Post Tagged with: "Europe"

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

April 15, 2009 at 12:42 am

(Source: Washington Post) 

Without higher gas taxes, ‘cash for clunkers’ won’t do the job 

CAR SALES in Germany jumped an astonishing 40 percent in March, thanks in large part to a “cash for clunkers” program in which the government gave those handing over old-model cars roughly $5,000 toward the purchase of newer, more fuel-efficient vehicles. Lawmakers in the United States have crafted similar proposals, hoping both to provide a boost to the U.S. auto industry and to spur sales of environmentally friendlier cars. But even the best of these proposals is not likely to provide the punch of the German initiative.

A bill co-sponsored by Sens. Dianne Feinstein (D-Calif.), Charles E. Schumer (D-N.Y.) and Susan Collins (R-Maine) offers the most sensible approach. Buyers are eligible for vouchers worth $2,500 to $4,500 toward the purchase of a new car if they turn in older vehicles that get less than 18 miles to the gallon. The older vehicles would be junked and turned into scrap. The new car must have a sticker price of less than $45,000 and surpass fuel economy standards by 25 percent. Buyers may also apply the vouchers to fuel-efficient used cars manufactured after 2003. Vouchers could also be used for participating in public transportation programs. A similar proposal in the House provides credits only for vehicles made or assembled in North America; such a provision is problematic because it could violate free-trade agreements.

But would even a perfectly crafted program trigger the kind of spending spree witnessed in Germany? Unlikely, largely because of simple economics and human nature. In 1999, the German government began to gradually impose an additional tax on each gallon of gas beyond the existing tax; today, the additional tax stands at 50 cents, and high gas prices push consumers toward fuel-efficient cars or public transportation even without additional incentives. Yet the Germans did not stop there. The country announced at the start of this year that it would implement in July a new tax based on carbon dioxide emissions; the larger the car and the greater its emissions, the higher the tax. No wonder, then, that Germans flocked to take advantage of the cash-for-clunkers deal before driving becomes even more expensive.

Click here to read the entire article (free regn. required).  

Note:  Below is a list of articles on this issue, previously published on TransportGooru.  This compilation of articles offer an insight into state of various “Cash for Clunkers” style programs implemented (or currently being debated) across the globe (Germany, UK, etc,). Stay plugged in to TransportGooru for more on this topic in the days to come.

 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

Read more 1

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

Read more 2

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!

Britain has indicated it may be the next to join a growing list of European governments that have launched special stimulus programs aimed at shoring up a flagging automobile sector. The Times of London reported on Sunday that British Chancellor of the Exchequer Alistair Darling plans to present a draft of a “scrapping scheme”modelled after Germany’s successful cash for clunkers program when he presents his budget on April 22.

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

Read more 2

Wacko economics! New car prices undercut used models in U.K.

April 9, 2009 at 11:43 am

 (Source: Financial Times)

In one of the most striking signs yet of the conflicting pressures buffeting the automotive industry, some new cars are now selling more cheaply than used vehicles.

A shortage of good-quality used cars combined with aggressive discounts offered on many new ones by retailers and manufacturers now mean that some new cars can be had for as much as £1,000 less than used ones in good condition. 

Parker’s, the car-buying price guide, on Wednesday said it had spotted a new Vauxhall Corsa available from one dealer for £5,995 – nearly £500 less than a used model with 5,160 miles on the clock selling for £6,494.

The guide also spotted a Mazda 6, available new for £11,485 from car supermarket Cheap-Cars-Online, being sold used with 2,500 miles on its clock for £1,000 more, at £12,499.

“For the first time, used cars are more expensive than new,” Parker’s said. It noted that the shift was not across the board, but said this was the first time it had seen used cars command a premium over new ones since the guide’s launch in 1972.

In recent months used car prices have been climbing in the UK and many other big markets, including the US, because of a shortage of available stock as new car sales plummet and recession-squeezed consumers shift to second-hand models.

Manufacturers including Vauxhall – owned by struggling General Motors – and Peugeot-Citroën are offering steep incentives on new cars to keep their inventories low as they contend with their slowest sales in decades.

The financial squeeze faced by many dealers and the rise of car supermarkets and brokers have also contributed to the downward pressure on new-car prices.

Click here to read the entire article.

Read more Comments Off

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. 

The programme was due to expire on May 31, but the government has extended it until the end of 2009.

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”

Read more 3

Smart police have fast cars – May be in Europe but not in the USofA! European Police get highway patrol cars manufactured by Ferrari, Porsche & Lamborgini cars

April 8, 2009 at 7:06 pm

(Source: Telegraph, UK)

From a Ferrari to a Smart Car, police forces around the world are spoiled for choice for fast cars when it comes to patrolling their patch.

There is fierce competition for the world’s fastest police car with the Italians and Germans vying for the title.

Up until now the police prix d’or has been held by a Lamborghini Gallardo which an Italian police patrol is using on the Salerno-Reggio Calabria highway.

It is capable of hitting a top speed of 192mph, which is probably ample to keep up with the most reckless of motorists.

But the Germans have their eye on a car which would leave the Lamborghini trailing in its wake.

It has placed an order for a Brabus CLS V12 S Rocket which has a top speed of 225mph. It will be used on the fastest stretches of the autobahn.

 

In San Diego officers are using a custom made police car with integrated shotgun mounts and a top speed of 155mph.

This article states that some of the British police officers drive the Greenest, if not the meanest, among all forces – the tiny  SmartforTwo cars.

TransportGooru wonders if this San Diego squad car is a silly Dodge Charger.  American police officers should think about doing some police work in Europe!  It will make a great cinema when California Highway Patrol chasing some Hollywood superstar’s Lamborghini Gallardo with his Dodge Charger with integrated shot gun mounts!
On a releated note, few days back a South Carolina Trooper, J.D. McGaha, was cited for speeding in his unmarked patrol car.  Guess what he got for mashing his Dodge Charger – 3 days suspension, possible fine worth $355 & 6 points on his license. Oh, his Dodge Charger was taken back by his Department. Trooper McGaha is definitely not driving a Charger like a Ferrari anymore. Read the TransportGooru article on this incident here.
Read more 1

Cycling Mecca (Holland) reclaims the World’s safest country for cycling title

April 7, 2009 at 8:26 pm

(Source: Treehugger)

Img: Daniel Sparing @ Flickr

The Dutch and the Danish pass back and forth the crown for best cycling country. Now new research (from the Dutch) shows Holland to have the safest cycling roads (graph after the jump). Here’s how Tineke Huizinga, State Secretary of Transport, views the bike:

“The bicycle oils the wheels of the municipal traffic system. Cycling means arriving at work, school or the gym in a more alert frame of mind, feeling creative and positive.”

That may seem like a subjective statement, but the Dutch have found cyclists do have fewer sick days. And, amazingly, cycling safety is NOT give the highest priority in Dutch planning.

Dutch Cyclists Safest graphic

More Dutch cycling = safer cyclists
The Dutch, in their 2009 Cycling in the Netherlands report, attribute Holland’s low number of cycling fatalities – 2 people killed per 100 million kilometers traveled by bike – to the fact that so many of the Dutch are also cyclists. It isn’t a ‘we versus them’ mentality any longer, now that each person owns an average of 1.1 bicycles. This coupled with the fact that, as the report states: “Wearing a bicycle helmet for daily trips is unusual in the Netherlands,” is indeed food for thought.

In addition, Dutch liability dovetails with the recent TreeHugger post of making heavier vehicles more responsible in accidents.

Click here to read the entire article. 

Read more Comments Off

Denmark turns to green transport in runup to climate summit

April 5, 2009 at 1:43 pm

(Source: Deutsche Welle)

Denmark is a leader in climate policy, but the Danes are also among the highest per capita users of energy in the world. The government in Copenhagen is now trying to change that.

When Danish Prime Minister Anders Fogh Rasmussen came to power in 2001, he didn’t seem at all interested in the environment and climate protection.

But with every Dane pumping out 5 tons of CO2 into the atmosphere each year, Copenhagen could find itself in a tricky position as the host of a giant climate summit at the end of this year, when delegates from all over the world get together to set new global targets on emissions ahead of the 2012 expiry of the Kyoto agreement.

That’s why today a different message is heard coming from Copenhagen and the vision of green economic growth is sprinkled throughout just about every speech Rasmussen gives.

The prime minister is now openly advocating “a society in which we are completely independent from fossil fuels like coal, oil and gas” and a future in which renewable wind, solar and biomass energy sources will make it possible to live in “houses that produce more energy than they use.”

 

Currently there are only about 200 climate-friendly autos on the nation’s streets, but that should grow to 100,000 within two years.

 The Danish energy corporation DONG and the American company Better Place are planning to invest 100 million euros ($135 million) to build up infrastructure in the country for electric cars. The idea is to make it just as fast to charge up a battery as it is to fill up a tank of gas.

 The head of the Danish electric auto association, Per Moeller, is very pleased with that plan, and confident that Denmark can become a pioneer in this sector.

 “We have really good conditions for it here: no extreme climate changes and a flat landscape,” he said. “Denmark is certainly one of the countries in which it would be the easiest to introduce electric cars.”

The batteries to run these cars of the future have another advantage. They can be charged during the night when energy from wind turbines is available but isn’t being used much, essentially turning them into important energy storage devices.

“I don’t think we can leave it to the politicians to solve the problems with climate change,” said Jens Moberg, CEO of the Danish branch of Better Place. “Consumers and companies need to take an active role in the process.”

Read more Comments Off

Obama Favors “Cash for Clunkers”

April 1, 2009 at 7:43 pm

(Source: TreeHugger); Video: YouTube)

 Yesterday President Obama told Chrysler and GM that it is time to shape up or ship out. He also said he supports a program that would pay people to trade in older cars for newer, more fuel efficient vehicles. Europe has successfully tried this, but could it work here and would it be good for the planet? 

Speaking about a so called “cash for clunkers” program, Obama said:

“Such fleet modernization programs, which provide a generous credit to consumers who turn in old, less fuel-efficient cars and purchase cleaner cars, have been successful in boosting auto sales in a number of European countries.”

Here is an analysis from a News portal on what it could mean for consumers.

This is especially true in Germany, where new auto sales are said to have risen 20 percent last month. Of course, Europe has much higher gas prices than we do, increasing the desire to go with a greener car. They are also taxing people for their carbon output, again incentivizing people to get rid of heavier, more inefficient cars and trucks., A gas tax and other complimentary taxes that would bring our prices in line with Europe’s is politically unlikely, so a trade-in program may have some political legs given Congress’s new found attention on the climate. 

Another supporter is Ohio Rep. Betty Sutton, who sponsors the CARS Act, which creates vouchers of between $3,000 and $5,000 for people to trade-up. Given the president’s announcement yesterday, it’s suddenly a viable question to ask if there will be any American cars to buy if a cash for clunkers plan was enacted.

Here are some of the related posts from TransportGooru:

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” (in plain english, car scrapping program)

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

Read more 3

Vehicle Manufacturers Are Leading Intelligent Transportation Systems Efforts with Obstacle Detection Systems Launching in 2009, According to ABI Research

March 31, 2009 at 11:41 am

(Source: Fox Business)

Intelligent Transportation Systems (ITS) have been under development for more than a decade. While the promise of road-infrastructure based traffic management is still years away, some car manufacturers are moving ahead with autonomous radar-based obstacle detection systems increasing the safety of both drivers and pedestrians.

“Vehicle manufacturers are mainly interested in active safety as a new differentiator,” says ABI Research Practice Director Dominique Bonte. “However, avoiding accidents has a huge impact on traffic congestion levels, the reduction of which remains the primary goal of ITS.”

Toyota is planning to add a millimeter-wave radar system to some of its car models in Japan in 2009. The driver is warned about potential side and front collisions and when a crash is imminent automatic braking, seat belt retraction and air bag deployments are initiated. In the US a similar pre-collision system will be available on the 2010 Toyota Prius as an option. A similar feature was announced by Hyundai at CES. However, the current automotive slump will delay the adoption of active safety as a standard option across all brands.

To realize the benefits of integrated traffic management ITS requires vehicle-to-vehicle and vehicle-to-infrastructure communication. While many successful tests based on the Dedicated Short Range Communication (DSRC: undefined, undefined, undefined%) protocol are ongoing in Japan (ITS-Safety 2010 project), Europe (ERTICO, CAR 2 CAR Communication Consortium) and the US (DoT’s IntelliDriveSM project), full rollout is not expected before 2015.

Click here to read more. 

Read more Comments Off
1 2 3 4 5