It has been a week now, and.. July sales have already shown a substantial growth (even though the program has only been out for a week). It has been so successful at getting Americans to buy new cars, in fact, that the prediction early last week of the funding running out soon came true before the end of its first week! The House of Representatives passed an emergency measure to inject 2 billion more into the program, which has yet to be passed by the senate. The Obama administration came forward today to show their support of the program, saying that the White House will fund the program until the Senate is on board. So now there is no denying that this program did what it was designed to do, so what are the opposing sides saying now? (I have to point out they have a point) They are saying that this spike in sales while measurable will only effect us further down the road: they are saying that sales will be much slower in the coming months because, anybody who was going to buy a new car are doing it now instead of later. I have to point out before I finish, this program might be dead before the end of the week. Should the Senate not approve the 2 billion dollar injection, cash for clunkers could be suspended.

Now for some potentially GREAT news for the auto shipping industry! Earlier this month, as part of their efforts to revitalize business, GM began to suggest opening up a partnership between themselves and eBay. Now it’s no news that regular people use eBay to sell their old or rebuilt cars to people all over the country (and a huge part of where an auto shipping business comes into play), but apparently; this isn’t that big of a leap for the auto manufacturing industry. Apparently dealers all over the country have been listing GM certified pre-owned vehicles on the website eBay Motors (eBay’s online auto marketplace). This would be a huge step in regards to new vehicles, something GM’s CEO Fritz Henderson characterized as “an exciting day.” Now who will wind up shipping these cars to the consumers? It is unclear at this point if the automaker will have set in place pre-existing contracts or if this will be left up to the consumer. All I know is this would be a very welcome breath of fresh air in this cruel economic time.

This Cash for Guzzlers plan may be a good idea; I’m not here to pass judgment on the issue. Honestly I personally like this administration, but I don’t feel that this program is one of their best. It doesn’t surprise me to find a government incentive with an accompanying mile long list of regulations. I just don’t understand why any dealers would want to put themselves through this (maybe I’m misinformed, but the regulations make it sound like the dealers will actually LOSE money over this program). In the end, this is the program that’s being offered to them so we will all see how it goes. The following a vague description of the list of things the dealers must do to use this program.

First and foremost, the dealer must be on a list given to the government from the automaker in order to even be eligible. This list will be updated weekly, so if people are not initially on it they have a shot of making it. Say you’ve met this qualification, you are on your way to having this government incentive, but first you must sign up with the government for EACH brand that you sell (this must be done separately, believe me this becomes a headache in a minute). After this, the dealer has made it through the initial stage and their name should appear on the cars.gov website (within, oh I don’t know, say, 4 days).

Now remember we are talking about a government program here so there will be plenty of regulations for the dealer to learn before they implement this program. They can find out what these regulations entail by reading the aforementioned 136-page document spelling these out.

Once they have done all of this, they have to go through about 15 more walls of red tape between themselves and the disposal unit (a government approved scrapping unit, which they can find on the handy cars.gov website as well), wait a little bit longer, and finally get the wrecker’s approval (that they even accept the vehicle). So now they can send it off and put this nightmare behind them, right? Not by a long shot.

After getting the approval of the wrecking company they then must send the necessary paperwork to the Department of Transportation at disposal@cars.gov within 7 days of approval of the scrapping company. After all of this turmoil the dealer must be thinking when am I going to get paid for the money I just put up for all of this? In order to get reimbursed (remember this doesn’t mean that dealers are making any money directly off of this program, it’s supposed to be merely an incentive for people to buy cars) the dealer must then submit each reimbursement application in the form of e-copies. Included in this must be an e-copy of either the purchase contract or lease agreement made at the dealership. If they did EVERYTHING absolutely right, they will be sent an electronic reimbursement from the government.

I have one more piece of technology that should prove to be quite amazing from some people. This development, made by Dallas based ATX Group, would allow for the driver of a vehicle to text message while driving hands free. Voice recognition is what makes this possible. To me this only really begs the question, why is this necessary for text messages? I mean, if you’re going to be talking into your phone, why can’t people just make a call? Of course, I don’t understand why people send text messages like 60% of the time (I guess I’m old fashion by enjoying the fact that I can hear somebody that I’m talking to). Nevertheless, this new development should be a nice safety net to keep people from texting while driving (nobody is good at this no matter HOW good you THINK you are). Please people, don’t text and drive.

One more update on the Cash for Guzzlers program. Chrysler is maximizing this opportunity (while scratching and clawing to stay alive) by piggy backing on this program. Their new program: an additional $4500 off of any Chrysler vehicle purchase, regardless of you eligibility for the government program. This means that if you qualify for the Cash for Guzzlers program, you now have the potential of saving up to $9,000 on a new Chrysler. Who do you think this will help more, the failing program, or the failing company?

I know we have heard plenty of complaining from both sides of the aisle that this congress is a bit too loose in the purse strings, and believe me: this bill only furthers their point. This dealership bill is part of 24 billion dollar spending bill, which could be a key indicator of why Obama opposes it. As this latest bit of trouble for GM during their bankruptcy court trudges on, I’ll keep you posted.

So dealerships are closing in multiple places. Living anywhere in the country, chances are you have seen a dealership close to you shut its doors. In some extreme cases, what do you do if there is now nowhere close by to buy a new vehicle? I’m speaking only hypothetically of course, but the hypothetical may be a reality in certain instances. What about people who live in very rural areas that definitely do not have car dealerships? It is possible that before, they could have driven to a small town nearby (within an hour of course) to purchase a vehicle. And is it also possible that now, that dealership is no longer. Now I’m not saying that I hope this actually happens, but I do intend to point out that having a reliable auto shipper may be the answer to these people’s problem. With Terminal-to-Terminal shipping, extra cost could be incurred for these people who don’t live anywhere near these terminals. This is something that makes Door-to-Door delivery such a valued thing, and finding the right transport means finding the shipper that will cater to your needs.  Leave that to M3 Auto Shipper! (haven’t plugged them in a while, plus I don’t feel like I’ve ever taken the time to explain what it is that they do).

The National Automobile Dealers Association has been showing up in full force to support this legislation. Their efforts seem to be working as their congressional support has been growing quickly all week. It is still unclear whether or not the measure will pass through the senate as it has only half of the votes needed to pass. We’ll see how this unfolds.

Curious about how the Cash for Guzzlers program (the one that I discussed on a couple of occasions) was panning out? According to a growing consensus, not well. The argument states that it is far to early in our economic recovery to count on a plan like this to work. The problem stated: people may own a gas guzzler that happens to be paid off, the incentive would not in any way be worth the accrued debt of buying a new car. Sounds like a pretty reasonable argument to me, but will this ever reverse the decision to implement this program? Only time will tell.

It seems that GM’s bankruptcy isn’t going as smoothly as they may have initially wish it. During their bankruptcy hearings they announced their plans to close thousands of dealerships, ultimately saving the company billions of dollars (which makes even wonder if they considered other areas that they could cut back, perhaps we all need to read a little more deeply into this).

There has now been action on Capitol Hill. Some members of congress are fighting this possible incline in the unemployment rate and it’s a non-bipartisan issue. One congressman described this as strong-arming dealerships into signing a deal by giving them fear of their own closure. Charles Grassley, a Republican senator from Iowa, has already introduced legislation in the House Appropriations Committee that directly address this. Reportedly, out of the two bills in question, one has already passed committee, and is working it’s way up the legislature.

This legislation would restore terminated franchises to their status before GM and Chrysler file for Bankruptcy. Additionally, this would force any further hearings of the closing of these dealerships to be heard in State courts, rather than national bankruptcy courts which will probably make it much easier for the dealerships to have a fighting chance.

GM issued an opposing statement on July 6^th, 2009 through their National Dealer Council condemning the legislation. Which was quickly condemned by the Automotive Trade Association Executives Committee, who blast this letter claiming that this is just another example of GM’s heavy-handed tactics to get their way. However the spokesman for the company may not be lying when he says that if such legislation is passed, the company could be risking any progress they have made or would have made. I know the company doesn’t want to fire people, but this legislation would make it much harder to do so (maybe that’s a good thing) :/

In other news, the Wall Street Journal recently released a report speculating the passage of a new Department of Transportation bill in congress. This was as of July 2^nd. This transportation bill, which was being introduced by House Democrats, is reportedly just in its beginning stages so there is bound to be plenty of development in this story. This bill would cost 450 billion dollar over the next 6 years (yes, yes, I know) if passed. What would this bill do you ask?

Included in the bill would be several initiatives to reduce oil consumption in the U.S.  This is reportedly in an effort to stimulate economic growth (and not for the purpose of conservation, that is way down the list of important things in this country at the moment it would appear).  Additionally, this bill would consolidate the number of Transportation Department programs used to disperse federal tax money to state programs (to under 6). This would be a positive thing as it would allow local agencies to give more specific attention to where the money is going exactly (which could wind up saving us tax money in the end). For some this is just another example of our big spending habits, which they believe will get us further and further into this mess we’ve created. To an extent, I agree.

That’s all for this week. Next week is sure to bring some excitement.

So the entire industry fell a little lower but there has to be a silver lining! There is, and it is measured by the rate of failure. Ford had something to celebrate (sort of). While the entire industry was losing profit margins in the American market, they only fell 11%! The good news for them? Everybody else fell more, giving them a 3 point increase in overall market share: they now control 18% of the market. That means that Ford (a company that by many opinions should have failed like many of their models do years ago) has outsold Toyota in the first 6 months of this year to become the 2nd place automaker only to be outsold by GM! Toyota is not the only company losing ground in the American market though… Nissan has fallen out of the big 6! Who took their place: Hyundai. This marks the first time (EVER) that the 6 best selling automakers in the U.S. have not been based in the U.S. and Japan alone. One more shift that I find to be interesting and then I’ll leave you to your exciting life.. in the luxury category. Lexus has been outsold in the U.S. market by none other than the German automaker B.M.W. This must be exciting news for them, many (myself included) really didn’t think that luxury brands would survive in this GREAT DEPRESSION we are now going through.. And we thought they had it rough in the 1930’s…

In other news, the Italian automaker Fiat (which bought out Chrysler earlier this year) has announced plans to begin reintroducing themselves into the American market by 2011. Specific plans are at this point nothing more than speculation; I wager that we will hear much more on this in the coming months.

Finally I’d like to end today’s article on a positive note (something I so rarely get to do). Do you remember the American Recovery and Reinvestment Act (ARRA)? This was one of the first moves of the Obama administration in an effort to combat unemployment and stimulate the economy when it was signed into law on February 17. This agency has released a progress report regarding the release of funds into the economy. You can check out the specifics here www.recovery.gov . As far as the Department of Transportation: the agency is claiming that the massive infrastructure overhaul that was promised in campaign season last year, is being delivered upon with up to 50 percent of the highway reconstruction funds having been allocated within the first 150 days. This is very good news for the economy as it will definitely combat unemployment in a big way. You can read more about this on the DOT blog at http://fastlane.dot.gov .

In a follow up to an article I wrote last week concerning the Cash for Guzzlers bill under consideration in congress: The bill passed through both the House and the Senate. As of 4:30 yesterday President Obama signed the bill into law. This voucher program will go into effect next month (5 days) and will provide assistance to any owner of a gas-guzzler wishing to purchase a more fuel-efficient car. Any person that is interested in acquiring one of these vouchers (and believe it or not, these aren’t limited to just drivers of SUV’s and large trucks) can access a brand new government website www.cars.gov to find out if they are eligible.

That’s all for this week. It’ll get better, it has to.

In other news today, Japan is seeing a restructuring of its major auto companies’ leadership. Toyota announced today that the current president is stepping down and being replaced by the grandson of the company’s founder. Toyota claims that the company will strive to remain economically viable in the future by weeding out production of oversized cars, and focusing on their production of smaller more fuel efficient vehicles. Sound familiar?

On top of Toyota’s announcement, the ONLY Japanese automaker to actually post profit during this recession, Honda, has announced that they are replacing THEIR president. It just goes to show, if you are a higher-up in the auto industry, don’t count on the success of your company to be an indicator of the safety of your job. (ouch.) That’s all for now..

Some lawmakers are calling this legislation just another attempt to bail out the auto industry. Bailoutbailoutbailout. Maybe the government is giving to much money to failing businesses, I’m not here to make any judgments Regardless of this squabbling, the bail.. I mean bill passed the House by just 24 votes and now moves into the Senate where it will probably die a painful and public death. This voucher system (if passed) would be in effect until November of this year.

In other news, a new car manufacturer called V-Vehicle will soon be opening its doors in Louisiana. This is just the latest from the Louisiana Economic Development team, and should do wonders for the (approximately) 1400 people it will employ. This company is another step in the right direction, as they will specialize in the production of high gas mileage vehicles. It’s got to worth something, I mean.. T. Boone Pickens attached his name to it as one of the chief investors. That guy is so much fun.

That’s all for this week. Wish me a happy birthday! (tomorrow)

I recently read a story about a Florida couple who arranged to have their vehicle shipped to them from their summer home in New York. They chose an auto shipping company based out of Fort Lauderdale for the service. Now with a situation like this the transport job was supposed to be complete in a matter of days: a week at the most. Six weeks later this couple found themselves scratching their heads wondering why their car had not yet been delivered. So what were they to do in this situation? They called the company.

This turned out to be a fruitful as CBS’s Matlock 2020 (which if you’ve never heard of is essentially Matlock set in the year 2020… if failed, as did this metaphor). With the company turning a blind eye to them over the phone, the natural next step would be to go to them in person to see what happened to their car. They sent their daughter who was told that their car was sitting on a transporter (those large trucks that carry around 6 vehicles at a time) and that it would be delivered in the next 4 days. With this information, they sat at home and held their breath. This hope didn’t last long, as predictably the car still didn’t come.

After 6 weeks of no car, they sent their daughter back down to the lot. The company continued to swear up and down that they didn’t have her parent’s car… this was until the young woman spotted the car sitting on their lot. It was right there the whole time!

You will be happy to hear that the FMCSA has revoked this business’ license to transport cars. Don’t let this story shun you from having your car transported. It turns out this company had received 20 – 30 complaints about the same basic problem before finally being shut down.

GM is painting as a chance for reinvention. They are describing this epic failure on taxpayer dollars as a chance to revitalize their failing business model to keep themselves competitive in a global market. So far, this bankruptcy does not mean massive layoffs (other than the ones that have already occurred) or cessation of operation (don’t worry, you can still buy American.. if you want to). So are we led to believe that a massive financial loss will do nothing but revitalize their company? Not exactly. One of the first places we will see a gradual change is in dealerships. Their North American Vice President of Sales and Marketing Mark LaNeve says that dealerships will begin to disappear immediately. He goes on further to state that the company will make every effort to let the customer know when their local dealership will be going under, so really this will just be a slight inconvenience.

So what exactly is this NEW GM supposed to look like? To begin with they are going to be producing fewer brands (depth in specificity rather than wide breadth of production), fewer models (the same idea), and fewer dealers (they will be better placed, better supported). So, I understand that they are doing things – making changes that will make them a more viable company in the future. My question is, why does GM feel the need to paint this chapter 11 filing as a success? Everybody knows that is not the case (that’s not an opinion, I think).

Our current Secretary of Transportation is Ray LaHood. On January 24, he was nominated by president Obama for the position after serving as a representative of Illinois for 14 years. As Obama’s first republican nomination, many have seen his appointment as a mere ploy to demonstrate his bipartisanship. I say this because at the time of his nomination, he served on none of the house committees involving transportation (though he had before in years past). It is the opinion of some that he does not wield much influence in regards to the transportation decisions, many believe that this influence belongs to James Oberstar who chairs the House Transportation and Infrastructure Committee (though this can be argued both ways, I don’t feel the need to go into it). Nevertheless this position is an important one. After all, LaHood leads an agency that oversees 55,000 employees, and a 70 billion dollar budget.

Now I think it’s important to point out that this rise in gas prices is not that terrible in comparison to the fiasco that was gasoline prices last year. However this is a rise we must consider. Is it cost efficient to continue transporting cars by means of private transport companies. Considering the options, I believe it is cost effective. It just seems to me to be much easier to go to a small transport service that will give you more personalized attention.  All of this bodes quite well for an auto transport company and the consumer. It seems to me that with relatively lower cost in actual shipping that a profit margin can be easily found while simultaneously giving good news to these people who want to have their cars shipped to a desired location.

Considering individual loss of wealth (exacerbated by the credit crisis), people will begin to fear. This fear is not unfounded: for instance, what do you do if you get injured when there is not enough income coming in? What if you’re uninsured? It would make sense to me that companies would be focusing their efforts to make the public feel safer. This leads me to something I read about last week.

OnStar, which interestingly enough is a subsidiary of General Motors, announced on May 13^th that they are improving their service by integrating their technology with Microsoft Virtual Earth 3D mapping. Essentially what this does, it gives responders a more specific location of the driver in peril. While this does nothing to prevent accidents from occurring, it is nice to know that the ever-expanding safety net is being constantly refined. Failure and Progress can exist simultaneously.

Thanks for reading the blog.

As stated, the new airbag system has eyebrows raising and people looking impressed. The F-150 is implementing a new “K-bag” airbag system; it’s design is to protect the ribcage during a side-impact crash, drastically decreasing the loss of life during side-impact crashes. The k-bag is named so for its unique shape and is mounted on the side of the front seat to minimize damage and maximize safety for the driver and passenger. The k-bag is the first in a long line of new, innovative safety features that many people are heralding as the thing that may get Ford back on the map.

But that’s not the only thing that Ford has in mind for its truck. Many more airbags are being implemented, including one that would protect front-and-rear-outboard passengers during rollovers, which last considerably longer than a front-or-side impact crash. The F-150 is also sporting a brand new roll-assist technology and advanced electronic stability controls – both of which helped it to win the IIHS’ top safety rating for a full-size truck.

The truck is also offering a brand new design in terms of how its built. Ford has utilized a new, ultra-lightweight, ultra-strong tubular material to build their front end, allowing for more distribution of less weight, allowing the truck to reach unheard-of miles-per-gallon ratings as well as the ability to withstand a front-end impact, making it much easier to repair and much more affordable.

Lastly, we come to the trucks new towing capabilities, which are also helped by the ultra-strong, ultra-lightweight materials used to build the frame and front-end. Probably the most exciting feature of the new truck is the trailer sway control system. This new, standard system determines the yaw of a towed trailer, figures out just how much it’s swaying, and attempts to put a stop to it. Though the technology is new, the results are promising. Other features include a factory-installed trailer brake control system, an all new tow/haul mode (allowing more torque and power to be used when hauling large loads), and an available rear-view camera, which is located behind the blue Ford oval on the back of the truck. This is activated when the truck is shifted into reverse, allowing unsurpassed control of the vehicle to the driver.

These new features sound promising, to say the least. Hopefully Ford can implement these features smoothly and cleanly into their new vehicles, which would bely their reputation for shoddy workmanship. If Ford can make a vehicle like the 2009 Ford F-150 affordable and available to the masses (the cornerstone of the company, ever since Henry Ford started it), then they are well on their way to rebuilding their company and making them competitive once again.

We’ll keep exploring the Ford Story and the company’s attempts to rebuild itself from the ground up next time.

The first part, of a many-part series, focuses on something called “Transit Connect,” a spacious new alternative for cargo vans and pickup trucks. It was designed with business owners in mind: people who need cargo space, but don’t need a massive vehicle to tow all their chairs and filing cabinets. Weighing in at just 1,600 lbs and offering a whopping 135 cubic feet of storage space, the Transit Connect is sitting pretty in terms of trunk space. However, it’s not just that; it gets an estimated 22 miles per gallon in town, and 25 on the highway. That should make a lot of of jaws drop out there.

The Transit Connect should be familiar to anyone who has traveled to Eurpoe in the past six years; it’s launch in 2003 was hailed by Europeans as the second coming of the pickup truck, but Ford hasn’t been able to find a market for it here in the United States. With stiff competition from Dodge and Chevy (the Sprinter and the Express Van, respectively), Ford has had a tough time edging out the competition. But with a new design and a sleek new exterior, plus a much more fuel-efficient engine, the Transit Connect may just be the answer to the American towing and hauling nightmare.

As chief engineer Rob Stevens states, the Transit Connect will be a “useful small business tool. It drives like a car, works like a van and is engineered to be as tough as a truck.” Now that’s good news.

As part of the original funds given to the automakers, they were required to submit a proposal on how best to change the company and make it profitable once more. President Obama has taken it a step further, requiring that an “auto task force” be setup to oversee the restructuring of the companies and make sure that they are holding up their end of the bargain. Unfortunately, however, this plan is starting off slowly, and Detroit is most likely utilizing that lack of focus by the task force to receive more money to continue the disastrous work they’ve started.

But all’s well that ends well, and all we can hope for at this point is that Detroit can actually create a car that the American consumer might want to buy. It’s surprising, really, that the automobile got its major break in the United States, and now the Asian companies are cornering the market and making and producing better vehicles. It’s much like baseball; America may have started it, but Japan and the other asian countries are perfecting it. Let’s get out of this rut and fix it, eh?

However, the country of India will be under lots of pressure to promote the roadwork and widen the roads to accomodate four-wheeled vehicle as opposed to two. Either way, this news is good to hear; maybe, finally, everyone in the world truly will have a car. Although how good of an idea this is, only time can tell.

However, the SMMT has stated that they will stay “committed to to showcasing the achievements and products of the automotive sector.”

Many auto transport companies have been hit somewhat hard by the news as well: the major US manufacturers often outsource their shipping needs to companies inside the United States, and those companies aren’t complaining about the business. But now, with the show cancelled and many other shows likely to be cancelled in the future, the auto transport industry could see a downturn if things don’t improve. However, the good news is that people still are buying new cars, and the only way to get them to the dealerships is to ship them.

So keep your fingers crossed, because as we get deeper into 2009 we’re starting to see what the auto industry can really do. Hold your hats.

The company is hoping for a restructuring out of court, as opposed to Chapter 11, but they need money in order to do it. Restructuring would fix 99% of the problems that they are currently facing, and it wouldn’t have the huge risk of scaring off customers with the name “Chapter 11 Bankruptcy,” and again would solve many problems that the company has hanging over its shoulders.

The viability plan is slated for review on March 31, and until then GM won’t be seeing another dime. The government is hoping that the company will produce something viable, and so are its consumers; as one of the largest employers of US labor in the automotive industry, it’s hard to imagine the company going under. Let’s just hope they can keep it together.

The 2009 Audi Q7 is probably one of the best choices. It earned five stars by the National Highway Traffic Safety Administration (NHTSA), comes with front side airbags (with complete pelvis protection included), whiplash protection for both the driver and the passenger, and energy-absorbing protection under the instrument panels for protection of your legs. Other cars that have been rated highly by the NHTSA include the Saturn Vue, the Volvo XC90 (see, Volvo’s really are safe!), and the Mercedes-Benz M Class.

But, the average consumer is typically more concerned about price than safety in this troubled economy, and that’s understandable. Most of these cars, sans the Benz and the Volvo, ship under $20,000, which will put your wallet at ease. Not only that, but most of them have gas mileage of over 20 MPG, while the Volvo gets only 16 MPG. This isn’t necessairly a bad thing, however, because it is much safer. If I were picking which car I’d buy for safety and price, hands down it would be the Saturn Vue, with roughly 30 MPG it’s one of the most consumer-friendly cars on the road today.

If you want, you can shop around some more. I’d do that.

Cue Clinton. Here he is, stating that the economic stimulus package that Obama is pushing through is a good thing. This is in the face of a whole bunch of conservatives who believe, quite astutely, in the contrary. I think that it’s safe to assume that Clinton may know a thing or two about the economy, and how we can fix it. Needless to say, Obama is having a difficult time finding time to do anything, what with all of his appointees bowing out of their jobs. But who can blame them? Look at what Obama has inherited from Bush: horrible economy, unwinnable war…it’s no wonder no one wants to help him, the job is too immense!

But, rest assured, that the auto industry is still somewhat secure, at least for the time being. Obama’s stimulus package will pump some much-needed money into the auto industry, allowing it to (hopefully) expand and grow, and that’s something that we can all look forward to. So don’t forget, in the coming years, to buy American, because it will be better. You can quote me on that one.

But those dreams might not be a reality. The company is facing huge financial cuts across the board, and some are thinking that they might close their doors by 2010. Not helping matters is California’s support of hydrogen fuel cells, another major contender for the coveted #1 alternative energy spot. Tesla is headquartered in the Golden State, and is working hard on bringing its products to a wider consumer base in the US, including plans for six new service centers in Washington, Oregon, California, and others.

Keep an eye on this company, because if they don’t fall hard, they won’t fall at all. Tesla is poised to be the next big thing to hit America, and if we can get off our duffs and really start caring about not only the planet but about how we, as human beings, choose to live our lives, then that Tesla Roadster (and their sedan model) will be the cornerstone to a new way of life. That may be a bit over-dramatic, but still, we all can dream, can’t we?

Pretty redundant, huh?

The cool thing about the American legislative process is that it’s somewhat difficult to pass controversial bills, or things that might piss a lot of people off. Obviously, there have been mistakes, namely the Smoot-Hawley Tariff and the Embargo Act, but those were a long time ago and aren’t really worth thinking about in this context. What we should be focusing on is where that money is going, and with all the changes going on in the bill, who knows where all that money is headed? All we know is that some of it better be going to Detroit.

Detroit is in trouble, folks. You know it, they know it, I know it, Obama knows, Britain knows it, the guys on the ISS know it – it’s just the way it is. We’ve talked about this enough to realize that, and there’s going to need to be reforms if we’re going to fix it. But we need money first, and the only way that Detroit is going to get money is from the government, so let’s all hope that Detroit gets some of that stimulus package, because it could possibly be nighty-night for the automakers there if they don’t. And we all know what’ll happen to this country if the companies in Detroit go down, so let’s not think about it.

France finally got it right. They’re giving them a loan – what a concept! This isn’t a bailout, it’s not a subsidy, but a full-on loan, complete with interest and everything. And the auto makers are dedicated to creating better, more fuel efficient, cleaner vehicles, which is something else that American companies just won’t do. Now, we’ve spoken about the complete farce the auto industry in America is, but we haven’t really compared it to some of the other major (and minor, in this case) auto makers. Let’s take Toyota. Toyota recently posted a multi-billion dollar loss last year, but they aren’t compromising the products they are putting out in order to sell more vehicles; rather, they’re taking more progressive steps, offering incentives to their consumers and making vehicles that leave a much smaller carbon footprint.

This is what American auto makers need to do. Revamp the business model, make cars that we want to buy, and stop being greedy corporate thugs. How hard can that be?

Obama has been quick to denounce Bush’s failed policies and even quicker to enact his own brand of fix-em-up-stuff, applying them like bandaids to a broken arm. But even those bandaids are working somewhat, as Obama has been quick to announce that he will be supporting the auto industry through these troublesome times – which caused an audible sigh of relief throughout Detroit. But the question of how this relief – and rebuilding – will happen is still up in the air. Obama knows what needs to be done, Detroit knows what needs to be done, but neither are moving quickly on fixing anything.

GM, Ford and Chrysler, as reported before in this blog, employ over 125,000 employees, and as such if they go under (something Obama understands), all those people will be out of work. Things are moving, but slowly, and Obama knows what he needs to do – the question will be getting the bigwigs in Detroit to help him fix everything.

But $825 billion doesn’t sound like change.

With a stimulus package already going out, costing us $730 billion, what’s another $825 million to the taxpayers? But the main question – aside from “where is it coming from?” – is “will the Big Three be seeing any of it?” That’s the main question, and one that we’ve spoken about before in this here blog, but this time the question is more serious. Obama is serious about change, whereas Bush just didn’t really care what happened to the money, as long as it was spent. Will Obama be putting guidelines, regulations and rules on the money that he’s handing out, or will things go a bit different?

Another question is that, should the Big Three get some dough, will they blow it? Their CEO’s aren’t coming around any time soon, so is it possible for the compaines to fix the financial turmoil that they find themselves in? I think that a chunk of change from the government isn’t enough; they need a swift kick in the ass, too. We need to make Detroit realize that their cars just can’t compete against the foreigners, and that’s a bad thing for our economy. They need to start making better cars, because let’s face it: do you want a truck that can haul a bunch of stuff, or do you want a truck that’ll warm your hands?

That’s the latest commercial from Toyota, and it has many comparisons to Fords, Chevys, and Chryslers, with more on the way. Fact is, foreign cars are just plain better, and if Detroit wants to compete, they’ll have to make their cars better.

But that’s not to say he can’t. Rather, it’s going to take time, money, energy, and vast resources to get the economy back on track, and it’ll most likely take years before we’re able to safely heave a sigh of relief and laugh about what happened “all those years ago,” but when we’re back on our feet it’ll be because Barack Obama had the foresight to take things to the next level and make sure his country had the willpower and the ability to get through its darkest moments.

But will it be him?

The question posed before everyone, now that he’s in office, is: “can Barack Obama fix it?” Can he do what he has pledged to do – heal a divided nation, stop the wars in the Middle East, fix the economy – in the four years that he’s here? Or will it be someone else that comes to the rescue?

Regardless of who it is or what they do, one fact remains: the American auto industry cannot fail. GM employs hundreds of thousands of people, and if their factories were to shut down for good, bad things would happen to good people, and that’s something that we can’t have. But this whole “fixing the Big Three” idea is a two-way street; we can’t have the government supporting a failing industry that doesn’t want to change, and we can’t have a company who isn’t willing to grow be the staple of the entire Midwestern and Northern economy (for the most part, anyway). It’s bad business.

Capitalism works well, and with the rise and fall of industries comes new faces to the workforce, new businesses on Sak’s 5th Avenue, and the overall change of pace that comes with new companies. But there are some companies that, should they collapse in this free market economy that we’re riding, will tear the very fabric of it apart, and one of those companies (well, three) is the Big Three.

Software in vehicles isn’t new; from 8-track players, to on-board computer navigation systems, software has been an integral design in vehicles since the 1970′s, and things have only gotten better for American drivers (and, indeed, drivers around the world). Not only do computers run our safety features, collect data such as mileage and tell us when we need to change our oil, but they serve other purposes as well. Most cars come standard with MP3 jacks, and others don’t. In a highly sophisticated world that we live in today, the differences between the cars of today and the cars of thirty years ago are staggering.

People want their music, they want their PDA’s, they want their laptops, and many of them want them in their cars. Sure, it’s one thing to talk on your cell phone hands-free, but if you can interface with the vehicle you’re driving, surf the web, order pizza, talk to your friends, and schedule your next yoga class, all hands-free with the help of on-board computer systems and your own personal devices, chances are that you’re going to be buying that vehicle, instead of the one that doesn’t allow you to do anything.

We live in a world where multi-tasking is the norm, and if you can’t do it, you’re of no use to the business world. Why can’t we drive and do all those other things too?

The global economy isn’t helping matters.

Gasoline prices have been slashed (in some places) by over 50%, but these drops aren’t expected to last. In fact, gasoline prices have been rising steadily for the past few weeks, finally topping out at a nationwide average of $1.61. While still not as cataclysmic as $4.00 per gallon, the rise in prices is putting many people off as many consumers expected the drop in oil prices to remain somewhat steady.

However, the relief in our wallets at the pump was spurred by the credit crisis that hit during the early summer of 2008; in early December, the price for a barrel of crude oil went for a staggering $33.87, the lowest price in five years. Analysts are saying that the drop in fuel prices are stimulating the economy somewhat, which is something we could really use at the moment.

Another reason why prices have dropped is that surplus has finally outstripped demand, marking the first time that has happened in…well, in quite some time, to say the least. Buyers are having a hard time finding places to store all the oil, and some went so far as to put drums of it in their grandmother’s coat closet (strictly metaphorical, of course).

Needless to say, this huge drop in oil prices are spelling trouble for the oil industry, but consumers couldn’t be happier. Now your can drive your car to work, instead of jogging, and trust us – your co-workers will thank you for it.

Last year’s reward meeting was held at the Ritz-Carlton in Naples, Florida.

“You know what, we’ll have other opportunities — hopefully in a much better time to enjoy ourselves,” says Dave Kelleher, who owns two dealerships in the Philadelphia area. He went to the two previous meetings, and said that if they were able to, he would go to this year’s as well. However, he agrees with the company’s decision to hold off on the meeting this year in lieu of the financial crisis.

The cancellation comes as Chrysler is attempting to navigate the worst sales environment in 26 years. Kelleher says that his dealerships have been hit hard by the recent slump in the market as well as the huge drop in sales, and that “it’s a good year not to do this.”

For once, Chrysler might have done something right.

The news of the sell-off comes amidst reports that GMAC, the financial arm of General Motors, was close to securing a deal with bondholders that would restructure their debt, which is a move that is required to secure the unit’s new status as a bank holding company. However, the company has refused to discuss the state of the restructuring and the details therein, but GM stock fell another 7%, finally closing at $3.41.

It’s amazing that Ford was able to keep Kerkorian for as long as they did, and were fools when they didn’t follow the plan that Kerkorian setup to help the company out of its finanacial crisis. However, the blame cannot be laid on the automaker solely – oh, wait, yes it can. Ford has had a habit of building cars that the American people want to drive, and are then surprised when they don’t sell well. Here’s an idea: hire someone from Toyota, because they’re wailing on this ailing company.

Another reason that Japanese auto makers are worrying is the fact that, should the US auto industry collapse, millions of jobs would be lost and consumer spending would be sharply curbed, resulting in fewer people spending money – and fewer people buying Japanese cars. Combined, all three American auto makers (Ford, GM and Chrysler) employ 239,000 workers, and millions more are tied into the fate of those auto makers. Economists estimate that 2.5 million people would lose their jobs, should the Big Three go under.

“Whether it is the impact on consumer confidence or the impact on the suppliers that we all share, having one or more of the major automakers in severe distress has consequences for the entire industry,” said Simon Sproule, corporate vice president of global communications at Nissan Motor Co., Japan’s third-biggest carmaker.

The only way that Japanese auto makers could turn this to their advantage would be much further into the future – decades later – when competition would be scarce and the economy has rebounded from the incredible recession the fall of those companies would mean. The advantage would only grow if Toyota and other Japanese auto makers focused on hybrid technology and clear fuel sources. But even if there would be an advantage later, that still doesn’t solve the problem now. In November, when American auto sales dropped 37 percent to their worst levels in 26 years, Toyota’s sales dropped 34 percent, Nissan’s were down 42 percent and Honda Motor Co.’s fell 32 percent.

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There are many termins used by the track drivers. There are also many slangs. However, in this article, I will try to explain the most frequently used truck driver jobs termins today.

Ford, speaking to reporters in Dearborn at an event to preview new models, said a lot will depend on the last week of the month, traditionally the biggest sales week in December because people are off work for the holidays.

“December for us is turning out relatively well,” Ford said. “So far it doesn’t look so bad.”

Ford sales slid 31 percent in November when compared with the same month last year, and they’re off almost 20 percent for the first 11 months of the year. The entire U.S. auto industry is down 16 percent for the year.

Ford says if General Motors Corp. and Chrysler LLC get the loans from Washington that they have requested to stay in business, it would help Ford by stabilizing parts supply companies.

So far, suppliers have yet to demand payments from Ford, said CEO Alan Mulally. Last week, Chrysler said some of its suppliers threatened to stop shipping to the cash-strapped automakers.

“We have very positive relationships with our suppliers, these are long-term relationships. It’s not like you’d put pressure on each other,” Mulally said in a separate interview Tuesday. “It might be the fact that we are in a different place, it gives a lot of confidence that we’re going to be OK.”

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Asia and Europe’s advance was another sign world markets may be stabilizing, at least in the short term, from their dizzying declines over the last three months, analysts said.

As in the U.S. recently, investors appeared unfazed by dismal economic data. Japanese shares led Monday’s gains even as the country’s central bank released figures showing confidence at major manufacturers marked its sharpest drop in 34 years. China also largely shook off more bad news about waning factory output.

Tokyo’s Nikkei 225 index jumped 428.79 points, or 5.2 percent, to 8,664.66 points, and Hong Kong’s benchmark Hang Seng index added 288.56, or 2 percent, to 15,046.95 points.

Major European bourses opened higher with Britain’s FTSE-100 up 0.5 percent at 4,303.55, France’s CAC-40 gaining 0.1 percent to 3,217.32 and Germany’s DAX up 1.1 percent at 4,712.03.

South Korea’s Kospi rose 4.9 percent to 1,158.19 and major stock measures in Taiwan, India, Australia and Singapore were higher by about 2 percent or more.

The upward swing followed Wall Street, where stocks rallied from an early sell-off Friday as the Treasury Department said it was ready to assist Detroit’s Big Three automakers after a $14 billion rescue plan died in the Senate.

“Investors think the automakers are going to be rescued after all,” said Nicole Sze, Singapore-based investment analyst at Bank Julius Baer & Co., which manages about $300 billion in assets.

“It does seem the market is reacting to stimulus and bailout measures positively and choosing not to focus on data showing a slowdown in growth,” she said.

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