REPORT: Largest American Axle plant to idle as work shifts to Mexico…choking GM‘s demand for American Axle components (accounting for 74% of the floundering supplier’s sales). Founded in 1994, American Axle will start moving the facility’s production to Guanajuato, Mexico over the summer. More than 500 of the 700 workers at the Detroit complex will be laid off indefinitely, and only 232 of the company’s most seni…

DetNews columnist warns of the dangers of nationalizing GM…GM, UAW/UnionsDetroit News columnist Daniel Howes has penned a commentary on what he believes the “mind-numbing” future could be if the White House and the United Auto Workers end up with majority control of General Motors.Howes fears that a government-and-UAW-controlled boardroom would end up an echo chamber, with both parties worried mainly ab…

Michigan Screws Up Laid-Off GM Factory Worker Unemployment, Forces Payback [Carpocalypse]…Unemployed former GM factory worker Greg Eddy has his share of problems, but thanks to Michigan’s inability to calculate unemployment benefits, he’s now also getting less money and a whopping $2,400 bill. After Eddy lost his job with GM — twice — he decided to go on unemployment while heading back to school at ITT for a degree in communications….

REPORT: GM won’t pay dealers for franchises, will buy back parts, vehicles…GMIn a special broadcast to dealers yesterday, General Motors’ sales chief, Mark LaNeve, explained that the automaker would buy back unsold new vehicles and parts from dealerships slated to be phased out by the end of 2010, but GM wouldn’t pay off dealers for their franchises.As reported earlier this week, GM plans to cut it U.S. dealerships by …

GM makes the case for testing E15 ethanol blend…GM has long been a proponent of using high-level ethanol blend, E85, in motor vehicles. But, with all of the talk of putting E15 or E20 (gasoline with 15 or 20 percent ethanol blended in) into the national supply – see these earlier posts about the EPA, the Minnesota Ag Department, the Secretary of Agriculture, and the Underwriters Laboratories…

First Camaro Crap-Out Comes 40 Miles From Dealership [Chevy Camaro]Maybe worse than the first Camaro wreck is the first Chevy Camaro breakdown. This “p**sy magnet” Bumblebee-yellow Camaro lost all electrical power and coasted to a stop with a scant 40 miles on the odometer. The ecstatic new owner, a forum fan-girl by the name of BUMLB, was crushed when the car conked-out cruising through a parking lot at a leisure…

AFS Trinity brings “150 mpg” plug-in hybrids to Capitol Hill for some sweet stimulus cash…an old GM plant and build “hundreds of thousands of plug-in hybrids” that could be sold for just $8,000 more than the non-hybrid versions. Gallery: AFS Trinity Cross Country Trip with XH-150[Source: NYT]Filed under: Emerging Technologies, EV/Plug-in, Hybrid, Legislation and PolicyAFS Trinity brings “150 mpg” plug-in hybrids to Capitol Hill for s…

Chevy Volt: First Drive? [Vaporware]We’d love to drive the Chevy Volt test mule like Wired and others, but we’re pretty sure the Volt PR team is afraid of us. As well they should be. We actually have readers. [Wired]

Saturn’s death could hurt GM CAFE numbers…part of GM. One of the primary reasons that Saturn is being disposed of is poor sales. There is, however, one exception to that sales record: hybrids. So far, Saturn has accounted for about a quarter of GM‘s sales of hybrids. Saturn also had the best CAFE numbers of any GM division, thanks to the absence of any full-size body-on-frame vehicles o…

Killing Saturn Kills 25% Of GM Hybrids [Carpocalypse]…of GM hybrids. Damned if they do… [AutoNews via AutomobileMag]

Clash of the Titans: Fiat reportedly squaring off with European Union over mergers…interest in GM‘s European subsidiary Opel, Marchionne is now asserting that would consider the possibility, but that no offer had been made to date.[Source: The Detroit News | Image: Andrej Isakovic/AFP/Getty]Clash of the Titans: Fiat reportedly squaring off with European Union over mergers originally appeared on Autoblog on Mon, 27 Apr 2009 14:…

 More cuts across the board: General Motors to slash dealers, plants and employees…GM, Earnings/FinancialsGeneral Motors’ spate of announcements this morning was bad news for enthusiasts (e.g. the shuttering of Pontiac) and even worse for GM‘s debt-for-equity swap (without a 90% take-rate the automaker is bound for CH 11). But for dealerships and workers, GM‘s re-revised restructuring plan is going to hurt… hard.In addition ..

(Source: Streetsblog)

Ultimately, SAFETEA-LU’s greatest failing may have been its failure to articulate a truly multi-modal vision for the nation’s surface transportation network. Essentially a continuation of 1950s-era policies, it repeated the same-old same-old about a need to complete the Interstate highway program, directing billions of dollars to state DOTs to pour asphalt and expand roadways. Nowhere did the legislation suggest a need to adapt to a future in which American dependence on automobiles and fossil fuels must be dramatically reduced. That’s the challenge faced by Congress today.

Less of this...

 Transportation funding from Washington has been heavily weighted toward highway spending ever since President Eisenhower first proposed the Interstate Highway Act in 1956. SAFETEA-LU, 2005’s federal transportation bill, was no exception. It provided $244.1 billionover five years, its revenues raised by the federal gas tax and directed to the Highway Trust Fund, which has both highway and mass transit accounts. $40 billion a year went to highways, most of which was used to expand and upgrade the Interstate highway system; some $10 billion went annually to mass transit.

The $10 billion in public transportation funds is distributed by the Federal Transit Administration (FTA) for a variety of uses. The FTA administers the urban areas program, which allocates money to metropolitan areas for transit system capital expenses, as well as a rural areas program that helps states pay for rural transit. SAFETEA-LU also included a fixed-guideways formula, aimed at keeping mostly older rail transit systems like those in Chicago or Boston in working condition. Finally, the New Starts/Small Starts program allowed the FTA to fund competitive grants for major capacity expansion such as new subway or bus rapid transit lines.

More of this...

 SAFETEA-LU provided for $40 billion in annual funding from the highway account, the traditional federal source for financing Interstate highways. But under the law, money from the account could actually be spent on more than just roads. Roughly $6.5 billion per year was allocated to the “Surface Transportation Program.” States were allowed to use this money to fund transit and “bicycle transportation and pedestrian walkways.” The “Congestion Mitigation and Air Quality Improvement Program” — about $1.7 billion a year — went to projects likely to reduce pollution, and specifically forbade funding “a project which will result in the construction of new capacity available to single occupant vehicles.”

There’s one problem, though. The federal government may allow such funds to be spent on non-auto uses, but that’s rarely the case.

That’s because, while each metropolitan area has a federally-mandated Metropolitan Planning Organization (MPO) whose role is to establish priorities for transportation investments, state departments of transportation have ultimate discretion over how national highway funds are used. The inevitable consequence? Asphalt-happy DOTs usually choose to invest highway funds in roads, even when MPOs advocate for improved transit or bikeways. According to Transportation for America, only five states — California, New York, Oregon, Pennsylvania, and Virginia — have taken advantage of the flexibility of these funds. The rest have spent the vast majority on auto infrastructure.

What’s more, SAFETEA-LU made it easy for states to build roads and hard for them to build transit projects. While funds for new roads were simply distributed to states based on a formula, new transit lines had to undergo the rigorous New Starts process — competing with other projects from all over the country — before winning a share of federal dollars. There was no such required audit for road projects.

(Source: Backgrounder, Council on Foreign Relations) 

 

Author:	Robert McMahon, Deputy Editor

Introduction : 

Transportation experts view the call for dramatic federal government action in response to the economic crisis as an opportunity to overhaul the U.S. system of highways, bridges, railways, and mass transit. A series of sobering report cards from the American Society of Civil Engineers documents the inadequacy of this system. President Barack Obama took office pledging to act; his February 2009 stimulus package provides nearly $50 billion for transportation infrastructure. But many experts look beyond the stimulus and call for shifts in longer-term policy that will fundamentally alter the approach to planning and funding infrastructure and bolster U.S. competitiveness, quality of life, and security. In the past, the United States has revamped its transportationinfrastructure to build canals, transcontinental railways, and a federal highway system, in each case helping usher in periods of economic growth.

A State of Disrepair