Archive for July, 2009
What Happens to A Clunked Clunker?
Posted on 31. Jul, 2009 by admin.
The New York Times has an interesting blog post about how car dealers are racing to get the cars, which have been traded in as part of the Cash for Clunkers program, decommissioned and sent to the scrap yard. The process seems even more laborious than the paperwork they need to file with the U.S. government. In the YouTube video above, some employees detail exactly how an engine is decommissioned using a special solution that causes it to seize. The trade-ins will never be driven again.
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Recall Alert: Honda Accord, Civic, Acura TL
Posted on 31. Jul, 2009 by admin.
Honda is expanding a recall from 2008 to include an additional 440,000 vehicles. The recall is for defective airbag inflation systems that could deploy with too much pressure, causing injury or even fatalities. According to Bloomberg News, the default has led to one death in the U.S.
Included in the recall are model year 2001-02 Honda Accords, 2001 Honda Civics and 2002-03 Acura TLs.
Honda will send out recall notices in the next few months, but concerned owners can visit their recall website at www.owners.honda.com/recalls or www.owners.acura.com/recalls for Acura owners.
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Survey: Favorable Views of Ford, Not GM or Chrysler
Posted on 31. Jul, 2009 by admin.
A recent survey from Rasmussen Reports found that as the only automaker to not ask for government assistance, Ford earned a highly favorable view from the public. Predictably, GM and Chrysler are not thought of with as much affection.
Of the 66% of people who viewed Ford somewhat favorably, 22% thought of it very favorably. Compare this with 38% who think favorably of GM and just 9% who think of it very favorably. Chrysler had similar numbers, with 34% viewing it somewhat favorably. Both GM and Chrysler’s numbers are down since the same poll was conducted in May, while Ford has stayed the same.
How could this affect sales? Of those polled, 46% said they were more likely to buy a Ford because it didn’t ask for government help, while just 17% said they are more likely to buy a car from GM post-bankruptcy and 22% said they are less likely.
Polls like this should always be taken with a big grain of salt, though, because they often include contradictory feelings within people. For instance, 60% of those polled thought the auto bailouts were a bad idea, yet a whopping 82% said the domestic auto industry was important to the economy, and 40% said it was very important.
Ford Favorables Hold Steady, GM, Chrysler Down (Rasmussen Reports)
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Cash for Clunkers: An Environmental Thought Experiment
Posted on 31. Jul, 2009 by admin.
It seems as if people are having trouble deciding if having the CARS program blowing through a billion dollars in a week is a good thing or a bad thing. We wanted to look at what has happened from an environmental standpoint.
Because the specifics of all of the cars traded and sold are obviously out of our reach at the moment (as well as the government’s, it seems), let’s just calculate the absolute minimal environmental difference the $1 billion made. Because consumers could take advantage of the CARS program as long as they traded in a car that got a combined fuel economy of less than 18 mpg for one that got an EPA rating of 4 mpg more than the trade-in, we’ll use only that example.
Yes, we understand trucks and SUVs are also part of the equation, but early reports show an overwhelming amount of the trade-ins were for cars. A slight majority even earned the top $4,500 credit, meaning they got a new car with a 10-mpg improvement over their trade-in. But we’re just sticking to these figures to hedge our bets and give a basic outlook.
Say you scrapped a 2000 Chevrolet Blazer with two-wheel drive, which gets a combined EPA rating of 18 mpg, for a 2009 Honda Element with two-wheel drive with an EPA rating of 22 mpg.
According to the Department of Energy, your annual fuel cost (based on driving 15,000 miles with gas averaging $2.44 per gallon) would drop from $2,035 to $1,665. You would save 3.4 barrels of oil, which yields 142.8 gallons of gas for the year. According to Terrapass.com, your carbon footprint would drop from 13,043 pounds of CO2 per year to 10,671 pounds per year.
So, if we assume that all of the approximate 250,000 Cash for Clunker trade-ins followed this very minimal model — helping the environment and U.S. oil dependency by only the weakest measure the program would allow — we’re still talking about an annual fuel savings of $92.5 million for American drivers.
We’re talking about 850,000 barrels of oil saved per year, or 35.7 million gallons of gas.
We’re talking about 593 million pounds of carbon dioxide that’s not spewed into the atmosphere.
And again, let us stress that this is assuming no one scrapped a Silverado for a Prius.
Say what you will about the CARS program being bureaucratic mess, but when’s the last time anyone made an environmental impact like this in one week?
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2010 Silverado and Sierra XFE Models Get 22 MPG Highway
Posted on 31. Jul, 2009 by admin.
Last year, General Motors and Ford responded to high fuel prices and consumer demand for more fuel-efficient pickup trucks by rolling out new “fuel efficiency” crew-cab models. The Chevrolet Silverado and GMC Sierra XFE twins and Ford F-150 SFE were all rated at 15/21 mpg city/highway. For 2010, GM is breaking the tie.
Ford has kept the gas mileage numbers
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House Passes $2 Billion in Funding for Cash for Clunkers
Posted on 31. Jul, 2009 by admin.
The U.S. House of Representatives just passed a measure to add $2 billion in funding to the popular Cash for Clunkers program. The House voted 316-109. The Senate will vote on the bill next week.
Originally, $4 billion was allotted for the plan when it was first conceived; it was later reduced to $1 billion. Problems arose yesterday when auto dealer organizations alerted the government to a backlog of unprocessed trade-in deals that might have exhausted the program’s funding.
The House rushed through the emergency vote today to add more funding to Cash for Clunkers before its August recess; lawmakers were worried that the program would run out of money and leave dealers with disabled clunkers and IOUs from the government. It’s unknown if the program will stand as-is, with the Nov. 1 cut-off date intact, after hitting the Senate next week. We’ll update this post when we have more news.
With this bill’s passing and the White House’s assurances on Cash for Clunkers, it’s likely safe to say you can go out this weekend and buy a new car through the program.
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Senators Propose Nationwide Ban on Texting While Driving
Posted on 31. Jul, 2009 by admin.
First came a report that the government had buried research on the dangers of texting while driving. Then a study from Virginia Tech found that drivers are 23 times more likely to crash while texting. Now, the Senate is considering a nationwide ban on the practice.
“The federal government ought to pass a law banning this dangerous and growing practice to protect the millions of Americans on our nation's roads,” Sen. Charles Schumer (D-NY) said. “It is a matter of public safety.”
He is backed by a group of Democratic senators, including Robert Menendez of New Jersey, Kay Hagan of North Carolina and Mary Landrieu of Louisiana.
The law would work similar to drunken driving laws; any state that did not enact the required restrictions on texting in a moving vehicle would see a 25% cut in its federal highway funds. Still, the Senate has its hands full right now, so it may be a while before we see any movement on a comprehensive texting ban.
If the law were to be enacted, it would go into effect within six months, but states would have two years to develop and pass their own individual laws. Currently, 14 states and the District of Columbia have already banned texting while driving.
Lawmakers Propose Ban on Texting While Driving (Associated Press)
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Mini’s Cash for Clunkers Bumper Sticker: Yay or Nay?
Posted on 31. Jul, 2009 by admin.
Mini is offering its dealers a bumper sticker shown here that reads “My Other Car Was Demolished by the Government” to give to customers taking advantage of the federal government’s Cash for Clunkers program. It’s a tongue-in-cheek promotion the brand is known for, but is it too much?
The base Mini Cooper hardtop gets 28/37 mpg city/highway, which automatically qualifies it for the top $4,500 Cash for Clunkers credit. It also made our list of cars worth trading your clunker in for.
However, the program may be ending shortly if new funding cannot be found.
MINI's Snarky Cash For Clunkers Bumper Sticker Is Awesome (Jalopnik)
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Cars.com Podcast: Buick LaCrosse, Fiat 500, VW CC
Posted on 31. Jul, 2009 by admin.
This
week, editors Mike Hanley, Kelsey Mays, David Thomas and Joe
Wiesenfelder discuss three models that are very important to their
respective automakers. One new car is on sale now, the Volkswagen CC;
one is going on sale soon, the Buick LaCrosse; and one is slated to hit
the states sometime next year, the Fiat 500.
Take a listen via iTunes here, or in a web browser here.
2009|Volkswagen|CC
2010|Buick|Lacrosse
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Cash for Clunkers in Limbo
Posted on 31. Jul, 2009 by admin.
Overnight there were conflicting reports from automotive dealers, the Transportation Department and the White House about the popular Cash for Clunkers program being suspended because it had run out of money. This morning, the White House restated that the program has not been suspended.
The Detroit News is reporting today that administration officials and congressional aides worked through the night to secure additional funding for the program, up to as much as $4 billion, the original approved budget for the Clunkers program.
With a congressional recess scheduled to start after today, a decision likely will have to come down by this afternoon. Keep your bookmarks here for updates as we get them.
Oh, and by the way, the government has taken down its meter, which yesterday showed more than $700 million left for deals.
Update 1: The Detroit News is reporting that Sen. Carl Levin (D-Mich.) has stated Cash for Clunkers will be good “at least” through today.
Update 2: New York Times business correspondent Micki Maynard Tweeted that a bill has been introduced to add $2 billion in additional funds to Cash for Clunkers. Here's the Detroit News story on the emergency bill.
Update 3: Despite all the confusion and questions, White House spokesman Robert Gibbs says anyone who buys a car through the weekend will have their rebate honored.
