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On Tuesday, President George W. Bush lent his John Hancock to a $634 billion spending bill that includes the
$25 billion low interest government-backed loan guarantees that the domestics have all but been begging for. The loan is intended to provide the capital necessary for automakers to retool plants so that they may begin producing more advanced, fuel-efficient vehicles. The vehicles produced under these terms need to be at least 25 percent more fuel efficient than required by current industry mandates.
This support from the President, whose advisors were split on whether or not to back the bill, is arguably essential for the survival of GM,
Ford, and
Chrysler. It allows them to borrow at interest rates of around five percent, a comparatively affordable rate next to the 15+ percent rates the beleaguered companies would face on the open market. The
Detroit News claims that this governmental assistance "could save Detroit's Big Three more than $100 million per $1 billion borrowed."
Loan repayment terms are 25 years, with a five-year deferment. A $7.5 billion insurance cost for the loans and possible deferment was approved by Congress.
After commending Congress and the President for their action, GM spokesman Greg Martin made a rather convoluted statement that seems to be a gentle plea for more money down the road: "now, we need the rulemaking process to keep pace with the urgency in which we're developing new technologies." As we read it, "rulemaking process" = Federal purse-string oversight, and keeping pace "with the urgency in which we're developing new technologies" = giving domestic automakers more money if they need it for technology that's going to be all but required to meet new fuel economy regulations.
Brace yourselves, American taxpayers. And, Big Three, don't you dare spend our money on more
SUVs.--
Colin Mathews
Posted in : 2008, Chrysler, Ford, GM, Industry News, Manufacturing, North America, Politics
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Our gassy peers at
Jalopnik were shocked to find that social networking/microblogging service
Twitter was being used for something other than subscribing to their news feed. Indeed,
gasoline-starved Atlanta drivers have been pinging each other and tagging posts to point fellow drivers to stations with fresh supplies of fuel.
Jalopnik comments that "Atlanta has been running on empty for about three weeks now," and says some drivers have waited in lines up to an hour long at the stations that still have reserves to sell. They also note that Governor Sonny Perdue delayed lifting low-sulfur fuel requirements for Georgia when the crisis loomed, compounding the problem and lengthening the gas lines.
To help Atlanta Twitterers locate gas in the suburban sprawlopolis, users of the service have been tagging posts with "#atlgas."
The city's gas shortages are expected to last into next week, as a result of hurricanes Ike and Gustav slowing supplies to the southeast.--
Colin Mathews
Posted in : 2008, Driving, Politics
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On Saturday, one half of our bicameral legislature, the U.S. Senate, passed the
$25 billion low-interest loan guarantee package to the struggling U.S. auto giants. To recap, this money is largely desired by and designed for
Ford, General Motors, and
Chrysler, who have been hit especially hard by declining sales of their full-size
SUVs and
trucks. Recently, both GM and
Chrysler launched
ambitious electric and hybrid programs that all but necessitate these monies in order to press forward with R&D and eventual production. Both companies were nervously wringing their hands behind the scenes, with some speculating that GM might be forced into bankruptcy were it not for an intervention.
Interestingly, not only American brands qualify for the low-interest loan guarantees. Claims
Breitbart: "under provisions of the new legislation, not only U.S. carmakers are eligible for the guarantees but also suppliers and foreign automakers with plants in the United States that are more than 20 years old --
Nissan and Honda's U.S. operations qualify."
Realizing public skepticism and fear run amok when it comes to
Chrysler and government assistance, Chairman Robert Nardelli stated flatly: "This is not a bailout." Perhaps not, but would Chrysler's proposed trio of electric and E-REV vehicles have any legs without this taxpayer assistance? The last time
Chrysler got major help from the taxpayers, their hard-earned dollars produced the K-Car (
Dodge Aries,
Plymouth Reliant, and a decade of spin-offs too numerous to mention here). A comparatively minuscule $1 billion rescued
Chrysler (it
was called a bailout back then) and sent the K-Car roaring onto the highways and byways of America. Here's hoping $25 billion results in vehicles less woeful than the 1983
Chrysler LeBaron
Convertible.--
Colin Mathews
Posted in : 2008, Electric Cars, Industry News, Politics
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From the slopes of Big Bear to the shores of Santa Monica, text messaging is soon to be illegal in the Golden State of California, dude. This makes the sixth state to join the list of no-texting-while-driving, most recently fortified by
Alaska's addition at the beginning of this month. Louisiana, Minnesota, New Jersey, and Washington also ban texting and driving. So does the District of Columbia, bringing the list to more like 6 1/2 states, or six states plus a sidecar, or six states and their Senator-less, humidity-loving cousin.
Interestingly, as the
Insurance Institute for Highway Safety notes, "novice drivers are banned from texting in 9 states (Delaware, Maine, Maryland, Nebraska, North Carolina, Oregon, Texas, Virginia, and West Virginia)." Given
recent studies that prove texting leads to worse driving than intoxication in some cases, we're surprised those states don't bag on texting altogether. In a move that every state should follow, school bus drivers are banned from texting in Arkansas, Connecticut, North Carolina, Texas, and Virginia. We'd like to appeal, as well, to the TSA and Starbucks to ban any texting by their employees while working.
Also interestingly, California will be enforcing a rolling ban of texting, with drivers younger than 18 having been banned from texting since July 2008, and all other drivers banned from texting beginning January 1.--
Colin Mathews
Posted in : 2008, 2009, Driving, Politics, Safety
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The picture in this
New York Times article provides a brilliant contrast: a bottle-blonde vixen snarling in a "Gentleman's Club" ad perched atop a NYC Yellow Cab and a portly, dour brunette framed by the window just inches below. Some might find the comparison amusing, but a Harlem father of three--Alex Yanos--found the advertisement "grossly inappropriate," despite the fact that the advertisement featured only the model's bust ("that's the head, you know"). Some of the cab-top advertisements feature clubs such as Flash Dancers and New York Dolls.
Interestingly, the first appearance of taxi-top advertisements in 1975 was met with an uproar, says the Times. Then-mayor Abraham D. Beame was part of the vocal opposition to the lighted signs that eventually were seen as improving the visibility and safety of taxicabs. Taxis are now plastered with ads everywhere from the backseat down to trick hubcaps.
Perhaps the most unintentionally brilliant comment in the Times' article was from Allan J. Fromberg, spokesman for the Taxi and Limousine Commission, who stated his organization's role is simply to "ensure the engineering and safety of the harness unit that holds the ads." Uh-huh.
Good grief. With their stocks plunging beyond belief, you'd think cash-strapped New Yorkers would find
something better to complain about. Someone make sure to tip off Yanos against going to Europe where, despite having some the safest cities in the world in which to raise a child, the topless female form appears without issue everywhere from beaches to magazine ads.--
Colin Mathews
Posted in : Advertising/Marketing, Just for Fun, North America, Politics
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