Scoopful of GM News – May 4, 2009: Saturn sales; Negotiations intensify; Fiat love; Hybrid sales; Equinox MPG; Dealer lawsuits; “Buy American” in Hot water; No love for Chevy Volt; etc..
GM Hires Adviser to Help Sell Saturn
GM Hires Adviser to Help Sell Saturn
(Source & Image: LA Times)
Gasoline consumption in California began falling in April 2006, and for 11 straight calendar quarters dropped below gas use in the year-earlier period even though the state added 790,000 new licensed drivers. First-quarter gasoline use hasn’t yet been released by the California State Board of Equalization, which on Thursday said Californians consumed 1.21 billion gallons of gasoline in January, down 22 million gallons, or 1.8%, from the previous January.
That was California’s first brush with $3-a-gallon gas. It lasted just two weeks in 2005, according to the Energy Department’s weekly survey of filling stations, but it was long enough to trigger behavior changes.
For all of 2005, gasoline consumption rose by just 30 million gallons to 15.95 billion gallons, according to the state equalization board, which gathers the numbers from taxes paid by fuel distributors. The pace was well off the boom years from 2000 to 2004, when gas use grew by an average of 343 million gallons a year.
“The tipping point is $2,” said Amy Myers Jaffe, senior energy analyst at Rice University’s James A. Baker III Institute for Public Policy in Houston. “People start to respond to fuel prices and make changes at $2 a gallon. At $3 a gallon, it becomes noticeable. It really gains in momentum. The longer the price stays higher than $3, the deeper and more lasting the structural changes.”
In 2007, with gasoline prices above $3 a gallon for 34 weeks, California consumption fell 270 million gallons below 2005 levels. In 2008, with gasoline topping $4.58 a gallon in July and the depth of the nation’s economic crisis beginning to sink in, Californians used 910 million fewer gallons than they did in 2005.
Messer turned to a different fuel. Stephen Stone of Norwalk bought an all-electric Zap Xebra. Robert Cruz of Oxnard went back to a 1970 Volkswagen because it got better mileage than anything else he’s driven. Alan Thomas of Oxnard adds a few gallons of transmission fluid to his tank to cut fuel costs.
“Sometimes I just used to go out and take a drive,” Thomas said. “When was the last time you heard anyone say, ‘I’m going out for a drive’? I don’t drive any more than I have to now.”
Millions of other Americans also are parking more. A 2008 Brookings Institution report called “The Road . . . Less Traveled” found that “consistent annual growth” in vehicle miles traveled in the U.S. leveled off in 2004. By 2007, miles driven declined for the first time since 1980 and at the fastest rate since the end of World War II, said Robert Puentes, senior fellow at Brookings’ metropolitan policy program and a co-author of the report.
“Americans have simply been driving less. . . . At the same time driving has declined, transit use is at its highest level since the 1950s, and Amtrak ridership just set an annual ridership record in 2008,” Puentes wrote.
Some experts say Americans are far less likely to accept high fuel prices than their European counterparts.
In the U.S., “we have always had cheap gasoline for the most part and most Americans don’t feel like they have that much of an alternative,” said Bruce Bullock, director of the Maguire Energy Institute at Southern Methodist University in Dallas. “The higher prices go here, the more people feel like they are being taken for a ride.”
Another factor in changed driving behavior is anger, said Suzanne Shu, an assistant professor of marketing at the UCLA Anderson School of Business. Price surges in other consumer items, such as milk, tend to get lost in larger grocery bills. But buying gas is often a trip of its own, and the price is “in your face, almost every block,” Shu said.
Click here to read the entire article.
(Source: The Infrastructurist)
The so-called peak oil debate has taken many twists and turns over the years. After long being an oddball survivalist preoccupation, the debate gathered mainstream momentum a few years ago as oil prices began a long ascent from around $30 per barrel to $147, where they topped out last summer. By the time a barrel of West Texas crude was rising eight bucks a day, scarcity seemed like the best and only explanation–that no matter how hard we tried, we couldn’t pump enough oil to meet demand. OPEC cut production, inventories rose, and it seemed like, in fact, we had plenty of oil for the foreseeable future and the whole thing had just been hedge fund shenanigans.
Maybe not, Raymond James now cautions. “We believe that the oil market has already crossed over to the downward sloping side” of all-time total production, say analysts at the financial services company. While cautioning that nobody but historians can be sure, they believe production peaked in 2007 for non-OPEC countries (Russia, Norway, Mexico, etc.) and last year for OPEC (Saudi Arabia, Venezuela, Iran, etc.). “It is entirely intuitive to conclude that if both OPEC and non-OPEC production posted declines against the backdrop of $100/bbl oil–when the obvious economic incentive was to pump at full blast–those declines had to have come for involuntary reasons such as the inherent geological limits of oil fields.” In other words, we had a perfect environment for testing the peak oil hypothesis, and the results are in. We’ve peaked.
My reponse? Yawn. We’re all unemployed Prius drivers anyway these days. Oil is an anachronism.
The biggest immediate crisis would be in transporation, because that’s where most of our oil goes. When gas hit $4 per gallon last spring, the financial strain was hitting the breaking point for many households–particularly outer suburban households. The arrangement of many American cities started to look insane: Working class people commuting 50 miles by car each way to their jobs?
The answers in this scenario would have to be rapid. No 30-year development plans. Instead: find cheap and efficient ways of getting lots of people around, and find them pronto. As a start, that would mean making it much easier for people to ride bikes, take trains, and form van pools.
Peak oil has always been an eye-roller in the establishment debate. It’s not clear that Obama has ever even been *asked* about it.
(Source: Washington Post)
Dear Dr. Gridlock:
I was on a packed Red Line train shortly after 6 p.m. [Monday] when a fight broke out between two passengers as the train was moving between Farragut North and Metro Center. As the two passengers fought near the forward end of the car, several passengers tried to find the emergency call button to call the train conductor.
Apparently, the button was at the rear of the train car, but the train was so crowded it took some time for word to get to the passengers within reach of the call button. In the meantime, passengers in the center of the car, desperate to do something to get the attention of the train operator, opened the emergency box, which only has an emergency brake lever that stops the train, but no call button. A passenger pulled the lever, which stopped the train.A few moments later, the train operator, as if unaware of why the train stopped, asked passengers to stop leaning on the doors. About five tense minutes later — during which time a couple of good Samaritans kept the two combatants separated — two Metro police officers boarded the train and got it moving (after some struggle with the now-extended brake lever) to Metro Center.
— Isaiah J. Poole, Washington
Passengers can easily get confused about the purpose of the red boxes on either side of the central doors. They don’t control the brakes. Pulling the lever releases the central door so passengers can evacuate the car. Open that box only in an emergency, and on the instructions of the train operator after the train has stopped. Leaping from a moving train into a darkened tunnel is not an option.
The emergency door boxes are not a substitute for the intercoms. But on a crowded train, the intercoms are hard to get to at the ends of the cars, and sometimes — as we saw when train operators were inadvertently stopping with some rear cars still in tunnels — passengers don’t think about using them in time.
There’s a better setup on the newest cars: Call buttons and intercoms are in the middle of the cars as well as at the ends. And the boxes with the emergency door levers are colored beige, rather than red. The lettering says “Emergency Door Release.”
When the Red Line train’s lever was pulled by a rider in the fifth car on Monday, the train operator up front got an indication that there was a door problem. At the same time, Metro spokesman Steven Taubenkibel said, the train’s fail-safe system was bringing it to a stop. Transit police responded to the incident, located the fighters and removed them from the train at Metro Center, Taubenkibel said. They declined to press charges against each other.
A Word of Advise from TransportGooru:
1). Dear Fight Club Members, it is already a painful experience commuting by DC’s Metro rail during the peak hours. And you people make it worse by getting into such silly fights without knowing that we are all terribly inconvenienced by your immature behavior. If you really feel like duking it out, wait till you get to your stop and start jumping at each other.
2). Dear Dr. Gridlock, for your kind attention the suggestion to dial 9-1-1 or to use a cellphone to call out from a DC metro tunnel is “INVALID”. The metro system didn’t realize the concept of “security” when it leased out the licenses only to Verizon, which means cellphone users with other carrers like AT&T, Sprint, etc are sitting ducks until they resurface from the tunnel to an above ground station or section of the track. Talking about Social Equity and DC Metro makes me mad! All damn tax payers paid for the system and how come Metro decided to lease out the lines only to the previleged Verzion customers? This is a DUMB policy and only validates eagerness to remain out of touch and incredibly partial & discreminatory!
(Source: Ars Technica) & TeamSilverback)
The majority of the patent deals with the logistics of ship-based data centers, though it also examines the use of wave power, tidal power, and seawater for providing electricity and cooling to land-based data centers that are close enough to water.
Of course, there’s nothing to stop Google from deploying a floating data center powered by conventional fuel sources, but such a vessel would be more limited by range or fuel capacity. Not only would it have to carry enough fuel to power itself, it would also have to make sure to power the systems it carries. Using a water-based generator would not only be more practical and efficient, it’s also a significantly greener solution.
Despite the patent, however, Google may not be the first company to send its data centers out to sea. A Silicon Valley startup called International Data Security (IDS) announced in January of 2008 its intent to set up a fleet of data-serving cargo ships. These ships would not only come with standard storage services, but also with amenities such as private offices, overnight accommodations, and galley services. The first ship was scheduled to set sail (or rather, hang out in San Francisco’s Pier 50) in April of 2008, but according to a blog post by IDS partner Silverback Migration Solutions, that plan got pushed to third quarter 2008 and we were unable to find any further information on the project.
The Silverback blog alos outlines a few interetsing points. The value proposition for ship based datacenters is very similar to that of land based datacenters, with a few noteable exceptions:
–Current market demand for data center space continues to outpace
supply, and using ships as data centers can reduce time to market by as
much as 65%.
–Cap-Ex costs to bring a ship into data center operation is
approximately 2/3 that of a land-based facility.
(Source: Wall Street Journal)
General Motors Corp. is expected this week to accelerate talks with the United Auto Workers union and move toward closing about 2,600 dealerships.
The giant auto maker also is likely this month to approach banks holding secured debt, hoping to work out terms to ease the company’s debt burden.
Reaching agreement on these fronts is critical if GM is to restructure outside of bankruptcy court.
The company has new leverage as it re-engages in talks, thanks to the bankruptcy filing last week by Chrysler LLC. But differences between the two auto makers mean that leverage can take GM only so far.
“The move with Chrysler signals to the GM creditors that bankruptcy is a viable option,” said Lewis Rosenbloom, a bankruptcy lawyer with Dewey & LeBoeuf. Mr. Rosenbloom’s firm does extensive work for GM and Chrysler. “The government is not just going to throw money at this without getting a consensual accord, so I think this is a harbinger of things to come.”
The Treasury Department has given GM until June to work out a restructuring plan and has indicated it may push the company into bankruptcy if the necessary deals don’t materialize.
GM’s hopes of staying out of court hinge on its ability to convince thousands of unsecured bondholders, owed $27 billion, to accept a small equity stake in the company in exchange for forgiving most of the debt. Several bondholders have said the equity exchange will fail if the terms aren’t sweetened.
GM isn’t just slimming down U.S. operations.
Last Monday, GM Chief Executive Fritz Henderson said the company may sell its entire stake in Opel, which is the heart of GM Europe’s operations.
Beyond shedding business units, GM has yet to ink a deal with the UAW on labor-cost reductions and retooling retiree health-care obligations. Those talks are expected to take all month. GM is offering its union a 39% stake and about $10 billion in cash in exchange for the $20 billion the company owes a UAW trust fund responsible for paying health benefits. UAW president Ron Gettelfinger said the union will turn up the heat on GM talks after it gets squared away with the Chrysler bankruptcy.
Our friends at Wired.com got their hands on the first official cockpit video and other footage from the recent test of Virgin Mothership Eve at the Scaled Composites skunkworks operation in sunny SoCal. Scaled Composites and Virgin tend to keep the test results hush-hush but say “several recent published articles have been sufficiently inaccurate and negative” to make them “set the record straight.”
They could be referring to reports by FlightGlobal that VMS Eve, the prototype of the White Knight 2 that took to the air, suffered a tail strike during an April 20 flight and experienced rudder problems. Scaled Composites, in a statement (.pdf), called the test “very successful” and said, “we only needed to adjust the rudder forces.”
Here is the Scaled Composites’ annoucement about the test:
(Source: Timesonline, UK)
Fiat last night set out its blueprint to reshape the global car industry, outlining plans to spin off a new company that will include General Motors’ European business and Chrysler.
The Italian car manufacturer meets German ministers today to set out a plan that would bring GM’s Vauxhall, Saab and Opel into a company with Fiat’s core car marques, including Fiat, Alfa Romeo and Ferrari.
The company said last night that the possible new company, which would be floated, would have revenues of €80 billion (£71 billion) and an output of between six million and seven millon vehicles a year, which Fiat believes will give it the necessary scale to weather the crisis besetting the automotive industry. The proposed company would be the second largest car group in the world.
In Britain, unions have hinted that a Fiat takeover of Vauxhall would put at risk 5,000 jobs at Luton and in Cheshire. GM employs 300,000 workers worldwide.
GM has struggled to find a buyer for its non-core businesses as it seeks to avoid following Chrysler into bankruptcy. But Fiat faces some German opposition over its ownership of Opel, GM’s German subsidiary.
Sergio Marchionne, the chief executive of Fiat, will today meet the Economy Minister and the Foreign Minister of Germany. Karl-Theodor zu Guttenberg, the Economy Minister, warned that the German Government required a long-term strategy.
In an interview with a German newspaper, he said: “We will not enter into any financial adventure with taxpayer money. The concept must clearly show that Opel plants in Europe that are to be kept open will be secured over the long term.”
Angela Merkel, the German Chancellor, has suggested the German Government could offer loan gaurantees to help safeguard jobs at Opel.
Fiat wants to acquire Opel after its eleventh-hour deal last Thursday to buy an initial 20 per cent of Chrysler. The company believes that it needs a partner to reach the scale of production necessary to weather the crisis besetting the motor industry.
Fiat’s overtures to Opel quickly follow its agreement to enter a partnership with Chrysler after it emerges from bankruptcy. Fiat will share its fuel-efficient technology in return for gaining a stake that will eventually turn into a majority holding in the company. Chrysler filed for bankruptcy after creditors refused to accept a restructuring deal.
In its desperation to avoid following Chrysler into administration, GM has been attempting to offload its unprofitable, non-core assets.
Friday, May 1, 2009 – ISSN 1529-1057
1) Make Reporting of Bird Strike Data Mandatory
Link to editorial in Newsday:
http://www.newsday.com/news/opinion/ny-vpfaa0112705871apr30,0,6873146.story
CAMERAS
2) Privacy, Cameras and Roadways
Link to story on Drivers .com:
http://www.drivers.com/article/1074/
GPS / NAVIGATION
3) GPS Evidence Too Unreliable for Legal Purposes
Link to story in InformationWeek:
http://www.informationweek.com/news/personal_tech/gps/showArticle.jhtml?articleID=217201050
4) US Department of Transportation Releases Civil Monitoring Performance Document
Link to story in GPS World:
OTHER
5) Cloud Computing Could Help Agencies Track Stimulus Funds
Link to story on Nextgov:
http://www.nextgov.com/nextgov/ng_20090430_4418.php
6) Delaware DOT’s Diversity Coaching Backfires
Newsletter lists slurs, insults and stereotypes that shouldn’t be used in workplace.
Link to story in The News Journal:
ROADWAYS
7) Coordinating, Planning and Managing the Effects of Roadway Construction with Technology
Link to information from US DOT:
http://www.its.dot.gov/press/2009/road_construction_tech.htm
SAFETY / SECURITY
8) South Dakota Drivers Sign Up for Sobriety Alerts
Link to story in USA Today:
http://www.usatoday.com/tech/news/techpolicy/2009-04-30-policetexting_N.htm
Link to Act Civilized: http://www.actcivilized.com/
TRANSIT
9) New Direction for San Diego-Area Transit System
Compass cards replacing paper passes with plastic.
Link to story in The San Diego Union-Tribune:
10) King County Metro Transit Develops New Tools to Keep You in the Loop
Link to story in the Auburn Reporter:
http://www.pnwlocalnews.com/south_king/aub/community/44166027.html
VEHICLES
11) New Generation of Cars are ‘Mobile High-Tech Platforms’
Link to story in Engineering News:
http://www.engineeringnews.co.za/article/auto-technology-2009-04-24
News Releases
1) Operation Lifesaver (Canada) Launches Web Site for Kids
2) South Florida Commuter Services Launches Public Transit Promotion to Feature Carpool Video on CNN
3) E-Railsafe Program Helps Union Pacific Ensure Railroad Safety and Security Awareness
Upcoming Events
ACI-NA Small Airports Conference – July 16-17 – St. Louis
http://www.aci-na.org/conferences/detail?eventId=136
Friday Bonus
Don’t expect to see these cars in the mall parking lot anytime soon.
Today in Transportation History
1999 **10th anniversary** – Liberty Bell 7, the space capsule flown by Gus Grissom in 1961, was found on the bottom of the Atlantic Ocean.
http://www.cnn.com/TECH/space/9907/20/grissom.capsule.01/
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© 2009 Bernie Wagenblast
A group of Indian engineering students from Ludhiana successfully build a pollution-free motorbike designed to run on air pressure rather than petrol. Video courtesy of Reuters.
(Source: Wall Street Journal)