Main page | October 9, 2007 »

Backseat Driver: Whither Ethanol?

Don't denigrate federal subsidies just because they can lead to market imbalances.

Unfortunately, that certainly seems to have happened with President Bush's initiative to boost ethanol production.

Demand for corn has gone up leading to higher prices, but limited outlets for selling ethanol - or the E85 blend - has resulted in a glut of ethanol and lower prices, according to last Sunday's New York Times.

And that is leading to cutbacks in industry plans and a probable consolidation with smaller players dropping by the wayside, according to the NYT.

Sure, the Senate Finance Committee just approved a tax bill that includes lowering the tax credit for ethanol by 5 cents to 46 cents a gallon when production exceeds 7.5 billion gallons a year which is expected by the end of this year. But it also extended a 54-cent-a-gallon tariff on ethanol imports until 2011.

It may be anathma to neocons like Bush et al, but the federal subsidy program reflects a crude form of the mixed market economics that has been so successful in Japan and other nations.

Maybe if Bush had just offered tax credits, the results would not have been so extreme. But he added protectionist tariffs, resulting in a massive buck a gallon advantage to domestic suppliers.

And prompted by that incentive, ethanol production has gotten out of hand. I mean, consider this simple fact from the NYT: Only about 1,000 pumps at the nation’s 179,000 gasoline stations offer gasoline blended with ethanol. That's "pumps" at "stations."

And none of them are in New England.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 11:18 AM to Alternative fuels , commentary | Permalink | Comments 0

UAW deal with GM offers fewer health plans

Some 412,000 General Motors Corp. workers, retirees and their families will have fewer health and dental options, including higher co-pays and restrictions on doctor visits, under a tentative UAW contract, according to the Detroit Free Press.

UAW-GM workers and retirees still will have comprehensive health coverage, some of the best in the nation. And some benefits would be improved if workers ratify the contract in voting that stretches into next week.

But autoworkers wouldn't have as many choices in health and dental plans as they do now, according to a 24-page summary of contract provisions from the UAW.

Posted by Peter C. T. Elsworth  at 9:35 AM to GM , Unions | Permalink | Comments 0

2007 Nissan Pivo2 Concept

Two years after the debut of Nissan's original Pivo concept - at the 2005 Tokyo Motor Show - a second version has been unveiled, according to thecarconnection.com

The car also has a new style of human machine interface called a "robotic agent." With conversations possible in Japanese and English, its job is to make every journey less stressful and takes care of everything from basic vehicle functions to finding the nearest available parking space.

The first Pivo was something of a cult hit. Powered by advanced lithium-ion batteries, it featured a unique rotating cabin - meaning no reverse gear was required.

The newcomer, badged only as Pivo2, takes that a stage further with new compact batteries, and by-wire technology for braking and steering. Each of the four wheels is powered by electric motors, and can turn through 90 degrees to allow the Pivo2 to drive sideways as well as forward.

The car will be launched at the Tokyo Motor Show later this month.

Posted by Peter C. T. Elsworth  at 9:30 AM to Technology | Permalink | Comments 0

EZPass for Claiborne Pell - Newport Bridge approved to start next November

The Jamestown Press reports the Rhode Island Turnpike and Bridge Authority (RITBA) has chosen Wilbur Smith Associates, with offices in New Haven, Conn., to oversee installation of an electronic toll collection system, commonly known by the brand name EZPass, on the authority's Claiborne Pell - Newport Bridge.

The authority voted Sept. 25 to award the contract to the Smith consulting firm based on its proposal to work 1,672 hours for a total cost of $229,840 to have a system operational by November 2008.

Posted by Peter C. T. Elsworth  at 9:18 AM to Transportation | Permalink | Comments 0

Which Vehicles Will Debut at the LA Auto Show?

LOS ANGELES — This year's Los Angeles Auto Show is slated to feature at least 14 world debuts and nearly 30 North American debuts during press days, Nov. 14 and 15, according to Autoremarketing.com

According to officials, the show will kick-off with 28 press conferences featuring some never-before-seen vehicles, as well as many eagerly anticipated North American debuts.

The show opens to the public at the conclusion of the press days Friday, Nov. 16, and runs through Nov. 25, including Thanksgiving Day.

"The show's new fall dates now make Los Angeles the first major North American stop of the auto show season, and as anticipated, manufacturers have taken advantage of this earlier timing by making more world and North American debuts than in previous years," explained Andy Fuzesi, general manager of the LA Auto Show.

While most world debuts remain closely guarded until press days, a few manufacturers have announced their intentions, including Hyundai's world premiere of a new sports car concept, Nissan's all-new, mid-size Murano crossover and Volkswagen's new mini-car concept design, executives reported.

Posted by Peter C. T. Elsworth  at 9:16 AM to Shows | Permalink | Comments 0