February 2009
GM's Future Fuel Economy Estimates Drop in New Federal Aid Application
By John O'Dell February 27, 2009Citing the possibility of an ongoing increase in sales of larger, less-efficient cars and trucks as one factor, General Motors Corp. has revised its future average fuel economy numbers sharply downward in its most recent application for federal aid. ----------Small cars like the future Chevy Spark may not help GM meet next decade's fuel economy standards.---------- The automaker's revisions could also signal a growing belief within GM that it may fall short of meeting the federally mandated corporate average fuel economy, or CAFE, standards for 2020 - a fleet average of 35 miles per gallon. The New York Times more
Ford To Reopen Shuttered Cleveland Plant, Employ 250 To Build Ecoboost Engines
By John O'Dell February 27, 2009Ford Motor Co. is reopening a furloughed plant in Ohio to produce its turbocharged, direct-injected Ecoboost gasoline engine. The automaker said Friday that its Cleveland Engine Plant No. 1, which was closed in 2007, will produce the six-cylinder Ecoboost engine that is at the heart of Ford's bid to enter the green game in a big way. The 3.5-liter engine that initially will be paired with the 2010 Lincoln MKS, Lincoln MKT, Ford Taurus SHO and Ford Flex promises to deliver up to 20 percent better fuel economy with 15 percent fewer carbon-dioxide emissions than vehicles equipped with standard more
Forecasters Slash Outlook for 2009 U.S. Car Sales
By Michelle Krebs February 27, 2009With another month of dismal sales predicted for February, three forecasts released this week revise U.S. car sales for 2009 downward. - Edmunds.com has cut its forecast by more than a million units to 10.1 million vehicle sales for 2009. - J.D. Power and Associates has shaved its forecast by a million vehicles as well. The company puts 2009 sales at 10.4 million vehicles, down from the previous forecast of 11.4 million. - Even Ford Motor Co., which had one of the rosier forecasts, reported in government documents that it had reduced its downside outlook for the year to more
America Losing Interest in Keeping Detroit Afloat
By Michelle Krebs February 27, 2009A survey conducted by the USA Today newspaper and Gallup poll this week found only 25 percent of Americans believe the government should continue lending money to Detroit automakers. "That's a huge, and fast, change of heart," said USA Today's Jim Healey, who added that in December, before the government approved emergency auto loans, 61 percent favored federal help for the automakers. more
Mega-Supplier Visteon Fading
By Michelle Krebs February 27, 2009With February auto sales expected to once again be precipitously low and the nation's economy still roiling, automotive supplier giant Visteon Corp. appears to be sliding toward bankruptcy. The fall could cause more turmoil for the fragile Detroit automakers, all of which depend on Visteon and a number of similar mega-suppliers for a heavy proportion of their auto parts and major sub-assemblies. more
UAW Cornered on VEBA?
By Michelle Krebs February 27, 2009By Bill Visnic With the United Auto Workers (UAW) submitting to its rank and file a proposed Ford Motor Co. amendment to the 2007 labor contract that asks the UAW to accept half of Ford's obligation to the union's Voluntary Employee Benefit Association trust, UAW leadership appears to be choosing the lesser of potential evils. If any of the Detroit Three automakers that owe payments to the VEBA -- an amount totaling nearly $60 billion -- declare or are otherwise forced into bankruptcy, the trust that was established to fund health-care costs for UAW retirees could be shattered, says one more
Lotus Developing 'Omnivore' Engine To Run on Gasoline and a Variety of Alcohols
By John O'Dell February 27, 2009Illustration of Lotus Engineering's omnivore engine doesn't disclose much about its inner workings. It's not a particularly lovely beast, but Lotus Engineering says its prototype "omnivore" engine will thrive on all kinds of fuels and that's likely to make it a winner in the world to come -- when petroleum is fading away and biofuels from a variety of sources and in a variety of chemistries are developing to fill the void. Lotus says the blocky internal combustion engine has the "potential to significantly increase fuel-efficiency" for sustainable alcohol-based fuels (ethanol, methanol. propanol and butanol ) and can more
Study Finds Plug-In Hybrids With Lots of All-Electric Range Won't Be Cost-Effective
By John O'Dell February 26, 2009Weight, Price Penalty for 40 Miles of All-Electric Range Is Prohibitive, Researchers Say By John O'Dell, Senior Editor In a report sure to be a blow to GM's hopes for its upcoming plug-in hybrid, researchers at Carnegie Mellon University have found that the extra cost and weight of the ---------- Researchers say vehicles like the the Chevy Volt may be too much of a good thing. ---------- batteries a vehicle such as the Chevrolet Volt must carry to achieve its targeted 40 miles of all-electric range make it too expensive to be cost-effective transportation for most people. The report, to more
Car Owners Hanging Onto Their Current Rides
By Michelle Krebs February 26, 2009Car owners, as suspected, are hanging onto their current vehicles longer -- and longer and longer. The average age of trade-ins has been edging higher every year since 2004, according to recent data compiled by Edmunds.com, parent of AutoObserver.com. Today, the average age of a trade-in is nearly six years old, more than a year older than its counterpart five years ago. In 2004, the average trade-in was 4.32 years old. For 2008, the average trade-in was 5.3 years old. In the first two months of this year, the age jumped to 5.95 years old. Source: Edmunds.com more
$25 Billion Federal Loan Fund for Green Car Manufacturing Still Untapped
By John O'Dell February 27, 2009Is the Advanced Technology Vehicles Manufacturing Incentive Program a good measure of how quickly Uncle Sam will be able to push badly needed federal dollars into the U.S. economy? ----------Funds would help developers of batteries for hybrids, EVs.---------- Let's hope not. According to The New York Times, the program that Congress created in 2007 has yet to allocate any of the $25 billion that is available to help push production of electric-powered and other advanced technology, fuel efficient vehicles. "Some members of Congress are starting to ask why the Energy Department money is not flowing yet," The Times said. more