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| Auto suppliers ALSO need a bailout |
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| Mon, 17 Nov 2008 17:51:00 +0000 |
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 An automaker bailout won't save suppliers
So, you're against an automaker bailout, but the loss of jobs is making you more open-minded. In particular, the idea that an automaker bankruptcy won't just result in automaker job loss, but auto supplier job loss has become alarming.
Well, according to a report Phil Lebeau made on CNBC a few minutes ago, an automaker bailout WON'T save auto suppliers. Regardless of any bailout for automakers, auto suppliers will need their own bailout according to Lebeau.
This story is apparently just breaking, so details are scarce. When asked about numbers, however, Lebeau guessed that auto suppliers would probably need as much as $15 to $20 billion from Congress - apart from any money Congress gives to the Big 3. Happy Monday!!! |
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| Bailout automakers to save the Chevy Volt? No. |
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| Mon, 17 Nov 2008 16:46:00 +0000 |
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 The Volt is not the reason to bailout GM
Today, Toyota makes a profit on all of its hybrid cars, thanks to the Prius. Yet, not one US automaker has developed a Prius-contender.
Rather than challenge the Toyota Prius directly, GM conceptualized a product to leapfrog Toyota - a perfect marketing coupe. Essentially, GM could claim that they didn't need to develop a car like the Prius because the Chevy Volt would be so much better than the Prius. This then gave GM time to keep rolling out gas-guzzlers as the technology caught up to the Volt concept.
Some have forgiven all of GM's past wrongs because of the Volt, and even believe that the entire US auto industry should be bailed out to protect the Volt. Yet, when will the Volt be profitable? When will GM be able to produce even 100,000 Volts per year? 5 years? 10 years?
More important, within 5 years, there is every reason to believe that numerous automakers might have products just as exciting as the Volt, even better than the Volt. Recently, even lowly Chrysler showed that they aren't that far behind the Volt.
Bailing out automakers solely for the Chevy Volt would the same kind of ignorance and denial that has put GM and the rest of the Big 3 in need of a bailout. A bailout MUST be about far, far more than the Volt. |
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| Bailout v. bankruptcy: Which influences consumers more? |
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| Mon, 17 Nov 2008 15:59:00 +0000 |
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 Does a bailout really appease auto consumers?
On Wall Street, most believe that bankruptcy is the best way to save the US auto industry for it will cut a lot of dead weight quickly. Those against such a plan claim that consumers won't buy from automakers that had to declare bankruptcy.
Perhaps. Still, will buyers - whom probably feel financially stressed and also in need of a bailout - feel so much more comfortable buying cars from automakers that needed massive government help to prevent bankruptcy? Might there not even be some anger transferred to such automakers? |
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| Prius markups? Yeah right. It's incentive time |
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| Fri, 14 Nov 2008 22:23:00 +0000 |
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 $1,000 off MSRP
Just came accross an ad for the Toyota Prius offering $1,000 off MSRP here in Southern California - a far cry from the $5,000 + that some dealers were adding onto MSRP this summer.
If you believe that falling gas prices are just the calm before the storm, or you just want to do your part to fight global warming or foreign oil dependency, finding a good deal on a hybrid is getting easier. And, it's going to get even easier.
Competition in the hybrid cars segment will increase significantly in 2009, especially with the launch of the Honda Insight hybrid. Additionally, Toyota has promised a significant increase in Prius production. |
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| Poll - Most Americans support an automaker bailout |
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| Fri, 14 Nov 2008 16:26:00 +0000 |
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 At least Ford pickup owners do
I was just given the poll results from a Peter D. Hart Research Associates, Inc. survey that indicates the majority of Americans support a bailout.
First, it must be acknowledged that the Peter D. Hart group is a pro-Democrat group. Second, I was looking through the data, and there are some interesting things to note.
For instance, the number one vehicle type owned by the group interviewed was a pickup. That is, unless you bulk all SUVs into one segment. Then SUVs represented the most owned vehicle.Â
The top two owned brands were Ford and Chevy. And, almost no one owned a hybrid vehicle. Politically, the largest group defined themselves as middle class Democrats.
I'm exaggerating a bit here, but this study seems to indicate that middle class Democrats whom buy American-made trucks and SUVs largely support an automaker bailout. Is that surprising?
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| Re: Why Americans hate Detroit |
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| Fri, 14 Nov 2008 14:42:00 +0000 |
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 The icon of American stupidity
Was it intelligent or morally ethical for GM to develop the Hummer brand as it was dismantling the EV1 program?
Of course not. It was asinine to anyone that cared about foreign oil dependency or the environment. Unfortunately, at the time GM rolled out the Hummer instead of the EV1, MOST Americans didn't care about either global warming or the environment.
So, GM followed the American ideal - "Show me the money."
Today, Republicans in Congress are aghast at the idea of an automaker bailout. Yet, I bet most of them drive gas-guzzlers.
There is no doubt the Big 3 have demonstrated little leadership in fighting global warming and foreign oil dependency, and Americans hate that because it's a reminder of how stupid most American consumers have been acting. Blaming it all on the Big 3 while that big gas hog sits in the driveway is so much more convenient. |
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| Getting auto buyers into the "smart garage" |
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| Thu, 13 Nov 2008 18:55:00 +0000 |
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 Smart electrification close, yet so far away
Interesting piece in Forbes about how close the "smart garage"needed for the electrification of the automobile is to reality, at least technologically. In terms of costs and public acceptance, however, electrification of the automobile might still be a moon shot away.
The technology for both electric vehicles and a smart garage that gives utilities the ability to "create a power network that not only sends energy to users but draws and stores unused energy from homes, businesses and parked electric vehicles to redistribute" when demand requires, is at hand.
However, the "smart garage" won't be cheap. In fact, it will probably cost hundreds of billions of tax payer dollars, and it will require consumers to completely rethink every aspect of automobile use and ownership.
A new energy paradigm is ours for the taking, will we have the courage to reach for it? |
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| 2010 Prius production slow down? |
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| Thu, 13 Nov 2008 17:41:00 +0000 |
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 US Prius production on hold?
CNBC just reported that there is an unconfirmed story coming out of Japan that Toyota is putting plans for its Tupelo, MS plant on hold. Now, before you say, the 2010 Toyota Prius is supposed to be built in Blue Springs, MS, not Tupelo, recognize that Blue Springs is a tiny Mississippi town just a few miles outside of Tupelo.
Obviously, Toyota can still produce quite a lot of Prius hybrids without any US production, but Toyota had planned a huge production increase with the launch of the third gen. Prius. Is that increase possible without the new plant? |
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| Isn't a Volt delay inevitable? |
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| Thu, 13 Nov 2008 17:05:00 +0000 |
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 All about the battery
GM is on life support. Without government money, bankruptcy is inevitable. Yet, GM has made it clear that not only is work on Chevy Volt development ongoing, but that more resources and money are being put into the Volt - the icon of GM's future.
Still, the most critical element of the Volt's success - the lithium-ion battery - is dependent upon technologies not wholly owned by GM. Ultimately, the battery supplier is almost just as important as anything GM is doing.
Isn't it, therefore, reasonable to assume that Volt suppliers might proceed cautiously and slowly until the viability of GM is guaranteed? |
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| Human prosperity requires an "energy revolution" |
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| Wed, 12 Nov 2008 21:16:00 +0000 |
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 World's energy paradigm "unsustainable"
"It is not an exaggeration to claim that the future of human prosperity depends on how successfully we tackle the two central energy challenges facing us today: securing the supply of reliable and affordable energy; and effecting a rapid transformation to a low-carbon, efficient, and environmentally benign system of energy supply. What is needed is nothing short of an energy revolution," reports the IEA.
Automakers are in trouble. The US economy is tanking. Is it just me, or isn't it obvious that this needed "energy revolution" is the key to both automakers and the US economy? |
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| Nissan's future: Self-charging EVs |
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| Wed, 12 Nov 2008 17:25:00 +0000 |
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 One of Nissan's EV concepts
Imagine a range extended electric vehicle, similar to the Chevy Volt, but without the gas. Instead, of using an engine to generate extra electricity, an onboard ultracapacitor would extend the range of the EV.
It might sound a little futuristic, and it is, but that is exactly one such plan that Nissan is working on as it seeks to become the leader in the electrification of the automobile according to Nissan's Minoru Shinohara, senior vice president of technology development.
And, according to Greentechmedia, Shinohara's views are not to be taken lightly. |
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| Vue 2 mode hybrid launch date scrubbed? |
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| Wed, 12 Nov 2008 16:40:00 +0000 |
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 Dependent on the bailout?
Back in April I found myself sitting next to Bob Kruse, Executive Director of Vehicle Integration and GM Performance Division, at a dinner hosted by GM for a media update on the Chevy Volt.
Turns out Kruse had been driving the soon-to-be-released Saturn Vue dual mode hybrid, a vehicle Kruse was pretty excited about. In fact, he told me that although the numbers had not yet been finalized, the Vue dual mode was testing 70 percent more fuel efficient than a conventional Vue in city driving.
More important, by the end of 2008, GM would begin selling the Vue dual mode, Kruse confirmed.
Today, GM notified me that the Vue dual mode hybrid is set to go on sale some time in Q1 2009. This Vue of GM's future, it seems, is now completely dependent upon an automaker bailout. |
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| Global warming goes away if Big 3 go under? |
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| Wed, 12 Nov 2008 16:22:00 +0000 |
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 Kill Detroit, kill CO2 emissions?
Despite my previous bailout post, I'm still an advocate of an automaker bailout with strings. A new string that environmental activists are now advocating is a bailout only if the Big 3 drop their suit against California and its desire to regulate CO2 emissions - an interesting idea.
Yet, I have some questions. Why are autos the environmental whipping boy? Don't houses and buildings cause far more environmental damage? Doesn't the food industry, especially the meat industry, cause more environmental damage?
Anyway. If automakers go bankrupt, do CO2 emissions go down? Does not bankruptcy only ensure that we drive gas-guzzling polluters longer? |
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| F Wall Street - Give GM the money |
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| Tue, 11 Nov 2008 22:20:00 +0000 |
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 At least GM has something to offer
I've not been a big fan of an automaker bailout, unless used to make the Big 3 significantly more efficient. Earlier today, I even argued the bailout MUST include strings.
Well, I've changed my mind. Give GM the money.
Does GM deserve it? I don't care. If not for the Wall Street-created financial crisis GM wouldn't need any bailout money. Instead, we could just be angry at them for not making enough fuel efficient vehicles.
Still, if GM was selling two hybrid cars as successful as the Toyota Prius - for as long as Toyota has been selling hybrids - GM would STILL be facing bankruptcy.
GM is facing bankruptcy because of Wall Street. Yet, Wall Street is leading the charge to bankrupt the US auto industry? Please. The automaker bailout isn't even chump change compared to the money being spent on the chaos caused by Wall Street. At least GM sells a real product, unlike the expensive lies Wall Street sells. |
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| Sketches of new Lexus and 2011 Camry hybrids? |
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| Tue, 11 Nov 2008 21:08:00 +0000 |
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 The Lexus HS250h
Here is a shot of the Lexus HS250h from Mag-X that some are speculating will be the new Lexus hybrid set to debut at NAIAS 2009 in January. According to VW Vortex the new Lexus hybrid will utilize the same 2.4 liter engine currently found in the Toyota Camry hybrid.
 The 2011 Toyota Camry?
Likewise, here is a picture of the 2011 Toyota Camry hybrid that is expected to utilize the same third generation Hybrid Synergy Drive set to debut in the 2010 Toyota Prius, except the new Camry hybrid will move up to a 2.5 liter engine.
Similar to the third gen. Prius, the new Camry hybrid is expected to offer better performance and fuel economy. |
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| Mercedes S400 hybrid built specifically for PR |
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| Tue, 11 Nov 2008 19:24:00 +0000 |
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 Is Dieter Zetsche stupid?
Luxury hybrid vehicles don't resonate well with me. Fuel efficient luxury vehicles might help develop technology, but they are going to have little effect on global warming or foreign oil dependency. Still, for the technology development, I do at least partially advocate for these hybrids.
So, with interest, I read MotorTrend's review of the S400 hybrid and then I read this:
Daimler chief Dieter Zetsche told me a few weeks back that the car's fate had changed with high gas prices. "At first I thought it was just a marketing tool, just so we could say we had a hybrid. Now it's hard to tell." Interest has been high. "But I'm not sure I want to sell too many, given the cost of it to us." |
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| Gas prices - Why strings MUST be attached to any bailout |
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| Tue, 11 Nov 2008 17:19:00 +0000 |
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 Detroit still far behind the Prius
Pop open the bubbly, ladies and gentlemen, it's party time. In 4 states gas has fallen below $2.00 per gallon. On Wall Street, the overwhelming consensus is $50 oil before $65.
But, is that a good thing?
When gas was $2.00 US automakers laughed at the Toyota Prius. Today, the Prius has already sold more than 1,000,000 Prius hybrid cars, yet there won't be one US made Prius-contender on the road until late 2010 with the Chevy Volt. Moreover, GM probably won't be selling the 100,000 Volts per year until at least 2014.
Fortunately, if gas prices remain low, America's gas-guzzling will decline thanks to CAFE, but CAFE regulations won't be strong enough to end foreign oil dependency. Unfortunately, as history as proven, US automakers will simply do as much as needed to achieve CAFE, and when foreign oil dependency again rears its ugly head, America will again be unprepared.
Thus, a bailout must include strings. |
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| Chevy Volt v. Better Place - Which is a niche? |
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| Tue, 11 Nov 2008 15:19:00 +0000 |
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 Neither, both?
Just came across some ramblings on Autobloggreen regarding Shai Agassi's comments calling the Chevy Volt a niche, which seemed to disturb the author.
Instead of buying a $40,000 car, Project Better Place would have drivers pay to access a network of charging spots and conveniently located battery exchange stations powered by renewable energy, plus a mileage fee. This, according to Project Better Place, would make cars much more affordable, even free in some markets.
Before getting too hot and bothered, both the Volt and Project Better Place need to prove their technology. Still, study after study after study demonstrates that consumers are primarily focused on up front costs when buying a new vehicle. Thus, it's obvious that Project Better Place's cell phone business model has potential.
Nonetheless, it will take decades to develop the infrastructure required for Project Better Place to work in America. One day, however, such a model could make range extended electric vehicles and plug-in hybrids nothing but niches. Of course, one day both vehicles might actually be sold in the real world.....one day. Until then, anything is possible. |
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| Bailout BS: Fixing the US auto sector in 3 easy steps |
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| Mon, 10 Nov 2008 19:12:00 +0000 |
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 Tough love for Big 3 includes giving the Prius some credit
I've had enough automaker bailout talk. Let's be frank, US automakers deserve bankruptcy. Yes, in the last few years, automakers have made many important changes, but a few years doesn't rectify decades of bad decisions and unreliable automobiles. Of course, most US auto consumers need to have their gas-guzzlers repossessed as well.
Yet, what good would this destruction create? 10,000 new Tesla employees? Less foreign oil dependency? The end of CO2 emissions from autos?
No. So, here's what Congress should do in 3 simple steps. 1.) Bailout US automakers enough so that they can survive another 3 years. 2.) Add unlimited consumer tax credits through 2015 for hybrid vehicles, EVs, natural gas cars, and any vehicle that can achieve at least 35 mpg on the EPA's city - NOT HIGHWAY -cycle, and 3.) Create a scalable gas tax immediately. This puts a bottom on oil prices, funds the tax credits, and sends a message - more transparent than Congressional regulation - to automakers that gas-guzzling is dead. |
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| Dean Kamen shows off Stirling hybrid |
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| Mon, 10 Nov 2008 16:29:00 +0000 |
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 Dean Kamen's Stirling hybrid
Whether it was coincidence or not, inventor Dean Kamen showed off his Stirling hybrid vehicle the same day Ford and GM reported bankruptcy-like 3rd quarter numbers Friday. The Kamen hybrid can achieve 60 miles of EV power and then utilize Kamen's take on the Stirling engine to back up the battery using just about any liquid fuel, including biofuels and natural gas.
Kamen hopes to mass-produce this vehicle throughout the world and seemed to use the debut to lobby President Elect Barack Obama for a new vision claiming that today's automakers don't understand Darwin and, therefore, technological evolution.
"I think what Darwin really was saying was: It's not the fittest, not the smartest, not the strongest; it's the ones that can adapt to change. And big industries that have long histories, particularly successful long histories, and a lot of ingrained infrastructure become the least adaptable to change," said Kamen according to the UnionLeader. "And when a disruptive opportunity comes along, they are the last that are capable of dealing with it." |
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| Smaller Prius Coupe closer to reality |
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| Mon, 10 Nov 2008 15:08:00 +0000 |
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 Honda's hybrid coupe
For some time Toyota has been discussing Prius derivatives - both larger and smaller than the current the Prius. A smaller Prius coupe is now close to becoming a reality, according to MotorTrend, which also offers a sketch of the vehicle. Few details, other than the sketch, are yet available, but the Prius coupe is expected to utilize the same HSD as the soon-to-be-released 2010 Prius. |
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| Fisker Karma shifts towards reality |
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| Mon, 10 Nov 2008 14:52:00 +0000 |
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 New engineering center in Michigan opened
The $87,000 Fisker Karma plug-in is on schedule to launch in late 2010, and a new engineering center has been opened in Michigan for the effort.
"We're excited to start something up," stated Henrik Fisker, CEO of Fisker Automotive according to AutoWeek. "We're getting a lot of good people in--so that's obviously a big advantage for us."
The 34,000 square foot building will be used for vehicle integration purposes and will employ 200 people to help develop the plug-in hybrid that will be capable of achieving 50 miles of pure electricity, while going from 0-60 in less than 6 seconds - cake eaters are drooling everywhere. |
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| Vue plug-in hybrid to be delayed? |
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| Mon, 10 Nov 2008 14:39:00 +0000 |
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 Not until after the Volt launch?
GM hasn't made any official comments regarding the final production date of the Saturn Vue plug-in hybrid, but some are speculating that this means the Vue plug-in will now be a 2011 production model, rather than a 2010. The speculation makes some sense, however, I wouldn't make any wagers just yet. |
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| LeBeau - Automakers open to fuel efficiency strings for cash |
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| Sat, 08 Nov 2008 01:08:00 +0000 |
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 Time to make the best out of this bailout?
During CNBC Reports just a few minutes ago, Phil Lebeau - whom interviewed GM CEO Rick Wagoner this morning - stated that US automakers would be open to fuel economy strings for government cash.
Seems like a positive sign, and an angle that Congress should exploit. |
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