DOT Can't Spend Stimulus Money Fast Enough. Literally.

When President Obama championed the federal stimulus bill, transportation and infrastructure projects accounted for a relatively small chunk of the total tab ($787 billion). BUT the Powers That Be hyped it hard; the Department of Transportation’s (DOT) piece of the pie was going to generate more than half of the 3.5 million jobs the Obama administration promised to create or save (don’t get picky). ProPublica’s crack investigative squad now reports that the DOT is having a little trouble shoveling the spade-ready jobs out the proverbial door. “Of the $48 billion in transportation stimulus funds, so far DOT has paid out only $3.4 billion, or 7 percent of the total,” according to Sunshine State Rep. John Mica, the top ranking Republican on the House transportation committee. DOT spokeswoman Jill Zuckman had an answer for that one. “The amount of money spent on highways isn’t as important as the amount of money that’s been approved, which has reached $19.4 billion.” Do people really think like that? Holy shit. It gets worse . . .

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Tax Break Keeps Hummer HQ In Detroit

The Michigan Economic Development Corporation has announced a ten-year, $20.6m tax break package that will keep the headquarters of Hummer in Detroit after the brand is sold to Chinese firm Sichuan Tenzhong. The Detroit News reports that Hummer will employ 100 workers at its headquarters post-sale, and plans to invest $9.4m over the next five years and hire an additional 200 employees. Negotiations between GM and Sichuan Tenzhong are ongoing. In other Hummer news, a study in the Journal of Consumer Research [via Science Daily] seeks to understand the mentality of the now-rare Hummer driver. And it turns out that, at least in the minds of Hummer drivers, giant SUVs are patriotic.

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Lobbyists Battle for Handouts in Federal Transportation Bill

As Congress works on extending the authorization for transportation programs in the current session, thousands of lobbyists are investing millions in political donations and billable hours in the hopes of receiving a big payout in public dollars. The Center for Public Integrity, a left-wing watchdog group, last week released the results of an exhaustive examination of the financial ties between transportation lobbyists and lawmakers. In the first half of this year alone, 2100 lobbyists spent $45 million on influencing lawmakers who are busy dividing up an estimated $500 billion in funding ( view lobbying map). “Over the past two decades, this is the way federal transportation policy has largely been made in America — by a quasi-private club of interest groups and local governments carving out something for everyone, creating a nationwide patchwork of funded bypasses, interchanges, bridges, and rail lines with no overarching philosophy behind it,” Center staff writer Matthew Lewis explained.

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Congress Renews Ban on Texas Toll Roads

The US Senate on Thursday voted to renew a prohibition on the tolling of existing freeways in the state of Texas. The measure was adopted as part of a larger $123 billion transportation appropriations bill for fiscal year 2010, which passed the House in July. “None of the funds made available… by this act shall be used to approve or otherwise authorize the imposition of any toll on any segment of highway located on the federal-aid system in the state of Texas,” HR 3288 states. The ban is not complete. It includes exceptions for new construction, continued tolling on existing toll roads as well as the conversion of High Occupancy Vehicle (HOV) lanes into High Occupancy Toll (HOT) lanes. Under congressional rules, funding prohibitions placed on appropriations bills must be renewed every two years. The toll road ban was last enacted in 2007.

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Cash for Clunkers Consumers "Lost" Scrap Value
Here’s an excerpt from the CARS.GOV website, spotted by one our eagle-eyed readers:Do I get any money for my trade in vehicle in addition to the CARS c…
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Uncle Sam Eyes Vehicle Tracking Tax

A Member of Congress proposes to use taxpayer money to fund the development of technology to track motorists as part of a new form of taxation. US Representative Earl Blumenauer (D-Oregon) introduced H.R. 3311 earlier this year to appropriate $154,500,000 for research and study into the transition to a per-mile vehicle tax system. The “Road User Fee Pilot Project” would be administered by the US Treasury Department. This agency in turn would issue millions in taxpayer-backed grants to well-connected commercial manufacturers of tolling equipment to help develop the required technology. Within eighteen months of the measure’s passage, the department would file an initial report outlining the best methods for adopting the new federal transportation tax.

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Officially Official: Taxpayers Will Lose Tens of Billions on Chrysler, GM Bailout

The autoblogosphere is abuzz re: a recently released Congressional Oversight Panel for the Troubled Asset Relief Program report stating the obvious: US taxpayers can kiss their $60.5 billion-plus Chrysler and GM Debtor-in-Possession funding goodbye.

Although taxpayers may recover some portion of their investment in Chrysler and GM, it is unlikely they will recover the entire amount. The estimates of loss vary. Treasury estimates that approximately $23 billion of the initial loans made will be subject to “much lower recoveries.” Approximately $5.4 billion of the loans extended to the old Chrysler company are highly unlikely to be recovered. The Congressional Budget Office earlier calculated a subsidy rate of 73 percent for all automotive industry support under TARP and recently raised its estimate of the cost of that assistance by approximately $40 billion over the previous estimate. Because Treasury has not clearly articulated its objectives, it is impossible to know if this prospect, indeed, represents a failure of Treasury‟s strategy.

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Italy: Private Photo Enforcement Contracts Banned

In a desperate attempt to save lucrative photo enforcement programs in the face of widespread scandal, the Italy’s Ministry of Interior on Friday announced significant reforms to the way speed cameras and red light cameras are operated in the country. The move followed explosive allegations of corruption involving over one hundred public officials and a number of executives from the photo enforcement industry. The investigation is ongoing with police forces having conducted raids and arrests earlier this month, in June and in January. Interior Minister Roberto Maroni set out the new regulations in a directive issued to local authorities. “The primary objective is… to plan (speed) control activities so that they represent a real tool of prevention and not merely a means to raise cash,” Maroni said in a statement. “Speed control is a police service that cannot be delegated to companies that rent equipment.”

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IL Voter Group Sues to Overturn Chicago Parking Meter Privatization

Motorists have been hard hit by the increase in the cost of parking in in Chicago, Illinois that began with a deal struck in February. In the central business district, for example, the cost to park for an hour doubled from $1 an hour to $2 and will quadruple to $4 an hour by 2013. Meters must also now be fed 24 hours a day, seven days a week. The hikes came after Mayor Richard J. Daley (D) leased the city’s 36,000 parking meters to Morgan Stanley for 75 years in return for an up-front payment of $1.15 billion. The Independent Voters of Illinois-Independent Precinct Organization (IVI-IPO), a liberal government reform group, fought back last Wednesday by filing a lawsuit hoping a judge would find the parking meter contract unlawful.

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Arlington Sues Virginia Over HOT Lanes

The Arlington County Board on Wednesday [above] filed suit against the Commonwealth of Virginia and the Federal Highway Administration (FHWA) over the High Occupancy Toll (HOT) Lanes project proposed for Interstates 95 and 395. The Virginia Department of Transportation (VDOT) has been determined to sell the existing High Occupancy Vehicle (HOV) ride-sharing lanes to an Australian company in return for an up-front payment. Arlington officials claimed that in the rush to ram the project through the system, state and federal officials bypassed environmental laws. “I wish it did not have to come to this, but the County was left with no alternative,” Board Chairman Barbara A. Favola said in a statement. “We are encouraged that VDOT has elected to delay the project.”

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NHTSA Rejects 25%+ of Cash for Clunkers Submissions; Dealers Pulling Out of the Program

Just got off the blower with Rae Tyson, stalwart spokesman for the Department of Transportation’s Cash for Clunkers (a.k.a. C.A.R.S.) program. Although Tyson doesn’t have the exact stats, he revealed that the agency has rejected “significantly more” than 25 percent of dealer submissions for government reimbursement. “The bottleneck is regrettable,” Rae said. “But the number represents safeguards against fraud.” The clock is ticking. As of this morning, US car dealers have submitted paperwork to the C4C program for 390,283 vehicles. That represents $1.63 billion from the $3 billion total. Minus the $50 million processing fee. So there’s $1.34 billion and change left in the kitty. [Top ten reasons for C.A.R.S. rejection after the jump.] Meanwhile, NADA spokesman Chuck Cyrill says, “a lot of dealers are pulling out of the program.” Cyrill contends that cash flow problems caused by paperwork issues are causing dealers to “limit their exposure.” The remedy is the experience. “To address dealer concerns with a backlog of reimbursement claims, DOT has informed NADA that it will commit to deploy an additional 1,000 employees to speed up its processing efforts.”

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UK Hands Taxpayer Money to Anti-Motorist Groups

Special interest groups devoted to undermining the rights of motorists have received millions in grants from the UK government. These organizations promote raising taxes on drivers, increasing the number of speed cameras and boosting subsidies for inefficient modes of transportation. A report issued earlier this month by The Taxpayers’ Alliance (TPA) used freedom of information requests and government reports to calculate the amount of public money that lobbying groups receive.

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UK: Motorists Foot the Bill for Inefficient London Mass Transit

It takes £2,239,300,000 (US $3,749,250,000) in subsidies to operate mass transit programs in the UK’s capital city, according to the Transport for London Annual Report and Statement of Accounts released this week. These subsidies come from a number of taxes imposed on motorists who in many cases do not use public transportation. London’s most burdensome levy on drivers, the congestion charge, is so inefficient that for every £10 taken from drivers, £6 is spent on the bureaucracy required to administer the charge.

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Texas Governor Saves Toll Road Promotional Campaigns

Taxpayers will foot the bill for efforts to promote the tolling of roads throughout Texas after Governor Rick Perry (R) vetoed legislation that would have reined in public relations efforts at the Texas Department of Transportation (TxDOT). Only one member of the entire legislature voted against the proposed bill that would have amended existing law to clarify that pro-tolling advertising campaigns could no longer be bankrolled with state funds. “This section does not authorize the department to engage in marketing, advertising, or other activities for the purpose of influencing public opinion about the use of toll roads or the use of tolls as a financial mechanism,” House Bill 2142 stated.

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DOT Builds CARS

The Department of Transportation (DOT) has fired-up its Cash4Clunkers website. I would have thought the bill’s nickname would have been ideal for the job, but then I’m not a public servant. And so the feds present its brand new website with a new name: CARS (Car Allowance Rebate System). Definitely a case of not leaving well enough alone. To wit: a button on cars.gov asking “How will CARS work”. Apropos of nothing, the site also has a strange FAQ: “I don’t drive an American car but I would like to trade in my old car for a newer, more fuel efficient one. Is this program only for American cars?” Now why would anyone think that? More CARS after the jump.

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US House Wants More Transit Spending, Fewer Tolls

On Thursday the bipartisan leadership of the US House Transportation and Infrastructure Committee introduced its $500 billion blueprint for federal transportation programs over the next six years. In addition to creating new rail and transit subsidies, the proposal introduces new roadblocks for state looking to convert existing free roads into toll roads. Committee Chairman James L. Oberstar (D-Minnesota) and Ranking Member John L. Mica (R-Florida) agreed that legislative consideration of the proposal should move forward this Wednesday. Oberstar’s proposal represents a 53 percent increase in spending over the previous authorization level and will require significant increases in revenue generated. Oberstar lashed out at a suggestion from Transportation Secretary Ray LaHood that Congress should hold off on action so that the expected vote on raising gas taxes would be delayed until after the midterm congressional elections.

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Wyoming Plans to Toll Interstate 80

The Wyoming Department of Transportation (WYDOT) will kick off a week of “open house” meetings today to promote a proposal that would add tolls along the 400 miles of Interstate 80 that pass through the state. Unlike interstate tolling plans introduced in other parts of the country as “congestion reduction” measures, this one would not add new lane capacity. In a state with a population of just over a half-million, congestion is not even an issue after projecting population and traffic growth for another thirty years. WYDOT’s real target is out-of-state truck drivers.

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Nancy Pelosi Promises to Name Models in D3 Bailout Fleet Purchase
Speaker Nancy Pelosi released the following statement on the Obama Administration’s order of 17,205 “fuel-efficient” vehicles using funds f…
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Fitch Ratings Forecasts Massive Toll Increases

A major credit rating agency yesterday released a report reinforcing a negative outlook on the financial stability of the toll road industry. Fitch Ratings analyzed the performance of forty US toll road facilities during 2007 and 2008. It predicted that the roads would not see a recovery from the recession until 2011 at the earliest and that motorists would be paying more money in tolls as a result.

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Feds Order 17,205 "Fuel Efficient" Chrysler, Ford and GM Vehicles

We’ve given you the heads-up on the federal government’s plans to favor domestic automakers with “stimulus sales.” And so it has come to pass. The U.S. General Services Administration (GSA) reports—eight days after the fact—that they’ve ordered 17,205 “fuel efficient vehicles” at a cost of $287 million. Breaking it down: Uncle Sam bought 2,933 Chryslers ($53 million); 7,924 Fords for ($129 million); and 6,348 General Motors vehicles ($105 million). Does it strike anyone as odd that FoMoCo gets the largest contract? Not-so-secret hat tip for NOT taking bailout bucks, while competing against those who have? Or just a reflection of the fact that the Crown Vic rules! Which reminds me: by NOT revealing the exact models ordered, one has to wonder about the depth of the GSA’s commitment to greening-up the fed’s fleet. On this point, the press release is suitably vague, and yet completely revealing . . .

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Warren Mayor Tempts GM With Tax Abatements

Jim Fouts, the mayor of Warren, Michigan, has made GM an offer he hopes it can’t refuse. According to the DetN, Fouts hand-delivered a proposal to GM’s Renaissance Center that offered the automaker a 30-year tax abatement on personal property taxes if it moved headquarters to its Warren Technical Center. The offer, which Fouts calls “unprecedented,” would give GM 100 percent off taxes on all machinery and equipment and 50 percent off the taxes associated with any new construction for a period of 12 years.

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Obama Continues Bush Push for Toll Roads

Despite early indications that the Obama Administration did not want to follow the toll road policies of the previous administration, the US Department of Transportation is spending millions in federal taxpayer dollars to encourage states to impose tolls on new and existing roads. On Monday, the DOT published formal rules for states interested in applying to receive $1.5 billion in federal tax grants under the new “Transportation Investment Generating Economic Recovery” program. “TIGER discretionary funding will open up the door to many new innovative and cutting-edge transportation projects,” Transportation Secretary Ray LaHood said in a statement.

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Mal Occhio: Feinstein Kiboshes Cash for Clunkers. For Now.

I’m beginning to like the environment. First, the greens spiked Charles “Double Nickel” Hurley’s nomination for the top slot at the National Highway Traffic Safety Administration (NHTSA). As we reported earlier, Hurley’s federal pension plans came a cropper for daring to suggest that larger cars were safer than fuel misers (at the IIHS, back in the day). Now, tree huggers have torpedoed the current cash-for-clunkers bill. Reuters reports that California Senator Dianne Feinstein, a friend of the Friends of the Earth, is not happy with the compromise cash-for-clunkers bill.

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Cash-for-Clunkers Bill May Fall Afoul of Pseudo-Patriotism

After Germany’s cash-for-clunkers sales surge, it was only a matter of time, and not much of it, before the US followed suit. The idea failed to make into the federal stimulus package (which is like calling an all-you-can-eat buffet a Weight Watchers’ Special). And so, a bill is born. CNNMoney says aloha, clunker-mania.

The bill, introduced Tuesday by Rep. Betty Sutton, D-Ohio, would provide on- the-spot vouchers between $3,000 to $7,500 to consumers who trade in older vehicles for new, more fuel-efficient cars and trucks. The size of the vouchers would vary, depending on the fuel economy of the car being purchased.

The older vehicles, required to have been built at least eight years ago, would be scrapped and their parts recycled, while the new vehicles would have to meet a certain fuel economy standard – 27 mpg on highways for cars, 24 mpg for light trucks, Sutton said. Consumers could also opt to receive a $3,000 voucher toward mass-transit fares.

Sounds great! How could that possibly go wrong? You know . . . other than all the unintended consequences?

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Georgia Contemplates Ending "Birthday Tax" on Cars

That’s the annual Peach State tax on cars. So eliminating it’s a good thing, right? As someone who can’t find their way around a calculator, I depend on The Atlanta Journal Constitution to tell me if the proposed elimination of a yearly property tax on autos works is a good thing or a bad thing. Only I’ve read the article and I’m still not sure.

Backers of a state House plan to ax the annual birthday tax on cars are confident most Georgians support what they’re doing.

But the bill they passed Thursday, which replaces the current taxes on cars with a big one-time title fee, is getting mixed reviews. Gov. Sonny Perdue, who would have to sign any birthday tax legislation lawmakers approve, said Friday that parts of the plan appeared “convoluted.”

“I’m still trying to digest the purposes of that, of how it all would work,” the governor said.

Not to coin a phrase, no shit.

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Government Workers Face Car Cuts. Or Not.

As someone who lived in the UK for 18 years, I was shocked to discover that Philadelphia’s mayor is named Nutter. Michael Nutter. I’m sorry, but the chances of anyone of that name being elected to public office in The Land of Hope and Glory are less than the chances that GM and Chrysler will pay back their federal loans early. OK, ever. So, anyway, WHYY reports on Mayor Nutter’s attempts to curb a good chunk of the the city’s taxpayer-funded fleet. Literally.

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General Volt Bailout Motors Death Watch

I was wondering how to report this aerial photograph of two members of the bailout bestowing Presidential Task Force on Autos (PTFOA) returning one of Chevy’s plug-in electric/gas hybrid Volt mules to the paddock. I stumbled upon this description of the death of a black hole at WonderQuest.co. Seemed appropriate.

According to Heisenberg’s Uncertainty Principle, our space vacuum teems with invisible particles that flash into and out of existence like virtual fireflies.

Suppose a pair of particle-antiparticles pops into being, conveniently enough, within effective range of the black hole’s gravity.

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Congressman Glenn "GT" Thompson Revives Effort to Ban Freeway Tolls

A newly elected member of Congress is leading the effort to ban the imposition of tolls on existing interstate highways. Last week, US Representative Glenn “GT” Thompson (R-Pennsylvania) introduced HR 1071, the Keeping America’s Freeways Free Act. “Tolls are taxes, plain and simple,” Thompson said in a statement. “The Interstate Highway System—the greatest public works project in history—was built with federal funding to unite our nation. The Interstate Highway System’s profound effect upon the American economy has contributed significantly to development and improved quality of life through increased economic efficiency and productivity. The Keeping Americas Freeways Free Act will preserve this notion and allow for the free flowing of commerce not only in Pennsylvania, but across the nation.”

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Massachusetts to Create "HUMMER Tax"

Boston.com reports that Massive Taxes’ Governor is pledging to freeze toll charges throughout The Bay State. Before you get out your huzzahs, see: above. “Governor Deval Patrick said today he is looking at a Hummer tax—adding higher registration fees for gas-guzzling cars [ED: presumably SUVs will be rounded-up and shot] and offering discounts for those that do less harm to the environment.” The battle lines are drawn across entirely predictable boundaries, with common sense going out for a cup of Clover (at the taxpayer’s expense).

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Connecticut Governor Plans to Charge Drivers $171M

Connecticut Governor Jodi Rell (R) is proposing a budget that increases the financial burden on drivers by $171M in order to close the state’s growing $850m deficit. Rell’s plan increases license and registration fees, imposes freeway speed cameras and assesses new charges on speeding tickets. If implemented, the programs would represent a permanent and steadily increasing source of revenue for the state.

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New U.S. Transport Sec. Ray LaHood Named "Porker of the Month"

The taxpayer advocacy group Citizens Against Government Waste (CAGW) has named U.S. Secretary of Transportation Ray H. LaHood its “ January 2009 Porker of the Month.” “In his new position, Secretary LaHood will preside over the distribution of tens of billions of tax dollars for transportation projects in the stimulus package that is moving forward in Congress,” the group said in a statement. “As a member of Congress from Illinois between 1995 and 2009, then-Rep. LaHood made the most of his seat on the House Appropriations Committee and over time became adept at spending more and more of the taxpayers’ money… For his long-standing disregard for the taxpayers’ money and an abundance of concern over how he will administer the Department of Transportation, CAGW names Ray LaHood January Porker of the Month.”

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Texas Governor Proposes $5k/Volt Tax Credit

Leave it to a Texan to spin a subsidy of plug-in hybrids as a “damn the greenies and all things Washington, DC” move. Hard to believe, but that is what Gov. Rick Perry just did in his recent State of the State address. It’s an entertaining read for those who enjoy reading between the lines. Perry starts by decrying big spending interventionist government; then goes on to ask for more money for the state’s Emerging Technology Fund, Film Incentives, Enterprise Fund, Skills Development Fund, the Texas Grant Program, the Workforce Commission’s Skills Development Fund …. well, you get the idea. But wait, this is The Truth About Cars, not The Truth About Government (someone start that site, ‘kay?).

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Who Owns Chrysler?

One of the most ridiculous aspects of the Chrysler bridge to nowhere $7b bailout buffet: we still don’t know who owns the ailing American automaker. Yes, it’s Cerberus Capital Management, a company with its fingers in many pies, from guns (Remington) to paper (NewPage Corporation) to a chain of TV stations (Four Points Media Group) to bad loans (GMAC). That’s disturbing enough– given that the federal government is shoring-up a deep-pocketed, privately-held company. Worse (again): we don’t know the identity of “ about 100 co-investors” who anted-up when Cerberus bought the domestic automaker from Daimler. Anyone remember Cerberus’ official response to Senator Corker’s question: why don’t you use your own money to bailout ChryCo? “No one is asking General Motors and Ford to pour their money in, and Cerberus has the same shareholders as they do— retirees, pension plans and endowments.” Yeah really? Who are they? Whose investments are we protecting? So I called Cerberus.

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So Much for Change: New DOT Sec Endorses Toll Roads

Motorists expecting change from President Barack Obama’s choice of transportation secretary will find only a slight adjustment of priorities. Former Illinois Congressman Ray LaHood (R-Peoria) appeared before Senate transportation committee colleagues yesterday to give the first glimpse at what he wants to do to with federal transportation funds after taking his place in the cabinet. “Tolling new lanes of highways is thinking outside the box,” LaHood said. “We need to think about those kinds of opportunities. If we’re going to think innovatively, those are some of the ways we’re going to have to think about these things instead of the gas tax.” LaHood referred to the federal fuel excise tax first implemented in 1932 as a “dinosaur” and repeated the claims made by former Transportation Secretary Mary Peters that traditional funding sources were not bringing in enough money (more). LaHood suggested tolling was the “innovative” alternative that the country needs to “plus up” transportation revenue. Toll roads have been in use since the Middle Ages both as a means of generating fee income and of controlling public movement. And that’s OK, apparently.

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Automakers Join Call for Higher Federal Gas Tax
If you don’t think the automotive world is shifting beneath our feet, think again. USA Today reports on a growing trend: car makers and dealers pushing…
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Federal Court Upholds Use of Red Light Cameras for Profit

The US Court of Appeals for the Seventh Circuit yesterday issued a ruling in defense of the lucrative red light camera program in Chicago, Illinois. Mayor Richard Daley (D) has made it clear that expansion of the existing 136 cameras, which so far have generated $110 million, is designed to increase the number of citations issued and close a gap in the 2009 budget. The three-judge federal court panel found this to be a good reason to install cameras. “A system of photographic evidence reduces the costs of law enforcement and increases the proportion of all traffic offenses detected; these benefits can be achieved only if the owner is held responsible,” Chief Judge Frank H. Easterbrook wrote for the unanimous panel. “That the city’s system raises revenue does not condemn it.”

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U.S. Commission: Raise Federal Gas Tax and Start Monitoring
The recent historic drop in fuel consumption has translated into a $3b drop in taxes going into the Highway Trust Fund year-on-year. It’s a crisis! It&…
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Accidents Double at Houston Red Light Camera Locations

Accidents more than doubled at the Houston, Texas intersections where red light cameras are installed, according to a study released Monday by Rice University and the Texas Transportation Institute (TTI). This result posed a dilemma for TTI and the city of Houston which had requested the study. Houston Mayor Bill White was furious when he saw the report’s draft text in August. He banned the document from publication and ordered a re-writing of the text that would reflect a more positive result. To accomplish this task, White was able to turn to the study’s primary author, Rice University Urban Politics Professor Robert Stein. Stein’s wife, Marty, is employed by the city of Houston as a top aide to the mayor. Stein’s newly revised report now concludes that “red light cameras are mitigating a general, more severe increase in collisions.”

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NYT's Thomas L. Friedman: Gas Tax is a Win Win Win Win Win

Yup, it’s deja vu all over again, as New York Times star columnist and flat earther Thomas L. Friedman once again echoes the Gray Lady’s conviction that a federal gas tax is a good thing. No surprise there. In case you didn’t realize it, Friedman has no problem telling people what to do with their national economies. In fact, it’s clear he feels what was once called noblesse oblige. “I’ve wracked my brain trying to think of ways to retool America around clean-power technologies without a price signal — i.e., a tax — and there are no effective ones. (Toughening energy-effiency [sic] regulations alone won’t do it.) Without a higher gas tax or carbon tax, Obama will lack the leverage to drive critical pieces of his foreign and domestic agendas.” You want him to tax that gas. You need him to tax that gas. “Today’s financial crisis is Obama’s 9/11. The public is ready to be mobilized. Obama is coming in with enormous popularity. This is his best window of opportunity to impose a gas tax. And he could make it painless: offset the gas tax by lowering payroll taxes, or phase it in over two years at 10 cents a month.” And then Tom trots out the “H” word, and you just know someone somewhere is gonna pay.

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New York Times: Tax Gas to $4 – $5 a Gallon Minimum

While occasional NYT carmudgeon Ezra Dyer’s busy celebrating high horsepower motor cars, his paymaster’s editorial board has announced their desire to have the incoming administration tax the bejesus out of the go-juice fueling Dyer’s cool whips (Bryan?). After bemoaning the lowered price of fuel’s dampening effect on Americans’ desire to buy the fuel-efficient vehicles that Uncle Sam, in his infinite wisdom, has mandated, The Times gets down to business. “There are several ways to tax gas. One would be to devise a variable consumption tax in such a way that a gallon of unleaded gasoline at the pump would never go below a floor of $4 or $5 (in 2008 dollars), fluctuating to accommodate changing oil prices and other costs. Robert Lawrence, an economist at Harvard, proposes a variable tariff on imported oil to achieve the same effect and also to stimulate the development of domestic energy sources.” BUT WHAT ABOUT THE POOR PEOPLE? “In both cases, the fuel taxes could be offset with tax credits to protect vulnerable segments of the population.” Uh, is a major recession really the best time to raise the price of a basic commodity? No but…

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Senator Bayh Promises $1.63b for Battery Makers

It’s ALWAYS Christmas in D.C.! Indiana democrat Senator Evan Bayh would like to say hello to the New Year with $1.63b worth of grants to American automotive battery makers. “For a fraction of what the federal government has spent to bail out Wall Street, we can create the next generation of high-mileage vehicles,” Bayh pronounced, neglecting to mention the $38.4b the feds have allocated to the domestic auto industry as of late– which doesn’t include the tens of billions headed to the newly-created GMAC bank. Local angle? You betcha! “Indiana can lead the way with cutting-edge technology being made right here within our borders,” Senator Bayh’s statement said. “Our state can help America move past Band-Aid solutions and help ensure the long-term viability of the domestic automobile industry.” That’s kind of low-key– given the level of PC bluster surrounding the incoming adminstration’s push for “green jobs.” Take two…

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US DOT Misreports Gasoline Tax Revenue

Thanks to soaring gasoline prices and the ongoing recession, motorists traveled 100b fewer miles in fiscal 2008. Transportation officials seized upon these facts to argue that the gas tax is unsustainable and that the country must quickly shift to tolling to save the highway trust fund. “As driving decreases and vehicle fuel efficiency continues to improve, the long term viability of the Highway Trust Fund grows weaker,” Transportation Secretary Mary Peters said in a December 12 statement. “The fact that the trend persists even as gas prices are dropping confirms that America’s travel habits are fundamentally changing. The way we finance America’s transportation network must also change to address this new reality, because banking on the gas tax is no longer a sustainable option.” Turns out it was an argument built on sand…

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UK Congestion Pricing Referendum Loses 4-1

Yesterday, voters in the UK city of Manchester overwhelmingly rejected a congestion charging plan. Officials had spent millions promoting the scheme. And yet, with over one million votes counted, all ten boroughs said no to the plan– despite the promise of £2.8b ($4.2b) in mass transit spending from the central government upon approval. The final tally stood at 79 percent against and 21 percent in favor. Officials had hoped to have the complex congestion tax infrastructure in place by 2013 so that they could charge commuters an initial rate of £5 (US $7.50) to drive into Manchester city center during work hours. The average motorist would have paid an extra £1250 ($2500) per year, although once in place the rates would likely have increased.

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Merry Christmas From GM!

Date: 12/08/2008 Ref. number: Marketing / Programs and Promotions / G_0000017071
Subject: GM Dealership Employee Discount for Family
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Beginning Monday December 8, 2008, GM is offering a temporary program allowing GM Dealership Employees the opportunity to offer GMS (Employee Discount) pricing to the same eligible family members that GM Employees do.

This means that GM Dealership employees can offer GMS pricing to their spouse, children, stepchildren, grandchildren, stepgrandchildren, grandparents (including in-law and step), parents, stepparents, siblings (including full, half and step), mother/father in-law, sons/daughter in-laws, brothers/sisters in-law, and same sex domestic partner (SSDP) where applicable (NOTE: Eligible SSDPs are treated the same as spouses, and therefore, their dependent children and stepchildren are also included).

Eligible family members must take delivery by January 5, 2009 and may only purchase GM vehicles that the employing dealership location is franchised to sell or from GM dealerships owned by the sponsoring Dealer Operator at the time of delivery. The program excludes Saab vehicles.

To get an authorization number for your family member, log in to gmded.com and select “Dealership Employee Discount for Family” along the left. Enter your eligible family member’s date of birth and zip code and get you authorization number

Authorization numbers for this program must be submitted for payment to BARS by January 5, 2009.

——————————————————————————–
Contact name: Program Headquarters E-Mail:
Department: Marketing and Advertising – CRM NVPP Marketing Phone: XXX
Intended roles: Internet Sales Person, UItest, Parts Manager, General Sales Manager, Medium Duty Sales Manager, Internet Sales Manager, Wholesale Sales Person, Warranty Administrator, Used Vehicle Sales Manager, Used Vehicle Sales Consultant, Title Clerk, Systems Manager, Service Manager, Service Advisor, Parts Inventory Manager, Parts Counter Person, Parts & Service Director, Office Manager, New Vehicle Sales Manager, New Sales Consultant, Medium Sales Coordinator, Inventory Manager, HR Manager, General Office Support (Cashier), General Manager, Fleet/Commercial Manager, Fleet Sales Consultant, F&I Manager, F&I Director, Dealer, Business/Accounting Manager, Body Shop Technician, Body Shop Manager, Sales Functions, Sales Management
Archives: 01/08/2009

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Michael Karesh is Insane: Raise the Federal Gas Tax!
Fortune Magazine’s Allan Sloan writes that “ It’s Time to Raise the Gas Tax.” And he’s right. Many people blame Detroit for not…
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Obama Transition Team Contemplates Congestion Charging

The Manchester Evening News reports that President-elect Barack Obama’s transition team has contacted Jack Opiola, a transportation principal for the firm Booz, Allen and Hamilton. Opiola the brains behind a program to tax drivers £5 (US $8) when entering the city of Manchester during peak hours. “I was ‘noticed’ by key people in the Obama campaign and I have been providing input to his strategy team in Chicago, including information about Greater Manchester’s bid,” Opiola said. Previously, Senator Obama’s most specific transportation proposal was a proposal to create a $60b toll road bank. In March, Obama endorsed New York City Mayor Michael Bloomberg’s scheme to charge a $9 toll on cars and a $22 toll for trucks that enter downtown Manhattan during working hours. Hoping to fill the gap with specifics, the American Association of State Highway and Transportation Officials (AASHTO) last month submitted a detailed $544 billion transportation re-authorization proposal designed to encourage the new administration to shore-up the domestic economy with heavy spending on infrastructure projects.

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More Toll Roads Likely With New Administration

The Federal Highway Administration (FHWA) on Friday announced the creation of a new office whose primary goal will be to lobby state governments to convert their freeways into toll roads. While some congressional leaders expressed hope that the change represented by FHWA’s new Office of Innovative Program Delivery would be reversed by the next administration, there is reason to believe that the incoming administration will continue supporting public private partnership (PPP) initiatives. For now, the toll road promotion office sits at the top of FHWA’s organizational chart to emphasize its primary place within the federal transportation department.

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Chrysler Has a Plan! Federal Tax Deductions for Car Loan Payment Interest
Chrysler Has a Plan! Federal Tax Deductions for Car Loan Payments
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Virgina Considers Road Pricing Scheme

Virginia House of Delegates rep David Poisson (D-Loudoun) has introduced legislation to create a system to track the driving habits of Virginia motorists, imposing a tax on every mile driven, opening the way for congestion charging. Poisson argues that the legislature should adopt so-called “Road Pricing” during the 2009 session to compensate for dwindling gas tax revenue. “Inflation and escalating construction costs have severely eroded the purchasing power of fuel-tax revenue,” Poisson said in a statement. “At the same time, tax receipts are dropping as soaring gas prices and a weak economy reduce traffic volume. When people do drive, it is in more fuel-efficient cars, which only makes our revenue problems worse. Clearly, we can’t continue this way.” Well of course not. Only the facts tell a slightly different tale…

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Germans Abolish Car Tax. For Now.

Things must be really bad in Deutschland. Before, any German government of any persuasion raised taxes when times were good, and raised them more when times were bad. Debates before important elections usually are about how much taxes should be raised. Imagine McCain saying: “My friends, I will tax you more than that guy.” He’d get the vote in Deutschland. Well, the German government is now worried about auto sales. Scared scheissless is probably the better term. So scared they want to abolish the tax on cars. Totally. Well, at least for a while. And in a discreet green wrapper. Says so in today’s report by the German magazine Der Spiegel. Berlin’s cabinet left it to their Minister of the Environment, Sigmar Gabriel, to give the car crazy Germans the good news this morning: No tax on environmentally friendly cars for the next two years. Zilch. Nada. Nichts. “Environmentally friendly” is defined as compliance with the Euro 5 and Euro 6 norm. Which, for all intents and purposes, means no tax for all new cars coming to the market.

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California Toll Road Needs Billion Dollar Bailout
California Toll Road Needs Billion Dollar Bailout
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Euro-Bailout Throwdown

Automotive News Europe [sub] is hosting a point-counterpoint throwdown on the proposed 40b Euro bailout of European automakers. And like the debates we’ve survived over the last few weeks, even the pro-bailout advocates can offer only qualified support. At best. ANE Chief Correspondent Luca Ciferri jumps into his argument with the ambivalence that a billion-dollar giveaway demands. “Would I be happy to contribute some of my tax money to the European industry?” Ciferri asks himself rhetorically. “Not at all,” comes the answer. Great, so why do it? Because the Americans, Koreans, Japanese and Chinese all do it. Despite the fact that European automakers have garnered strong reputations on their own merits. Meanwhile, ANE Editor-in-Chief Arjen Bongard lays into the plans with gusto.

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Bailout Watch 117: General Mopar Would Be Too Big To Fail

Fresh off his recent membership in TTAC’s Cassandra club, Daniel Howes of the Detroit News has gone back to spinning bad news into industry gameplans. His latest column extolls the virtues of a GM-Chrysler merger, while admitting that such a move would be disasterous for everyone except GM and Chrysler. “Seen from the viewpoint of blue-collar labor, white-collar employees, local governments, dealers, the state of Michigan and the industrial Midwest, just about anyone whose livelihood depends on the dubious survival of Chrysler would pay a dear price,” writes Howes of a possible GM absorption of Chrysler. But, from the narrow perspective of an industry suit, these myriad viewpoints are just so much firewood to be burnt at the altar of survival. And Howes is conveniently on hand to stack it up and pass the matches.

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Jaguar and Land Rover: Where's OUR God Damn Bailout?
Jaguar and Land Rover: Where's OUR God Damn Bailout?
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Ford Scores [An Additional] $10m in Taxpayer Money for EV Fleet
Ford Scores [An Additional] $10m in Taxpayer Money for EV Fleet
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Collateral Damage Isn't ALL Bad: PA Turnpike Deal Falls Through
Financially-challenged Pennsylvania motorists can breathe a sigh of relief, as The Newspaper reports that “Abertis announced the Spanish-led Pennsylvan…
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Highway Speed Cameras; Next Up: MD, TN and MO
Highway Speed Cameras; Next Up: MD, TN and MO
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GM Gets Tax Breaks for Spending Bailout Bucks in MI
GM Gets Tax Breaks for Spending Bailout Loan Money in MI
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Government Officials Heart SUVs
The Buffalo News reports that its elected officials seem curiously reluctant to downsize from government-sponsored SUVs. “Lackawanna Mayor Norman Pola…
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LA Red Light Ticket Cameras Have Quotas. No, Really.
The Newspaper does it again, exposing the hidden cash grab behind the blogger’s bugaboo: red light cameras. “In 2000 the Los Angeles County Me…
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  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
  • ToolGuy Ford is good at drifting all right... 😉