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Archive for the ‘Industry News’ Category

UAW, DNC Blast McCain on “Buying American”

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Senator John McCainJohn McCain's claim of "buying American all my life" was perhaps a partial truth, according to the Democratic National Committee. McCain made the comment during a WXYZ TV interview in Detroit recently and followed it up by saying, "and I'm proud."

The complete truth, as the DNC tells it, is a fleet of 13 automobiles in John McCain's personal stable, three of which are not American brands. In addition to the foreign-made Toyota Prius that McCain may or may not have purchased for his daughter, McCain himself owns a "foreign made Lexus Sedan, a Volkswagen, and a Honda sedan," according to UAW President Ron Gettelfinger. Gettelfinger blasted McCain in a Sunday conference call, saying he "wasn't being straight with the people of Detroit." Newsweek magazine also weighed in on McCain's livery, citing ownership of three foreign-branded automobiles.

Is it a lie to buy mostly American brands and some foreign brands while claiming you've "bought American all my life?" Is it mincing words to bicker about the content of a vehicle, when plenty of American-branded vehicles have been built entirely in, say, Canada (last-gen Chevy Camaro/Pontiac Firebird) and/or Mexico? And what of that 2001 Honda Accord in McCain's stable? Both Honda and Toyota have made significant contributions in recent years to the American workforce. Is it accurate to insinuate that purchasing a Honda Accord or a Toyota Camry is an inherently anti-American act, or one that is not supportive of the American worker? And last but not least: Are these real issues, or just election-season obfuscation?

Fasten your seatbelts, folks. The mud slinging has only just begun. Far from black and white, this stuff is a dizzying sea of gray that is sure to stimulate untold beer hall and coffeeshop arguments across the country.--Colin Mathews

States Give Yea to $25B in Big Three Loans

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2011 Chevrolet VoltEnlarge Photo

Continuing the push for low-interest loans to Detroit's automakers, 10 governors this week joined the fray in requesting $25 billion in low-interest loans for GM, Ford, and Chrysler. As reported by Detroit Free Press, the governors of Michigan, Illinois, New Jersey, Tennessee, Ohio, Wisconsin, South Dakota, Delaware, Kansas, and North Carolina asked for the support in a letter to Congress. They also requested $250 million for research on advanced battery technology.

Job creation, greenhouse gas reduction, and greater energy independence were the main reasons listed for automaker assistance. Further, the letter stated that it is "imperative that the federal government make these critical investments."

As of yet, no orchestrated voice against the loans has emerged. But critics see government assistance as tantamount to a bailout, and The Club for Growth, a group critical of McCain's tax policy, called the pending loans "a politically motivated transfer of wealth" from taxpayers to a special interest.

The White House has not commented yet on the proposed loans, and Congress is not expected to take the issue up until sometime next week.

In a nod to Jalopnik, could this be the Second Coming of The Malaise Era? Financial malaise, anyway. At least electric vehicles have lots of torque at zero rpm, unlike, say, the beloved Chevrolet Chevette/Pontiac T1000 twins wheezing around when Jimmy Carter was admonishing the country to just turn off the heat and just wear a sweater.--Colin Mathews

“Worst Business Conditions in 30 Years,” Say Big Three

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by Ninjapoodles, Flickr; Creative Commons licenseSinging with a chorus that includes Fannie Mae, Freddie Mac, and AIG, the Big Three's top men (GM - Wagoner; Ford - Mulally; Chrysler - Nardelli) this week continued beseeching congressional leaders for $25 billion in low-interest federal loans. The U.S. auto giants claim to be facing the worst business conditions "in more than 30 years," according to Detroit Free Press.

Continuing to link the health of their industries to the fates of the U.S. economy and the American worker, the three powerful CEOs insinuated negative impacts on "tens of thousands of employees" and a "lasting effect on industrial production in the U.S." if no assistance is given. They also cited the housing crisis, high oil and commodities prices, and restrained credit as compounding auto industry struggles that make government assistance critical.

The executives also asked Washington leaders to "widen" the loan terms, loosening items like last year's mandate of 25 percent better fuel economy before funds would be released. Widening would allow more parts and vehicles to qualify under the loan's terms.

Wall Street is suddenly asking a lot of its governmental overseers, but can a penny-pinched, debt-laden U.S. afford another $25 billion on the heels of expensive moves like the $85 billion AIG bailout? And will domestic automakers really change approaches and vehicles this time around, or will it be back to business and SUVs as usual when the sun comes out again? Or can we afford not to? Let us know what you think in a comment below.--Colin Mathews, image from Ninjapoodles

Keyless Go Forces Recall of 6,636 Dodge Challengers

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2009 Dodge ChallengerEnlarge Photo

"Keyless Go" is an apt moniker in this age of multitasking, speed-passing, Easy-Fueling drivers. But 6,636 '08-'09 Dodge Challengers with automatics are in such a seeming hurry to get moving that they may do so even when their owners would rather they stay put.

Said the National Highway Traffic Safety Administration (NHTSA), pressing and holding the Challenger automatic's stop/start button will turn the vehicle's engine off regardless of gear selector lever position. Turn the engine off, forget to put it in park, release the brake, exit the car, and you might just watch in astonishment as your spunky Challenger traipses down the hill without you.

So that the engine may be shut off only after the transmission has been placed in Park, Edmunds states that "Chrysler dealers will reprogram the wireless ignition node module." For more information about the recall that is slated to begin this week, Challenger owners may dial 1-800-853-1403.--Colin Mathews

Volt Wins a Round in Congress: $5,000 So Far

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Offshore Oil RigEnlarge Photo

As Nancy Pelosi will tell you, House Resolution 6899, the "offshore drilling bill," is one hotly contested piece of legislation. Bet you didn't know it also contains a plug-in hybrid tax credit, one that Toyota rather vocally opposed yesterday. Further, the bill mandates that all gas stations offer an "alternative fuel pump" by 2018, and goes on to explain that means natural gas, E85 or higher, biodiesel, renewable diesel, or hydrogen. The addendum to this addendum throws a nice $50,000 tax credit to stations that choose to go with an E85 pump. Somehow, we doubt biodiesel pumps are going to start springing up across the country.

Kicking Tires, by way of Autoblog, explains that the proposed credit would apply to plug-in hybrid vehicles with batteries of at least 5 kWh. Starting at $3,000, the credit increases in increments of $200 for each kilowatt hour over five and maxes out at $5,000. Being that the 2011 Chevy Volt is currently the only plug-in hybrid confirmed for sale, GM stands to gain most from this little post-script to HB 6899 to the tune of a $5,000 credit. No wonder Toyota is complaining that the wording of the bill reserves the best of the credits for only the Volt.

The bill passed the House, but it faces an uncertain future in the Senate, where an alternate version is in the works. The Senate version would give drilling even more leeway than the House's expansion beyond a 50-mile coastal buffer. It might also raise the credits for alternative vehicles; GM's Bob Lutz told TheCarConnection.com yesterday that his company was looking for higher incentives for the Volt to be feasible--$7,500 in tax credits--and GM's good connections in Washington are likely hard at work on a back channel.--Colin Mathews




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