(Source: AASHTO)

Rough Roads Ahead:  Fix Them Now or Pay for It Later, a report released today by the American Association of State Highway and Transportation Officials (AASHTO) and TRIP, reports that one-third of the nation’s major highways, including Interstates, freeways and major roads, are in poor or mediocre condition.  Roads in urban areas, which carry 66 percent of the traffic, are in much worse shape. 

Extracts from the press release: Driving on rough roads costs the average American motorist approximately $400 a year in extra vehicle operating costs. Drivers living in urban areas with populations over 250,000 are paying upwards of $750 more annually because of accelerated vehicle deterioration, increased maintenance, additional fuel consumption, and tire wear caused by poor road conditions.

 “The American people are paying for rough roads multiple times,” said Kirk T. Steudle, Director of the Michigan Department of Transportation, at a news conference held to release the report. “Rough roads lead to diminished safety, higher vehicle operating costs and more expensive road repairs. It costs $1 to keep a road in good shape for every $7 you would have to spend on reconstruction. It’s another drag on the economy.”  

 The report uses the latest government statistics to show pavement conditions in all 50 states and vehicle operating costs by state and urban areas. The report also finds that:

• 30 to 60 percent of the roads in the nation’s largest urban areas are in poor condition.
• 36 percent of the roads in the Detroit urban area are in poor condition compared to the Los Angeles area and surrounding communities, which have 64 percent of their roads in poor condition.   
• 61 percent of rural roads are in good condition.
• 72 percent of the Interstate Highway System is in good condition, but age, weather conditions and burgeoning traffic are eroding ride quality.

 “Our nation has invested $1.75 trillion in our public highway system over the past 50 years,” said John Horsley, AASHTO Executive Director.  “We hope Congress will make it possible for the federal government to sustain its share of the increased investment needed to keep America’s roads in good condition.  If not, it will cost the American people billions more later.”

 The report points out that traffic growth has far outpaced highway construction, particularly in major metropolitan areas.  The number of miles driven in this country jumped more than 41 percent from 1990 to 2007 — from 2.1 trillion miles in 1990 to 3 trillion in 2007. In some parts of the country, dramatic population growth has occurred without a corresponding increase in road capacity, placing enormous pressure on roads that, in many cases, were built 50 years ago.  

“The federal stimulus program is providing a helpful down payment towards repairing some of the nation’s rough roads,” said Frank Moretti, TRIP’s Director of Policy and Research. “But it will take a significant long-term boost in investment by all levels of government to provide Americans with a smooth ride.”

 The full report is available at http://roughroads.transportation.org, along with examples from states working to improve their highway systems, charts and photographs.  Rough Roads is part of Are We There Yet?  We Can Be!, AASHTO’s effort to build awareness and support for the nation’s transportation system. 

 (Source: Autoblog & Detroit Free Press)

As in a basketball game when players are yanking on jerseys trying to block each other out under the basket, General Motors and Chrysler’s creditors have officially begun jockeying for position. 

Michigan’s Attorney General, Mike Cox, has sent letters to the CEOs at both companies to ask that, if they file for bankruptcy, they do it in Michigan. Why? Because that would be more convenient to the creditors that GM and Chrysler have in Michigan.

“I am gravely concerned about the impact of any bankruptcy filing in a jurisdiction outside Michigan,” Cox wrote in separate letters to GM CEO Fritz Henderson and Chrysler CEO Bob Nardelli. 

Cox goes on to say that the financial health of both companies and Michigan have been intertwined for decades.

The state is a significant creditor for each of the troubled automakers through the Michigan Business and Single Business Tax obligations, workers’ compensation claims, unemployment insurance and environmental regulations. 

“The costs for many of these creditors (in Michigan) to participate in a New York or Delaware bankruptcy is overwhelming and would undoubtedly lead to unjust bills,” Cox said.

While Cox does not say that either company should file for bankruptcy, neither does he acknowledge that they might not need to if they meet certain criteria set by the U.S. Treasury Department.

“If you ultimately decide to choose bankruptcy as the vehicle to a stronger (company), I respectfully ask that you and your representatives meet with me before any filing is made,” the letter concludes. “Please feel free to contact me at any time, day or night, to discuss this matter.”

(Source: Detroit News via Autobloggreen)

 After driving the Chevy Volt prototype and sitting down for a number of discussions, the members of the president’s task force on the auto industry have returned to Washington. While the team was in Michiganover the past few days, they had a chance to see GM’s latest technology, look at what Chrysler has brewing, and spent time reviewing the viability plans of the automakers.

“We have been and will continue to work as hard and tirelessly as we can,” the official said. “This is obviously a very substantial undertaking and we want to move with all deliberate haste.”

The group spent most of the day in Detroit, visiting UAW President Ron Gettelfinger and other union officials in the morning before heading to Warren for meetings with GM and Chrysler.

Advisers to the task force visited Chrysler’s Warren truck assembly plant, meeting Chairman and CEO Robert Nardelli and other top executives, the company said in a written statement.

“In addition to meeting, the group toured the assembly plant and reviewed Chrysler current and future products, including electric and hybrid vehicles,” the company said. The meeting also included Chrysler Vice Chairmen Tom LaSorda and Jim Press and Chief Financial Officer Ron Kolka.