No matter how you slice it, a proposed $25 billion loan from the Feds is a bailout, and that's exactly what Detroit's Big Three automakers are after, according to a report by the Wall Street Journal.
Lobbyists for General Motors, Chrysler and Ford have met with White House officials, Rep. John Dingell and a smattering of Michigan Democrats to discuss the loan, with plans to unveil the proposal after Labor Day.
The plan includes lending $25 billion to automakers in its first year at an interest rate of 4.5 percent (about one-third of what the companies are currently paying), with the government having the option to defer any payment for up to five years.
Details are scarce, and naturally, GM, Ford and Chrysler reps aren't saying much, but if the automakers and the Feds are serious, expect more information to leak out before the proposal is officially announced.
Click above for a high-res gallery of the Tata Nano
Raze 1,000-acres of farmland to build an automobile factory, and somebody is going to protest. Even in India. The automaker is Tata, and the protesters numbered at least 1,000 strong as they went head-to-head against police in eastern India yesterday at the future manufacturing site of the Tata Nano (rumored to be the world's cheapest car at just $2,380). The protests are rooted deeper than just "open space" issues. In fact, the real tension is between India's ruling party, and the communist-run government in West Bengal where the plant is to be located. The farmers are unwilling to part with their agricultural livelihood, while the government continues to promote industry. After blocking a highway for a few hours, the stick-wielding protesters were dispersed without injuries. Once again, progress wins out over pastures.
Safer vehicles and increased law enforcement has resulted in the lowest driving fatality rate ever last year. There were 41,059 traffic deaths in 2007, down 1,600 from 2006. Fatalities are now at 1.37 per 100 million miles traveled, which is the lowest number since the National Highway Traffic Safety Administration started keeping track. The proliferation of safety technology, like side curtain air bags, stability control, and traction control, are apparently helping to make our roads safer, and good old-fashioned seat belts are being used more than ever. The "Click it or Ticket" campaign isn't the only way law enforcement has helped to lower fatalities either, as increased drunken driving patrols have lead to a 3.7% decline in deaths. Still, 13,000 people died last year as a result of drunken driving, which is 13,000 too many.
News on the safety front isn't as good for motorcycle drivers, though. A record 5,154 bikers lost their lives on U.S. roads in 2007, which is over 200 more than in 2006. Part of the reason for that increase is that there are more motorcycle drivers on the road, with 6 million motorcycles registered last year, up 2.2 million in the past decade.
In light of the current pain at the pumps, fuel economy is on all of our minds these days no matter what kind of car you drive. That being the case, it might not be surprising to you that the car we're buying are getting more fuel efficient. Don't believe us? The National Highway Traffic Safety Administration has just revealed that the U.S. auto industry set a new record in overall fuel efficiency during the first half of the 2008 model year by averaging 26.8 mpg through March. That's up from an average of 26.6 mpg through the entire 2007 model year.
While this is certainly good news for both consumers and manufacturers that need to meet the government's mandated CAFE standards, the numbers used by the NHTSA aren't really representative of the real-world fuel mileage you should expect to achieve on the road. The testing standards were initially created in 1975 and automakers get certain credits for creating flex-fuel vehicles, which can artificially inflate their miles-per-gallon numbers. Additionally, automakers earn credits for surpassing the CAFE requirements and can carry these credits forward for up to three years. Still, the numbers are somewhat worthwhile when comparing the current model-year with those of the past. Expect to see the year-end numbers set another new record as consumers continue choosing smaller and more fuel efficient models over larger, gas-guzzling choices.
If you believe the Johnston family, owners of Wildcat Mitsubishi in Tucson and Ideal Automotive in Sierra Vista, Arizona, they have a little communication and paperwork problem. If you believe the soldiers at the Army base in Fort Huachuca, the Better Business Bureau, the Arizona Department of Financial Institutions, the Arizona Transportation Department, the police department, and at least one civilian customer, the Johnstons have a much larger number of far more serious problems.
The Army base has banned personnel from patronizing the dealerships, alleging its soldiers have been abused. Soldier James Tuman traded in an SUV and a motorcycle and got financing from Ideal Automotive to buy a used car. When he tried to return the car because of mechanical issues, the Johnston's wouldn't give him his money back, instead saying he could buy another car on the lot. When he threatened to complain, they said they'd declare the car repossessed, which could hurt Tuman's security clearance. Tuman ended up with no money and no car.
Other complaints against Johnstons range from financing auto loans without a license and issuing temporary tags with the wrong VIN numbers. The Johnstons say they are sorting things out... but until the Army et al sort things out with the Johnstons, you might want to give Wildcat and Ideal a wide berth.
London Congestion Charge: FAIL. According to the most recent reports, traffic in London is exactly as bad today as it was before the C-Charge was ever initiated. London motorists have made their opinion about the system clear in recently voting out ex-Mayor Ken Livingstone, a man who championed the charges and had plans to increase their dollar amount and expand their coverage. The new mayor, Boris "Fast Lane" Johnson, says, "I have always thought that the Congestion Charge is a blunt instrument." Blunt and ineffective, it would seem. While the number of cars within the city limits have gone down, other factors have crept up like an increase in bike and pedestrian traffic that keeps motorists crawling.
There is one thing that the London Congestion Charge was good at: making money. Last year alone, the C-Charges racked up some £268 million (a whopping $536 million) in charges. While it may be hard to see that income go away, the fact is that it still takes Londoners an average of 2.3 minutes per kilometer to drive through the city, so expect to see some major modifications to the system in the coming months.
Switzerland is not the most car-friendly place on earth. (Odd, then, that after Monaco, the mountainous country is one of the most popular residence choices for F1 drivers.) But this just puts it over the top. The Swiss Green Party is proposing legislation that would effectively ban supercars. Most sportscars, actually. And SUVs. More than a few luxury sedans, too. Even some small hatchbacks.
The proposed regulations would ban any vehicle over 4800 lbs in weight, producing more than 250 grams of CO2 per kilometer, burning diesel without a new-fangled particulate filter or possessing a front end deemed less than optimal for pedestrian impact. Many of the vehicles on the proposed list of non-compliant new cars would seem logical, according to the Green Party mindset: Aston Martins, Bentleys, HUMMERs, pretty much anything from Italy bigger than a Fiat Panda, most American cars offered in Europe... but wait a second, the Hyundai Getz? Kia Rio? Nissan Micra? Even the Dacia Logan. Somebody's getting carried away in Switzerland, and we hope with the country's populist approach to governance that the Swiss populace will keep their tree-hugging elements in check. Otherwise, we might be riding bikes to next year's Geneva show.
Click above to enlarge the Mercedes-Benz ML 450 Hybrid
Batteries are an integral part of any hybrid automobile. No batteries means no electric assist, which means no point in lugging around all that extra hardware. So Mercedes-Benz is in a world of hurt as it alleges that Cobasys, the chosen battery supplier for the upcoming ML 450 hybrid SUV, has decided not to fulfill its obligation to the German automaker. You might recall that General Motors had problems with leaky batteries from Cobasys, reportedly leading the automaker to consider purchasing the supplier outright from its current parents, Chevron and Energy Conversion Devices.
For its part, Mercedes-Benz has sued Cobasys and petitioned the court to order Cobasys to supply the batteries in had committed to. Cobasys CEO Thomas Neslage has denied that his company ever agreed to supply the batteries in the first place. If this situation isn't resolved in a timely manner, Mercedes-Benz may be forced to delay the introduction of its first-ever hybrid vehicle.
Saudis may be known for a lot of things, but let's face it – comedy is not one of them. Israelis on the other hand... have you seen The Zohan? In any event, it's not surprising that people in Saudi Arabia are outraged at something from Israel, but this time it has nothing to do with military actions or residential construction, and to be fair, while talk of boycotts is filling the air once again, they're not actually blaming Israel itself for anything. Instead, Nissan is the boycott target.
The spate was started by a commercial Israeli TV that depicts Arabian oil sheikhs getting medieval on a Nissan Tiida. The implication is that the car's fuel efficiency is harming the sheikhs' business interests. The Saudi regime, along with other oil-producing Gulf states, is threatening to boycott Nissan – which itself is collaborating on the development of the Project Better Place electric car system in Israel – if the automaker doesn't apologize.
Follow the jump to watch the commercial – which, strangely, we could only find in Arabic with Russian subtitles – and leave your thoughts in the comments section below (just please keep it tasteful).
Porsche wants to purchase Volkswagen, this much we know. But before that happens, the huge labor union at VW needs to agree on terms with Porsche management. This, as you may imagine, is proving a bit more difficult than Porsche had hoped, prompting the automaker's senior labor leader Uwe Hueck to lash out at the heads at VW. Not surprisingly, his initial attack received a response from Bernd Osterloh, the head of VW's labor union. It seems that some major sticking points exist that the organized Volkswagen employees are not too keen on, causing them to believe that they would be relegated to second-class status. Whether or not these negotiations will keep Porsche from purchasing a controlling stake in Volkswagen seems up in the air at the moment, though we wouldn't be surprised if some sort of deal were made sooner rather than later.
Spy Shot: Production interior of Chevy Volt (maybe)
Rumormill: Lexus LF-A... Stillborn?
Ford reveals 2010 Mustang badge
REPORT: Chrysler may sell Dodge Viper rather than kill it
Audi develops R8 GT3 racer
In the Autoblog Garage: 2009 Nissan Murano
In the Autoblog Garage: 2009 Dodge Journey R/T
In the Autoblog Garage: 2008 Jeep Compass Sport 4x2
In the Autoblog Garage: 2008 Porsche Carrera S
First Drive: 2009 Honda Fit Sport
