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October 31, 2007
Oil jumps 4 percent to record over $94 a barrelNEW YORK - Oil surged more than 4 percent to a record over $94 a barrel on Wednesday after a steep drop in U.S. inventories fueled winter supply concerns and markets awaited the U.S. Federal Reserve's decision on interest rates, according to Reuters. U.S. oil jumped $4.00 to $94.38 a barrel. U.S. crude oil stocks fell 3.9 million barrels in the week to October 26, government data showed, countering expectations for a build ahead of the Northern Hemisphere winter.
Posted by Peter C. T. Elsworth Europe Proposes Warnings for Auto AdsHere's a New York Times story that reveals how far ahead Europe is when it comes to tackling carbon emissions and global warming: Quick, what’s more dangerous: automobiles or cigarettes? The European Parliament has proposed that car advertisements in the European Union carry tobacco-style labels, warning of the environmental impact they cause. Under the plan, 20 percent of the space or time of any auto ad would have to be set aside for information on a car’s fuel consumption and carbon dioxide emissions, cited as a contributor to global climate change.
Posted by Peter C. T. Elsworth Vice chairman Bob Lutz sees 'a new era' for GMMEMPHIS, Tenn. -- With its reputation on the mend, sales of new cars and crossovers exceeding expectations, and a new labor deal projected to cut billions from its annual costs, General Motors is in its best situation in decades, Vice Chairman Bob Lutz said Tuesday, according to the Detroit Free Press. In a wide-ranging interview with the Free Press, Lutz said he wants to make up to 100,000 fuel-efficient Chevrolet Volts in the first year of production. The first batteries were delivered Tuesday, he said. He also said that the new UAW contract provides a big boost to GM, as well as rivals Chrysler, which also has a new contract ratified with the UAW, and Ford, which is in the midst of negotiations. "The labor cost gap to the Japanese transplants have been narrowed, but they have not been closed," by the new UAW contract, Lutz said. "It's closer than it ever was before. That's good for a five-minute celebration, but then you say, 'Well, now what?' " The big fear now, Lutz said, is "ill-conceived" government-imposed fuel economy standards at the state or federal level.
Posted by Peter C. T. Elsworth UAW deal may alter Ford planWith top UAW and Ford bargainers now in the final phase of negotiating a new labor contract, experts said the resulting deal could significantly alter the details of the high-stakes turnaround plan under way at the 104-year-old auto company, according to the Detroit Free Press. Union leaders are expected to press Ford for product commitments that will keep their plants running and also to push for saving plants now slated for closure under Ford's turnaround plan. Ford's so-called Way Forward turnaround plan currently calls for closing 16 factories, eliminating 44,000 jobs and revamping the entire lineup of Ford, Mercury and Lincoln vehicles in an effort to restore profits by 2009 to the company's crucial North American unit.
Posted by Peter C. T. Elsworth October 30, 2007
Reimagining the Automobile Industry by Selling the ElectricitySAN FRANCISCO — Shai Agassi, a Silicon Valley technologist who was in competition to become chief executive of SAP, one of the world’s largest software companies, has re-emerged with a grand plan to reinvent the world’s automobile industry around battery-powered all-electric cars, according to the New York Times. Others are developing green cars, like the Tesla and Chevrolet Volt. However, Mr. Agassi is not planning to make cars, but instead wants to deploy an infrastructure of battery-charging stations in the United States, Europe and the developing world. The new system will sell electric fuel on a subscription basis and will subsidize vehicle costs through leases and credits.
Posted by Peter C. T. Elsworth Here come GM's hybrid SUVsWHITE MARSH, Md. -- It's just a transmission -- a chunk of cast metal and plastic found in every car and truck that most owners never think about unless it breaks. But for General Motors Corp., the first transmission off the line Monday for its new hybrid system marks its most aggressive attempt to fight Toyota's hybrid juggernaut, according to the Detroit Free Press. The parts built at a plant outside of Baltimore will be bolted into GM's full-size SUVs hitting dealerships in the next several weeks and into some pickups next year. The SUVs will match the city fuel economy figures of a gasoline-powered Toyota Camry sedan.
Posted by Peter C. T. Elsworth UAW says Ford talks progressingSeveral UAW local presidents are hopeful that Ford and the union can reach a deal on a tentative contract by the end of the week, after the two sides reportedly made progress over the weekend, according to the Detroit Free Press. Ford and the UAW have been bargaining in fits and starts since July. There were slowdowns in the talks when the UAW selected General Motors and then Chrysler as the target of national labor talks. Short strikes and then a period of ratification followed.
Posted by Peter C. T. Elsworth Ford to preview 2008 Bullitt Mustang at L.A. Auto ShowFord says the new Bullitt Mustang will be shown publicly for the first time at the Los Angeles auto show which opens Nov. 13, according to thecarconnection.com "Blending the best Mustang ever with the latest Ford Racing technology, this modern classic lives up to the magic of the movie Bullitt by delivering a new-generation Mustang Bullitt with the perfect balance of power, performance, and a look of quiet intensity. Bullitt screams into dealerships early next year," Ford said in a release.
Posted by Peter C. T. Elsworth Mazda: Zoom-Zoom Going GreenPressing the red "Start" button, the Mazda RX-8 fires up, the pint-sized rotary engine under its hood buzzing as I modulate the throttle, shift into gear and launch down the test track at Mazda'sHiroshima headquarters, writes thecarconnection.com's Paul Eisenstein. Acceleration is a little slower than I'm used to, but that's the trade-off signaled by the glowing "H2" light on the sports car's instrument panel. This prototype version of the rotary-powered RX-8 has been converted to run on hydrogen, the lightweight gas that many experts believe will be the fuel of the future.
Like most of its competitors, Mazda has come to recognize the long-term need to find alternatives to conventional gasoline. And like the rest of the industry, it is toying with a variety of options, including both electric and gasoline-electric hybrid vehicles. But the Japanese maker is placing its big bet on hydrogen, a fuel it has been tinkering with for two decades, in a series of prototypes and now, in a small fleet of vehicles, like this RX-8, undergoing real-world testing.
Posted by Peter C. T. Elsworth October 29, 2007
Toyota Looks to Follow Prius' Hybrid HitCheck out this fasincating Associated Press interview with Takeshi Uchiyamada, the Toyota engineer who masterminded the iconic Prius under tremendous pressure from management to "come up with the 21st century car, the vehicle that would hands-down beat the competition in mileage and environmental friendliness."
Posted by Peter C. T. Elsworth Saab Turbo X: Black to the Future at New England Auto ShowSaab will launch the Turbo X at the New England International Auto Show in Boston. The press day on Nov. 27 will mark the North American debut of the Saab Turbo X – a performance car that sets new standards for the brand. The all-black Turbo X takes Saab ‘back to the future’ by evoking the iconic appeal of its first black 99 and 900 Turbo models. It also introduces innovative Saab XWD all-wheel drive technology. Saab of Sweden is a subsidairy of General Motors
Posted by Peter C. T. Elsworth Backseat Driver: The Toyoda Precepts and Toyota's current Guiding PrinciplesHere are the business precepts developed by Sakichi Toyoda, an inventor who founded the Toyota Motor Sales Company and whose son Kiichiro got the company into the automobile business: 1. Be contributive to the development and welfare of the country by working together, regardless of position, in faithfully fulfilling your duties. 2. Be at the vanguard of the times through endless creativity, inquisitiveness and the pursuit of improvement. 3. Be practical and avoid frivolity. 4. Be kind and generous; strive to create a warm, homelike atmosphere. 5. Be reverent, and show gratitude for things great and small in thought and deed. Toyota's current guiding principles, which were established in 1990 and revised in 1997, retain the flavor of the original precepts. Here they are as listed on its Web site: 1. Honor the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world. - Peter C.T. Elsworth
Posted by Peter C. T. Elsworth Backseat Driver: Toyota came to the U.S. 50 years agoFifty years ago this week, Toyota Motor Sales Co. introduced the Toyopet Crown into the U.S. market out of a former Rambler dealership in Hollywood. The car was not a great success and sold only 2,000 models by 1961 before being pulled. But in 1965 Toyota introduced the Corona and in 1968 the Corolla; combined sales of these models totaled about 125,000 in 1969 and the rest is history. This week's edition of the authoritive Automotive News includes a 192-page supplement devoted to the anniversary of Toyota's arrival in the United States. "This is the company that changed the world," it writes in a lead editorial, noting that not only has Toyota grown to challenge GM as the world's biggest auto maker but has had a profound influence on how every other auto maker operates. "The list of advances is long," it continues. "The single-minded focus on quality, the striving for customer satisfaction, the early emphasis on fuel economy, Lexus, lean manufacturing, collaborative supplier relations, hybrid vehicles." Automotive News argues that Toyota embodies the combined genius of three giants of the American auto industry: Henry Ford, Alfred P. Sloan (General Motors) and Walter Chrysler who were "respectively masterminds of manufacturing, corporate governance and engineering." It adds that while there are a number of key individuals involved in Toyota's success, it is "the ultimate team." (See a separate entry outlining the precepts of good business as developed by family patriarch Sakichi Toyoda.) For his part, Keith E. Crain, publisher and editor-in-chief of Automotive News, writes that Toyota is now part of the American landscape. "There are more than 1,400 Toyota, Lexus and Scion dealerships across the country. Toyota has assembly plants from one end of North America to the other and component suppliers throughout the United States, Canada and Mexico." "Toyota dealers are among the most profitable," he writes. "And Toyota still believes that the retail automobile dealer is the company's customer, a philosophy that is unique in the automobile business." Crain concedes that the gasoline crises of the 1970s gave a boost to Toyota as Americans turned to smaller, more fuel efficient cars. But then they found the cars were well made and reliable and continued to buy them in greater and greater numbers. Detroit tried to stiff arm the competition over the years, but Toyota met the challenge both by moving manufacturing over here and moving into a wider range of market segments - upscale with Lexus, blue collar with trucks, trendy with Scion and granola crunchy with the Prius. Indeed, 2007 marked a watershed as Toyota introduced its full-size Tundra pickup truck, thus taking on Detroit in a segment long dominated by Ford and GM, and becoming a sponsor of America's new favorite sporting event, NASCAR. So all hail a genuine Japanese-American success story - one that we could all learn from. - Peter C.T. Elsworth
Posted by Peter C. T. Elsworth Stop Your Engines! The Artist Is TracingCheck out this New York Times story about an artist who gets her inspiration from auto skid marks: WHEN the Los Angeles artist Ingrid Calame wanted to trace the skid marks on the Indianapolis Motor Speedway, the track’s manager was skeptical. “The request was pretty unusual,” said the manager, Dan Edwards, who in his eight years at the speedway has provided special access to people testing tires, engines and racecars. Then he researched Ms. Calame’s boldly colored compositions, derived from stains and graffiti that she traces from city streets and sidewalks. And he realized that the racetrack “was like a canvas,” he said in a phone interview. “There were stories that went with every tire mark, every gouge.” One pattern was a famous pretzel-shaped skid mark made by Dan Wheldon in 2005 after his Indianapolis 500 victory. Now an enamel and latex wall painting based on his celebratory gesture is the 76-by-20-foot centerpiece of “Ingrid Calame: Traces of the Indianapolis Motor Speedway,” opening Friday at the Indianapolis Museum of Art.
Posted by Peter C. T. Elsworth NYT's slideshow from Tokyo Motor ShowCheck out the New York Times' slideshow from the Tokyo Motor Show.
Posted by Peter C. T. Elsworth Tokyo Motor Show split between fast and green
Honda CR-Z hybrid concept. Chiba, Japan - The Tokyo Motor Show, which opened to the public in this suburban city on Saturday and runs through Nov. 11, is a showcase of the automobile industry’s split personality, according to the New York Times. The industry indeed seems increasingly to be of two minds, and the split between them is becoming more like a fracture. On the one hand, the Tokyo show offers the requisite number of socially responsible hybrid concept cars, alternative-fuel propulsion systems and traffic-congestion-relieving technologies. On the other, there is a bigger collection of the newest engine-revving, pollutant-belching, tire-smoking supercars. Can this house, so divided, continue to stand? For the time being, the NYT writes, the supercars seem to be taking the fast lane to dealer showrooms.
Posted by Peter C. T. Elsworth California gears up for car emissions fightCalifornia plans to sue the Environmental Protection Agency this week for delaying a decision over whether to let the state aggressively reduce car and truck tailpipe emissions, according to USA Today. The lawsuit's outcome could affect not only the California law aimed at cutting greenhouse gases but also the ability of other states to take similar actions.
Posted by Peter C. T. Elsworth GM to Set Up Research Center in ShanghaiBEIJING -- General Motors Corp. said Monday it will set up a $250 million alternative-fuel research center in Shanghai amid efforts by global automakers to produce commercially viable alternatives to gasoline engines, according to the Associated Press.Global automakers are stepping up research into fuel cells, biofuels, diesel and other power sources amid rising demand from governments and consumers for cleaner transportation and an alternative to expensive oil.
Posted by Peter C. T. Elsworth Oil leaps to record over $93LONDON - Oil leapt to a record high for a third day, surpassing $93 as Mexico briefly halted one-fifth of its production and the dollar struck new lows, according to Reuters. U.S. crude hit a high of $93.20 a barrel. Oil prices have soared by more than a third since mid-August as a stand-off between Turkey and Kurdish rebels, dollar weakness, easing interest rates and winter supply fears attracted a fresh wave of investment capital. Prices rose on Monday after Mexico's state-owned oil company Pemex said it was shutting about 600,000 barrels per day (bpd) of oil output due to bad weather in the Gulf of Mexico.
Posted by Peter C. T. Elsworth October 26, 2007
Backseat Driver: BMW has a winner d is for dieselIf you want more evidence of the increasing sophistication of Europe's new generation of diesel engines, check out Matt Rigby's review of the BMW 123d M Sport Coupe on autocar.co.uk. He calls it a "hugely significant car" because of t"he 123d or, more specifically, the 201bhp twin-turbo turbodiesel under the bonnet." "If that sounds like so much hyperbole, then consider a few key facts," he writes. "This is the most powerful four-pot turbodiesel you can buy, as well as being the only one equipped with twin turbos. "But the killer point is that all this comes coupled with serious green credentials. So you get 295lb ft, 0-62mph in 7.0sec and a 148mph top speed at the same time as 54.7mpg and 138g/km of CO2." By the by, I'll bet that g/km of CO2, or grams of CO2 emissions per kilometer, is a measure of pollution unknown to most of us in America. But 138 g/km of CO2 is below the target level that the European motor industry reached with the European government in the mid-1990s to reduce average emissions from new cars. Under that voluntary agreement, average emissions should fall to 140 g/km CO2 by 2008. - Peter C.T. Elsworth
Posted by Peter C. T. Elsworth Interlocks to Detect Drunken Drivers Still Years OffIn most states, some people convicted of drunken driving can start their cars only after blowing into a device attached to the vehicle that detects alcohol, shutting the car down if it does, according to the New York Times. The advocates said that if the technological and privacy hurdles were overcome — which could take many years, if not decades — the interlocks could save thousands of lives a year. “It’s better to prevent somebody from breaking the law, and maybe killing or injuring someone, than to arrest them after the fact and try to prevent them from doing that again,” said Anne McCartt, senior vice president for research at the Insurance Institute for Highway Safety.
Posted by Peter C. T. Elsworth Toyota Loses Top Spot in Reliability RankingsDETROIT —The magazine Consumer Reports says that “bug-ridden redesigns” caused Toyota Motor of Japan to drop unexpectedly to third, from first, in its annual vehicle reliability rankings released on Tuesday, according to the New York Times. Consumer Reports removed high-end versions of three Toyota models — the Camry and Lexus GS sedans and the Tundra pickup truck — from its list of recommended vehicles and said it would stop recommending new or redesigned Toyota vehicles without data showing that past years’ versions were reliable. It is the first time since the current format of the ratings began in 1996 that a version of the Camry, which is the best-selling car in the United States, has not been recommended
Posted by Peter C. T. Elsworth Workers at big Chrysler plant to vote on contractDETROIT — The United Auto Workers union faces its final challenge today as one of the largest Chrysler plants votes on whether to ratify a proposed contract with company, according to USA Today. About 700 of the 4,000 workers at the Belvidere, Ill., assembly and stamping plant are temporary employees. A key sticking point for many of the 45,000 workers in the USA who would be covered by the Chrysler contract is that it doesn't contain provisions to hire temporary workers as full-time employees.
Posted by Peter C. T. Elsworth Oil hits new record above $92LONDON - Oil rallied to a fresh record high above $92 a barrel on Friday as the dollar tumbled to a record low, Washington imposed new sanctions on Iran and gunmen shut more oil production in Nigeria, according to Reuters. Oil's bullish momentum has pulled in increasing amounts of speculative investment and waves of technical buying have been triggered as U.S. oil pierced successive lines of resistance. The price of crude oil is now closing in on its inflation-adjusted high of $101.70 seen over the course of April 1980, a year after the Iranian revolution and at the start of the Iran-Iraq war.
Posted by Peter C. T. Elsworth October 25, 2007
Navigating With Feedback From Fellow DriversThe Dash Express is a navigational device can not only report that a tie-up — many systems already do that — but also tell how long it will take to get through it, based on current traffic reports and its record of past journeys, according to the New York Times. What makes the Dash device so different is that it not only receives location data from the satellites of the Global Positioning System, like other navigation units, but it also broadcasts information about its travels back to the Dash network. The continuous two-way reporting lets the system accomplish several things. It can measure how fast traffic really travels on a given road, and use that to compile a highly detailed and accurate database of traffic information. Dash units can warn each other through the network the second they hit a traffic slowdown. And because the units stay connected to the Internet, information on nearby points of interest like restaurants is instantly available and current.
Posted by Peter C. T. Elsworth Tokyo Auto Show: The future is now!The Tokyo Auto Show is awash with fantastic concepts. Check out these from ABC News. Here is Nissan's R.D./B.X.:
Posted by Peter C. T. Elsworth Nissan considering $3,000 car for sale worldwideTOKYO — Just a day after unveiling a $70,000 super car, Nissan Motor CEO Carlos Ghosn described plans for a $3,000 car that could be sold worldwide, according to USA Today. The cheap car would be built in collaboration with Bajaj, a motorcycle maker in India that's working with Nissan and French car company Renault. Ghosn is CEO of both Nissan and Renault, which own stakes in each other and work together on some projects.
Posted by Peter C. T. Elsworth Nissan GT-R sports coupe zips onto the scene at lastTOKYO — Nissan finally quit teasing and showed the production version of its super-high-performance GT-R sports coupe, unveiling it at the big auto show near here Wednesday as a car designed to give Nissan the kind of halo that the Corvette gives to Chevrolet, according to USA Today. GT-R will go on sale here in December and in the USA — to the cheers of long-suffering auto enthusiasts — in June or July 2008. U.S. auto buffs have been clamoring for the car for more than a decade.
Posted by Peter C. T. Elsworth Renault/Nissan's Carlos Ghosn sees emissions challenge as opportunityCarlos Ghosn, the top executive in the Renault/Nissan alliance, says he considers the call for tougher regulations of CO2 emissions and better fuel economy not only a challenge but as an opportunity, according to thecarconnection.com "I don't consider CO2 (regulations) or climate change as a (problem.) I see it as an opportunity. What you want is a car that's going to be a showcase for performance and performance is many kinds of things. Controlling CO2 is part of performance, fuel efficiency is part of performance. I think this a chance to adapt the car to the 21st Century," said Ghosn. Ghosn said Renault/Nissan is putting a lot of emphasis on new batteries for electric vehicles because workable electric vehicles have to be considered part of the solution, he said.
Posted by Peter C. T. Elsworth Concept cars from the Tokyo Auto ShowCheck out a bunch of concept cars, including the VW Space Up shown below, that thecarconnection.com is currently highlighting from the Tokyo Auto Show at its home page. Volkswagen's Space Up! concept car:
The show runs Oct. 27 to Nov. 11.
Posted by Peter C. T. Elsworth Daimler Posts 3Q Loss of $2.18 BillionFRANKFURT, Germany -- Automaker Daimler posted its first quarterly loss since 2003, with charges of $3.7 billion from the sale of Chrysler offsetting big gains by its Mercedes-Benz Car Group, according to the Associated Press. But the 1.53-billion euro, or $2.18 billion, quarterly loss was anticipated by analysts, who were cheered by an otherwise solid performance, noting that sales were up in key U.S. and European markets.
Posted by Peter C. T. Elsworth October 24, 2007
Backseat Driver: Europeans get with dieselsDiesels are taking over in Europe. While Asian car makers are busy putting their eggs into gas-electric hybrid technology - Toyota sees hybrids being the main powertrain of its vehicles by 2020 - Europe has moved aggressively ahead with clean diesel engines. (U.S. automakers are playing coy, investing in all technologies but committing to none.) I just returned from a trip to visit family in southern England and the tractor-toc of diesel engines could be heard from cars large and small, including the 2007 VW Passat 2.0 TDI that I rented from Budget Rent A Car at Heathrow Airport and the 2007 BMW 118 d M Sport Diesel rocket my sister-in-law drives. TDI stands for Turbo Direct Injection which is the heart of the Audi-VW new diesel technology, the key being the intense pressure under which the fuel is injected directly into the combustion chamber. Indeed, while diesel is more oily than gasoline, the pressure is such that it is virtually turned into a gas, making combustion more intense and more efficient. And to prove their technology, Audi's TDI R10 race cars have won the last two Le Mans 24-Hour Endurance Races in grand style. These cars are ferociously fast. Getting back to my modest Passat, l found its performance to be outstanding in comparison with a gasoline engine. Certainly, the traditional torque of diesel-power provided a powerful and solid kick to its acceleration. More important perhaps, the price was right. In all, I traveled 490 miles. The car was full when I rented it and I refueled it just once and that was before returning it. The tank was just under half empty and needed 38.6 liters to fill. Translating into American, that’s about 10.2 gallons, which equates to an excellent 48 miles to the gallon. In addition, the fuel’s efficiency makes it cleaner from an emissions point of view. Let's see: Fast, quiet, economic to run and lower emissions. Sounds like a winner to me! Incidentally, another sign of the times in Europe: Of the three nozzles at each of the pump stands at the BP station, only one was gasoline – 95 octane at the equivalent of about $7 a gallon. The other two were diesel – Ultima at $7.69 a gallon and regular at $7.35 a gallon. That’s expensive, but when you are getting 48 miles to the gallon, the economics work and that’s why Europeans increasingly drive new diesels. Indeed, sales of diesel-powered cars in Europe topped 50% in 2006 (51%), rising to 52.2% for the first six months of this year, according to the U.S. Department of Energy. About 75 percent of the cars in Norway now run on diesel. I am not saying clean diesel is the answer. Gas hybrids are a real alternative with diesel hybrids perhaps being the best of both worlds. And down the line, fuel cell electric power perhaps provides a real glimpse of the future. But that future is at lesat 20 years away. In the meantime, clean diesel offers a solid step up from gasoline and as I have mentioned a number of times, now that most the U.S. has low-sulfur diesel available, look for a big increase in sales of European diesels starting next year. I just wish Volvo would get on and bring its V50 2.4D5 diesel wagon over here! - Peter C.T. Elsworth
Posted by Peter C. T. Elsworth Backseat Driver: Barmy Brits turn Ford Ka into OrkaYes, here it is, a Ford Ka turned into a killer whale courtesy of a body kit available in Britain.
I saw one parked in a driveway near my father's house in West Sussex and it's quite a sight. What it is to drive, I cannot imagine! I'll be writing more about both the Ford Ka and the OrKa kit in a short story for Sunday's Providence Journal. - Peter C. T. Elsworth
Posted by Peter C. T. Elsworth Nissan, Renault leader Ghosn still interested in U.S. partnerCHIBA, Japan -- Carlos Ghosn, who heads the automakers Nissan of Japan and Renault of France, said Wednesday he remains interested in a partnership with a major U.S. automaker, although he is not in talks or aggressively looking just yet, according to the Detroit Free Press. Nissan Chief Executive Carlos Ghosn told reporters the timing wasn’t right to expand the Nissan-Renault alliance, formed in 1999, because Nissan Motor Co. is now in a lull of “consolidation” before going to the next stage of growth. He did not mention by name any of the three biggest U.S. automakers — General Motors Corp., Ford Motor Co. or Chrysler LLC. Speculation has been growing that Chrysler and Ford may be looking for partners as they struggle to restructure their operations and boost profits.
Posted by Peter C. T. Elsworth Today's Chrysler contract vote vitalTwo UAW locals in Indiana representing about 5,300 workers voted down the proposed Chrysler national labor contract yesterday, according to the Detroit Free Press. The rejections continued the up-and-down fortunes of the pact and raised the stakes for how four metro Detroit factories -- adding up to 20% of the total Chrysler membership -- will vote today on the landmark agreement.
Posted by Peter C. T. Elsworth EU ruling lets foreign investors make runs at VW, othersFRANKFURT, Germany — Porsche set out to fail the last time it made a takeover for Volkswagen. That likely won't be the case if it tries again, according to USA Today. The sports car company has an open road for another attempt, after the European Union's highest court struck down the nearly 50-year old "VW law" enacted to protect Europe's largest automaker from a hostile takeover. Tuesday's ruling will reverberate across Europe, where many governments have attempted to protect companies they see as vital to their economies from being bought, particularly by foreign investors. German politicians and labor unions had argued that the 47-year-old measure was needed to protect local jobs. The EU Court of Justice, however, said the law — which capped a shareholder's voting rights at 20%, whatever the size of its holding — limited "the free movement of capital" that is a tenet of the European Union.
Posted by Peter C. T. Elsworth Honda upping number of fuel-cell cars on U.S. roadsTOCHIGI, Japan — Honda will deliver fewer than 100 of its new fuel-cell cars next year, when it's scheduled for introduction in the United States, the automaker's top executive said yesterday at the company's research and development headquarters here, according to USA Today. Though a small number, it is several times as many FCX hydrogen fuel-cell sedans as the automaker currently has on U.S. roads. Only two of those are in the hands of individuals and about 20 more are in fleet service by governments and other institutions.
Posted by Peter C. T. Elsworth Dealers finally feel heard at ChryslerChrysler dealers have a new outlook about their business, an emotion many say they haven't faced in decades, according to USA Today: optimism. With new leadership in place — including Jim Press, a former top Toyota executive — struggling Chrysler is set to make a rapid recovery, dealers say. They're even embracing the idea that Chrysler has to reduce its number of dealers and offer fewer models, moves that in the past would have been expected to stir up controversy.
Posted by Peter C. T. Elsworth Oil Prices Surge on Inventory ReportNEW YORK -- Oil futures surged Wednesday after the government reported large and unexpected declines in crude and gasoline inventories, according to the Associated Press. Light, sweet crude for December delivery jumped $1.49 to $86.76 a barrel on the New York Mercantile Exchange. November gasoline rose 3.94 cents to $2.1483 a gallon on the Nymex, and heating oil for November jumped 4.92 cents to $2.349 a gallon.
Posted by Peter C. T. Elsworth October 16, 2007
Backseat Driver: Taking some days offI will be taking off a few days so this blog will be inactive from now until Wednesday, October 24.
Posted by Peter C. T. Elsworth Backseat Driver: Last whale theory applies to oilSeen the latest prices for crude oil? Over $88 a barrel! I cut my professional teeth in the early 1980s as an oil reporter in New York City for Energy Intelligence, Platts Oilgram and Reuters, so I always follow the basic price of crude oil which to me is a key economic indicators. Back then, $39 a barrel was the highest price that crude oil had ever reached - in early 1981. But that was before the spot market let alone the oil futures markets of today. And as the price closes in on $90 a barrel, prices will soon be the highest they have ever been - even adjusting for inflation. What's driving them? Simple supply and demand. The supply pressure comes from uncertainty. The Middle East remains by far the biggest source of crude but also the most politically volatile region in the world. We've made a hash of Iraq which is now in chaos, Iran cocks a snook at the world with its nuclear plans and genocidal declarations about Israel and Osama bin Laden pursues his ultimate goal - the takeover of Saudi Arabia. Consquently any blip in that region reverbrates through the market sending oil prices up. Meanwhile, demand keeps going up. The industrializing third world, especially the mega-economies of China and India, have put pressure on oil supplies in recent years. And here in the U.S., we continue to wallow in low energy prices. Europe has already cut into demand by taxing energy to the point that a gallon of gasoline is now the equivalent of $8 a gallon. You don't see many SUVs in Europe! But as prices continue to go up, research into alternatives is bound to increase. It's simply a matter of economics. It's one thing to do R&D into alternative energy because of CO2 emissions and the ozone layer; it's another to do it because the price of oil is becoming exorbitant. The former is driven by enlightened self-interest; the latter by simple self-interest. And that's where the analogy of the last whale comes in. For while we came close, we would never have killed off all the whales. It would have been too expensive to chase down the last one. And so it is with oil. At a certain point, it becomes too expensive and we are forced to look for an alternative. To be sure, that time is a long way off but when crude prices are over $88 a barrel, it may not be that far off. - Peter C.T. Elsworth
Posted by Peter C. T. Elsworth Supply Concerns Propel Oil to New RecordNEW YORK (AP) -- Oil futures rallied to a new record over $88 a barrel Tuesday on concerns about disruptions to Middle Eastern crude supplies and a growing view that domestic supplies aren't sufficient to meet fourth-quarter demand, according to the Associated Press. Traders are concerned that a Turkish incursion into Iraq in search of Kurdish rebels could disrupt crude supplies from northern Iraq.
Posted by Peter C. T. Elsworth Chrysler deal meets some sharp resistanceIn a sign that the proposed Chrysler-UAW labor agreement might not be ratified as easily as the deal with General Motors Corp., the council of local union leaders that gathered Monday in Detroit did not vote unanimously to recommend ratification, according to the Detroit Free Press. Unhappy local leaders voiced displeasure with the apparent lack of specific future product guarantees and the failure to move temporary workers into permanent positions, both of which are features of the GM contract.
Posted by Peter C. T. Elsworth Tricycles for adults target safety-conscious
COVINA, Calif. — A motorcycle that grew an extra wheel. Or a car that somehow lost one. It's possible to make the case for either when it comes to the Can-Am Spyder, a head-turning, motorized means of transportation that will start showing up on American highways this month, according to USA Today. The Spyder is licensed as a three-wheel motorcycle, has cycle-style handlebars, engine and seat. It shifts like one, too. But how many motorcycles have power steering, stability and traction control, anti-lock brakes — even a reverse gear?
Posted by Peter C. T. Elsworth Oil surges to record; gas prices don't follow suitThe price of oil was higher Monday than it's ever been, presaging increases for gasoline and other fuels — though not for long if oil speculators get cold feet and additional supplies hit the market as expected, according to USA Today's James R. Healey. The closing price of $86.13 per barrel eclipsed the previous record of $83.69, set Friday. West Texas Intermediate — light, sweet crude — for delivery next month traded as high as $86.22 a barrel during the day, also a record. Adjusted for inflation, the highest price recorded by the U.S. Energy Information Administration is $93.09, in January 1981. The retail price of gasoline "would be about $3 this time of year if $86 oil is sustained," says Stephen Brown, director of energy economics at the Dallas Federal Reserve. Instead, the nationwide average for regular is $2.762, the EIA reported Monday. That was 0.8 of a cent less than last week, but 53.6 cents more than a year ago. A separate survey by AAA showed the average at $2.757 Monday, down 0.4 of a penny overnight.
Posted by Peter C. T. Elsworth GM: Eight-Speeds on the WayGeneral Motors isn't giving away any of the specifics just yet, but it does have a seven- and even an eight-speed automatic transmission tucked away in its product development cycle, according to thecarconnection.com Jim Lanzon, executive director of GM Powertrain's Transmission Engineering, acknowledged last week GM is looking at the transmissions that have begun showing up on luxury models such as the BMW M5. "I can't give away any new product news but we're looking at everything," he said. One of the issues GM is wrestling with now is whether a seven- or eight-speed transmission will produce the kind of gains in fuel economy that would justify the cost of engineering them into a vehicle, Lanzon said.
Posted by Peter C. T. Elsworth Oil sprints towards $88LONDON - Oil thundered towards $88 a barrel on Tuesday, hitting a new record and extending a rally that has added eight dollars in a week on tight supplies, strong demand and tension in northern Iraq, according to Reuters News Agency. Oil is closing in on the inflation-adjusted high of $90.46 seen in 1980, the year after the Iranian revolution and at the start of the Iran-Iraq war. Prices this year have averaged $67.
Posted by Peter C. T. Elsworth October 15, 2007
Chrysler Union Leaders OK ContractDETROIT (AP) -- Local union leaders voted overwhelmingly Monday to recommend approval of a tentative four-year agreement between the United Auto Workers and Chrysler LLC, paving the way for a vote by members, UAW President Ron Gettelfinger said, according to the Associated Press. Chrysler workers would see gains of $10,235 over the life of the agreement, according to a UAW booklet of contract highlights obtained by The Associated Press. Chrysler also would contribute $10.3 billion toward the creation of a union-run trust for retiree health care. The union said it reversed a company plan to sell its parts division and a parts-trucking operation as part of the negotiations.
Posted by Peter C. T. Elsworth Oil Futures Hit New Record of $86NEW YORK -- Oil prices surged as high as $86 a barrel Monday for the first time after OPEC said crude production by non-member countries is likely falling even as global demand for oil is rising, according to the Associated Press. Prices were also supported by concerns Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, and by technical buying by investment funds. Despite the Organization of Petroleum Exporting Countries' decision last month to boost its production by 500,000 barrels per day beginning next month, the rest of the world will likely produce 110,000 fewer barrels of oil per day than expected in the fourth quarter, OPEC said in a report. At the same time, fourth quarter demand for crude oil will grow by 100,000 barrels a day over last year, OPEC said. The estimates add to sentiment that crude supplies are tight. Last week, the Energy Department reported that domestic crude inventories fell during the week ended Oct. 5 when they had been expected to rise. And the International Energy Agency concluded that oil inventories held by the world's largest industrialized countries have fallen below a five-year average. "The fact that U.S. crude inventories fell yet again ... reinforced the market's underlying concern that demand has yet to slow down sufficiently to allow stocks to build, while supply is also perceived to be struggling to catch up," wrote Edward Meir, an analyst at MF Global UK Ltd., in a research note. Light, sweet crude for November delivery rose $2.16 to $85.85 on the New York Mercantile Exchange after rising as high as $86, a record trading price.
Posted by Peter C. T. Elsworth Rhode Island gas prices down another pennyGasoline prices in Rhode Island trickled down another penny this week, according to AAA Southern New England and reported in the Providence Journal. The average price for regular, unleaded gasoline is $2.679 per gallon at the self-service pump, according to AAA's weekly survey. The average price also dropped a penny last week. That's the lowest it has been since April 2, AAA said. Rhode Island's average is eight cents below the national average, according to AAA.
Posted by Peter C. T. Elsworth Detroit's 3 finally on track, tough critic saysChalk up this past week as a big win for the home team, Detroit's three automakers, writes Tom Walsh of the Detroit Free Press. General Motors workers ratified a new labor contract by a ratio of nearly 2-1. Chrysler and the UAW forged a new tentative pact with only a hiccup of a 6-hour work stoppage. Ford Motor Co. lured marketing hotshot Jim Farley away from Toyota Motor. GM stock surged past $40 a share for the first time in more than two years, closing at $42.64, up 11.6% on the week. Ford shares rose 10% to $9.20. If it's too early for Detroit to declare victory over automotive competitors from Japan, Korea and Europe -- and yes, it is too early -- we can at least enjoy this spate of good fortune for our much-maligned home team. Still skeptical? OK, but have a listen to Maryann Keller, a relentless critic of Detroit's auto industry for the past three decades as a Wall Street analyst, author, consultant and now a director of two auto-related companies, Lithia Motors and Dollar Thrifty Automotive. "For the first time in 30 years I think that Detroit is going to finally turn around," Walsh said Keller told him Friday. "The cars are better, the management is smarter and the costs are down with these new contracts. The UAW and Big 3 have finally figured out how to save each other and create a headache for the Japanese."
Posted by Peter C. T. Elsworth Motor Trend names CX-9 its SUV of the yearDETROIT — Motor Trend magazine says it has selected the 2008-model Mazda CX-9 as its sport utility vehicle of the year, according to the Detroit Free Press. The award from a field of 11 finalists is to be featured in the magazine’s Nov. 6 edition, Motor Trend said in an announcement prepared for release today. Motor Trend editor-in-chief Angus MacKenzie said tests showed that the CX-9 was “arguably the most enjoyable sport/utility to drive, and a great reminder that SUVs can be as exciting as any car.” The other finalists were the Buick Enclave, Hyundai Veracruz, Jeep Liberty, Jeep Patriot, Land Rover LR2, Nissan Rouge, Saturn Vue, Subaru Tribeca, Toyota Highlander and Toyota Land Cruiser.
Posted by Peter C. T. Elsworth If There’s Something on Their Mind, Their Cars Say ItSAY what you will about traffic jams, they provide ample time to ponder the stickers on all those bumpers as they creep by, according to the New York Times. Well, not necessarily just the bumpers. Stickers have been turning up on rear windows and side ones, on hatchbacks and trunk lids, and on the front and back doors. Nor are they necessarily stickers: many people are putting messages on their cars with magnets. Those messages, though, can be a head-scratching hodgepodge of colors, symbols and phrases. This may be especially true for anybody raised thinking the range was limited to “Princeton University,” “Gore 2000,” or the skulls of the Grateful Dead. Indeed, an informal survey of metro-area parking lots and streets, in traffic jams and at highway rest areas, turned up the following: paw prints, small and large, and one from a bear; baseballs and tennis balls embedded in shattered glass, or the appearance of it; yin-yangs and stars; and symbols warning of radiation and biohazards.
Posted by Peter C. T. Elsworth Daimler, BMW Hooking Up?With the separation from Chrysler complete, Daimler AG is very likely to pursue closer ties with its archrival BMW, according to knowledgeable sources inside the automaker, according to thecarconnection.com For the past several weeks, the German press has been filled with speculation about joint development projects for everything from small cars to new engines. Moreover, Daimler chief executive officer Dieter Zetsche didn't exactly reject the idea of closer ties with BMW. Daimler, in fact, made one known but ultimately unsuccessful bid for BMW back in the early 1960s and by and large the two companies have kept their distance for the past half-century or so. In recent years, however, BMW and Daimler have collaborated successfully in the development of hybrids and more projects are possible if they are mutually beneficial, Zetsche said during the special shareholders meeting in Berlin earlier this month.
Posted by Peter C. T. Elsworth GM Details Effect of UAW ContractDETROIT -- A new four-year contract between General Motors and the United Auto Workers will transfer an estimated $46.7 billion worth of retiree health care liability from the company to the union, the company said Monday, according to the Associated Press. That leaves GM with about $17.6 billion in retiree health care for salaried employees and other obligations, the company said. It was the first time GM has detailed its savings from the agreement. "The 2007 national negotiations were in many ways the most complex and comprehensive that we've been engaged in," Rick Wagoner, GM chief executive and chairman, said during a conference call to explain the labor deal.
Posted by Peter C. T. Elsworth Oil Futures Hit New Record Above $85NEW YORK -- Oil prices surged above $85 a barrel Monday for the first time after OPEC said crude production by non-OPEC countries is falling even as global demand for oil is rising, according to the Associated Press. Prices were also supported by concerns Turkish forces will pursue Kurdish rebels into Iraq, disrupting oil supplies, and by technical buying by investment funds. Despite the Organization of Petroleum Exporting Countries' decision last month to boost its production by 500,000 barrels per day beginning next month, the rest of the world will likely produce 110,000 fewer barrels of oil per day than expected, OPEC said in a report. At the same time, fourth quarter demand for crude oil will grow by 100,000 barrels a day over last year, OPEC said.
Posted by Peter C. T. Elsworth October 12, 2007
Backseat Driver: Bravo Al Gore!Bravo Al Gore! By awarding the 2007 Noble Peace Prize to former US vice president Al Gore for his work on bringing the word on climate change to the average person's attention, the Noble Foundation itself serves to focus attention on this serious problem. Gore shares the prize with the United Nation's Intergovernmental Panel on Climate Change, a top scientific authority on global warming and its impact made up of some 3,000 atmospheric scientists, oceanographers, ice specialists, economists and other experts. Needless to say, troglodytes from the Far Right denounced the award, partly one supposes due to aversion to Gore himself and the Democratic Party, and partly because many of them remain firmly convinced that the changes in the global climate currently underway are due to natural causes. At least they are now admitting that changes are underway! Happily most thinking people have come to terms with our own role in the changes and our responsibility to do something about it. Certainly, billions of dollars are now being spent worldwide on research into the problem, most especially all the work on alternative fuels in the transportation industry. And we are all changing our lifestyles in one way or another. To be sure, the issues are incredibly complex, but that is why Gore's film "An Inconvenient Truth," which was essentially a celluloid version of a lecture he has been giving for years, caught the public's attention with its clear presentation of the facts. The call is now out for Gore to enter the race for President. Indeed, a full-page ad in the New York Times earlier this week urged him to enter the Democratic race. But it remains to be seen whether he is interested. The irony is that whether he runs or not, history may vindicate his controversial loss to President George Bush in 2000. For while Gore now has an Academy Award and a Noble Peace Prize under his belt, Bush is heading for the distinction of going down as one of the worst presidents ever. - Peter C.T. Elsworth
Posted by Peter C. T. Elsworth Japanese automakers get cute for Tokyo auto showTOKYO — Cute, communicative and cubic seem to be the fashion statement as far as offerings from Japan's "Big Three" automakers Toyota, Honda and Nissan, debuting at the Tokyo auto show later this month, according to USA Today. Sporting whimsical names — Rin, Puyo and Pivo 2 — the toylike "concept," or show, cars appear to be inspired more by the iPod, futuristic space capsules and Japane0se manga animation than what we are used to associating with vehicles. Check out this rendering of the Rin:
In this artist rendering released by Toyota Motor ahead of Tokyo Motor Show, a "concept" car called Rin is shown. The green-and-beige model has a transparent floor, huge windows and doors that slide open like Japanese "shoji" screens.
Posted by Peter C. T. Elsworth Midsize SUVs get mixed grades in crash testsWASHINGTON — Some sport-utility vehicles don't provide the protection in a side crash that one might expect from such large vehicles, according to tests released Thursday by the insurance industry, according to USA Today. The Insurance Institute for Highway Safety gave marginal scores in side-impact tests of 2008 versions of the Chevrolet TrailBlazer, Jeep Grand Cherokee and two SUVs built by Nissan - the Pathfinder and Xterra without optional side air bags. In similar side testing, the Toyota 4Runner and Pathfinder and Xterra models equipped with side air bags received top marks of good in the side testing. The Ford Explorer and Mercury Mountaineer received the second-highest rating of acceptable
Posted by Peter C. T. Elsworth Chrysler Workers Wary of New ContractDETROIT -- As they assembled cars Thursday, workers at Chrysler's Sterling Heights assembly plant were talking about their new labor contract, wondering if Wednesday's six-hour strike was enough to get a good deal from the company, according to the Associated Press. Even as they waited to hear the details, industry analysts were predicting crosstown rival Ford will try to get more concessions than Chrysler. Some workers were skeptical about job security promises, one worker said. UAW leaders have yet to brief the rank-and-file on the tentative deal, which abbreviated the strike when it was reached late Wednesday afternoon.
Posted by Peter C. T. Elsworth October 11, 2007
DMV workers arrested in fraud schemeTwo clerks at the Division of Motor Vehicles in Pawtucket have been charged by the state police in a wide-ranging scheme of falsifying dozens of Rhode Island driver’s licenses for illegal immigrants and people involved in midlevel drug dealing, according to the Providence Journal. Dolores Rodriguez-LaFlamme, 40, of Providence, and Soraya Santiago, 42, of Pawtucket, are accused of working with two “middlemen,” who were paid about $2,500 to $3,000 by each person who wanted a valid Rhode Island license — with a fake identity.
Posted by Peter C. T. Elsworth Gettelfinger has to flex workers' muscleIf this round of UAW contracts is indeed a transformational turning point that will make Detroit's auto companies competitive with their Asian rivals, there was bound to be drama and brinksmanship along the way, according to the Detroit Free Press's Tom Walsh. And there was. Union workers struck Chrysler plants for about six hours Wednesday before UAW President Ron Gettelfinger announced a tentative contract deal at Chrysler just before 5:30 p.m. He also said workers at General Motors Corp. have ratified their contract, reached after a two-day strike, by a ratio of nearly 2-1.
Posted by Peter C. T. Elsworth Chrysler, UAW settle after short walkoutChrysler and the UAW, after a 6- 1/2 hour strike involving 34,000 workers, reached a tentative agreement on a new labor contract Wednesday, dramatically easing tensions throughout a U.S. auto industry bracing for the impact of a second major work stoppage against a Detroit carmaker in 2 1/2 weeks, according to the Detroit Free Press. That deal, officially ratified Wednesday by rank-and-file members, ended a two-day strike against GM.
Posted by Peter C. T. Elsworth October 10, 2007
Thousands of Chrysler Workers Walk OutDETROIT -- Thousands of Chrysler LLC autoworkers walked off the job Wednesday after the automaker and the United Auto Workers union failed to reach a tentative contract agreement before a union-imposed deadline, according to the Associated Press. It is the first UAW strike against Chrysler since 1997, when one plant was shut down for a month, and the first strike against Chrysler during contract talks since 1985. The UAW apparently is staying on the job at the five plants that Chrysler already had shut down this week because of sagging sales of some models, according to a person familiar with the walkout who asked not to be identified because the situation is in flux.
Posted by Peter C. T. Elsworth One hour to go: Chrysler, UAW push the deadlineDetroit -- With an hour left before the UAW-imposed deadline to have a new labor agreement with Chrysler, the automaker and union kept negotiating this morning, pushing through with talks that have lasted approximately 24 hours straight, according to the Detroit Free Press. UAW President Ron Gettelfinger Monday told his members that if “unless we have achieved the basis for a tentative agreement” by 11 a.m. today the union “will be left with no choice but to commence a strike at all UAW Chrysler facilities.” Tom LaSorda, a Chrysler president and vice chairman, is leading the automaker’s negotiations with Gettelfinger at the Chrysler’s Auburn Hills headquarters.
Posted by Peter C. T. Elsworth Union questions auto execs' pay packagesDETROIT — The United Auto Workers says it knows it needs to help Detroit's automakers cut labor costs to reduce the gap in production expenses with Asian rivals. But as talks continue on new contracts, the union also is questioning why top executives at the automakers are paid what they are, according to USA Today. "As much as workers do, workers can't do enough, and as much as executives get, they cannot get enough," UAW President Ron Gettelfinger said during last month's two-day strike against General Motors. During talks with GM, the UAW pointed out that while the automaker has complained that hourly wages and benefits are dragging it down, it has continued awarding bonuses to its top executives. GM CEO Rick Wagoner earned $9.3 million in salary and bonus in 2006, nearly double what he earned in 2005.
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