Controversial “Cash-For-Clunkers” bill reportedly tacked on to Climate Change bill

May 20, 2009 at 6:01 pm

(Source: Autobloggreen & Detroit Free Press)

It seems that calls from House Majority Leader Steny Hoyer (D-MD) and Senate Majority Leader Harry Reid (D-NV) to fast track the Cash-For-Clunkers bill through the legislative process may have fallen on deaf ears. According to the Detroit Free Press, the somewhat controversial bill will be tacked on the much broader Climate Change bill that’s currently being drafted by the House Energy and Commerce Committee.

 Ohio Rep. Betty Sutton’s amendment made it onto the American Clean Energy and Security Act, the legislation being marked up this week by the House Energy and Commerce Committee. Approved by a vote of 50-4, the amendment provides a voucher of up to $4,500 for trading in an old, lower mile-per-gallon vehicle to purchase a new one.

The measure wouldn’t favor domestic vehicles over those made by companies based overseas but it has incentives for trucks and sport-utility vehicles which could be of particular help to American automakers. President Barack Obama and key House Democrats agreed on the provisions contained in the amendment at a recent White House meeting.

U.S. Rep. John Dingell, a Dearborn Democrat and staunch advocate of domestic automakers, said the cash-for-clunkers amendment, if passed, “will result in meaningful reductions in vehicle fleet carbon emissions and fuel consumption, all while providing much-needed stimulus for our ailing automakers.”

According to a fact sheet from earlier this month, the measure would:

-• For passenger cars, provide a voucher for new ones with mileage of at least 22 miles per gallon, as long as the car being traded in gets 18 mpg or less. If the mileage of the new car is at least 4 m.p.g. higher, the voucher is worth $3,500. If the mileage of the new car is 10 m.p.g. more or better when compared to the old vehicle, the voucher is worth $4,500.

-• For light-duty trucks and sport-utility vehicles, provide a voucher for new vehicles getting at least 18 m.p.g. The old vehicle must get 18 m.p.g. or less. If the new vehicle gets at least 2 m.p.g. more than the old, the voucher is worth $3,500. If the new vehicle gets at least 5 m.p.g. more than the old, the voucher is worth $4,500.

-• For large light-duty trucks, including pick-ups and vans weighing 6,000 to 8,500 pounds, new vehicles with mileage of at least 15 m.p.g. are eligible for vouchers. If the new truck gets at least 1 m.p.g. than the old, the voucher is worth $3,500; if it gets 2 m.p.g. or more, the voucher is worth $4,500.

-• Consumers can trade in pre-2002 work trucks – defined as a pickup or cargo van weighing 8,500 to 10,000 pounds – and receive a $3,500 voucher for a new work truck in the same work class or small. There will be a limited number of these vouchers, however. While there is no EPA mileage standard for these vehicles, it is believed that newer models are cleaner and run more efficiently than older ones.

Click here to read the entire article.

Congress set to OK cash-for-clunkers bill

May 14, 2009 at 7:21 pm

(Source: Detroit Free Press & Image: Jalopnik)

WASHINGTON — Congress appeared ready Wednesday to move forward on a bill to pay people to surrender their old gas-guzzlers for new, fuel-efficient models — but the auto industry hasn’t decided what it wants out of the program.

While backers of a cash-for-clunkers plan announced a deal earlier this month, the final bill has yet to be crafted because of a last-minute dispute between foreign and domestic automakers over incentives for leasing. Environmental groups aren’t thrilled with the compromise, saying it is weighted too heavily toward truck buyers.

But with House and Senate leaders, along with President Barack Obama, voicing support, industry officials say they are hopeful a bill that will boost a lethargic market for new vehicles will get through Congress in weeks. Backers say the compromise would cost about $4 billion — paid for by money from the economic stimulus plan passed earlier this year — and could boost sales by 1.3 million vehicles over a year, according to industry officials.

Owners of cars and trucks that get less than 18 m.p.g. could get a voucher of $3,500 to $4,500 for a new vehicle, depending on the mileage of the new model, but no trade-in value because the vehicles would be scrapped.

“This is a jobs bill that helps the environment,” said Ziad Ojakli, Ford’s group vice president for governmental affairs.

The plan does have several hurdles that will keep some potential buyers on the sidelines. The clunker being traded in has to be kept off the road — meaning it will have no trade-in value beyond the voucher. Far more trucks on the road will qualify for the vouchers than cars: even 15 years ago, only five models of midsize sedans managed just 18 m.p.g.

And while the compromise among U.S. House members was unveiled earlier this month, the actual bill will be kept under wraps until it is introduced with the House Democrats’ plan to control carbon emissions through a cap-and-trade system, expected no later than Monday.

Although cash-for-clunkers programs in other nations have been motivated by environmental goals to improve the mileage of vehicles on the road, environmental groups are lukewarm about the U.S. compromise.

Click here to read the entire article.

U.S. Cash-for-Clunkers deal reportedly nearing congressional compromise

April 24, 2009 at 1:29 pm

(Source: Autoblog & The Detroit News)

It’s looking increasingly likely that the United States will soon have its own Cash-for-Clunkers program. According to The Detroit News, two bills are currently competing for Congressional votes, and while they would both offer sizable rewards for turning in older vehicles, they vary in what new cars and trucks would qualify for the program.

One bill, sponsored by Rep. Betty Sutton (D-Ohio) would give the largest voucher – up to $5,000 – to purchasers of new vehicles made in the United States. Slightly smaller amounts would be granted for other vehicles made in the rest of North America, and no cash would be granted for the purchase of foreign-made cars. All cars would need to manage at least 27 mpg to qualify, and trucks would need to hit at least 24 mpg.
 
The other bill, sponsored by Rep. Steve Israel (D-New York), would offer up to $4,500 for the purchase of a new vehicle, assuming that the vehicle being traded-in gets 18 mpg or less, and the new vehicle’s fuel efficiency is at least 25% better than average for its class. No distinction would be made based on the vehicle’s country of origin.
Both would require the scrapping of older vehicles to remove them from the roadways and both would give drivers the option of trading in an old car for a bus or subway pass.

In addition to promoting energy efficiency, the idea is to boost new car sales and get vehicles on the roads with updated safety features.

The program could cost as much as $4 billion and help retire at least 1 million older vehicles. Senior congressional aides and members of the Obama auto task force met earlier this month in search of the best way to pay for and structure it.

Toyota spokesman Charles Ing said his company wants legislation to apply to all fuel efficient vehicles and adhere to U.S. obligations under the World Trade Organization.

 

Over the past months, TransportGooru has published a series of articles on this topic, following developments in the US, UK and Germany. For the ones interested in learning about the schemes in Germany (that is now labelled a “roaring success”) and US & UK (the introduction of a similar scheme in the works but still a long way away from getting it done), here is a list of articles that TransportGooru published.

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 

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

Goodbye, Gas Guzzlers? – Washington Post editorial analyses the keys to succesful implementation of US’ Cash for Clunkers” initiative

Time examines the “Cash for Clunkers” initiative: A Deal to Help Detroit — and the Planet?

Following Germany, Britain introduces “Cash for clunkers”scrappage scheme. U.S. is next?

Ford and Honda reject UK’s ‘bangers for cash’ scheme

May 18, 2009 at 3:56 pm

(Source: Timesonline, UK & Autocar, UK)

A £2,000-a-car scrappage scheme aimed at kick-starting Britain’s depressed motor industry has hit trouble after a dispute between car companies and the Government over costs.

Manufacturers, including Ford and Honda, have told dealers not to register any new vehicles under the scheme, which is starting today.

Consumers are being offered £2,000 towards a new car if they trade in a motor that is at least ten years old.

The car companies said that they were seeking “clarification” from the Department for Business, Enterprise and Regulatory Reform (BERR) over “administrative” details.

The Government insisted that it had been clear on details of the scheme, under which manufacturers would pay £1,000 and the Government £1,000 towards the cost of the incentive.

However, the car manufacturers want dealers to share the cost.

The eleventh-hour hitch will come as a huge embarrassment to the Prime Minister, who had heavily promoted the “bangers for cash” scheme as the route to revitalising Britain’s depressed motor industry.

Gordon Brown and Lord Mandelson, the Business Secretary, visited a Nissan dealership today to talk to consumers signing up to the scheme.

Mr Brown said the £300 million project would prove “very popular” and “a great help to the British car industry.” It would help the economy to “move forward,” he said.

A BERR spokesman said: “Thirty-eight manufacturers have signed contracts with the Department which set out clearly that manufacturers provide £1,000 and the Government matches it.

“We understand several dealers are unhappy about the idea they should share the costs. The Government also needs to ensure VAT is paid in accordance with the scheme.”

Though the scheme was revealed in the Budget the final details emerged only at a meeting on Thursday, manufacturers said.

However, President of the AA Edmund King has pointed out that the £2000 incentive can be used as a deposit to help car buyers get finance. He added that the scheme would “transform the chances of survival in a crash for thousands of car owners” whose current old cars offer substantially less protection than newer models.

But Friends of the Earth executive director Andy Atkins said the scrappage scheme was “a lost opportunity”.

“A well-designed scheme could have played a limited role in cutting emissions from our roads,” he said. “But, unlike some other countries, the UK scheme doesn’t prevent motorists part-exchanging an old, small model for a brand-new gas guzzler.”

Business secretary Peter Mandelson visited a car dealership today to launch the scheme and said there has been a positive response from the industry.

“I am delighted by the response of the motor industry. Thirty-eight companies have signed up – all the major UK car manufacturers and a number of other companies. This means more choice for consumers and a boost for British brands. 



“The scheme has been met with a flood of enquiries from customers. It will provide a boost to the industry and kick-start sales.” 



The confirmed list of manufacturers who have signed up to take part are: Allied Vehicles, Bentley, BMW, Chevrolet, Citroen, Daihatsu, FIAT, Ford, Honda, Hyundai, Isuzu, Jaguar, Kia, Land Rover, London Taxis International, Mazda, Mercedes Benz, MG Motor, Mitsubishi, Nissan, Perodua, Peugeot, Porsche, Proton, Renault, Rolls Royce, SAAB, SECMA UK, Subaru, Suzuki, Toyota, Vauxhall, Volkswagen, Volvo, Koelliker UK Ltd, Iveco Ltd, Chrysler and Renault Trucks UK Ltd.

Q&A: How the ‘cash-for-clunker’ plan would work

May 14, 2009 at 7:41 pm

(Source: USA Today & Image: Jalopnik)

As the American lawmakers are getting ready to pass the landmark “cash for clunkers” legislation, many of you are still left wondering what this legislation entails and how it will affect you.  The media chatter in the past has offered very little except that the legislation would provide federal vouchers of up to $4,500 for people to trade in their older vehicles for new ones that get better mileage.

Talk of the vouchers has kept some would-be new car and truck buyers on the sidelines, waiting to see whether they’d qualify for government help. So, for the moment, the idea is hurting sales. Based on interviews with lobbyists and congressional offices, the USA Today captured the details of this legislation in a nice Q & A format:

Image: Newsday

Q: What’s the idea behind “cash-for-clunkers”?

A: Supporters say it would replace older vehicles with new ones that use less fuel, are safer and pollute less. And it would give the struggling auto industry a sales boost.

Q: What’s the bill’s status?

A: It’s in a House committee and backed by the president. Senators from both parties are prepared to co-sponsor similar legislation as soon as this week.

Q: Sounds like a sure thing.

A: Not so. Environmental lobbyists, who don’t think it boosts fuel economy enough, might derail it or get it changed enough in the Senate that a compromise would take awhile.

Q: Any groups trying to keep it from being derailed?

A: You bet. Car companies, autoworkers, component suppliers and car dealers, among them. The House bill “will help jump-start auto sales and the U.S. economy, while also providing environmental benefits and increasing energy security,” says Ziad Ojakli, Ford Motor spokesman.

Q: What’s the price tag?

A: About $4 billion. The money is currently proposed to come from Energy Department funding included in the already enacted $787 billion economic stimulus package.

Q: If the House bill becomes law, how would it work?

A: The government would send up to $4,500 to the selling dealer on your behalf, if you:

1. Trade in a car that — this is a key point — has been registered and in use for at least a year, and has a federal combined city/highway fuel-economy rating of 18 or fewer miles per gallon.

2. Buy a new car, priced at $45,000 or less and rated at least 4 mpg better than the old one (gets a $3,500 voucher). If the new one gets at least 10 mpg better, you get the full $4,500.

Example: Trade that well-worn 1985 Chevrolet Impala V-8, rated 14 mpg, for a 2009 Impala V-8 rated 19 mpg and the government will kick in $3,500. Downsize to Chevy Cobalt (27 mpg) or even a larger Honda Accord (24 mpg) and get $4,500.

Mileage ratings back to 1985 are at www.fueleconomy.gov.

Q: What about trucks?

A: It’s more complicated.

For standard-duty models — most SUVs, vans and pickups:

1. The old one must be rated 18 mpg or less.

2. The new one must be at least 2 mpg better for $3,500 or at least 5 mpg better for $4,500.

For heavy-duties (6,000 to 8,500 pounds gross vehicle weight rating):

1. The old one must be rated 15 mpg or less.

2. The new one must be rated at least 1 mpg better for $3,500, or 2 mpg or more for $4,500.

Work trucks (8,500 to 10,000 lbs.) don’t have mpg ratings, so age is the criteria. The old one has to be a 2001 model or older. And only $3,500 is available.

Q: Is it worth it for $4,500?

A: The assumption is that the people most likely to use the program would trade in cars worth less than $4,500. Thus, while not necessarily clunkers, most would be at least 8 years old.

Q: Can I combine these incentives with other offers?

A: Yes. For instance, you could trade for a hybrid and get the voucher, claim the hybrid tax credit and get dealer or manufacturer discounts. You also could deduct the sales tax, if any, on your next federal tax return.

Q: Would I ever see the $3,500 or $4,500?

A: No. It’s an electronic transfer from the government to the dealer. Dealers want to be sure the amount can be counted as cash from the buyer, which would help buyers get credit because they’re financing less.

Q: What does the dealer do with my trade-in?

A: Gives it to a salvage operator. The engine, transmission and some other parts must be destroyed so they can’t be reused. The idea is to cull fuel-thirsty, polluting drivetrains. Operators can resell other parts, however.

Q: What’s to keep me from buying a junkyard car for a few hundred bucks, getting it barely running and trading it?

A: The one-year-in-service requirement noted earlier. Lawmakers wanted to exclude the revival of so-called junkyard dogs, because they’ve already been taken off the road.

Q: What do I get if I recently bought a car that would have qualified?

A: The bill contemplates making the incentives retroactive to March 30, but it’s unclear how to find and junk cars that were traded in that long ago. Some might already be back on the road, driven by new owners.

Q: What’s wrong with environmentalists’ idea that the new car or truck should get much better fuel economy than the House bill currently requires?

A: Opponents say the environmentalists’ fuel-economy improvement thresholds are so high that foreign brands benefit disproportionately, because their lineups tend now to have more small, fuel-efficient vehicles.

But the American Council for an Energy-Efficient Economy complained in a statement criticizing the House bill that the proposal as it stands now is way too lenient.

The council charged that the bill “aims primarily to clear Detroit’s unsold inventory from the storage lots,” rather than to seriously cut fuel use.

Q: How soon could this become law?

A: Depends on how much critics can sway the Senate, and to what piece of legislation this “fleet modernization” bill is attached.

If it becomes part of a larger bill that’s likely to get lots of debate, it could take awhile. If it’s attached to urgent, must-pass legislation, such as an appropriation bill, it could move quickly to the president’s desk.

A current plan is to add the program as an amendment to climate change legislation now being considered.

As proposed, it would be in effect for just one year.

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

April 8, 2009 at 7:20 pm

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

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

Chancellor Angela Merkel’s coalition government, which is facing re-election on September 27, agreed proposals that will increase the amount of government funds available for car subsidies to €5bn (£4.5bn) from €1.5bn. 

Ulrich Wilhelm, Mrs Merkel’s spokesman, said the new funding level would cover 2m cars, compared with 600,000 under the previous plan. The scheme has given a vital boost to German car sales, with new registrations in March hitting the highest level since 1992. “This is a massive election gift. Car dealers and buyers will be completely over the moon,” said Ferdinand Dudenhoeffer, director of the Centre for Automotive Research at the University of Duisburg-Essen in an interview with Bloomberg.

Click here to read the entire article.  

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

Consumer Assistance to Recycle and Save (CARS) Act revives “Cash for Clunkers” scrapping plan in U.S

Germany plans to extend Abwrackprämie aka “Environmental Bonus”

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

Obama Favors “Cash for Clunkers”

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.

FHWA’s Transportation and Climate Change Newsletter – September 2009

October 20, 2009 at 2:58 pm

Prepared by the Office of Planning, Environment and Realty, Federal Highway Administration(FHWA)

Recent Events

DOT’s National Highway Traffic Safety Administration (NHTSA) and the U.S. Environmental Protection Agency (EPA) Propose Landmark Joint Regulations to Establish Light-Duty Vehicle Greenhouse Gas (GHG) Emission Standards and Corporate Average Fuel Economy Standards (CAFE). The proposed regulations, published in the Federal Register on September 28, 2009, have two goals: reduce GHG emissions and improve fuel economy. The proposal follows from the National Fuel Efficiency Policy announced by President Obama on May 19, 2009, responding to the country’s critical need to address global climate change and to reduce oil consumption. EPA is proposing the first-ever GHG emissions standards under the Clean Air Act; NHTSA is proposing CAFE standards under the Energy Policy and Conservation Act. These standards apply to passenger cars, light-duty trucks, and medium-duty passenger vehicles, covering model years 2012 through 2016 and would result in an overall fleet fuel economy of 35.5 mpg. Comments must be received on or before November 27, 2009. To read the proposed rulemaking and find out how to submit comments, go to http://edocket.access.gpo.gov/2009/E9-22516.htm. (See related article on trends in fuel economy from 1923-2006)

Climate Change Bill Introduced in the Senate. On September 30, Senators Kerry and Boxer introduced the Clean Energy Jobs and American Power Act “to create clean energy jobs, promote energy independence, reduce global warming pollution, and transition to a clean energy economy.” The bill would add two new sections (Titles VII and VIII) to the Clean Air Act, which would set declining limits on GHG emissions and establish a Pollution Reduction Investment (PRI) program, also known as cap-and-trade. The Act would require EPA to establish 1) GHG emission standards for new heavy-duty vehicles and engines, and for nonroad vehicles and engines and 2) to standardized emission models and related methodologies for States and MPOs. It would create an emissions reduction program, allowing DOT to provide grants to States and MPOs to help them reduce GHG emissions from the transportation sector. It would establish goals to reduce GHG emissions from the nation’s largest stationary sources-initially around 7,500 facilities that account for nearly three-quarters of U.S. carbon pollution-to 97% of 2005 levels by 2012, 80% by 2020, 58% by 2030, and 17% by 2050 (versus a reduction to 20% of 2005 GHG emissions by 2050 called for in the House bill, the American Security and Clean Energy Act, introduced by Congressmen Waxman and Markey, which passed the House on June 26, 2009). The Boxer-Kerry bill also would establish a National Climate Change Adaptation Program and require EPA to distribute formula-based funding to States for projects and activities that address impacts on coastal watersheds.

EPA Finalizes Nation’s First GHG Emissions’ Reporting System/Monitoring to Begin in 2010. On January 1, 2010, EPA will, for the first time, require large, stationary-source emitters of GHGs to begin collecting data under a new reporting system, which will cover approximately 85 percent of the nation’s GHG emissions and apply to roughly 10,000 facilities. The reporting system will provide a better understanding of where GHGs are coming from and will guide development of policies and programs to reduce emissions. The data will also allow businesses to track their emissions, compare them with those of similar facilities, and provide assistance in identifying cost-effective ways to reduce emissions in the future. Fossil fuel and industrial GHG suppliers, motor vehicle and engine manufacturers, and facilities that emit 25,000 metric tons or more of carbon dioxide equivalent (CO2e) per year will be required to report GHG emissions data to EPA annually. More information on the new reporting system and reporting requirements is available at:http://epa.gov/climatechange/emissions/ghgrulemaking.html. State and local officials interested in additional information about developing and implementing cost-effective climate and energy strategies that help further environmental goals and achieve public health and economic benefits may visit: http://epa.gov/cleanenergy/energy-programs/state-and-local/index.html.

U.S. Climate Envoy Elaborates on President Obama’s Speech at United Nations Climate Summit Regarding Climate Change and December U.N. Conference of Parties (COP15). Speaking at a White House press briefing after the President’s climate change speech at the U.N., Todd Stern, the U.S. climate envoy, said that the U.S. would still have a solid bargaining position in Copenhagen even if the Administration fails to push its own GHG legislation through Congress before the intergovernmental conference. “We would like to see the maximum possible progress… on our domestic legislation,” Stern said. “In the event that there’s not domestic legislation done by the time of Copenhagen, we will negotiate with that in mind. But certainly the most progress we can get would be helpful.” At the U.N., the President said that the major developing countries, where virtually all of the growth in emissions over the next 30 years is going to occur, also have to take actions. Elaborating on that Stern said “[The major developing countries] have to stand behind those actions to the same degree that the US and other developed countries do. The President is making that very clear. And that has not traditionally been the way that the climate change negotiations and the whole climate change international debate have gone on.” (See related “FYI” article.)

Driving and the Built Environment: The Effects of Compact Development on Motorized Travel, Energy Use, and CO2 Emissions (TRB Special Report 298) Published. This recently-released report examines the relationship between land development patterns and vehicle miles traveled (VMT) in the United States to assess whether petroleum use, and by extension GHG emissions, could be reduced by changes in the design of development patterns. The report estimates the contributions that changes in residential and mixed-use development patterns and transit investments could make in reducing VMT by 2030 and 2050, and the impact this could have in meeting future transportation-related GHG reduction goals. Increasing population and employment density in metropolitan areas could reduce vehicle travel, energy use, and CO2 emissions from less than 1 percent up to 11 percent by 2050 compared to a base case for household vehicle usage, depending on the assumptions used. Commissioned papers used by the committee to help develop Special Report 298 are available online. A four page summary of and a press release onthe report is also downloadable at http://books.nap.edu/catalog.php?record_id=12747&utm_medium=etmail&utm_source=National%20Academies%20Press&utm_campaign=NAP+mail+new+09.8.09&utm_content=Downloader&utm_term=On Wednesday, October 21, TRB will be hosting a webinar to explore the findings of this congressionally-mandated study. Space is limited. To reserve a “seat,” go to https://www1.gotomeeting.com/register/606169224.

NSF Awards NCSE $1.67M Climate Change Education Grant. The National Council for Science and the Environment (NCSE) has been awarded a three-year grant of $1,666,820 by the National Science Foundation to create a nationwide cyber-enabled learning community for solutions to climate change to be known as CAMEL (Climate, Adaptation, and Mitigation e-Learning). CAMEL will engage experts in science, policy and decision-making, education, and assessment in the production of a virtual toolbox of curricular resources designed for teaching climate change causes, consequences, and solutions.The project was developed by theCouncil of Environmental Deans and Directors (CEDD), which is managed by NCSE. More information on CAMEL, including a PowerPoint presentation by principal investigator David Hassenzahl and a video thereof, can be found at the CEDD website (http://ncseonline.org/Updates/cms.cfm?id=3274).

U.S. Energy Information Administration (EIA) Releases Its Annual Energy Review (AER).The AER is EIA’s primary report of historical annual energy statistics. For many series, data begin with the year 1949. Included are data on total energy production, consumption, and trade; overviews of petroleum, natural gas, coal, electricity, nuclear energy, renewable energy, international energy, as well as financial and environmental indicators; and data unit conversion tables. Two especially interesting graphics are for Primary Energy Consumption by Source and Sector, 2008 (the most recent year for which data is available) and the Petroleum Overview, 1949-2008, which shows how closely petroleum consumption in the U.S. tracks with petroleum imports (see below).

U.S. Primary Energy Consumption by Source and Sector diagram 2008

Petroleum overview, 1949-2008

Publications released by University of Michigan Transportation Research Institute, Ann Arbor, Michigan:

Effect of “Cash for Clunkers” Program on Overall Fuel Economy of Purchased New Vehicles. September 2009. Conclusions: Based on data from October 2007 through June 2009 and using unemployment rate and price of gasoline as predictors of the fuel economy, the program improved the average fuel economy of all vehicles purchased by 0.6 mpg in July 2009 and 0.7 mpg in August 2009.
Economic Indicators as Predictors of Number and Fuel Economy of Purchased New Vehicles. July 2009. Conclusions: During October 2007 through June 2009, average fuel economy of purchased light-duty vehicles improved by a substantial amount-1.1 mpg-as a result of unemployment and price of gasoline; however, significantly fewer vehicles were purchased as a result of unemployment. The price of gasoline did not reduce the number of vehicles purchased.
Recent Reductions in Carbon Dioxide Emissions from New Vehicles. July 2009. Conclusions: Improved fuel economy of purchased new vehicles and decrease in distances driven, resulted in lower CO2 emissions per driver from purchased new vehicles were lower in November 2007 through April 2009, when compared to October 2007. The greatest reduction in emissions-12%-occurred in July 2008. The reduction in April 2009 (the latest month examined) was 8%.
Mechanisms involved in recent large reductions in U.S. road fatalities. Injury Prevention, June 2009. Conclusion: One factor in the large reductions in U.S. road fatalities was the decrease in leisure driving related to the price of gasoline.
Fuel efficiency of vehicles on U.S. roads: 1923-2006. Energy Policy, 2009. Conclusions: Overall fleet fuel efficiency decreased from 14 mpg in 1923 to 11.9 mpg in 1973. Starting in 1974, efficiency increased rapidly to 16.9 mpg in 1991. Thereafter, improvements have been small, with efficiency reaching 17.2 mpg in 2006.

State and Local News

Delaware Valley Regional Planning Commission (DVRPC) Releases Regional GHG Emissions Inventory Available for Download at No Charge. This inventory will help regional policy makers and citizens understand the sources of GHG emissions so they can make well-informed decisions for regional and local policies to reduce them. In addition, the inventory has been allocated to the municipal level, supporting local action in cities, boroughs, and townships across the region. The U.S. EPA is actively engaged with this work as a pilot for developing a standard national protocol for carrying out GHG emissions inventories at the metropolitan level.

U.S. EPA Offers Free, Downloadable Webinars: Greenhouse Gas Inventory 101 for Local, Regional, and State Governments covering:
Creating an Inventory. Topics include understanding the purpose and scope of a GHG inventory, inventories vs. registries, setting a boundary, setting a baseline, quantification approaches, certification and reporting protocols, comparability, and level of effort.
Translating Inventory Results into Action. Topics include describing the various uses of GHG inventories, including benchmarking, tracking emissions and progress over time, setting emission reduction goals, policy options for meeting goals, evaluating policy options, and processes for setting goals and policies.
State Inventory Tool (SIT) Training. Topics include background information on the development of the SIT modules and a live demonstration of the CO2 from Fossil Fuel Combustion Module, Natural Gas and Oil Module, Synthesis Module, and Projection Tool.

Announcements

Association of Metropolitan Planning Organizations’ 2009 Annual Conference to be held October 28-30, 2009 in Savannah, GA. There will be sessions on Critical Issues Related to Land Use Planning in Transportation and Livability, plus a pre-conference workshop on Practical Examples of Integrating Land Use Planning with Transportation Planning. Three sessions will be devoted to climate change:
Strategies to Reduce GHG Emissions with presentations on Moving Cooler by David Jackson from Cambridge Systematics; TRB Special Report on Land Use, VMT, and GHG by Professor Jose Gomez-Ibanez, Harvard Kennedy School; and Global Climate Change: A “Top 10” List for MPOs by Cindy Burbank, Parsons Brinckerhoff.
GHG Emissions and Air Quality Standards with presentations on Alternative Regulatory and Incentive-Based Approaches to Reducing GHG Emissions: Potential Implications for MPOs by Michael Grant and Janet D’Ignazio, ICF International, and Implementing AQ Standards in the Context of New Planning Changes by Tracy Clymer, Cambridge Systematics. The session will be moderated by Sarah Siwek, Sarah Siwek & Associates.
Climate Change: Adaptation with presentations on Adapting to Climate Change Impacts by Michael Culp and Rob Ritter, FHWA, and Adaptation in Response to Global Climate Change: International Best Practices in Long Range Planning by Michael Flood and Chris Dorney, Parsons Brinckerhoff.

National Association of Development Organizations (NADO) Holds National Rural Transportation Conference in coordination with the AMPO conference. A climate change session on October 29 will cover strategies for beginning to incorporate climate change into regional transportation planning in rural and small metro areas. FHWA will make a presentation and Stephen Lawe, RSG Inc., will talk about a new GHG emissions model that may be useful for RPOs and small MPOs that don’t have their own modeling capabilities.

FYI

What are the United Nations Climate Change Conference in Copenhagen, Denmark and COP15 that I’ve been hearing about? The 15th annual Conference of the Parties (COP 15), which will be held from December 7-18, 2009 in Copenhagen, Denmark, is the culmination of a series of meetings among the 192 parties to the United Nations Framework Convention on Climate Change (UNFCCC). The COP adopt decisions and resolutions related to reducing GHG emissions, which make up a detailed set of rules for implementation of the Convention. Concurrently with the COP, there is a Conference of the Parties to the Kyoto Protocol, which was adopted in 1997 and came into force in 2005 after a sufficient number of countries had ratified it. Together the Conferences are called the United Nations Climate Change Conference.

Next month: What is the United Nations Framework Convention on Climate Change (UNFCCC)?

Previous Newsletters

If you have any suggestions for inclusion in future issues of Transportation and Climate Change News, or if someone forwarded this newsletter to you and you would like to receive it directly in the future, please send your suggestions or request to Kathy Daniel at Kathy.Daniel@dot.gov.

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.

Ultimatum Issued: Gov’t rejects automaker restructuring plans, new deadlines set

March 30, 2009 at 12:41 pm

(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.