repairs, Napali Kayak would be in financial trouble.

“If the park is not open, it would be extreme for us, to say the least,” he said. “Bankruptcy would be imminent. How many years can you be expected to continue operating, owning 15-passenger vans, $2 million in insurance and a staff? For us, it was crucial, and our survival was dependent on it. That park is the key to the sheer survival of the business.”

So Slack, other business owners and residents made the decision not to sit on their hands and wait for state money that many expected would never come. Instead, they pulled together machinery and manpower and hit the ground running March 23. Video Watch the volunteers repairing the road »

And after only eight days, all of the repairs were done, Pleas said. It was a shockingly quick fix to a problem that may have taken much longer if they waited for state money to funnel in.

“We can wait around for the state or federal government to make this move, or we can go out and do our part,” Slack said. “Just like everyone’s sitting around waiting for a stimulus check, we were waiting for this but decided we couldn’t wait anymore.”

Thielen has been waiting, too. She wants the legislature to approve her Recreation Renaissance project, a $240 million booster shot to help fix parks across the state. Without it, at least five state parks may be forced to close, and there would be no emergency repair money to fix Polihale State Park.

“We shouldn’t have to do this, but when it gets to a state level, it just gets so bureaucratic, something that took us eight days would have taken them years,” said Troy Martin of Martin Steel, who donated machinery and steel for the repairs. “So we got together — the community — and we got it done.” 

Click here to read the entire story and to view awesome pictures from this wonderful community initiative.

US Government put its money where its mouth is; Orders $285 Million In New Cars From Detroit

April 10, 2009 at 11:01 am

(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.”