Post Tagged with: "Economy"

CNN’s “State of the Union” explores the impact of transit cuts on communities across the U.S.

April 2, 2009 at 6:27 pm

(Source: Transportation For America; CNN via Youtube)

As painful transit cuts cripple more and more agencies across the country, major national networks are gradually tuning in to the story and seeing just how bad things are. CNN is the latest to cover the transit cuts phenomenon that’s wreaking havoc on the largest and smallest of our public transportation systems.

In a four-minute segment last week, CNN used Transportation for America’s handy map — which we created to document the 85 communities that are being forced to either cut service, increase fares, or lay off workers due to budget crises at the local and state level — and took an in-depth look at some of the impacts of cutting back public transportation at a time when Americans are riding transit in record numbers.   This peice on transit is part of CNN’s “State of the Union,” in which host and chief national correspondent John King goes outside the Nation’s  to report on the issues affecting communities across the country. 

 

At one stop Wednesday, a handful of developmentally disabled passengers boarded outside a local facility where they work. One told CNN she optimistic “something will get done about it” but said she isn’t sure how she is supposed to get around after Friday.

Kimberly Barge is a staff attorney at Paraquad, the gym where the Falks and other local disabled residents attend classes.

“People are frustrated, angry — almost to the point of hopeless in some cases because there aren’t many other alternatives for the disability community as far as transportation goes,” Barge told CNN.

Jean McPherson boarded the bus with her infant daughter. The 20-year-old is going back to school to get her high school diploma and though short on cash, she says she is now forced to explore buying a used car.

“I might end up losing my job or not being able to take my daughter to day care,” is how she sees the consequence of her bus route being shortened so that it no longer stretches out to her community. “You can’t afford a car; that is why you use public transportation. So a lot of people are going to be in a bad situation.”

 

Click here to read more.

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Hyundai Vs Ford Vs GM: What Car Payment Protection Plan’s Best?

March 31, 2009 at 6:22 pm

((Source: Jalopnik)

The Carpocalypse has forced automakers to try and entice nervous buyers by offering to remove the burden of a car payment should consumers lose their jobs or worse. But which plan’s the best?

Hyundai was first on the “car payment protection” scene with their Hyundai Assurance Program, followed today by Ford and GM with their Ford Advantage and GM Total Confidence plans, respectively.

All three plans on their own are pretty confusing. Combined, all three are just a mess of different offerings of help in case you lose your job. Each offers different results for different scenarios. So, in order to make this understandable, we’ve broken down each plan and their specific option sets to allow you an opportunity to determine which will work best for you.

For starters, all three programs offer some combination of two different types of help for people facing a personal economic crisis: negative equity coverage and payment assistance. Let’s define some of these terms:

Equity: The amount of investment in an asset.

Negative Equity:This is when the amount owed on something is greater than the total value of the asset itself. In terms of cars, this means you owe more on the car than the car itself is actually worth. This is the opposite of positive equity. Positive equity would be when you have a car and you owe $2,000 but it is worth $9,000 on the used car market. In this case, you probably shouldn’t try to turn it in. Instead, if you’re smart, you’ll just sell it.

Negative Equity Coverage: This is a form of coverage that depending on the level provided, allows you to be forgiven up to a certain amount of monies still remaining in payments on the car. Each plan is different, ranging from several thousand dollars to zero.

Payment Assistance: Assuming you lose your job, the automaker will either take over payment for a certain period of time or payback the lender.

Click here to read the wonderful analysis from our friends @ Jalopnik.  

For those who are impatient and wait, the winner is Hyundai (there are a lot of caveats to this selection).  You are better advised to read the whole analysis before starting to agree with the result.  For those who are absolutely impatient and can’t wait to read the elaborate analysis here is the summary of comparision.   

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Understanding Obama’s Auto Warranty Plan

March 30, 2009 at 7:45 pm

 (Source: New York Times – Wheels)The Big (Troubled) Three


On Monday morning, President Obama announced that the Treasury Department would back the warranties of new General Motors and Chrysler vehicles.

“If you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always,” President Obama said during a speech from the White House. “Your warranty will be safe. In fact, it will be safer than it’s ever been, because starting today, the United States government will stand behind your warranty.”

The administration’s plan to stand behind new-car warranties for G.M. and Chrysler is intended to reassure consumers worried about buying domestic vehicles. And to a large extent, the plan should do exactly that. But people who already own a G.M. or Chrysler vehicle are not covered by this program and it also does not cover safety recalls, which can occur years after the warranty expires.

In a nutshell: The Obama warranty commitment program sets up special warranty accounts that will be used only if the automaker runs out of money. If that happens, the government will “appoint a program administrator who, together with the U.S. Government, will identify an auto service provider to supply warranty services.” Those accounts will be funded with 125 percent of the expected warranty cost. The automaker will contribute 15 percent and the government 110 percent. The federal funds will come from the Troubled Asset Relief Program.

That could be a lot of money (except, perhaps, by the government’s current standards). For example, G.M. paid $4.5 billion worldwide in 2007 on warranties and $3.9 billion during the first nine months of last year, according to a filing with the Securities and Exchange Commission.

Click here to read more.  For those interested in reading the President’s Warranty Program, here is a PDF file.

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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.
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Change you can believe in! GM chief resigns at the behest of White House

March 30, 2009 at 9:41 am

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

GM chief out in bailout shakeout

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

General Motors CEO Rick Wagoner announced his resignation early Monday as the Obama administration gave automakers failing grades for their turnaround efforts.

White House and GM sources had told CNN Sunday that Wagoner would resign as part of the federal government’s bailout strategy for the troubled automaker.

“On Friday I was in Washington for a meeting with Administration officials. In the course of that meeting, they requested that I ‘step aside’ as CEO of GM, and so I have,” Wagoner said in a statement posted to the GM Web site.gm_chrysler_chart2.gif

He is being replaced by GM’s president and chief operating officer, Fritz Henderson. Kent Kresa will serve as interim chairman.

“Having worked closely with Fritz for many years, I know that he is the ideal person to lead the company through the completion of our restructuring efforts. His knowledge of the global industry and the company are exceptional, and he has the intellect, energy, and support among GM’ers worldwide to succeed,” Wagoner said.

Click here to read the entire article.

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Stimulus rules may stymie transportation projects; State recipients worry

March 26, 2009 at 6:10 pm

(Source: Boston Globe)

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

Governor Deval Patrick’s administration has determined that dozens of worthy projects are not eligible for federal stimulus money because the US government has dictated that only certain types of public improvements can be funded, even if they have limited economic potential.

That means the initial round of stimulus spending may generate fewer jobs than Massachusetts officials had expected.

When it approved the stimulus package, Congress restricted the use of about $800 million of transportation funds to projects that have been included on a list of public improvements states put together annually. It often takes years for a project to work its way onto that list.

In Massachusetts, many of those projects are simple jobs – paving roads or fixing sidewalks – and usually do not trigger another round of associated development that would employ a larger number of people. The congressional restriction prevents Patrick from using the money for some larger highway and transit upgrades that aren’t on the list but that would spur development of homes, office parks, and retail stores.

Click here to read the entire article.

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REPORT: Japan’s Toyota City hurting as troubled economy, industry takes hold

March 23, 2009 at 5:37 pm

(Source: Autoblog; Photo: emrank@Flickr)

According to the Los Angeles Times, a town three hours southwest of Tokyo called Toyota City has gone from being the envy of Japan’s economy to the city with the country’s highest unemployment rate seemingly overnight. What happened? As its name implies, this town is comprised almost entirely of men and women who work for Toyota, the largest automaker in the world – the very same manufacturer that is facing its first year-long operating loss in company history.

 Because the city’s well-being rises and falls right along with the automaker that it is so dependent on, Toyota City’s finances are looking pretty dire for the upcoming year, with a projected drop in corporate tax collections of 96.3 percent. Interestingly, city officials have found an American analog with which to compare themselves: Detroit.
Click here to read the entire article.
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Survival instinct: UAW backs Chrysler-Fiat partnership

March 20, 2009 at 1:05 pm

(Source: Autoblog)

 

According to The Detroit News, the United Auto Workers is giving its blessings to a potential Chrysler-Fiat tie-up. Chrysler honcho Bob Nardelli earlier pegged the possible union as a $10 billion bonanza for Chrysler, since the Pentastar would save money on developing a range of platforms, engines, and cars. The UAW’s interest is, of course, the job savings: the partnership has been said to be worth 5,000 jobs that might otherwise be lost.

Click here to read the entire article.  On a related note, here is a video of the Chrysler CEO, Bob Nardelli, making a case for this tie-up (video courtesy – You Tube):

 

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A quick update on Norway’s Th!nk cars – Plotting an invasion of America while ponder a move to Sweden (or UK)?

March 12, 2009 at 2:51 pm

(Source: Autobloggreen)

Th!nk details U.S. manufacturing, sales plans: hopes to sell City EV for under $20,000

This morning at the Michigan Information Technology Center in Ann Arbor, Th!nk finally gave the media the details of it’s planned expansion into the U.S. market. The short version: by 2010, Th!nk North America hopes to be building electric vehicles in the U.S. These City models (seen above) will be able to go around 70 mph, pass all required safety standards and be targeted at fleet customers, initially. Th!nk NA will be submitting a loan application to the Department of Energy on March 31, and its U.S. plans are dependent on getting this money. Well, Th!nk officials were hesitant to put a firm number out, but Th!nk CEO Richard Canny said that the price to consumers, after government incentives, would probably be under $20,000, but you’ll need to figure in an $80-90 per month fee to lease the battery. 

Click here to read more about this “North American Invasion” plan. 

(Source: TreeHugger)

TH!NK Electric Car Maker Wants to Move to Sweden (or the U.K.)

 Norway’s electric vehicle manufacturer TH!NK has a long and troubled history – gone bankrupt twice, changed hands a couple of times (including a short stormy marriage with Ford) and stopped its production line late last year when the economic crisis hit. But TH!NK’s woes are far from over, it seems, as the company’s leaders try a novel idea: an offer to move TH!NK lock, stock and batteries to a nation willing to prop it up until propserity re-appears. The two current contenders? Battered Britain andSlumping Sweden. Sweden may be in the lead, as Saab has tanked, and Swedish King Carl Gustaf has already reportedly purchased two TH!NK electric vehicles – in blue and gold, of course.

Powercircle says move EV production to Sweden
Sweden’s Powercircle told Miljörapporten it is attempting to broker a deal in which TH!NK would move production to two former Saab sites: Trollhättan near Gothenburg and Uddevalla. Thus a EV manufacturing hub could be created, Powercircle says, with just 185 million Swedish crowns in contribution from the government, creating 500 jobs in the short term.

Click here to read more about this “migration” plan.

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Webinar Alert: Transportation for America webinar series to examine transportation’s impact on impacts on our housing and job markets, public health, energy needs, climate, economic competitiveness

March 9, 2009 at 5:51 pm

(Source: Transportation for America)

Do you know how transportation policy affects housing? Oil? Climate? Economic opportunity?

Here is your chance to find out.

Transportation is the second biggest federal discretionary spending category — second only to defense spending. Where and how we choose to invest in transportation will have deep impacts on our housing and job markets, public health, energy needs, climate, economic competitiveness, and nearly every other pressing issue facing our country today.

To better understand and examine these connections Transportation for America will be holding a series of online discussions throughout March, April and May with several of our key partners.   Hear from experts about how reforming federal transportation spending is connected to meeting our urgent national goals of reducing America’s oil dependency, helping the nation compete and thrive in the 21st century, and bringing opportunity to all Americans.

The first four sessions are open now, so visit the webinars page to see the list of sessions and sign up for one today. Open sessions include:

Transportation and Economic Opportunity

Speakers will explore how the transportation sector drives the economy and creates opportunities for American workers. Topics will include the transportation sector’s ability to create jobs and sustain global growth, and the use of transportation as a driver of neighborhood revitalization.

March 19th at 1 PM EST / REGISTER NOW

Transportation and Social Equity

Social equity activists, labor groups, and community development professionals will examine how transportation access and mobility affects basic needs such as healthcare, education, and economic opportunity for millions of Americans.

March 24th at 4 PM EST/ REGISTER NOW

Transportation, Climate Change, and Energy Security

Within the United States, transportation is one of the largest sources of greenhouse gas (GHG) emissions. Webinar attendees can learn how various modes of transportation impact the environment and energy security, and how our land-use patterns affect vehicle miles traveled (VMT) and air quality.

April 2 at 2 PM / REGISTER NOW

Transportation, Housing, and Development

Real estate development professionals and affordable housing advocates will explore the linkages between transportation and housing development, the shift in housing and real estate preferences and value, and the creation of affordable mixed-use development near jobs and transit.

April 16 at 4 PM EST / REGISTER NOW

Transportation and Public Health and Safety

Transportation influences the health and safety of communities by affecting physical activity levels, traffic speeds, and air pollution. This session will investigate the needs of paratransit and transit-dependent populations, the success of Complete Streets and non-motorized transportation programs, and the connections between transportation and active living.

Transportation in Rural Areas and Small Towns

Click here to read more

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