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Additional financing and the transferring of executives could not save Fisker and the fact that consumers are reluctant to purchase electric vehicles (EV). With a $104,000 price tag, the Fisker Karma lost out to other auto makers like Ford and Nissan who offer a more affordable EV. At the 2012 New York auto show, Fisker unveiled a smaller, less expensive concept model it hoped to build in an abandoned G.M. plant in Delaware, but production never started because of lack of funds. (more…)
The National Highway Traffic Safety Administration’s (NHTSA) main function is to prevent injuries, deaths, and reduce expensive costs due to traffic accidents. Their mission also includes issuing Corporate Average Fuel Economy (CAFE) standards to contribute to energy security and address climate change. (more…)
The potential sale of U.S. automotive battery maker A123 Systems to China’s largest auto components company, Wanxiang Group Corp., is raising security concerns among U.S. lawmakers. The $450 million deal would see Wanxiang taking control of 80% of A123 Systems which supplies lithium-ion batteries to luxury car makers like Fisker Automotive. A123 received funds from the Energy Department in 2009 which was used for battery research advancements and job creation programs for batteries used in hybrid and electric vehicles.
Opposition to the sale reports growing concern about foreign controlled or owned companies gaining a niche in the United States supply chain. According to U.S. Rep. Cliff Stearns, “We need to make sure the Federal government isn’t giving away our own national secrets by providing Chinese automobile manufacturing companies with million dollar government grants and loans.” Under the terms of the grant, the company agreed to use funding to support U.S. manufacturing facilities. Changes to the agreement of the grant would first have to be approved by the Department of Energy (DOE) who does not approve grant money being used for anything other than investment in the manufacturing and job creation here in the United States.
Counties in the San Francisco Bay area are considering getting rid of gas taxes and switching to a vehicle miles traveled (VMT) system instead. The National Surface Transportation Infrastructure Financing Commission (NSTIFC) recommends the switch because revenue from gas taxes have declined over the years as hybrid, electric, and more fuel efficient vehicles become prevalent on roads. They say that it will “balance the costs and benefits of the surface transportation system to those who are using it”, and could also reduce traffic congestion on the roads. The proposal is one idea in long range planning, updated by the agency every four years. If the idea is accepted, it would likely not be fully imposed until 2020.
Randy Rentschler, a spokesman for the regional commission, admits that the idea could be difficult to introduce. Radical changes like this will always be opposed by certain groups, and privacy issues will be questioned as a GPS based systems would be used to log information on when and where drivers are traveling. Transit advocacy groups are encouraging the transition to a VMT system to be tested first in the Bay area where the idea will be more easily accepted and the revenue could be used to support alternative public transportation options.
Scheduled to take effect in December, California lawmakers will no longer be provided with a state purchased car, but instead will be given a monthly transportation allowance of $300 a month. According to the California Citizens Compensation Commission, the group responsible for setting state officials’ salaries and benefits, this change will cut the lawmakers’ transportation costs in half, saving the state of California over $2.3 million over the next five years.
The salary for California legislators is one of the highest in the nation even after salaries and benefits were cut in 2009. The panel decided not to cut lawmakers’ salaries again but said it may revisit the issue if Governor Jerry Brown cuts paychecks for other state workers to help reduce the budget deficit.
Senate leader Darrell Steinberg (D-Sacramento) said the move makes it harder for lawmakers to travel to and in their districts to connect with constituents. He feels the arguments for cutting legislative salaries and benefits have gone from being balanced, rational and a reflection of our economic times to simply trying to make a political point.
The United States Government is looking into selling its shares in Chrysler and General Motors Company soon. This was relayed to a congressional panel the other day by the head of the Autos Task Force, Ron Bloom. The U.S. government currently owns 8% of Chrysler and 61% of the new General Motors Company. Mr. Bloom did not discuss the objectives that Chrysler or G.M. would have to meet before they sell their shares.
Concerned that either your Chrysler or G.M. vehicle may be a lemon? Call the law firm of Delsack and Associates at 888-Ex-Lemon (888-395-3666) and find out if you qualify.
The “Cash for Clunkers” Program has started. Nearly 16,000 dealers across the nation have jumped on board. It is a great opportunity to get a new vehicle that gets better mileage and also helps the environment.
Under the “Car Allowance Rebate System or CARS” the United States Government will give out from $3,500 to $4,500 depending on how much gas is saved between the old and new vehicles. The federal government has pledged
$1 Billion and the program ends November 1, 2009 or sooner if they reach the $1 Billion.
The vehicles traded in must be 1984 models or newer and have mpg ratings of no more than 18 mph in city-highway driving.
Having problems with the vehicle you are driving? Do you have questions about the California Lemon Law and how it might apply to your vehicle? Call the California Lemon Law Attorneys Firm, Delsack and Associates.
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