Post Tagged with: "New York Times"

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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Global Car Makers Asked to Cut Emissions by Half

March 4, 2009 at 12:44 pm

(Source: New York Times)

50 by 50

Amid a wave of government-led bailouts for car companies, a group of international agencies and motoring organizations called on Wednesday for car makers worldwide to reduce emissions.

“In confronting the economic recession this is a real opportunity for governments to combine support for the auto industry with measures to achieve environmental and energy policy goals,” said Nobua Tanaka, the executive director of the International Energy Agency.

exhausted“Battery electric vehicles, plug-in hybrids and possibly hydrogen fuel cell vehicles are expected to become increasingly available in the near-to-medium term given recent improvements especially in batteries,” the 50-by-50 campaign noted in a leaflet. “However, these advanced technologies are not necessary to achieve the 50 percent potential described here, but could result in further CO2 reductions and oil savings if they succeed in achieving mass-market commercialization.”

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Stimulus Flows Into Patchwork of State Transport Projects

March 3, 2009 at 8:31 pm

(Source:  New York Times)

Kansas will widen U.S. Route 69 to remove a bottleneck outside Kansas City, along with three other expensive projects. Maryland will spend its money in smaller pieces, resurfacing dozens of rutted roads and highways. Colorado will build an interchange on Elk Creek Road in Jefferson County, complete with an underpass for the elk.

There is nothing monumental inPresident Obama’s plan to revive the economy with a coast-to-coast building spree, no historic New Deal public works. The goal of the stimulus plan was to put people to work quickly, and so states across the country have begun to spend nearly $50 billion on thousands of smaller transportation projects that could employ up to 400,000 people, by the administration’s estimates.

Stimulus for Transportation Projects

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Pedestrian Malls: Back to the Future

March 3, 2009 at 7:32 pm

(Source: Room for Debate, a New York Times blog)

New York City

(Photo: Librado Romero/The New York Times) In Times Square, pedestrians often find themselves maneuvering among cars blocking the intersections.

The pedestrian mall, the urban planner’s failed attempt to revitalize Main Streets during the 1960s and 70s, is back!

This week, Mayor Michael Bloomberg announced that cars would be barred from several blocks of Broadway, including Herald Square and Times Square. He said the changes would relieve traffic congestion and crowded sidewalks – far different problems from what spawned the pedestrian malls of the 70s. And it’s not just New York that’s rethinking this old idea. San Francisco is considering restrictions on private cars on Market Street, the city’s main artery.

When do these car-free zones succeed? And why have they left streets deserted and unappealing in the past?

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Blue-ribbon panel endorses road pricing, shift from gas tax

February 26, 2009 at 4:01 pm

(Source: Greenwire via New York Times)

A blue-ribbon federal transportation panel called today for a temporary gas-tax hike followed by a move toward charging drivers directly for every mile they travel — two ideas that have been soundly rejected by the White House in the past week.

The controversial road-pricing scheme would become the dominant funding mechanism for road construction and maintenance by 2020, with drivers being charged an average of 2 cents per mile, according to the report released by the 15-member panel created by Congress in the last highway bill authorization.

The National Surface Transportation Infrastructure Financing Commission says the shift is necessary because the current funding mechanism — federal fuel taxes — has failed to raise the necessary revenue for needed roadwork and runs counterintuitive to national environmental and energy goals.

“The more successful U.S. transportation policy is at increasing fuel efficiency and reducing both foreign oil dependency and carbon emissions, the faster its primary funding source, the gas tax, becomes obsolete,” said Texas state Rep. Mike Krusee, a commission member.

Increases in fuel economy, coupled with the fact that the current federal tax on gasoline has remained stagnant at 18.4 cents a gallon since 1993, have already taken their toll on federal revenues to fund road construction and maintenance. The Highway Trust Fund, which receives the bulk of its money from federal fuel taxes, would have run empty late last year if it were not for an eleventh-hour transfer of $8 billion by Congress to keep it solvent.

“With the expected shift to more fuel-efficient vehicles, it will be increasingly difficult to rely on the gas tax to raise the funds needed to improve, let alone maintain, our nation’s surface transportation infrastructure,” said commission Chairman Robert Atkinson, president of the Information Technology and Innovation Foundation, a nonpartisan think tank.

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