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The Parking Ticket Geek: Double Secret Probation for Global Parking Management in 32nd Ward

2009-01-09T18:39:47Z

As reported at The Expired Meter just a few weeks ago, according to 32nd Ward Alderman Scott Waguespack, the fate of Global Parking Management had been sealed. The private booting firm was going to be given the boot from the 32nd Ward.

Too many complaints, too many reports of alleged violence, too many police reports and too much time spent dealing with the issue of private booting company Global Parking Management.

"Dealing with the constant weekly issues on this, putting people in the position of fearing of their lives...", said Waguespack at the time. "I shouldn't have to deal with it."

Waguespack and his staff seemed to have decided enough was enough and were moving ahead on changing the ordinance that would eliminate private booting in the 32nd Ward.

Global Parking manages 40-45 parking lots throughout Chicago, according to company officials, deploying the Denver boot on vehicles whose owners trespass on their lots or violate the rules specified on signs. Global Parking controls 10-13 parking lots residing within the 32nd Ward. This amended city ordinance would have effectively eliminated about 25% of Global Parking's lots.

But emotions seem to have cooled in the interim, as Ald. Waguespack met with pissed off constituents who complained about Global Parking and Global Parking's owners. Global Parking is going to be allowed to stay, at least for now, but with some potentially restrictive changes coming in the near future.

"What I would like to do is not entirely kick them out of the ward," said Ald. Waguespack. "There will be a voluntary suspension of business at some locations in the ward."

According to Ald. Waguespack, as of January 1, Global Parking Management is voluntarily suspending operations at two parking lots in the 32nd Ward until his office and the company can finalize details of changes the parking lot management company must make in order to remain welcome in the 32nd Ward.

The two parking lots in question are at Burger King, 2344 W. Chicago Ave. (next to Village Pizza) and Village Discount in Roscoe Village (lot at Roscoe and Hoyne). These two locations have produced the most complaints to the alderman's office and to the police.

But Global Parking Management owner Joe Grillo has a slightly different view on how this cooling down period is going down. Grillo says it's not a "suspension of operations" at the two locations but "minimizing operations for right now." according to Grillo. "There are no conclusions on how things will be resolved...nothing is finalized yet. We don't want to give people the idea they can park there (without consequences)."

Grillo defined "minimizing services," at the two lots as posting employees on the lot part-time instead of full-time, reducing hours and possibly days of enforcement.

"We're still in the midst of speaking with the alderman," explained Grillo. "We are basically keeping the lines of communication open and seeing what we can do to address the concerns of the community."

Toward this end, Waguespack has asked Global Parking to meet with some of the neighborhood chamber of commerce in the ward, including, those representing Roscoe Village, West Town and Wicker Park, to get their input on the issue.

Global Parking and Waguespack's office are slated to meet after the first of the year to discuss a list of specific changes that Global Parking will have to agree to in order to stay in the 32nd Ward. There are no set changes or hard deadlines yet. But Waguespack and Grillo both ticked off a few ideas, including a uniform or bright vest for Global employees, labels for cars parked in Global lots, more training for Global employees, changes in signage and perhaps a 10-15 minute grace period that would allow a bit more flexibility for parking lot patrons.

Ald. Wauguespack has also been consulting with Ald. Gene Schulter (47th) and Ald. Tom Tunney (44th) about how to tighten the rules and regulations on the ordinance that controls private booting. Ald. Waguespack explained there was no penalty system written into the ordinance to punish Global Parking for infractions and suggested perhaps a three strikes type approach to the issue.

Grillo defends the practice of private booting, which his company introduced in Chicago 10 years ago, as a necessary weapon to help business owners preserve their parking lots for their customers. Grillo feels that the concept of protecting the business owner's right to control who parks on their lot is often lost in the heat of emotion.

"It's a softer approach than the alternative, which is towing," explained Grillo. "You have to ask yourself, 'would I rather be towed or booted?' It's a safer, more effective approach for violators and drivers."

According to Grillo, private booting is less expensive than towing. You also don't have to find transportation to the tow lot, so it's therefore faster to rectify the situation. There is less chance of damage to the vehicle and every driver that is booted has the right to appeal to the company.

Grillo also made the case for the survival of his business. "We're real people here," Grillo said. "There are 35 families that rely on this business for their livelihood."

Grillo seemed optimistic that something can be worked out that makes everyone happy. "I think there will be a lot of changes for the better and to ease a lot of people's minds," said Grillo. "We'll do whatever it takes to make this work."

Check out The Expired Meter for all sorts of Chicago parking news, tips and tricks to fighting parking tickets and red light camera tickets.

Alex Pasternack: Beijing to Drivers: Give Up Your Car, We'll Pay You $3,600

2009-01-09T17:30:56Z

Beijing is so desperate to get high-polluting cars off the roads, the city has devised a scheme that will pay citizens as much as $3600 to give up heavily polluting vehicles -- and even give drivers more money to purchase cleaner cars.

The scheme by the environmental protection bureau is only one part of a massive plan to get Beijing's more than 350,000 high-polluting vehicles out of the city during 2009. China's capital has already banned cars from the roads on one of five weekdays based on their license plate number as part of a six-month trial that follows broader anti-traffic restrictions during the 2008 Olympic Games. The pay-off, say officials, is a 7 percent rise in blue sky days this year (although as we've mentioned, that statistic remains suspicious).

The initiative would take about 10 percent of the city's 3.5-million registered cars off the roads -- an amount that is estimated to account for 50 percent of the city's notorious vehicle pollution.

More at TreeHugger

Read more: Environment, Traffic, Cars, Beijing, Pollution, China, Home News

"Car Talk" Guy Ray Magliozzi Favors 50-Cent National Gas Tax

2009-01-09T17:05:07Z

This week on the Bottom Line podcast: Ray Magliozzi, on why he supports a 50-cent national gas tax: "We would want to discourage people," Ray says, "who had no good reason to drive a pick-up truck that got 11 miles per gallon just because they wanted to commute back and forth from Home Depot just to buy plants."

A little bit of "Car Talk" tax talk with Ray Magliozzi. Plus, WBUR's Meghna Chakrabarti explains the pros and cons of increasing the gas tax in Massachusetts by 23 cents.

Plus, President-elect Barack Obama proposes a stimulus package as big as $800 billion. We get analysis of Obama's first speech since the election with columnist Robert J. Samuelson of Newsweek and the Washington Post.

Read more: Gas, Ray Magliozzi, Gas Tax, Car Talk, Cars, Green News

BMW's 2008 Sales Down 4.3 Percent

2009-01-09T08:15:06Z

BERLIN — Germany's BMW AG reported Friday a 4.3 percent decrease in sales for 2008, attributing the fall to the global economic crisis and increased reluctance among consumers to make big purchases.

The automaker said it sold 1,435,876 BMW, Mini and Rolls-Royce brand vehicles last year worldwide. The market took a sharp turn lower at the end of the year, with sales dropping a stunning 26.4 percent in December from a year earlier amid the deepening global economic crisis.

Read more: Bmw, Cars, BMW Sales, Business News

Past, Present And Future: 23 Electric Cars Driving The Revolution

2009-01-08T12:08:58Z

Transportation plays a major role in our lives. We would all like to keep the benefits that it brings us while getting rid of the negative side effects (global warming, air pollution, etc). Walkable cities, public transit, and cycling are all part of the solution, but automobiles will be with us for the foreseeable future, so we need a car revolution. Here are some electric cars (some more successful than others) that are showing us what tomorrow might be like.

Dennis O'Brien: Snow, Quayle, Feinberg and Merkin: This Is Who Gets Our Bailout Money?

2009-01-08T10:09:50Z

You might not think that your tax dollars should be given to a company like Cerberus Capital Management, L.P., the highly secretive, wildly wealthy, hugely powerful private equity firm.

But, well, we're not in Kansas anymore, are we?

Cerberus has been the beneficiary of not one, but two government bailouts; getting approximately $10 billion in taxpayer funds. Cerberus made two really bad bets, and the American taxpayer is breaking their fall.

Cerberus owns 80% of Chrysler and until recently, a controlling stake of GMAC. Who is Cerberus' chairman? John Snow, Hank Paulson's immediate predecessor as Treasury Secy. Who else is there? Among many influentials, former VP Dan Quayle. Steve Feinberg, the firm's co-founder, is a former junk bond trader at Drexel, and a big GOP contributor.

Cerebus owns companies that have over $100 billion in revenue per year, and their website says they also have $26 billion under management. So their exposure here is really quite a small percentage of their total assets. However, that didn't stop them from pulling all of the levers of power to get government help (Quayle and Snow both personally lobbied government officials). Weird how Quayle and Snow didn't show up on televised public Congressional hearings, though, huh?

As a completely unregulated private equity partnership, Cerberus has no public reporting requirements. In fact, they are now explicitly refusing to disclose their financials, or the financials of Chrysler, even after the bailout. Therefore, we have no idea what management fees they are pulling out of the company, even as we bankroll their continuing operations.

In their defense, turning Chrysler around has apparently been tougher than the geniuses at Cerberus thought it would be. Here's Steve Feinberg last January:

"We believe we bought the company very cheaply, and we do not need to be heroes to earn a good return on the investment."

Hmmm.

Cerberus has now had to give up control of GMAC, as part of the bailout deal. However, because of the infusion of government equity, Cerberus and its investors have been assured a relatively soft landing. At the behest of lawmakers, Cerberus has also promised to provide $2 billion in new equity to help GMAC. Why didn't they do this before a government bailout was necessary?

To cap all of this off, the man Cerberus hand-picked to be chairman of GMAC is hedge fund giant Ezra Merkin. Merkin has reportedly lost $1.8 billion in Bernie Madoff's Ponzi scheme, and he is being sued by NYU for "unauthorized" investments of University money with Madoff; New York Law School is suing Merkin over the $3B they lost with Madoff; and Yeshiva University is also blaming Merkin for their massive losses.

Word now is that Merkin will resign his post at GMAC. Gee, why, I wonder?

These are the people we are bailing out??

Just asking:

How much money has Cerberus made in management fees in the past year from Chrysler and GMAC?

Why has John Snow not been asked to testify before Congress?

If, as John Snow has argued, "the involvement of private investment in the economy, as seen in the Chrysler purchase, offers perhaps the last best hope of turning around the auto industry and basic manufacturing in the U.S.," why is he now begging for government funds?

Will Treasury force disclosure of Chrysler and GMAC financials now that they have been bailed out?

Will / should Cerberus be forced to liquidate assets / 'take a haircut' on other investments to keep Chrysler alive, just as the American taxpayer is doing? (after all, Snow has said keeping the car company alive is a patriotic duty!)

Steve Parker: Even After $14 Billion in TARP Money, Detroit's on Life-Support

2009-01-08T05:08:35Z

During the second-round three-ring congressional circus "starring" the CEOs of the Detroit Three and the head of the UAW, there was a lot of talk about General Motors not being able to make it until the end of 2008 without immediate support (read: money) from Washington.

Well, somehow, they made it.

And they managed to make it without receiving one cent in government money until after the new year had begun, when they were lent $4 billion, as was Chrysler (Ford remains officially on the bailout sidelines, but is still pushing for a TARP "line of credit" if they need it, which they probably will).

Industry journal Automotive News reported on its website Tuesday this week that, "GM is slated to get another $5.4 billion on Jan. 16. GM would get another $4 billion on Feb. 17 if Congress authorizes additional federal loans."

Chrysler is not scheduled for anymore bailout loans.

(GM CEO Rick Wagoner demonstrates what he'd like to do to male members of Congress, as his VP, Bob Lutz, looks on approvingly; these two have become the Bush and Cheney of the car world, with Wagoner the young, calm, sober CEO from the company's finance side, not given to memorable sound bites, and Lutz the product expert, the hot rod king and Wagoner's wiser, scheming, arrogant elder, but saddled with a troublesome mouth).

So how has GM already received $10 billion?

The $4 billion loan-out (sub for "bail-out") is not the only TARP money benefiting GM.

The Treasury Department also just injected $5 billion directly into GMAC, GM's captive finance arm, in exchange for stock. And TARP gave GM another $1 billion to invest in GMAC, needed so GMAC could receive a bank charter necessary for them to tap TARP funds.

GMAC not only markets financial products for consumers (they were heavy into home mortgages, too), they also help GM franchise dealers finance their wholesale purchases of GM cars and trucks (aka "floorplanning") for their showrooms. So it's a good bet that most, if not all, of the $6 billion GMAC has received from Washington is going to end up, one way or another, in GM's coffers.

(A Tesla EV Roadster at their Los Angeles dealership; very small carmakers might own their dealerships, but for the majors, franchise laws make that almost impossible; GMAC is the major finance company between GM's factories and its dealers, and between the dealers and car-buyers; nice, cozy set-up, no?).

To spur new-car sales, after getting the billions, GMAC lowered the FICO score threshold for financing GM customers from 700 to 620. Still pretty high these days, when tens of millions of Americans -- and probably many more -- are behind on their bills.

The real "bottom line" is that GM/GMAC has received a total, so far, of $10 billion in TARP funds, with $5.4 billion more coming on January 16th and a good chance of another and hoped-for- final $4 billion February 17th. And there's no reason GMAC couldn't pony-up to the bar again to ask for a few billion more.

(After reading this post, Tom Wilkinson, GM's director of GM news relations, emailed me the following: "GM currently owns only a minority stake in GMAC, and the loan agreement requires that GM reduce its stake to just 10%. There is no question that a stronger GMAC is very important to GM, but to imply that providing $6 billion to GMAC is just like providing it directly to GM is not accurate." [end of GM statement] We welcome all opinions here ... Haven't had to remove any "comment" messages yet).

This week, the public's getting GM and Chrysler PR spin and car dealer-like optimism, a rare automotive double-whammy, both reporting that they might not need more TARP money, that the $4 billion they've each received might be enough to get them through these tough times (even though we now know GM has received $10 billion).

Their PR efforts are all BS. And these Detroit Two out of Three know it.

(A 2009 Dodge Ram pickup atop a 2009 Dodge Ram pickup with a flatbed and dualies in the rear, the Ram practically the only bright spot in Chrysler's catalog; now, why would a carmaker give the media a photo of one of their products on top of another -- might some people think that top one had broken down? Just asking ...).

Executives from Chrysler, GM and Ford, during Monday's press conference calls discussing December and full-year sales for 2008 and their '09 plans with reporters and analysts from around the world, said they don't expect any change in the US marketplace until at least the second half of 2009, and possibly not until 2010 has begun.

Total car and truck sales in the US for 2008 were just above 13 million; 2007 saw full-year sales of 16.2 million. The near-18% drop in 2008 sales translated into more than an $81 billion loss, split among all the carmakers selling in the US. It's not just Detroit that's in trouble, but their particular problems are without doubt the auto industry's worst.

Here's the problem: Many analysts, including this one, predict that if 2009's sales total falls to 11.5 million units or less, the ex-Big Three cannot remain in business. If sales tank that much, some of the import companies might even pull-out of the US market or drastically cut-back their operations there.

With economists predicting a rough 2009, 2010 and maybe even 2011, there's not much chance of '09 and '10 car sales reaching even 2008's miserable 13.1 million. In fact, the NY Times' Nobel-laureate and Professor of Economics at Princeton, Paul Krugman, wrote in this past Sunday's paper: "Let's not mince words: This looks an awful lot like the beginning of a second Great Depression."

(Infiniti premiered their new G37 hardtop convertible at the summer, 2008 Paris Auto Show, when we were all still young and naive. By the time the LA Auto Show rolled around in November, '08, some show attendees seemed more interested in how fast the top goes up and down than in actually buying one).

And in what might portend some of the import companies leaving or drastically cutting-back in the US market, Nissan and their luxury brand, Infiniti, are not exhibiting at the coming Detroit auto show. The Detroit and Los Angeles shows are the nation's most important, and Nissan has told their Detroit area dealers to not attend the show in any official capacity (Nissan/Infiniti officials might have seen the rotten exhibit Chrysler dealers created for last November's Los Angeles Auto Show, made necessary when Chrysler canceled their corporate participation).

During a radio interview last night, the host asked me if Chrysler is already bankrupt, but just hasn't completed the paperwork. I answered that his question was a pretty good read on the company's situation.

The new Dodge Ram full-size truck and the Jeep Patriot are bringing some customers into showrooms, but Chrysler offers no real compelling, relevant or high-mileage products. In spite of their trotting-out an EV or two for the media and politicians recently, even those vehicles, if Chrysler were serious about them, would need another four to five years of development before their production and sale (hear the one-hour interview at www.TalkRadioOne.com; we covered a lot of ground).

(In the center of the crowd of media falling over itself is the Chevrolet Volt, the "extended-range plug-in hybrid" promised for 2010. Now it's as big a question mark as GM itself).

A top Chrysler exec said during his Monday press conference that 20% to 25% of people wanting to buy a new car from a Chrysler/Dodge/Jeep showroom can not get financing; so what will happen with Chrysler Financial, their version of GMAC?

They'll want "support," too.

Inaugural Limousines (SLIDESHOW)

2009-01-07T11:04:32Z

President Obama's new limousine, dubbed "The Beast," will make its debut on inauguration day, following a rich tradition unveiling fly new rides on inauguration day. A collection of inaugural limousines throughout history can be found below.

Coconut-Based Car Parts Could Reduce Synthetic Polyester

2009-01-06T16:46:09Z

There is clearly not enough news involving coconuts. Fortunately, Baylor University in Texas is remedying that with a way to turn unwanted coconut husks into useful car parts.

While we haven't reached the coconut carburetor point, engineering professor Walter Bradley and his team of researchers envision the renewable fiber replacing the synthetic polyester that is used to make trunk liners, covers for interior doors, and floorboards. The team chose husks because they're inexpensive, nontoxic, and have the potential to work just as well as polyester.

Shelly Palmer: Auto Sales Worse In 15 Years, Bad News for Commercial TV: MediaBytes with Shelly Palmer January 6, 2009

2009-01-06T09:35:18Z

Auto sales in December were the worst in 15 years, with sales falling 36%. While US manufacturers are hurting, Toyota actually had the worst sales report, with a 37% decline in sales. With Automotive accounting for as much as a third of local television advertising dollars, this scenario could not be worse for the commercial television business.

The New York Times began selling front page ads, the first of which appeared in yesterday's edition. Sources say that a front page ad will cost the advertiser roughly $75,000 on weekdays and $100,000 on Sunday. Selling front page ads, which run at the bottom of the page, is the latest attempt by the Times to increase revenue in order to pay off mounting debt.

Roku, makers of the Netflix set-top box, have announced that they will integrate Amazon's Video On Demand into its streaming box. Roku users will be given access to Amazon VOD's library and will "enjoy instant playback, no downloading, no waiting, and no subscription fees." The service is expected to launch in the coming months.

Yesterday, Oprah Winfrey spoke candidly on her talk show about her weight problem. The famous talk show host, who reportedly weighs over 200 pounds now, said she'd all but "given up" on herself during 2008. Oprah is quoted as saying ""When my engine runs down, my drug of choice is food. This year, it was organic multigrain blue chips . . . but a bag of them."

Twitter was hacked this weekend as part of a successful phishing scheme. The accounts that were hacked were mostly celebrities, and other prominent figures like President-elect Barack Obama, Britney Spears and CNN's Rick Sanchez. However, the most high profile hack was made to Bill O'Rielly's Twitter account, which simply stated "Bill O'Rielly is gay."

Plus, today's consulting question, "I thought the TV Guide properties were sold to Allen Shapiro and One Equity Partners, what happened?" Shelly has the answer on today's MediaBytes.

Shelly Palmer is a consultant and the host of MediaBytes a daily show featuring news you can use about technology, media & entertainment. He is Managing Director of Advanced Media Ventures Group LLC and the author of Television Disrupted: The Transition from Network to Networked TV (2008, York House Press). Shelly is also President of the National Academy of Television Arts & Sciences, NY (the organization that bestows the coveted Emmy® Awards). You can join the MediaBytes mailing list here. Shelly can be reached at shelly@palmer.net

Toyota Suspending Production For 11 Days In Japan

2009-01-06T07:39:39Z

TOKYO — Toyota is suspending production at all 12 of its Japan plants for 11 days over February and March, a stoppage of unprecedented scale for the nation's top automaker as it grapples with shrinking global demand.

The last time Toyota Motor Corp. halted production at all its Japan plants was in August 1993, when demand plunged because of a rising yen, and that was for only one day, according to the company.

Steve Parker: Car sales, 2008; even worse than we thought

2009-01-06T05:16:39Z

Monday brought three conference calls, each about an hour, with executives from each of the Detroit Three announcing, dissecting and, most of all, spinning, their final 2008 full-year sales figures, as Wall Street-type industry analysts and reporters ranging from outlets including the Associated Press to Motor Trend, from Automotive News to the Huffington Post (your loyal poster) took notes and could ask questions.

Auto industry sales numbers can be as skillfully sliced, diced and presented for consumption as easily as my favorite TV pitchman, Vince, demonstrates his newest kitchen gadget.

How did the day go? Well, the only non-loser in the US in 2008 was Subaru, with a 0.3% sales increase. They sold 491 more cars in 2008 than 2007.

Outside of Fuji Heavy Industries' car-making division (see above, Subaru), the 2008 numbers were negative and, well, miserable.
(Subaru's WRX World Rally racer under the control of the late World Rally Champion, Scotland's Colin McRae. Subaru was the only carmaker in the US to see a sales increase in 2008).

General Motors, Ford, American Honda and Toyota USA all reported declines of more than 31% in December; Chrysler experienced a plummeting 53.1% drop when comparing December 2008 and 2007 sales.

For all of 2008, BMW dropped 9.7%, Daimler (Mercedes, Smart and Maybach) fell 1.5% , Isuzu lost 33% and Mitsubishi, 24.6%. Nissan was down 10.9%, Porsche had an even 25% loss and Volkswagen sank 4.4%.

Officially, the US auto industry just ended its worst year since 1992.

All the conferences were a bit like the end of the Wizard of Oz, when the curtain is pulled back to reveal the Wizard as all-too-human; that's because, thanks to the recent Congressional hearings, the entire world now knows much of what's wrong in America's carmaking capitol.
(A Maybach, really an outrageously elongated and outfitted version of the Mercedes-Benz S-class for about $300,0000 more. Even mighty Daimler, including Smart, saw a drop in sales last year).

A year ago, the 2007 full-year sales figures saw car and light truck sales just a tick over 16 million (in car parlance, the light truck category includes pickups, minivans, SUVs and some crossovers).

And as the world started doing business for 2009, carmakers selling in the US reported 2008 total sales of 13,139,058.

Doing what TV judge Marilyn Milian calls "a little rough justice" on our calculator, that works out to an 18.7% drop from '07, and a loss of 2,913,122 sales.

With the average price for 2008 vehicles at $27,958, that means a loss, in America's car marketplace, of $81.5 billion, with the overseas auto industry faring no better.

Not incidentally, all three companies said their full-size SUVs and other truck sales increased beginning in late September/early October, as gas prices started trending down (while they're already on once again an upward slide).

And no Detroit conference call participant would predict sales numbers or market shares for 2009, except to say there is little on the horizon, for at least the first half of '09, to indicate there will be any recovery; that things will remain about the same for the foreseeable future.

During GM's call, they showed enthusiasm for "...six major launches in the US in 2009. There's a new Buick Lacrosse, in the large mid-car segment, the new Camaro in the regular sport segment, which offers conquest opportunities (gaining new customers who had previously bought other brands), the new Cadillac SRX, a bone fide strong player in the mid-luxury crossover segment, the Cadillac CTS wagon in a market we have not yet been in, and Chevrolet's Equinox crossover and a GMC version of it. These will all get 30mpg and will be near the other leaders in their segments." Well, we shall see, won't we?

The execs also said that, "When the Obama Administration comes in, there's likely to be a long honeymoon period, and a lot of excitement because of the change he's promised, and for us, he's coming at a perfect time." They also have high hopes for Obama's choice for Treasury Secretary, Timothy Geithner, now head of the NY Federal Reserve.
(The 2010 Camaro prototype at the Los Angeles Auto Show; it's base model comes with a 300-horsepower V6 and the numbers go up from there in cylinders and power. Ford has brought out a not-really-new-but-freshened-up Mustang to compete with the General in this segment, and Dodge has their new Hemi-available Challenger. Last round-up of the Pony Cars! YeeHaw!).

Ford execs, in their conference call, explained what they called a "milestone" in today's numbers. "The pendulum has swung back towards passenger cars in 2008. It is the first year since 2000 that passenger car sales were higher than light trucks, though light truck sales were still significant," said the company's top analyst. He estimated the car market share at 51%; the rest are (still) trucks.

Ford also announced that 30% of their 2009 cars and trucks will be all-new models, and they hope their new Fusion gas/electric hybrid (and its Mercury twin, the Milan hybrid) to bring many new buyers into their showrooms (though the new Mustang will probably draw more shoppers).
(Ford's new 2010 Fusion hybrid, top, will soon hit the roads of America, but their all-new F-series truck is where the company knows they can make the big bucks).

Chrysler wants a national Car Czar appointed, an executive saying, "It would make it a lot easier for us" if the post were filled. They want more bailout loan money so their in-house financial company can more easily finance customers (GMAC now finances buyers with FICO scores of 620 and above; before GMAC's recent bailout loan, that number was 700).

They also talked about 90 million new potential car-buyers who belong to credit unions, which have agreed to try and finance Chrysler vehicles. Saying that 20% to 25% of Chrysler's showroom visitors haven't been able to get financing, "add to that a 51% drop (in sales), and you've got a problem."

And the company proudly announced a 29% cut in warranty costs and costs-per-claim, saying that $500 million spent on product quality was paying off. Unfortunately, they didn't talk a lot about new models, and the terms "hybrid" and "EV" never crossed their lips.
(Chrysler says their Jeep Patriot had strong sales in November and December, and hope that the public hearing that info will bring more interested buyers into their showrooms).

Following 2008, with Washington and the public demanding to know what these companies are planning for our futures, a Detroit PR staple line about their products - "Just wait'll next year"! - might belong only to Chicago's Cubs, once and for all.

The Wizard's curtain is torn away; car companies are only human, after all.

Some photos (c) 2008 by www.SteveParker.com.

Which Is Greener: Keeping Old Car Or Getting New Green One?

2009-01-05T09:05:34Z

Dear EarthTalk: Is it better to drive an older, well-maintained car that gets about 25 miles per gallon, or to buy a new car that gets about 35 miles per gallon? -- Edward Peabody, via e-mail

It definitely makes more sense from a green perspective to keep your old car running and well-maintained as long as you can -- especially if it's getting such good mileage. There are significant environmental costs to both manufacturing a new automobile and adding your old car to the ever-growing collective junk heap.

Read more: Gas, Oil, Waste, Cars, Green Living, Pollution, Green Cars, Green News

Cadillac SRX Crossover: GM Introduces New Look

2009-01-05T07:30:51Z

General Motors Corp., on a mission to expand its lineup to include more fuel-efficient offerings, will introduce a new Cadillac crossover at the Detroit auto show next week. It replaces the SRX model, first launched in 2004.

To help compete with better-selling rivals like Toyota Motor Corp.'s Lexus RX, Honda Motor Co.'s Acura MDX and BMW AG's X3 and X5, the SRX's designers incorporated elements from other Cadillac models. The new SRX looks faster than its boxy predecessor, with a curving roofline and a more rounded nose that still retains an aggressive look.

The crossover, which melds the characteristics of a car and an SUV, will be powered by a six-cylinder engine new to the brand.

Neil Young: Perfect Storm for Innovation Gathers in Washington

2009-01-04T20:54:04Z

A Perfect storm for innovation is gathering in Washington. With the government's recent financial assistance to GM and Chrysler, the Big 3 now have until the end of March to make the case that shows how they will survive. Survival is not enough though.

America now has a chance to lead the world in power and fuel efficiency. The Big three will still be looking for help at the end of March. As the major shareholder, the US government would have an opportunity to DEMAND the type of cars that will lead the world toward saving the planet for future generations.

If the Big three cannot agree to make only cars that are fuel efficient enough to get at least 50 MPG by 2011, 75 MPG by 2013 and 100 MPG by 2015, then they should go into bankruptcy and fend for themselves like all the other businesses that are having trouble. The truth is this can be done and innovators know the way to do it.

Better Place is a new model for power distribution to replace the old model of gas stations that supported the evolution of the automobile to this point. Better Place is taking hold in countries around the world and in some areas of the US. Better Place's revolutionary concept for distribution of power to vehicles actually lowers the price of the vehicle by making the battery free to the consumer and automaker, while a subscription allows the user to only pay for miles traveled. There is a great opportunity for innovative solutions with Better Place.

The Automotive X Prize is a race of 100MPG vehicles across America in 2010 sponsored by the Progressive Insurance Company. There are many entries. These cars must be safe and have a business plan that allows for at least 10,000 units per year. Automotive X prize contenders need to share their knowledge with the Car Czar. How will they get their cars to the magic 100mpg? There are some good ways to do it. Now is the time to share.

Innovators should swarm like locusts on Washington in January, February and March to show the Car Czar how to make fuel-efficient cars.

A Car Czar who knows how it can be done, and a government in control of the automakers while they stabilize will be key to demanding all autos made in the USA have a minimum mileage rating of 50MPG. This includes cars, SUVs and pick-up trucks. Now it is time for America to take back the reins of innovation and show the true wave of the future. It is a window for a sea change and a new opportunity for America to lead the world.

Lincvolt, an X Prize contestant, is a 2.5 ton, 19.5 foot American classic now attaining 65 MPG utilizing electricity and domestic fuel. The converted 1959 Lincoln Continental MK IV demonstrates that today's big sedans SUVs and pick-up trucks can get at least 50 MPG if they are fuel-efficient and use electric power, making it obvious that smaller cars could do even better than that. Ultimately, the Lincvolt team aims to demonstrate a Lincvolt hydro bio-electric series hybrid that will attain 100MPG with domestic fuels and very low emissions.

In February, Lincvolt will begin an historic drive to Washington to showcase "the people's fuel," and show the President, the Car Czar, Congress and the Senate how innovation happening right now in America can be a beacon of change to the world.

The Lincvolt team invites the other contestants in the Automotive X Prize Race, Better Place, and innovators from around the world to join us in Washington during the first 100 days of the new administration.

Geri Spieler: Protecting the President: Lessons Learned?

2009-01-04T15:01:15Z

President-elect Barack Obama says he has confidence that his Secret Service security detail will do their job so he can do his job.

I'm glad he is not worried -- but I am. I'm hopeful, but not sure, that our Secret Service has learned from some hard lessons from the past.

One such lesson took place when Pres. Gerald Ford came out to Northern California to dedicate a new law building at Stanford University on Sunday, Sept. 21, 1975 and to meet the next day with World Affairs Council at the St. Francis Hotel in San Francisco.

On the 22nd, just outside the St. Francis hotel, a white, middle-aged woman in a powder blue trench coat was standing near the front of the crowd that was waiting to see Pres. Ford. As he emerged, she pulled a gun from her purse, raised her arms, cupped one hand under the other, aimed and shot.

She missed his head by a mere six inches.

The woman was Sara Jane Moore. There were two significant Secret-Service-related reasons that she was free to stand on that sidewalk that afternoon, gun in hand. The first was that there were major gaps in communications among our various law enforcement agencies. Moore was known to the FBI and the San Francisco Police Department, but the Secret Service did not give sufficient credence to the communication from the SFPD inspector who called to say that she was a viable threat, and the Secret Service did not communicate with the FBI to find out what they knew about her.

Instead, responding to the SFPD call, Secret Service agents Gary Yauger and Martin Haskell Jr. picked Sara Jane up and took her to their offices in the Federal Building on Golden Gate Avenue, questioned her, and released her. When the Secret Service was questioned about this decision later on, an agency spokesman would only say that the interview showed that she "was not of sufficient protection interest to warrant surveillance."

According to studies by the Secret Service National Threat Assessment Center (NTAC), the 1975 profile of a "threat" was: "male, between the ages of 20 and 40, of slight build, born overseas, unemployed, a loner, and some who suffered from delusions of grandeur or persecution." Research by the NTAC, taken from studies as far back as 1980, revealed that the use of the profile available to the Service at the time, "would have failed to identify Sara Jane Moore prior to her assassination attempt on President Ford."

On Sept. 11, 2001, our country suffered a much more severe blow than that attempted 1975 assassination. Once again, studies [this time by the Congressional "9-11 Commission"] indicated that the lack of communication among our several security agencies contributed significantly to our failure to anticipate the airplane high-jackings and targeted crashes that day.

In 1977, in his role as Director of the CIA, Admiral Stansfield Turner recommended bringing our security agencies under one overarching roof, but that recommendation was not implemented. It took the events of September 11 to mobilize the government. Legislation was passed in 2002, and, on March 1, 2003, the Department of Homeland Security came into existence, coordinate, centralize, and integrate the activities of 22 agencies. Further, in 2004, Congress created the position of the Director of National Intelligence, to be separate from the CIA, and to coordinate intelligence sharing.

On Dec. 12, 2003, I had asked Pres. Ford if he had any wisdom about assassinations and assassination attempts that he could share from his membership on the Warren Commission and from his own more personal experiences.

"There is no formula for predicting who is going to attempt to assassinate the President. Lee Harvey Oswald, Sara Jane Moore. There is no way to tell," he said. He also observed that the failure of the agencies to share information in 1975 had obviously continued.

I asked Pres. Ford what he saw as the barriers to those agencies working together more effectively. He focused on the political issues involved. He told me: "They all want their own turf ...They get their own money, and they have their own power bases. ...I don't expect any of those organizations to give up what they have without a fight."

From what I have read, it appears the Secret Service is determined and prepared to take good care of my president, and that they have broadened their profiles significantly to avoid the narrow screening that left Sara Jane Moore on the streets in 1975.

As for the communication issues that have plagued our law enforcement agencies, it is my hope that the Department of Homeland Security may have accomplished what no other organizational entity has ever achieved: a Strategic Plan by which security agencies have the tools and, perhaps even more importantly, the incentives to communicate effectively with each other.

We have a Director of National Intelligence, who receives reports of various agency activities, including, specifically, the CIA. I hope they have found and are drawing upon the technology that will to enable the National Security Agency/Central Security Service [part of the Department of Defense], the Central Intelligence Agency [funded directly by Congress], the FBI [part of the Department of Justice], and by the Secret Service [part of Homeland Security] to integrate and effectively interpret the data collected by these several agencies, to provide effective screening of potentially harmful people, without compromising the individual freedoms we value as Americans.

Geri Spieler is the author of, Taking Aim at the President: The Remarkable Story of the Woman who Shot at Gerald Ford, published by Palgrave-Macmillan, available now online and in book stores Jan. 12, 2009

Steve Parker: Bottom Line: 2008 Car/Truck Sales Probably Worst Since 1974

2009-01-03T05:26:24Z

With holiday season here and gone, Detroit and DC are getting back to work. Time for a quick news round-up before things go crazy again. At least the Ford family's Detroit Lions aren't playing again until later this year.

All major automakers will release December and full-year 2008 sales data this Monday, January 4th. We'll post that information with our own analysis as soon as it becomes available, and we'll be looking forward to seeing your thoughts, too.
(GM's 2008 holiday card; if you don't work in the car business, where else would you see this?).

Ford's highly-respected chief analyst, George Pipas, told industry journal Automotive News he expects industry-wide December US auto sales to drop by about 35 percent from December, 2007, with no sign of a turnaround in the first quarter of 2009.

Pipas said 2008 calendar year sales figures will be around 13.2 million, down at least 3 million from 2007's 16.2 million.

The average vehicle price in 2008 was $27,958. A 3 million unit drop translates into an almost $84 billion loss.
(Have "lower" gas prices spurred sales of big trucks and SUVs again? Monday's sales figures will tell all).

Every carmaker selling cars and trucks in the US, whether they're headquartered in Highland Park or Stuttgart, Seoul or Tokyo, already feel the battering effect of these downward slides, as do all their suppliers. So will all their dealerships and their employees. And on and on and ...

The only other time the industry has seen a 3-million (or more) unit plunge was following the 1974 oil shortage.

There is some possible good news, though. On a full-year basis, Ford's Pipas said, 2008 is on track to become the first year since 2000 that passenger cars outsold light trucks (pickups, minivans and SUVs) in the United States.
(Porsche's first four-door, the Panamera, is due in the US in 2010. Slow US sales will seriously hurt Porsche, which sells more than 25% of their annual vehicle production in the US, possibly slowing the scheduled arrival of new vehicles from the company).

TARP NEWS

The Treasury Department is injecting $5 billion directly into dealer and buyer financing company GMAC, in exchange for stock paying an 8% dividend, and preferred stock paying a 9% dividend.

To try and spur sales, after getting the cash GMAC lowered the FICO score threshold for financing GM customers from 700 to 620.

This week also, Chrysler and GM confirmed each received $4 billion from the bailout fund used for the finance industry. It was originally stacked with $700 billion; less than half remains.

General Motors will receive, from DC's Troubled Assets Relief Program (TARP), a total of $13.4 billion in three chunks, including this week's $4 billion, with two more payments, one in January and the final one February 17th (the last payment is described as being "contingent on congressional action").

Chrysler's December 29th $4 billion is the only TARP cash the company was scheduled to get.

The government will lend another $1 billion to GM to invest in GMAC.
(Perfectly wonderful GM cars, like this Chevy Cobalt SS, are inexpensive, fun to drive and get great gas mileage. Why the company is planning to replace Cobalt with the Daewoo-engineered Cruze, which is not as good-looking and doesn't even have a solid production date yet in the US, is beyond us).

GMAC now no longer has the exclusive right to provide low-interest loans GM cars and truck buyers, and does not have to finance leases. GMAC loses money on leases because trade-in values are dropping dramatically, especially on large pickups and SUVs.

And new Treasury Department guidelines would let officials provide funds to any company they deem "important to making or financing cars." That means TARP money could go to the Detroit Three's supplier firms, if there's any left to spread around. The steel industry is already asking for their bailout money.

Potential car-buyers, take note: Dealers will often finance used cars, because they make money on interest points they don't get from all-cash deals.
(When all is said and done, Chrysler just isn't making the kind of cars which Americans want to buy. Apart from some EVs trotted-out recently, which are nowhere near production-ready, and the utter failure of their "Hemi hybrid" Aspen and Durango models, this Dodge Challenger musclecar might, sadly, be the last nail in Chrysler's coffin).

All the auto industry support from Washington is coming in the form of loans, not the outright grants enjoyed by the finance businesses; only the automakers had to appear before Congress, provide plans for using the money, and explain how they will pay it back. No such public begging and degradation was demanded from banks or Wall Street's financial institutions. Guess being buddies with Hank Paulson "has its rewards," as the TV ad says.

Some more auto news-y tidbits:

Chrysler has canceled their annual dealer awards ceremony, traditionally held in some exotic location. The Detroit News quoted a Chrysler official saying, "the state of the market and the financial challenges the company faces, it made sense not to hold this year's reward meeting." This year's all-expenses paid trip for dealers and spouses was to be held at the Hilton Los Cabos Beach & Golf Resort in San Jose del Cabo, Mexico. Wonder if that's near any of Chrysler's three factories in Mexico?

GM's Hummer division is ending its sponsorship of the Rod and Chad Hall off-road race team, which brought it numerous victories.

And along with the Hummer brand itself, the Hall team's H1 and H2 SUT race trucks are now up for sale. How much? Maybe they're on Ebay: Check for a "Buy it now!" price.

NASCAR and off-road racer Robby Gordon, who competes in Baja and the Paris-Dakar rally, campaigns a vehicle built to look like a Hummer. He's said his hand-built race truck costs over $1,000,000 (but we've known Robby to exaggerate).
(Top left, Robby Gordon's "$1,000,000 Hummer" race truck, top right, a Hummer entered in one of the recent DARPA government trials to develop fully-autonomous ground vehicles, and, bottom, the Hummer race truck which was driven by Rod Hall and his son, Chad).

Finally, from the "Just what America Needs at this Moment in Time Department" as reported by Automotive News:

"One of the highlights of Ford's display at the 2009 Detroit auto show will be the debut of the 2010 Mustang Shelby GT500, blessed by 86-year-old Shelby himself.
(You're among the first - Introducing the 2010 Mustang Shelby).

The GT500 is equipped with the same powerplant that was fitted into last year's limited-edition GT500KR, a 5.4-liter supercharged V8 cranking out 540-hp at 6,200 rpm and 510 lb-ft of torque at 4,500 rpm. The car has a six-speed manual transmission."

No word yet on price - or mpg numbers.

Join us on Monday for the 2008 car sales (or non-sales) numbers.

Some photos (c) www.SteveParker.com.