How Much is Obama’s Former SUV Worth?
By Richard ChenAugust 28, 2008 - 1,223 views
Following his keynote speech at the 2004 Democratic National Convention, Illinois Senate candidate Barack Obama became the celebrity he still claims he isn't. Mobbed wherever he went, Obama's staff urged him to give up driving and jogging for security reasons. Soon afterwards, sold his beloved 2000 Jeep Grand Cherokee, and got used to being driven around. Black on black leather with 87,000 miles, the Jeep was purchased by Liz Murphy of Naperville, IL. She was given the original title and told that it might be worth something someday. Obama's office declined to return her calls asking for his autograph on the dashboard, but she's hoping to cash in on the former Obamamobile after the November presidential election via eBay. Although its value isn't sinking as we speak, appraisers haven't given much extra value to this ex-celebrity Jeep as he didn't own it while in high office. It might be worth lots someday, 3 to 4 decades from, assuming that Obama wins the presidency and does a good job. In the meantime, Ms. Murphy's SUV has a worn-down spot on the steering wheel just left of 12 o'clock to remind her of the previous owner's tenacious grip.
Posted in News Blog | Politics | 14 comments 
E85 Boondoggle of the Day: Fear And Loathing On The Campaign Trail
By Edward NiedermeyerAugust 28, 2008 - 594 views
![\"The last train out of any station will not be full of nice guys.\" Listen to the man.](http://www.thetruthaboutcars.com/wp-content/uploads/2008/08/hunters460.jpg "\\"The last train out of any station will not be full of nice guys.\\" Listen to the man.")
There is no greater condemnation of an industry's lack of competitive spirit than seeing its executives hanging around political conventions. Their sudden interest in the future direction of America sends a single resounding message: we have failed on our merits and our misery demands company. And while Detroit snuggles up to Obama, courtesy of McCain's semi-stand against a D2.8 bailout, the E85 lobby gets to represent the failures of America's auto and energy businesses at the Republican convention in Minneapolis. Of course, it helps that Minnesota is a standard-bearer for ethanol, bringing countless millions in pork to the land of a thousand lakes. But the mere presence of E85-backers at the RNC convention isn't enough to hammer home the ugly, thoughtless greed of the corn-juice movement. Domesticfuel.com reports that the American Lung Association of the Upper Midwest has purchased a number of pro-ethanol TV spots and billboards aimed specifically at the Donkey do. "Addicted to Oil?" asks a sign on the St. Paul skyway. The query that really begs an answer here is "what the hell is a respiratory health advocacy group doing schilling for agribusiness?" Meanwhile, yesterday's E85BOTD poster child POET has given the University of South Dakota a $3.9m grant to study cellulosic ethanol. First, why not just build another plant, considering POET's first cellulosic ethanol plant in Scotland cost $4m? Second, will this research grant simply provide academic fodder for the corn farming lobby's campaigns? And third, why didn't POET ask the government to fund this grant? Is ethanol finally learning to stand on its own? Don't count on it.
Posted in Bio-fuels | E85 | News Blog | Politics | 9 comments
Bailout Watch 13: One Bailout to Unite Them All
By Edward NiedermeyerAugust 28, 2008 - 1,058 views
![We should all be screaming \"Don\'t do it!\"](http://www.thetruthaboutcars.com/wp-content/uploads/2008/08/detroit1.jpg "We should all be screaming \\"Don\'t do it!\\"")
Say what you want about Detroit, it still has some class. The media may already be counting the bailout billions, but the once-big three will be waiting until after Labor Day to visit Washington, hat in hand. Per Emily Post's corporate welfare etiquette, natch. The Wall Street Journal also reports that the Detroit three will speak with a single voice during upcoming meetings with federal loan officers. As in no screwing over Chrysler for a better deal. Of course that means the projected $50b will have to be split three ways. And then there's that damn CAFE ramp-up to worry about. In fact, Detroit insiders are already saying that 2011 compliance alone could take up the whole $50b. Why, it's almost as if Detroit might need even more money! But with political season in full swing and the economy emerging as a major issue, Detroit knows it has only to ask. Posturing representatives will hand out loans for the electoral feel-good, and before you know it there'll be a Volt in every pot. And billions of dollars in taxpayer liability for three spectacularly failing enterprises.
Posted in Bailout Watch | Chapter 11 | High Finance | Industry | News Blog | Politics | 8 comments
Volt Birth Watch 78: The First Of Many Tax Breaks
By Edward NiedermeyerAugust 27, 2008 - 710 views
As Detroit gears up for the beggar-bowl bailout-fest, the Volt is taking center stage as, well, the only reason to invest in Detroit's future. We already know that GM is pushing hard for consumer tax breaks to bring high-flying MSRP estimates down to earth, but it seems production incentives will be the first Volt-related handouts out of the gate. MLive.com reports that Flint's city council has approved three tax incentives worth tens of millions of dollars to bring Volt engine production to the rustiest town in the rust belt. GM's Volt engine plant is expected to cost the company $359m before incentives, and will "preserve" some 300 jobs. The exact cost to Flint taxpayers is as yet unknown, but the city is clearly bending over backwards to reinvent itself as the home of Detroit's energy-efficient renaissance. Flint has agreed to cutting 50 percent of the Volt factory's real property taxes, saving GM $6m, but also bringing in $6m in new property taxes… so far, so tax-neutral. But the city council has also agreed to abate 100 percent of the new factory's personal property taxes, meaning all factory equipment would be tax-free until 2033. Savings to GM from this measure are as yet unknown, but are expected to eclipse the $6m in real property tax savings. The city also agreed to designate the site of the factory a brownfield redevelopment site, making it eligible for state incentives which GM is still pursuing. Flint also approved a fourth undefined tax break to extend the renaissance zone through 2023 for the existing Flint Tool and Die plant. Complaints from a former local NAACP leader that such incentive mean that the Volt engine will be "built on the backs of the working poor" went ignored, as the eco-friendly backslapping from industry and government carried the day. This, ladies and gentlemen, is what we call a preview of coming attractions.
Posted in News Blog | Politics | Taxes | Volt Birth Watch | 2 comments
Photo Ticketing Company Cashes In
By Edward NiedermeyerAugust 26, 2008 - 1,109 views
Thenewspaper.com reports that Aussie photo enforcement firm Redflex has announced record profits after camera-issued tickets jumped by 50 percent in the U.S. this year. In fact, $71m of Redflex's $88m annual revenue comes from the states where camera enforcement is taking off. In 2003, Redflex operated fewer than 200 cameras, a number that now stands at 1305 and will hit 1745 by the end of next year. Redflex is on top of the world, bragging there's no end in sight for growth in its business. Except that there is. Some five percent of Redflex cameras have been shut down by court rulings, and cameras are banned from several states. Furthermore, Redflex sold radar units to the state of Arizona which were not approved for use by the FCC, and faces civil penalties as a result. In the course of that investigation, Arizona's Secretary of State found that a Louisiana notary employed by Redflex had falsified certifications for her employers speed cameras. This comes on top of revelations that municipalities are manipulating yellow light times to increase camera revenue. Once again, government and business take whatever measures they deem necessary to extract maximum revenue for minimum effort. Your tax (and fine) dollars at work.
Posted in Crime & Punishment | Law and Order | Legal | News Blog | Politics | 23 comments
Ohio Hearts GM. Maybe Too Much?
By Edward NiedermeyerAugust 25, 2008 - 1,133 views
GM's $350m investment in Cruze production capacity in Lordstown, OH was big news for the "American Revolution." A compact car, built in America… and all it took was $80m in taxpayer-funded incentives to GM. That, ladies and gentlemen is what passes for a PR win-win these days. In fact the good vibrations were flowing so freely at the big Cruze announcement that Ohio Lt. Gov. Lee Fisher even told Rick Wagoner that if he commited to another Lordstown model by Thursday, the good people of Ohio would "double the incentives." The Detroit News reports that Fisher was "joking" but goes on to say that GM did take the offer seriously enough to go on the record and decline the kind joke/offer. But the unrequited-love awkwardness isn't stopping the DetN from wallowing around in the Cruze-y feel-good. Check out their soft-focus paean to GM's once-proud tradition of actually employing Americans, featuring proud Hamtramck workers gushing lines like "We've got such an incredible history. I mean GM, of course, but I guess I'm thinking of my family too." As the kids say, Vom.
Posted in Future Vehicles | Industry | News Blog | Politics | 11 comments
Mayor to Citizens of Warren MI: Buy American to Support my Cronies
By Frank WilliamsAugust 25, 2008 - 1,273 views
Last month we told you Warren. Michigan Mayor Jim Fouts had the answer to Detroit's problems in the form of tax deductions for interest on auto loans. Now, in a video interview with the Detroit Free Press' Ron Dzwonkowski, we hear the next phase of his plan to save the American auto industry: ordering city employees to buy American cars. But its not flag-waving patriotism or national pride that drives him to do so. Nope, as with most politicians, it's all about the money. He explains that GM and Chrysler are the largest employers in Warren and "without the success of General Motors and Chrysler, the city of Warren would not be able to pay my political appointees the good salaries that they make." Well, at least he's honest about his motivation.
Posted in News Blog | Politics | 19 comments
Bailout Watch 11: A Bailout By Any Other Name…
By Frank WilliamsAugust 25, 2008 - 1,273 views
In Farago's editorial about the domestic automakers' attempts to get $25b in federal loans, he stated, "it's a prelude to a kiss: the REAL bailout (in for $25b, in for another $25b)." Well, it didn't take long for both sides to pucker up. The International Herald Tribune reports this morning the total has grown to $50b– it turns out the $25b was just for the first year. That would be followed by additional $15b in the second year and $10b more in the third year. Why? The UAW's legislative director, Alan Reuther explains "the amount of concern and urgency from the Detroit companies has increased in the last month and significantly ratcheted up what they're communicating what their funding needs are." But he makes it clear you don't dare call it a bailout: "We don't see it as a bailout. We see it as government assistance to help retooling tied to the production of these advanced technology vehicles." Whatever. It still amounts to billions of the taxpayer's dollars going to fund companies which have been driven to the brink of bankruptcy by inept management who collected obscene salaries for doing so. If they do get these handouts, it should include an oversight committee from outside the industry and from outside congress to make sure the money goes for vehicle design and retooling. Not a cent should be allowed to go to executive salaries or perks, bonuses, lobbyists or any of the other thousands of ways the automakers seem to find to fritter away money. And once that's gone, that's it. No third chances! And furthermore… Huh? … Oh… OK. Here comes the attendant with my Thorazine. I'll go sit quietly in the corner now.
International Herald Tribune »
Posted in Bailout Watch | High Finance | Industry | News Blog | Politics | 22 comments
Automakers Alliance: Fuel Efficiency is YOUR Problem
By Justin BerkowitzAugust 19, 2008 - 1,409 views
The Alliance of Automobile Manufacturers (AAM) is serving-up some more PC for your PC. The just-launched www.EcoDrivingUSA.com tells you how to drive your car like an old man. "Drivers don't have to wait to buy a new, fuel-efficient vehicle to start reducing fuel costs and CO2," AAM CEO Dave McCurdy insists. "Though I do encourage everyone to buy one of our new fuel-efficient vehicles immediately." But seriously folks, this is a classic deflection strategy. Or, if you prefer, it's blaming the victim. The Governator is the site's plastic surgery-intensive spokesman for the politically shape-shifting carmakers. Ahnold speaks from experience when he says we "can't wait for the politicians to take action." Yup, it's up to you (that's you) to properly pressurize your damn tires already, and hypermile yourself to a 15 percent savings on your gas bills. In fact, if we all eco-drove, we could save enough energy to power Skynet for 1000 years. Or something like that.
Posted in Media | News Blog | Politics | 23 comments
E85 Boondoogle of the Day: “Let Them Eat Rice”
By Edward NiedermeyerAugust 13, 2008 - 758 views
In a recent interview with the Weekly Standard, Iowa Senator Charles Grassley weighed-in on the food-for-fuel debate. "If part of our problem is that the Chinese are going to eat meat and you've got to have corn and soybeans to feed the Chinese their meat, then why isn't it just as legitimate for the Chinese to go back and eat rice as it is for us to change our policy on corn to ethanol?" Despite the growing consensus (so to speak) that ethanol is not an environmentally-friendly fuel, drives up food prices and contributes to world starvation, Grassley isn't willing to surrender the $4.5b of federal ethanol subsidies and the farm lobby support that goes with it. The Weekly Standard condemns Grassley's position. "As this 'let them eat rice' soundbite made clear, the debate over the food versus fuel issue is about as undignified as a full out real food fight at a summer camp cafeteria."
Posted in Bio-fuels | China | E85 | News Blog | Politics | 10 comments
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