Category Archives: transportation

EPA Finalizes E15 Gasohol Pump Labels as Automakers Again Protest Adding More Ethanol to Gasoline. Lawsuits Pending

The ethanol tariff is comprised of a 54 cent Most Favored Nation duty and a 2.5% ad valorem tax. Critics say the ethanol tariff makes our nation more dependent on foreign oil by increasing the price of imported ethanol. Iowa State University estimates that a one-year extension of the ethanol subsidy and tariff would lead to only 427 additional direct domestic jobs at a cost of almost $6 billion, or roughly $14 million of taxpayer money per job.
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Americans Flying More, Driving Less as High Gasoline Prices Cut Auto Travel during the (Non) Independence Day Weekend

Travelers with household incomes of $50,000 or less is expected to decrease from 41% to 33%, while travelers with household incomes of more than $100,000 are expected to increase to 35% from 26%. Continue reading

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India to be Third Largest Auto Market behind China and U.S.

India will become the world’s third largest light vehicle market by the end of the decade behind China and the U.S., according to a new study. However, India won’t be as profitable as the other two. That prediction comes after India eclipsed France, the United Kingdom and Italy to become the sixth-largest global auto market in the world last year. Continue reading

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Ford Kills U.S. Gas C-Max Van. Smaller Hybrids Now Due in 2012

The C-MAX Energi plug-in hybrid and C-MAX Hybrid will be followed by another next-generation hybrid in 2012, presumably an updated hybrid version of the Ford Fusion, which in its gasoline form remains the best selling car at the Number Two U.S. automaker. Continue reading

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SUVs Now Among the Safest as Electronics Stop Rollovers

The safety improvements are so large that SUVs drivers are now statistically less likely to die in a crash than drivers of equivalent size cars. This conclusion on driver death rates was published today by the Insurance Institute for Highway Safety, which for decades pointed out that SUVs were among the most dangerous vehicles on the road. Continue reading

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OPEC to Keep Oil Production Even. Prices Likely to Stay High as U.S. Economic Recovery Stalls and Unemployment Grows

OPEC’s decision to keep oil production levels constant is the latest setback for the stumbling U.S. economy. Since there has been no change in the way oil is produced or traded – as a fungible commodity – there is no reason speculators cannot keep oil prices moving up toward the record $147 a barrel that it hit in July of 2008. In fact, some analysts warn oil prices won’t stop there this time. Continue reading

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Volvo Recalls S60 for Defective Software and Engine Stalling

Volvo is recalling 2012 model year S60 passenger cars because they can stall without warning. All Volvo S60 models made from 18 November 2010 through 5 May 2011 will have the engine control software reprogrammed to eliminate this safety defect. Continue reading

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Korean Automakers Post Huge U.S. Sales Gains as Disputed Free Trade Agreement Heads for Congressional Approval

Some of the biggest sales gains in May were posted by Korean automakers Hyundai (up 20.7% versus a year ago) and Kia (up 53.4%). Combined, the two Korean automakers sold more than 100,000 vehicles for the month. Korea is the fifth largest producer and fourth largest exporter of motor vehicles in the world.

However, Korea ranks at the very bottom — 30 out of 30 among the largest automotive markets — for auto market access. The average among major developed economies is 40% market penetration by imported automobiles, but in Korea, the total of import vehicles from all global manufacturers in all countries entering the Korean market is around 3.6%. This is about 40,000 vehicles in a market that buys roughly one million vehicles annually. Continue reading

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U.S. Oil Imports Declining Since 2005 Peak. It’s Not All Good

There are several problems with the imported oil numbers since oil is mostly imported as crude, an unrefined product, but is consumed as a refined product. In between there is refinery gain – yes, gain – whereby more comes out of the process of splitting heavier oils into lighter ones. Continue reading

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Chrysler Pays Back Taxpayers. Fiat Now Firmly in Control

The historic bailout differs this time around in what’s left and more importantly who owns it – along with the familiar, nagging question, can Chrysler make it? The new Chrysler Group is now firmly, irrevocably in the hands of Fiat, an Italian multinational firm, which has a global fight in front if it as it too competes to survive in an automobile business dominated by much stronger competitors. Continue reading

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Toyota Recall Study Finds Adversarial Relationship with NHTSA

The Quality Report, since it was paid for by Toyota, has already come under attack for bias from organizations linked to product liability lawyers. Nonetheless, the Report describes Toyota’s attitude toward federal safety regulators as “adversarial.” Unintended acceleration or stuck gas pedal problems are implicated in thousands of incidents and more than 90 alleged deaths. Continue reading

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Chevrolet Volt Plant to Shut for Upgrade. Shortages Coming?

Potential Volt shortages are occurring at a time when a debate is underway – inside GM and out – about just how large the demand is for the Volt, which starts at $42,000 and has the fuel economy (but less interior space) than numerous compact cars, including Chevrolet’s own Cruze… Continue reading

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AAA Asks Congress Yet Again to Pass “Right to Repair Act”

Dealerships used to thrive on automaker-paid warranty repairs, paid for by the factory at reduced labor rates. In order to compensate technicians for this factory dictated lower rate, dealers charged higher rates for non-warranty parts and repairs. In effect, car owners were subsidizing the cost of poor quality at automakers if they went to a factory store. Continue reading

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Tougher Vehicle Economy Standards to Save Billions in Costs?

Pressure or advocacy groups rarely – if ever – acknowledge that higher fuel economy standards are controversial, and they usually don’t explore the soundness of their assumptions. (Ever see a California Air Resources Board assessment of the cost of its aborted electric vehicle mandate of the 1990s?) Continue reading

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GM to Invest $2 Billion in U.S. Plants, Depending on Tax Breaks

Critics, of course, say the cost per job – when you total all the loans and tax breaks – is exorbitant, especially since what is mostly going on these days is the retention of existing jobs long after jobs move South to non-union transplants. Continue reading

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