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Backseat Driver: I write love stories

If you want to be happy, collect something.

I was reminded of this during a visit the other day to Ray Chevalier who lives in Glocester. Photographer Steve Szydlowski and I went to interview him about his two outstanding Ford Falcons.

Mr. Chevalier has a blue 1963-1/2 Ford Falcon Futura Hardtop and a red 1965 Ford Falcon Ranchero which is truly a champion, having won a number of awards from the prestigious Antique Automobile Club of America.

But the Ranchero is a recent addition. He has had the Futura, which used to belong to his mother-in-law, for years, and the rear wall of his garage is lined with trophies he has won with the car - more than he can count, although he said his granddaughter claims there are 250. The award for the Ranchero were in the house.

Point is, Mr. Chevalier seems a happy man. “It’s what I do,” he said of his hobby. “Others play golf, I do this.”

It reminded me of the Rhode Island Hot Wheels Club expo that I wrote about last year. My interest in the assignment was spurred when I discovered during my research that a Hot Wheels purple VW bus with a yellow plastic surfboard – the Beach Bomb – had sold at auction for $72,000.

And when I got to the show, I was really impressed by everyone's enthusiasm. Grown men collecting toy cars? Yes, and happy men too.

It got me to thinking that many a psychotherapist’s couch could be vacated by patients who instead get out of themselves by taking up a hobby like collecting. Collecting anything. I write about people who collect cars, big and small, old and new, expensive and cheap. And they are for the most part very happy people.

Indeed, I am often asked about the best cars on the market for this-and-that budget, and while I have some knowledge of the car business, I often reply by saying that my knowledge is limited because I don’t so much write about cars as I write about the people who own them.

In short, I write love stories.

Posted by Peter C. T. Elsworth  at 11:58 AM to commentary | Permalink | Comments 0

Backseat Driver: Have gas prices peaked?

I have no idea.

Gas prices traditionally spike upward ahead of the summer driving season as refineries shift their production runs from heating oil to gasoline, and level off after the Memorial Day weekend.

In addition, the recent run-up in prices to more than $4.00 a gallon has forced people to cut back, with overall driving down this past weekend for the first time in years.

And crude oil prices have fallen off from last week’s highs of $135 a barrel to the mid-$120s, although they are edging back up today.

But the drop may have wrung some of the speculative dollars out of the price, although no one knows what percentage of the run-up is due to speculation.

As to whether gas prices have peaked, maybe someone will emerge at the end of the year having made millions/billions of dollars by betting the right way – just as hedge fund manager John Paulson made a whopping $3.7 billion last year by betting subprime mortgage securities would fail.

But the operative word is betting, and for all the billions Paulson made, there were plenty of ‘smart’ losers who bet the other way. Remember all the billion-dollar write-offs at the beginning of the year?

Personally, I think high gas prices are here to stay. Certainly that’s the way I would bet if I could afford to buy a new car!

But what do I know?

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 11:06 AM to commentary | Permalink | Comments 0

$4 gas means a drive to the park costs more than a sandwich

PROVIDENCE — Warren Graves allows that his Ford Focus gets good mileage — about 31 miles a gallon — but he grimaced into the setting sun last night as he pumped $20 worth at a Hess gasoline station in the city’s Jewelry District, according to The Providence Journal.

“Look at that,” said Graves, nodding toward the reading on the pump, which showed that he got a hair more than 5 regular gallons for his $20, which cost him $3.94 per gallon.

“It’s too much money, I know that,” said Graves. “But I don’t have much choice, I drive to Boston every day.”

As regular gas hovered at $4 per gallon yesterday, motorists in Southeastern New England tightened their belts another notch, vowing to take public transportation more, ride bicycles, pare down vacation plans and grouse a bit about the soaring cost of fuel for cars, trucks and SUVs.

Posted by Peter C. T. Elsworth  at 11:04 AM to Gas prices | Permalink | Comments 0

Oil tumbles, gas prices at record levels

NEW YORK -- Oil prices fell sharply Thursday after the Energy Department reported unexpected declines in crude oil and gasoline supplies last week, but said the drop in crude inventories was due to temporary delays in unloading oil tankers along the Gulf Coast. according to the Associated Press.

A stronger dollar and concerns about gas demand also weighed on prices.

Retail gas prices, meanwhile, rose to a new record above $3.95 a gallon.

Light, sweet crude for July delivery fell $4.23 to $126.80 a barrel on the New York Mercantile Exchange, their lowest level since early last week.

Posted by Peter C. T. Elsworth  at 3:02 PM to Crude oil market , Gas prices | Permalink | Comments 0

GM says 19,000 US hourly workers taking buyout offers

DETROIT -- General Motors Corp. said Thursday that a quarter of its U.S. hourly workers will take the company's latest buyout and early retirement offers, opening the door for new hires who will make less money, according to the Associated Press.

The automaker said Thursday that 19,000 workers had agreed to take the buyout offers and leave the company by July 1. GM offered buyouts to all 74,000 of its U.S. hourly workers in February.

Posted by Peter C. T. Elsworth  at 2:59 PM to GM | Permalink | Comments 0

AP sources: GM plans more restructuring measures

DETROIT -- General Motors' top managers are working on additional restructuring measures, including production cuts, to deal with a declining U.S. auto market and an accelerated shift from trucks to more fuel efficient vehicles, a person familiar with the plan told The Associated Press.

Posted by Peter C. T. Elsworth  at 1:00 PM | Permalink | Comments 0

Backseat Driver: Driving a Lamborghini exposes my hypocrisy

Lamborghini Gallardo

Dick Tuck writes to my blog about the discrepancy between my comments printed in last Sunday’s projoCars section on the decision by the Interior Department to declare the polar bear threatened and the cover story about the 360 horsepower 2008 Pontiac G8 GT.

Mr Tuck is right to point this out, and all I can say is that I have no say on what we choose to run on our cover, in this case a test drive by Larry Printz of The Virginian-Pilot.

Mr Tuck goes on to accuse me of hypocrisy in accusing George W. Bush of making polar bears “swim for it.” Actually, the Interior Department seems to be trying to save the bear, but it’s best not to think of such things.

However, Mr. Tuck is again right in calling me a hypocrite. I cannot help it. I am a Brit and, as everybody knows, hypocrisy is the great British vice. I suppose it’s the price of a social tyranny!

So I will add fuel to Mr. Tuck's fire of indignation by admitting to an act of gross hypocrisy that I committed on Memorial Day – that of taking a bright yellow Lamborghini Gallardo out for a spin.

What defense can I muster given my green proclivities? I mean to say, the Gallardo, with its 520 horsepower 5 liter V10 engine, 0-to-60 mph in 4.2 seconds and top speed of 200 mph, gets a combined 13 miles to the gallon! And it makes a lot of noise.

But what a noise! Something between a growl and a cackle that says just one thing: POWER! And all clothed in an apparition of design.

Forgive me, Mr. Tuck, when I admit that driving such a car over the bridge from Newport to Jamestown and back again on a glorious sunny day with the sail boats below like puffs of cotton on Narragansett Bay – well, you see what I mean, don’t you? I get positively rhapsodic!

What explanation can I offer? That it was research for an article I am writing about The Otto Club of Boston that leases out such cars to club members? No, I cannot pass the buck.

Driving a Lamborghini is the ultimate fantasy and given the chance, I took it. And I took along my 14-year old stepson Pat, who is a car nut, and at one point during the drive he said simply: “This is heaven!”

And it was.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 10:21 AM to commentary | Permalink | Comments 1

R.I. gas prices at $4-a-gallon threshold

Gasoline prices in Rhode Island continued to surge higher this week, and now are at the cusp of crossing the $4-a-gallon mark, according to The Providence Journal.

The average price of self-serve regular gasoline was $3.989 a gallon, breaking the record high set only last week.

Yesterday’s price was up 13 cents from last week, and up 95 cents from one year ago.

Posted by Peter C. T. Elsworth  at 9:40 AM to Gas prices | Permalink | Comments 0

Luxury brands dominate vehicle quality survey

DETROIT -- Luxury brands once again dominated an annual U.S. automobile quality survey by a California research company, but total quality dropped for the first time in four years, the company said, according to the Associated Press.
BMW led all brands in the results released Wednesday by San Diego-based Strategic Vision Inc., followed closely by Hummer, Mercedes-Benz, Audi, Infiniti, Lexus, Land Rover, Cadillac, Lincoln and Volkswagen.

Volkswagen AG, which includes Audi, led all corporations with a total quality index score of 892 out of 1,000 possible points. General Motors Corp. finished second as a corporation at 867, followed by Ford Motor Co. and Honda Motor Co., which tied for third at 862. Toyota Motor Corp. finished fifth, at the industry average of 860.

Posted by Peter C. T. Elsworth  at 9:38 AM to Auto industry | Permalink | Comments 0

Gasoline jumps; miles driven in March drops, first time since '79

NEW YORK — As consumers began hitting the road Friday for the Memorial Day weekend, they faced the sobering reality that it costs $72 to fill a midsize Honda Accord, up $12 from last year, according to USA Today.

And in a sign that Americans are curbing their driving, data released Friday showed highway miles driven in March fell 4.3% from a year earlier, the first March decline since the late 1970s.

Gas prices took another jump overnight and are up nearly 20%, or 65 cents a gallon, over the past year to average nearly $3.88 a gallon nationally.

But unlike this time last year, when gas prices were at their peak for 2007, pump prices now show no signs of halting their daily assault on the record books.

Posted by Peter C. T. Elsworth  at 9:42 AM to Gas prices | Permalink | Comments 0

Backseat Driver: The polar bear is where the rubber meets the road

The fortunes of the polar bear could well become the ultimate symbol of our thirst for oil.

With the Bush administration, which is not known to be pro-environment when oil industry interests are at stake, declaring the polar bear a threatened species, you got to figure it really is threatened.

But Alaska is now suing to challenge the ruling, according to the Associated Press.
Republican Governor Sarah Palin said the studies that predict the loss of sea ice which the bears need to hunt for seals are unreliable.

At issue is the possible loss of “oil and gas development in prime polar bear habitat off the state’s northern and northwestern coasts.”

The Department of the Interior last week declared the polar bear threatened based on three findings, according to Interior Secretary Dirk Kempthorne:
"First, sea ice is vital to polar bear survival. Second, the polar bear’s sea-ice habitat has dramatically melted in recent decades. Third, computer models suggest sea ice is likely to further recede in the future."

So, will sentiment for one of the most significant animals in the world triumph over oil and gas interests in Alaska?

Frankly, it is hard to see how Alaska can overturn the Bush administration in one of its few nods to the problem of global warming.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 4:13 PM to commentary | Permalink | Comments 3

Backseat Driver: Ready for $5 a gallon for regular?

Sounds incredible, doesn’t it? But given the way gas prices are ratcheting up on an almost daily basis, it is not out of the realm of possibility. Not with the way oil prices are going.

For anyone who has worked in the oil patch, as I did with Petroleum Intelligence Weekly and Platt’s Oilgram in New York in the early 1980s followed by a couple of years helping to set up the energy desk at Reuters, the current surge in oil prices is simply incredible.

And the ramifications are enormous.

But let’s start with gas prices. The national average price for a gallon of regular gasoline is now $3.83 a gallon, according to the Associated Press.

Really? Not around here. On my way down to Westerly yesterday, I saw $3.99 a gallon. Add on that 9/10th of a cent the gas companies love to slide in those tiny numbers – forgive me if I repeat myself – and that’s $4.00 a gallon.

Just weeks ago, that number was seen as a possibility sometime this year. Well, we’re at $4.00 a gallon now and I don’t see any end in sight.

Just look at the crude oil market. At the beginning of the week it was flirting with $130 a barrel; this week we’ve hit over $135 a barrel before coming down to about $132 today. What’s going on?

It’s partly the new demand from developing economies such as China and India; and it’s partly speculation by commodity brokers who are always attracted to prices that are going up.

Now the International Energy Agency (IEA) reports that its previous projections of global crude oil supplies may be off by many millions of barrels a day. According to a front page story in today’s Wall Street Journal, both the agency and the U.S. Energy Department are worried about supply not keeping up with demand.

“The oil investments required may be much, much higher than what people assume. This is a dangerous situation,” the paper quotes IEA chief economist Fatih Birol as saying.

The paper cites all sorts of problems in the global oil patch, including the fighting in Iraq and sanctions on Iran hindering investments in both nations, political turmoil in Nigerian and Venezuela and production slumping in a number of areas.

Earlier this month, Birol told the German magazine Internationale Politik: “We see a sharp decline in production from the existing oil fields, especially in the North Sea, the USA and many non-OPEC countries.”

"Exactly 12.5 million barrels a day are still missing, about 15 % of the global oil demand. This gap means that we could face a supply shortage and very high prices during the next (few) years."

Gulp!

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 3:15 PM to Crude oil market | Permalink | Comments 0

Oil surpasses $135 a barrel on new supply concerns

Oil prices rose above $135 a barrel for the first time Thursday, with supply worries, global demand and an ever weakening U.S dollar driving crude futures up, according to the Associated Press.

Also on Thursday, The Wall Street Journal reported that the world's top energy watchdog is preparing a sharp downward revision of its oil-supply forecast.

Posted by Peter C. T. Elsworth  at 10:16 AM to Crude oil market | Permalink | Comments 0

Ford cuts N. American production, cuts profit goal

DETROIT -- Ford Motor Co. no longer expects to return to profitability by 2009 and is cutting North American production of pickups and SUVs for the rest of this year as high gas prices and the weak economy hurt sales, the company announced Thursday, according to the Associated Press.
The Dearborn-based automaker also cut back its projections for total U.S. sales in 2008 to between 15 million and 15.4 million vehicles. That's down from 17 million vehicles as recently as 2005.

Posted by Peter C. T. Elsworth  at 10:15 AM to Ford | Permalink | Comments 0

Video: NASCAR Drivers Ready for 600-mile Race

AP Photo

NASCAR drivers Casey Mears, Jimmie Johnson, Brian Vickers and David Ragan look ahead to Sunday's 600-mile race at Lowe's Motor Speedway in North Carolina. Click here to see the AP Video.

In above photo, Kasey Kahne takes a victory lap after winning the NASCAR Sprint All-Star auto race at the speedway on Saturday.

Posted by Pam Cotter  at 8:08 AM to Racing | Permalink | Comments 0

Backseat Driver: Gas prices on my mind - and yours too I bet

Gollee!

I just filled up my car with regular at $3.96 a gallon.

And by the way, that includes that 9/10ths of a cent the gas companies add on in tiny numbers at the end of their prices.

I guess they hope you won’t notice that little bit of extra money they are putting in their pockets.

The total bill was $76 for 19.2 gallons.

It was actually a little surreal. I had just started filling it up when I noticed the price and assumed I had pressed the wrong button and was filling up with premium.

Right button - premium was $4.15 a gallon! Oh, excuse me, make that $4.16 a gallon – I almost forget that 9/10ths of a cent.

And with the price of oil now over $129 a barrel, prices are not going down any time soon.

But you know what? I think there is a bright side to this. Yes, it’s painful for all of us. The price of oil affects everything and this dramatic increase over the last few months means a readjustment of our spending habits, especially our driving habits.

But necessity is the mother of invention and I do not think we are going to sit around and cry about this massive change in our lives. Instead it is going to prompt all sorts of changes which for the most part are already on our doorstep.

For while we have paid lip service to freeing ourselves from dependence on foreign oil, most of the work to develop alternate fuels has been driven by concern about the environment and the ever more stringent laws to reduce emissions.

I have written for some time about the new diesels which are on the verge of arriving from Europe, starting with Volkswagen’s Jetta sedan and wagon. And I confess I have been in love with the Jetta diesel sport wagon since I first saw it at the New York Auto Show last year.

It will be available in the late summer I believe and I am sure it’s going to be a big success. It’s fast, economical and green – and good looking to boot!

Mercedes is going the further mile and coming out with a diesel hybrid in the fairly near future and that to me is the ultimate make-sense car. Electric around town and clean diesel on the highway – the best of both worlds and probably a big part of our future.

Certainly it is getting harder and harder to justify my gas guzzling Volvo station wagon. Not at these prices.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 11:29 AM to commentary | Permalink | Comments 0

Diesel Automobiles Clean Up for an Encore

Volkswagen says it will be the first to market with diesels clean enough to pass muster in every state. Jetta TDI sedans and wagons are due to arrive in August.

AFTER years in the automotive wilderness, largely exiled to the smoky borders of truck stops, diesel is coming home. Americans may not recognize its freshly scrubbed face, according to The New York Times.

A 19th-century invention by Rudolf Diesel, the diesel engine has always been known for outstanding fuel efficiency, with better mileage (by 25 percent to 40 percent) than gasoline. But the kerosenelike fuel and the engines that burn it were dirty, noisy, dawdling and even deadly, linked to increased risk of cancer and respiratory disease.

That has all changed, in part because of cleaner-burning fuel — its 2006 rollout had been mandated in 2000 by the Clinton administration — that has 97 percent less of the sulfur responsible for diesel engines’ sooty particulates.

The low-sulfur fuel, hailed by the Environmental Protection Agency as a historic advance, has opened the door to sophisticated emissions controls that let diesel engines meet the strict pollution standards of California. Those rules, the world’s most stringent by far, require 2009-model diesels to be as green as gasoline or even hybrid models.

In the meantime, advances like turbocharging and high-pressure fuel injection have transformed diesel cars from soot-belching slowpokes with a telltale clickety-clack sound to smooth, tidy and powerful machines that many Americans would have a hard time distinguishing from gasoline models.

With technical and environmental hurdles overcome — and facing tougher mileage standards that call for a 35 m.p.g. average by 2020 — automakers are rushing in with clean-diesel cars.

Posted by Peter C. T. Elsworth  at 11:26 AM to Clean diesel | Permalink | Comments 0

Bob Tasca III makes first-round exit in Bristol

BRISTOL, Tenn. – It just wasn’t Bob Tasca III’s day at Bristol Dragway on Sunday as the rookie driver fell to Ron Capps in the first round of NHRA POWERade Drag Racing eliminations, according to Tasca's publicist Alexis Kinch.

“Ron went out and made a solid pass,” said Tasca. “We just didn’t quite have enough for him today.”

The driver of the Motorcraft/Quick Lane/Custom Accessories Shelby Mustang's record against Capps drops to 0-2 after posting a 4.923-second, 313.88 mph run to Capps’ 4.827-second, 316.52 mph pass.

“We expected the car to run a high 4.70, Chris [Cunningham, crew chief] was pretty confident on that,” said Tasca. “It’s just disappointing that the car just didn't do what we expected it to. We also didn’t have that little bit of extra luck that you need in this sport. But, you can’t get down about it. The next race in Topeka is coming up, so now we focus on that.

"The team is going to pick up our new three-rail car this week in Indianapolis, which is the same style chassis that the Force teams are running with. Ford Motor Company has invested a lot of time into this new chassis to make it safer out here for us competitors, and we’re optimistic that it is going to show us a little something for our zero to 60 feet.”

The series takes the week off before heading to Topeka, Kansas for the 20th annual O’Reilly Summer Nationals May 30-June 1. It will be Tasca’s first visit to the Kansas track, and the ninth race of the 24-race NHRA schedule.

Posted by Peter C. T. Elsworth  at 11:02 AM to Racing | Permalink | Comments 0

Oil prices gain while pump prices rise to new high

NEW YORK -- Oil futures crept higher Monday while retail gas and diesel prices reached new records, adding to the pressure on drivers planning road trips for the coming holiday weekend, according to the Associated Press.

Americans are now paying an average of $3.79 for a gallon of regular gas, according to a survey by AAA and the Oil Price Information Service. Diesel now costs $4.52 a gallon.

Posted by Peter C. T. Elsworth  at 10:41 AM to Crude oil market | Permalink | Comments 0

Backseat Driver: Oil prices, silver linings and olde gas pumps

Oil prices are now over $127 a barrel, gas prices are fast approaching $4.00 a gallon ($2.79 in Jamestown Thursday evening) but George W. Bush was unable to convince Saudi Arabia to increase oil production when he met with King Abdullah on Friday.

So prices are expected to keep going up (although some see a bubble of speculative buying causing a drop at some point) with Goldman Sachs revising its forecast from $107 to $141 a barrel for the second half of the year. It had earlier talked about $150 to $200 a barrel.

The surge in energy prices is certainly spelling an end to the era of cheap oil. When I covered the industry in New York in the early 1980s, it was all about supply. OPEC was the name of the game and every meeting of the oil ministers held the potential of an immediate increase or decrease in the price of oil depending on whether they decided to up, hold or lower production.

Today the name of the game is demand, especially from the growing mega economies like China and India.

But the serendipitous silver lining to this cloud of smog is that it is forcing us to economize and find alternative sources of energy just as concern over global warming is getting ever more serious.

Indeed, just this week, the Interior Department declared the polar bear a threatened species because of the loss of Arctic sea ice.

GM has apparently gotten the message, with a new advertising campaign focusing on its smaller cars, according to thecarconnection.com citing a report in the Detroit News. Apparently, the company had been “holding out hope that U.S. truck sales would rebound.” Yes, and I expect to win the lottery.

And then there was this story from The New York Times about old fashioned gasoline pumps being unable to register a price of more than $3.99 on their dials – or a sale more than $99.99.

It said there are about 8,500 service stations out of the nation’s total of 170,000 that are equipped with these old pumps. Unfortunately, such stations tend to be Mom-and-Pop operations that cannot afford to upgrade or replace them.

Posted by Peter C. T. Elsworth  at 1:50 PM to commentary | Permalink | Comments 0

Oil pushed above $127 a barrel for first time

Oil prices soared more than $3 a barrel, surpassing $127 for the first time Friday and putting more pressure on already lofty gasoline and diesel prices ahead of the summer driving season in the northern hemisphere, according to the Associated Press.

Also pushing oil prices up were speculation that China's demand for diesel needed to fuel its power plants would rise due to reconstruction efforts after this week's earthquakes and an upward revision of an oil price forecast by investment bank Goldman Sachs from $107 to $141 a barrel for the second half of the year.

Light, sweet crude for June delivery on the New York Mercantile Exchange rose as high as $127.82 a barrel in electronic trading by afternoon in Europe, before retreating to $127.55, up from Thursday's close of $124.12.

Posted by Peter C. T. Elsworth  at 10:32 AM to Crude oil market | Permalink | Comments 0

Backseat Driver: Fuel efficiency and green sell right now

Hybrids may be mostly Plain Janes but any car that gets good gas mileage is selling right now. And that usually means small and not very stylish.

Indeed, many of them look like bars of soap on wheels.

But that is hardly the point. In these uncertain days of rocketing gas prices, a lot of people are looking for economy. To heck with styling.

And not only hybrids. As a front page story in today’s USA Today reveals, the second-hand market for the small econoboxes from the 1990s like the Ford Festiva, Hyundai Excel and Geo Metro is booming.

At the same time, the second-hand market for SUVs is dead in the water, with many owners getting a nasty shock when they trade them in and get offers way below published values. But dealers can’t move them for love or money so cannot be blamed for offering cents on the dollar.

In another sign of the times, thecarconnection.com’s new Website offers car reviews by the following styles: Sedan; 2-Door; SUV/Wagon; Van; Truck; and Green Car.

And the Detroit Free Press reports that the iconic Toyota Prius is the world’s first mass-produced gas-electric hybrid vehicle to hit the one million mark in sales.

High gas prices, an unpopular war and looming clouds over the economy are making us all more frugal.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 10:16 AM to Fuel economy | Permalink | Comments 1

Nerdy, fuel-stingy cars are hot wheels

Some of the nerdiest-looking cars in recent automotive history are making a comeback, at least in resale value, as a growing number of value-driven drivers put gas thriftiness ahead of image, according to USA Today citing Kelley Blue Book.

Early-1990s econoboxes such as Ford Festiva, Hyundai Excel and Geo Metro — once the punch line of jokes — have seen their used car prices climb from giveaway levels as low as $1,100 a few months ago to upward of $6,000 today, Kelley Blue Book says.

Posted by Peter C. T. Elsworth  at 9:40 AM to Sales | Permalink | Comments 0

Smart puts 'high level of safety into very small package'

Smart got the highest rating of 'Good' for front crash protection.

The tiniest car sold in the USA posted some of the best crash-test results, the Insurance Institute for Highway Safety will announce Wednesday, according to USA Today.

The Smart ForTwo, the twin-seat micro that's so small that two can fit in a single parking space, earned the top rating in front- and side-impact crash tests. It was rated "acceptable" for whiplash protection in rear-end crashes, the agency says.

There's an important caveat: While the frontal tests do a good job of replicating a crash against a fixed object, there is no overcoming the laws of physics when it comes to crashes against larger, heavier vehicles such as SUVs and big pickups.

"All things being equal, bigger and heavier is always better," says institute President Adrian Lund. "But among the smallest cars, the engineers of the Smart did their homework and designed a high level of safety into a very small package."

Posted by Peter C. T. Elsworth  at 10:38 AM to Safety | Permalink | Comments 0

Iran report pushes oil, gas prices to new

NEW YORK -- Oil prices shot to a new record near $127 a barrel Tuesday on concerns that Iran may consider cutting crude oil production, according to the Associated Press.

Gas prices, meanwhile, rose to a new record over $3.73 a gallon Tuesday, and their advance shows little sign of slowing with Memorial Day weekend, the traditional start of the summer driving season, just 10 days away.

Posted by Peter C. T. Elsworth  at 3:09 PM to Crude oil market , Gas prices | Permalink | Comments 0

Backseat Driver: Gas prices at the kitchen table, Volvos and retail cathedrals

Oh for the days of yore when gas was affordable!

Was it just over a fortnight ago that I wrote about getting sticker shock at my local gas station when the price was $3.52 a gallon for regular?

Now it’s $3.75!

And I got another shock last Friday when my American Express bill arrived and found I had spent $400 on gas last month.

Certainly I probably drive more than the average noodle – from Jamestown to Providence and back every day for starters – but that number sure set me back a bit.

In fact, it sent me to the kitchen table with pencil and paper to look over my spending patterns – and I bet there are plenty of you out there doing the same thing.

In my case, it was not a pretty picture, not disastrous, but certainly undisciplined enough wake me up and decide on some changes.

Obviously one immediate step would be to trade in my Volvo station wagon for a smaller, lighter, more fuel efficient car. But I hesitate. With a 5-year-old, I am concerned about safety and know that with him strapped into the jump-seat on the armrest in the middle of the rear seats, he is as safe as he can possibly be. And he likes looking straight out through the gap in the front seats.

If Volvo EVER got its act together and brought over a clean diesel or hybrid, I would be first in line.

(C’mon Ford, we Volvo owners are typically green, liberal and Democratic – and proud of it! Come out with a super-green car and we’d be standing in line around the block.

Instead we have the new XC70 which I mused over the other day until I got to the sticker and saw it gets a combined 17 miles to the gallon. Forgeddaboudit!)

So I will stay with my station wagon with 130,000 miles on it because I frankly cannot afford to get into a new car right now anyway. But I am budgeting for a change next year at the latest and it will certainly be a hybrid or clean diesel – and sadly probably not a Volvo.

But I will be making fewer trips to the big retail warehouses like Walmart, Target and Gosh Knows What. The prices in these places are SO cheap, I always leave thinking what I have saved rather than what I have spent.

Let’s face it, $50 for a $100 bag of stuff I don’t really need is still $50 out of my pocket for a bag of stuff I do not need – and I am congratulating myself for my financial acumen!

Am I a dope or are these halls of consumer delight just brilliant at what they do? Both!

- Peter C.T. Elsworth, pelsworth@projo.com

Posted by Peter C. T. Elsworth  at 11:33 AM to commentary | Permalink | Comments 0

Toyota delays new U.S. auto plant due to economy

TOKYO — A senior Toyota executive said Monday that plans for a new auto assembly plant in Mississippi are being delayed by worries about slumping U.S. auto sales and a broader U.S. economic slowdown, according to USA Today.

The assembly plant being built in Blue Springs, near Tupelo, Miss., was to be up and running by late 2009 or early 2010, said Toyota Executive Vice President Mitsuo Kinoshita.

That has now been pushed back to mid-2010 after Toyota reviewed the plans and considered signs of a slowdown in the U.S. market, Kinoshita told a small group of reporters at a Tokyo hotel.

Posted by Peter C. T. Elsworth  at 10:36 AM to Toyota | Permalink | Comments 0

High gas prices mean hybrids recoup higher cost in less time

Rising fuel prices and competition among a proliferation of gasoline-electric hybrids have sliced the payback period for hybrids to two or three years in some cases, instead of five years or more that made hybrids harder to justify at lower fuel prices, according to USA Today.

At the same time, increasing interest in hybrids is driving their prices up and eroding their fuel cost-saving benefits.

An analysis for USA TODAY by auto-price consultant Edmunds.com shows that the difference between a Toyota Camry hybrid and a similarly equipped gasoline Camry was $889 Friday, up from $850 a week ago.

Assuming 15,000 miles a year, Edmunds figures just 1.7 years for the Camry hybrid's fuel savings to offset the car's higher price — slightly longer than 1.6 years when the price difference was less a week earlier.

Posted by Peter C. T. Elsworth  at 10:33 AM to Alternative fuels | Permalink | Comments 0

Gas prices jump another 10 cents

Gas prices in Rhode Island have increased another ten cents in the past week to reach another record high, according to AAA Southern New England and reported on projo.com.

The average price for a gallon of regular, unleaded gasoline is $3.709 at the self-service pump, according to AAA's weekly survey. That's 57 cents more than drivers were paying at the beginning of the year.

Diesel fuel drivers are paying even more, an average of $4.46 per gallon.

Meanwhile, oil prices slipped slightly, with light, sweet crude off 65 cents to $125.31 per barrel on the New York Mercantile Exchange, according to the Associated Press.

Oil prices surged nearly $10 last week, touching off concerns about rising prices and their effect on businesses and consumers

Posted by Peter C. T. Elsworth  at 10:21 AM to Gas prices | Permalink | Comments 0

Gas jumps above $3.67, oil passes $126

NEW YORK -- Oil rose above $126 a barrel for the first time Friday, bringing its advance this week to nearly $10, as investors questioned whether a possible confrontation between the U.S. and Venezuela could cut exports from the OPEC member, according to the Associated Press.

Gas prices, meanwhile, rose above an average $3.67 a gallon at the pump, following oil's recent path higher.

Posted by Peter C. T. Elsworth  at 2:02 PM to Crude oil market , Gas prices | Permalink | Comments 0

Oil nears $126 per barrel ahead of US driving season

Oil prices neared $126 per barrel Friday on the eve of the U.S. driving season as a weakening U.S. dollar drove investors to snap up commodities, according to the Associated Press.

Light, sweet crude for June delivery rose to a record $125.98 a barrel in electronic trading on the New York Mercantile Exchange near midday before falling back to $125.75, up $2.06 on the day, by the afternoon in Europe.

On Thursday, the contract rose to a record close of $123.69 a barrel.

Posted by Peter C. T. Elsworth  at 9:43 AM to Crude oil market | Permalink | Comments 0

Gas costs deflate prices on used SUVs

High fuel prices are causing the value of used SUVs to plummet, often below what's listed in the buying guides many shoppers use to negotiate with dealers, according to USA Today.

As a result, some new-car buyers think they're getting cheated by dealers who are offering them little for their SUV trade-ins.

"The dealer is going to offer a price, and the customer is going to be ticked off," says Tom Webb, chief economist for Manheim, operators of auctions where car dealers buy their used-vehicle inventories. "The guidebooks have not caught up to the market," he says.

Posted by Peter C. T. Elsworth  at 9:39 AM to Auto industry | Permalink | Comments 0

Ford designs new child crash test dummy

DETROIT — Ford has redesigned the midsection of child-size crash-test dummies to help carmakers invent seat belts that could protect children against abdominal injuries, according to USA Today.

Ford is hoping the new dummy will become the international standard for child crash dummies, helping researchers better understand the forces that act on children's bellies in an accident.

Children ages 4 to 8, who typically no longer ride in booster seats, are 25 times more likely than younger children to sustain serious abdominal injuries.

Overall, fatality rates in the USA are on the decline, but abdominal injuries have become one of the most common for young children, and serious injuries can occur even in slow crashes.

Posted by Peter C. T. Elsworth  at 12:11 PM to Ford , Safety | Permalink | Comments 0

Gas prices jump nearly 3 cents to record, while oil pauses

NEW YORK -- Gas prices jumped nearly 3 cents overnight to a new national record of nearly $3.65 a gallon Thursday, while oil prices paused from their own climb to record highs and succumbed to mild profit-taking, according to the Associated Press.

At the pump, the average price of a gallon of regular gas nationwide rose 2.7 cents to a record $3.645, according to a survey of stations by AAA and the Oil Price Information Service. Diesel prices also rose, adding 0.9 cent to match a record national average of $4.251 a gallon.

Posted by Peter C. T. Elsworth  at 12:03 PM to Gas prices | Permalink | Comments 0

Backseat Driver: NASCAR has replaced horse racing

So we all dressed up last Sunday for a Kentucky Derby party and placed our bets based more on sentiment (the ladies favored the one filly Eight Belles) and semantics (Bob Black Jack was a favorite) than any knowledge of the horses.

And we drank mint julips and were amusing in a fragrant way. And after an hour or so, we watched the race and were delighted or disappointed depending on our level of interest and the extent of our bets.

And then we were horrified when Eight Belles, who came in second, had to be destroyed after collapsing with two broken ankles.

The accident highlights the trend in modern horseracing to produce horses than can bring in trophies for a limited time before being retired to the breeding sheds. Such an emphasis on speed per se has resulted in horses that are often inordinately fragile.

At the same time, public interest in horse racing has been declining for decades and for a very simple reason: Horses are not part of our everyday lives any more.

Before the automobile, our lives were intertwined with the horse. We all rode or drove/were driven in carriages/carts/wagons and so everyone was interested in horse racing. But just over 100 years ago, the horseless carriage made its appearance and now dominates our lives.

So it’s hardly surprising that as horse racing has slumped in popularity, interest in auto racing, especially NASCAR, Formula One and drag racing has soared. Let’s face it, NASCAR racing is basically a flow of traffic – and we can all identity with that – but at 180 mph.

And we’d all love to drive at 180 mph on our daily commutes!

To be sure, interest in horse racing was sparked by such great horses as Triple Crown winners Secretariat, Seattle Slew and Affirmed. But Affirmed was the last Triple Crown winner and that was back in 1978.

Every year, we are treated to breathless speculation about the Triple Crown as the winner of the Kentucky Derby moves on to the Preakness Stakes in Maryland and the Belmont Stakes in New York.

But just as interest can be sparked by great horses running great races, it can be turned off by horrible accidents such as the one that brought down Barbaro a couple of years ago when he shattered his leg at the Preakness and had to be destroyed after lengthy rehabilitation proved fruitless.

And the revolting spectacle of Eight Belles floundering on the ground with two broken front ankles is certainly not going to attract the casual fan who dresses up but once a year to have a flutter on the horses.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 11:51 AM to commentary | Permalink | Comments 0

Backseat Driver: Toyota's sales forecast is sobering

Reflecting the dismal state of the current auto market, Toyota is projecting its sales will be down 27 percent this year, according to the Associated Press.

That’s very sobering news for the auto industry.

As Detroit’s Big Three have struggled for years to retain market share, the Asian manufacturers – including Toyota, Honda, Nissan, Hyundai, Subaru – have been growing in reputation and sales.

Apart from being lumbered with millions and millions of dollars in healthcare and pension liabilities, the Big Three seemed incapable of coming up with designs that either excited or provided assurance of reliability.

Toyota and Honda in particular have been brilliant in building a franchise that now rests on very solid reputations for reliability which is, not surprisingly, what the vast majority of people want.

Now Toyota, which has been recently tussling with General Motors over who is the king of the castle in terms of sales, is predicting a serious downturn in sales and sees overall U.S. auto sales at about 14.7 million vehicles this year.

That’s way down from recent years and the company cited the faltering U.S. economy, high energy costs, a flat domestic market and the weak dollar for its woes.

Toyota’s announcement is very sobering given that it seems ideally placed with its fuel efficient Corolla and Prius hybrid in a world of soaring gas prices.

Certainly the company put on a brave face.

"We are facing a severe business environment," President Katsuaki Watanabe was quoted as saying. "Toyota considers this headwind as a valuable opportunity to turn it into a more flexible and stronger company."

Given that this is a superbly well run company, it is likely to emerge stronger and better positioned for the brave new world we are entering as developing economies start to roll – including the mega-ones in China and India – oil prices soar, misguided adventures such as George Bush’s War in Iraq keep Mideast politics raw and the global environment changes before our eyes.

But for the short term, the news is just more evidence of the big downturn in the U.S./world economy and right now there is no light at the end of the tunnel.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 11:07 AM to Toyota , commentary | Permalink | Comments 0

As fuel prices rise, some speedometer needles fall

ALBANY, N.Y. -- As other cars zipped by at 70 mph or more, Mike Papin and his wife, Joann, kept rolling along just below the 65 mph limit as they made their way from their winter home in Florida to a summer place in Vermont, according to the Associated Press.

They've typically done six or seven miles above the speed limit during the annual migration, but with gasoline prices roaring toward $4 a gallon nationally, Joann suggested they ease off the pedal during the 1,500-mile drive this year.

"I read somewhere that around 62 or 63 was the best speed to drive to make the most of your gas," she said.

Posted by Peter C. T. Elsworth  at 11:39 AM to Fuel economy | Permalink | Comments 0

Toyota raising prices on some models in US this month

TOKYO -- Toyota is raising its prices on some U.S. models later this month amid increased worries about its profit growth in the American market.

The price increases, which will start in the middle of May, include a hike of $200 on the 2008 Yaris sedan, boosting the cost of the base model to $12,425, with higher prices for models with extra features.

The 2009 Camry will go up $200, to $18,920 for a model without any extras, the automaker's U.S. unit said in a statement released Friday.

Posted by Peter C. T. Elsworth  at 10:59 AM to Toyota | Permalink | Comments 0

Backseat Driver: GM's Malibu hit by UAW strike

The United Auto Workers' trike against General Motors' Fairfax plant near Kansas City could not come at worse time for the company because it affects the production of the Chevrolet Malibu, won of the few bright lights on GM's radar screen.

Not only did the Malibu get rave reviews when it came out last year, but its sales were up a healthy 40 percent in April - when GM's overall sales were off 16 percent.

GM is already suffering from a strike at a plant in Delta Township, Mich., according to USA Today.

Meanwhile, a strike against American Axle has slowed production of its trucks and SUVs, but the company is taking advantage of the slowdown to reduce production of vehicles that are not selling well.

Posted by Peter C. T. Elsworth  at 4:47 PM to GM | Permalink | Comments 0

Backseat Driver: Chrysler's gas price guarantee carries risks

Chrysler's "Let's Refuel America" program which guarantees anyone buying one of its vehicles in the next few weeks gas at $2.99 a gallon for 12,000 miles a year for three years carries some risk for the automaker.

With the current turmoil in the crude oil market, Chrysler could find itself paying out alot more than the 60 cents or so difference between $2.99 and $3.60 that exists now.

Three years, after all, is a long time when you consider how oil prices have almost doubled to over $120 a barrel in just the last 12 months. And Goldman Sachs is now talking about oil at $150 to $200 a barrel!

While speculation has had a part in driving up oil prices, it is hard to imagine how the high prices are not going to filter down to the pump. And if gas prices do remain higher than $2.99 a gallon, the program will only cut further into the company's profits.

On the other hand, if the price of gas does fall to below $2.99 a gallon - and the gas cards become invalid - Chrysler will have a bunch of unhappy campers on its hands.

Either way there is a risk with oil and gas/diesel prices being as volatile as they have ever been.

And then again the incentive could be undermined if other car companies come out with their own incentive plans on top of existing discounts.

"This is really more about helping customers contend with uncertain economic news," Chrysler President Jim Press was quoted as saying.

Bunk, of course.

What it's more about is a company whose sales were off 23.5 percent last month following an 18 percent drop last year and which has no subcompacts and a limited number of compact/small cars - the Dodge Caliber and Chrysler PT Cruiser - on its books when only small, fuel-efficient cars are reporting increased sales.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 1:51 PM to Gas prices | Permalink | Comments 0

Chrysler has a deal for buyers: $2.99-a-gallon gas cards

As presidential candidates spar over how to roll back gasoline prices, Chrysler on Monday said that it has come up with its own plan to bring back $2.99 gas, which it hopes will spur lagging sales, according to USA Today.

Chrysler announced a month-long "Let's Refuel America" program that will give buyers of most of its vehicles a card good for purchases of gasoline or diesel fuel that locks in the price at $2.99 a gallon for three years.

Posted by Peter C. T. Elsworth  at 9:58 AM to Chrysler | Permalink | Comments 0

Oil hits record $120.93 on fear of tight supply

VIENNA, Austria -- Oil futures rose to an all-time high near $121 a barrel Tuesday with new concerns about a threat to supply and a weaker dollar, according to the Associated Press.

The surge in oil prices was also fueled by hopes that the U.S. economy will be spared a sharp downturn after the release of data Monday showing an unexpected expansion in the U.S. service sector in April, analysts said.

Posted by Peter C. T. Elsworth  at 9:55 AM to Crude oil market | Permalink | Comments 0

Oil passes $120, gas prices slip more than a cent

NEW YORK -- Oil futures surged to a new record over $120 a barrel Monday, raising concerns about higher prices for gasoline and goods and services throughout the economy, according to the Associated Press.

Retail gas prices fell more than a cent over the weekend, but oil's advance increased the likelihood that pump prices would resume their climb.

Posted by Peter C. T. Elsworth  at 3:46 PM to Crude oil market | Permalink | Comments 0

Bob Tasca III taken out in first round at Gateway International

MADISON, Ill. – Following two days of career-best runs at Gateway International Raceway, Bob Tasca III was defeated by Del Worsham in the first round of the NHRA Midwest Nationals, according to his publicist Alexis Kinch.

“Del went out and knew that he had to put up a good number to race us, and he fired a shot off,” said the 12th place Tasca. “He took us seriously and knew that we were the real deal, and he went out and ran the low [ET] of the session. So you have to tip your hat to that team.”

Sunday was the first meeting between the driver of the Motorcraft/Quick Lane/Custom Accessories Shelby Mustang and Worsham, with Tasca missing the round win by just over one-tenth of a second.

“I had a great reaction time, which is what my job is as a driver,” said the rookie driver. “I got three hundredths off the starting line, which is big in this sport. I think there were two or three holeshot victories during the first round. As a driver I feel great, but obviously I know Chris [Cunningham, crew chief] is disappointed it didn’t have a little more tune-up in it.”

While disappointed about the first-round loss, Tasca continued to make strides during the weekend as he made his quickest career run down the quarter-mile with a 4.79 ET on Saturday.

“Chris has done just a tremendous job setting up this hot rod, the car just didn’t do what we expected it to today. I give all the credit for how far we’ve come since putting this team together in November to my crew chief and the guys on my team. We’re sneaking up on this thing. We’re only an eyelash out of the top 10 with a lot of racing to go, and certainly we’re working towards being in the top of the field come Indy.”

“When you’ve got a car running as good as this car is running, you just want to keep racing because you know your day is going to come. This sport requires consistency and it requires drivers to cut great reaction times that can put their team in a position to win. And then it just needs to be your time. It can go either way in rounds, and our day is coming. It isn’t that far around the corner the way this car is running.”

The NHRA POWERade Drag Racing Series takes a week off before traveling to Bristol for the eighth annual O’Reilly Thunder Valley Nationals presented by Q May 16-18. The event will be the first visit to the Tennessee track for Tasca.

Posted by Peter C. T. Elsworth  at 3:42 PM to Racing | Permalink | Comments 0

Backseat Driver: A time for change, not pandering

The writing is off the wall and on the page.

I just hope presidential hopefuls Senators Hillary Clinton and John McCain get to read it. Their proposal to suspend the federal excise tax on gasoline this summer sends confusing signals about U.S. energy policy to both consumers and manufacturers.

The facts are these: Auto industry sales in April were down to an annualized rate of fewer than 14.5 million vehicles, according to Autodata, mainly due to a big drop in gas-guzzling pickup truck and SUV sales.

That hit Detroit’s Big Three especially hard. General Motors’ sales were off 16.2 percent compared with last April, while Ford’s were down 12.1 percent and Chrysler’s off 23.5 percent.

The top three Asian manufacturers – who missed the boom in truck and SUV sales during the 1990s – reported sales increases: Toyota up 3.4 percent while Honda and Nissan were both up six percent.

In fact, sales of small, fuel efficient cars were up quite dramatically, largely due to rising gas prices. Gasoline may not consume a major part of the average family’s budget, but you sure know what you pay at the pumps each week and regular is now running at about $3.60 a gallon.

Sales of Ford’s Focus, for example, were up 43.5 percent; Ford recently upped production of the car by 30 percent. Meanwhile, its SUV sales were off 36 percent.

Likewise, sales of Toyota’s Yaris were up by 46 percent while truck and SUV sales were off 12 percent.

Nor can we reasonably expect gas prices to come down anytime soon. U.S. demand is increasing as the summer driving season approaches and the price of oil is now well over $100 a barrel, with the new benchmark around $120. That’s due in part to the weak dollar but more importantly to the soaring demand from the fast-growing economies in mega-nations like China and India.

Unfortunately, the proposal by Senators Clinton and McCain to suspend the 18.4 cent federal excise tax on gasoline would make it cheaper to fill up, but goes against all the "energy saving/independence from foreign sources of oil/addiction to cheap oil" arguments we have been hearing lo these many years.

It also goes against the intent of the new mileage standards outlined by the National Highway Transportation Safety Administration (35.7 miles per gallon by 2015) just last month.

Indeed, it is interesting that many in the auto industry itself are coming out against the idea, with Chrysler CEO Bob Nardelli arguing it would affect sales of small fuel efficient vehicles, and giant auto dealer Autonation CEO Mike Jackson telling the Detroit Free Press it gives confusing signals.

These are sobering times, with prices rising on everything from gas to food and a slowing economy forcing everyone to take stock of their personal and business finances. Let alone the ongoing emotional and financial drain of George Bush's War in Iraq.

As much as we all might welcome paying less at the pump, it is not the time to sacrifice the long term interests of the nation by pandering to the immediate gratification of cheaper gas prices this summer.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 3:13 PM to commentary | Permalink | Comments 0

Small cars post gains, trucks fall as gas prices rise

DETROIT -- Small cars were the big winners in April, as high gas prices accelerated U.S. consumers' rush away from trucks and sport utility vehicles and makers of fuel-efficient models scored gains despite the weak economy, according to the Associated Press.
General Motors, Ford and Chrysler all saw double-digit U.S. sales declines compared to last April. But Nissan's sales were up 7 percent on the strength of its car sales, while Toyota's sales edged up 3 percent. Honda's sales figures were delayed because of a technical problem, but the automaker said April sales were likely to be up at least 6 percent.

Pickup sales have been falling for months because of the slowdown in housing construction, and the trend away from SUVs began several years ago as Baby Boomers aged and roomy but more fuel-efficient crossover vehicles gave consumers more choice. But automakers and industry watchers said gas prices are speeding the trend.

Posted by Peter C. T. Elsworth  at 11:03 AM to Auto industry | Permalink | Comments 0

York: Ford should unload Volvo and Mercury brands

Less than a week after stressing that billionaire Kirk Kerkorian's Tracinda Corp. would remain a passive investor in Ford Motor Co., a top adviser for the casino mogul, Jerry York, is already recommending changes for the Dearborn automaker, according to The Detroit Free Press.

In an interview with the trade magazine Automotive News, York said he thinks Ford should sell the company's Swedish Volvo brand, which lost $151 million through March, as well as the Mercury brand, which has been languishing for decades. U.S. sales of Mercury have fallen from 528,033 to 168,422 last year.

Posted by Peter C. T. Elsworth  at 10:28 AM to Ford | Permalink | Comments 0

Ford's US sales down, Toyota up in April as gas prices rise

DETROIT -- Ford's U.S. sales dropped 12 percent but Toyota's sales edged up 3 percent in April as high gas prices accelerated consumers' rush away from trucks and sport utility vehicles, according to the Associated Press.

A downward pattern was expected throughout the industry as gas prices rose to record highs. Other automakers were scheduled to report their monthly sales later today.

Ford said its SUV sales were down 36 percent in April compared with the same month last year. Car sales were down only 1 percent, buoyed by sales of the Ford Focus small car, which saw a 44 percent jump in sales.

Toyota said its car sales rose 12 percent, largely on the strength of the subcompact Yaris, which saw sales rise 46 percent and the hybrid Prius, which was up 54 percent. Toyota's truck and SUV sales dropped 8 percent.

Posted by Peter C. T. Elsworth  at 1:43 PM to Ford , Toyota | Permalink | Comments 2