Motor Authority - blog Tag: United States

  • House and Senate agree on Cash for Clunkers bill, mileage requirements revealed

    House and Senate agree on Cash for Clunkers bill, mileage requirements revealed June 12th, 2009 ByJeremy Weber Jeremy Weber, Author, June 12th, 2009 Jeremy Weber 5 Comments

    House and Senate agree on Cash for Clunkers bill, mileage requirements revealed The Cash for Clunkers bill is just one of the incentives the government is trying to implement to bring the U.S. auto industry back to its pre-recession levels. Now, the Cash for Clunkers scheme has garnered the approval of both House and Senate negotiation teams, with the two sides reaching an agreement on Thursday.

    The approval came as part of a larger $106 billion wartime spending proposal - out of this amount, just $1 billion was set aside for the Cash for Clunkers program, or less than 1%. In reality, the full cost of the program is expected to be around $4 billion, but the $1 billion allocated should be enough to run the program... The Cash for Clunkers bill is just one of the incentives the government is trying to implement to bring the U.S. auto industry back to its pre-recession levels. Now, the Cash for Clunkers scheme has garnered the approval of both House and Senate negotiation teams, with the two sides reaching an agreement on Thursday. The approval came as part of a larger $106 billion wartime spending proposal - out of this amount, just $1 billion was set aside for the Cash for Clunkers program, or less than 1%. In reality, the full cost of the program is expected to be around $4 billion, but the $1 billion allocated should be enough to run the program until the end of September this year, reports The Detroit News. The stipulations in the program are largely the same as that being proposed when the program was first scrapped in the U.S. Senate for giving Detroit too much of an advantage over foreign car manufacturers with local production facilities. The recently agreed upon scheme carries on the same proposal for vouchers of up to $4,500 for new car buyers who exchange gas-guzzlers for gas-sippers. The new program will only affect owners of old cars that cannot achieve above 18mpg in their combined cycles. If these owners swap their cars for a new car that is at least 4mpg more efficient, they will be eligible to receive a $3,500 voucher from the government. The full $4,500 is only available to those who improve their gas mileage figures by 10mpg or more. Trucks use a different system, where the new truck that is being purchased must achieve at least 18mpg and also be 2mpg more efficient than their current vehicle. This would garner owners the $3,500 voucher, while those improving their mileage by 5mpg would get the full $4,500. Combined with new tax breaks from the government that eliminate local and state taxes, the government is significantly absorbing the costs of new cars to keep the auto industry viable through the recession. Read More

  • U.S. satellite listeners to get live broadcast of entire 24 Hours of Le Mans

    U.S. satellite listeners to get live broadcast of entire 24 Hours of Le Mans June 10th, 2009 ByKenneth Hall Kenneth Hall, Author, June 10th, 2009 Kenneth Hall 0 Comments

    U.S. satellite listeners to get live broadcast of entire 24 Hours of Le Mans The battle for the 2009 24 Hours of Le Mans is already heating up with Peugeot protesting Audi's R15 race car, and things will only get hotter as the weekend approaches. If you don't want to miss a minute, then you'd better have satellite radio, because Sirius XM will be covering the event from green flag to checkered.

    Broadcasting every minute of the event from the Circuit de la Sarthe in Le Mans, France, Sirius channel 126 and XM channel 243 coverage will start at the flag drop at 9:00am ET Saturday and run through the finish Sunday morning.

    With Aston Martin also returning to the fray in an all-new LMP1 machine. This year marks the... The battle for the 2009 24 Hours of Le Mans is already heating up with Peugeot protesting Audi's R15 race car, and things will only get hotter as the weekend approaches. If you don't want to miss a minute, then you'd better have satellite radio, because Sirius XM will be covering the event from green flag to checkered. Broadcasting every minute of the event from the Circuit de la Sarthe in Le Mans, France, Sirius channel 126 and XM channel 243 coverage will start at the flag drop at 9:00am ET Saturday and run through the finish Sunday morning. With Aston Martin also returning to the fray in an all-new LMP1 machine. This year marks the 50th anniversary of Aston's historic 25-lap lead and 1-2 at the 1959 race, with Carroll Shelby at the wheel of the winning DBR1 car. Despite the fact that most U.S. racing fans are more interested in seeing cars turn left, Eve Hewitt, managing director of the unit covering the Le Mans race says the show gets lots of interest in the U.S. "We have always enjoyed great support from U.S. based enthusiasts," said Hewitt. For those tuning in via television or lucky enough to attend in person, keep your eyes peeled, for you may get a glimpse of the impressive GTbyCitroen supercar concept that will be making an appearance before the race starts.2009 Aston Martin LMP1 Le Mans race carAudi R15 TDI Le Mans Prototype race car Read More

  • House approves revised Cash for Clunkers bill

    House approves revised Cash for Clunkers bill June 9th, 2009 ByJames Martinez James Martinez, Author, June 9th, 2009 James Martinez 3 Comments

    House approves revised Cash for Clunkers bill Earlier this year the original ‘Cash for Clunkers’ bill was rejected by the Senate because of research that showed the program wouldn't have made much impact on auto sales or emissions. A revised version of that bill has since been presented to Congress and was approved by the House in a round of voting earlier today.

    Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18mpg or less for one getting at least 22mpg. The value of the voucher would grow to $4,500 if the mileage of the new car is 10mpg higher than the old vehicle.

    Owners of SUVs pickup trucks or minivans that get... Earlier this year the original ‘Cash for Clunkers’ bill was rejected by the Senate because of research that showed the program wouldn't have made much impact on auto sales or emissions. A revised version of that bill has since been presented to Congress and was approved by the House in a round of voting earlier today. Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18mpg or less for one getting at least 22mpg. The value of the voucher would grow to $4,500 if the mileage of the new car is 10mpg higher than the old vehicle. Owners of SUVs pickup trucks or minivans that get 18mpg or less could receive a voucher for $3,500 if their new truck or SUV is at least 2mpg higher than their old vehicle. The voucher would increase to $4,500 if the mileage of the new truck or SUV is at least 5mpg higher than the older vehicle. Consumers could also receive vouchers for leased vehicles, reports the Associated Press. Importantly, the bill also would direct dealers to ensure that the older clunkers are crushed or shredded to get them off the road. Similar plans have been in place in Germany for some time now, and citing these as the chief cause of spikes in new car sales in the German market, domestic automakers such as Ford and GM are convinced that a similar initiative in the U.S. could have good results. Opponents said the bill failed to include incentives for used vehicles and represented an artificial incentive for the industry. Read More

  • Audi will need an extra year to hit 1.5 million sales target

    Audi will need an extra year to hit 1.5 million sales target June 8th, 2009 ByAlex Kaufmann Alex Kaufmann, Author, June 8th, 2009 Alex Kaufmann 0 Comments

    Audi will need an extra year to hit 1.5 million sales target Volkswagen and its subsidiaries, including Audi, have been in hot pursuit of an industry-topping sales rank for the past several years, but the widespread economic downturn is shaping up to put those plans on hold.

    It may take Audi a full year longer than expected to reach its sales goal of 1.5 million cars annually, Audi's sales chief Peter Schwarzenbauer told Bloomberg. The 1.5 million-vehicle target is currently penciled in for 2015, but with sales not continuing the upward trend seen in recent years, it will take at least a year, and possibly two, longer than hoped.

    “Whether it will now take one or two years longer doesn’t... Volkswagen and its subsidiaries, including Audi, have been in hot pursuit of an industry-topping sales rank for the past several years, but the widespread economic downturn is shaping up to put those plans on hold. It may take Audi a full year longer than expected to reach its sales goal of 1.5 million cars annually, Audi's sales chief Peter Schwarzenbauer told Bloomberg. The 1.5 million-vehicle target is currently penciled in for 2015, but with sales not continuing the upward trend seen in recent years, it will take at least a year, and possibly two, longer than hoped. “Whether it will now take one or two years longer doesn’t make much of a difference,” said Schwarzenbauer. At the same time, however, the slumping sales in markets like the U.S. have been countered to a small degree by rises in the Asia-Pacific and European markets. The overall result is a 6.1% slump in overall May sales against 2008. For the entire 2008 year, Audi saw record sales, topping 1 million vehicles sold for the first time ever. But the underlying story - and one that supports Audi and VW's planned rise to the top - is a rise in market share, which Audi has continued to benefit from in Europe, Asia and the U.S., even as total vehicle sales figures fall. When sales volumes finally turn back up, that increase in market share could lead directly to the volume the company is seeking. Read More

  • U.S. raises fuel economy floor to 27.3mpg for 2011

    U.S. raises fuel economy floor to 27.3mpg for 2011 March 27th, 2009 ByRalph Hanson Ralph Hanson, Author, March 27th, 2009 Ralph Hanson 0 Comments

    U.S. raises fuel economy floor to 27.3mpg for 2011 You might disagree with his methods, but you can't deny President Obama's determination to improve the U.S. car industry's situation and to remedy the nation's current energy policy. Part of both plans is a rise in the fuel economy requirements to 27.3mpg fleet-wide by 2011.

    It's actually a step back from the 27.8mpg standard proposed under the Bush Administration last April, but that may be in recognition of the struggle going on at General Motors and Chrysler, and to a lesser degree, the rest of the industry.

    The increases still mean a rise of 2.7mpg for passenger cars and 1.0mpg for pickups and SUVs. That's a 10% improvement on cars,... You might disagree with his methods, but you can't deny President Obama's determination to improve the U.S. car industry's situation and to remedy the nation's current energy policy. Part of both plans is a rise in the fuel economy requirements to 27.3mpg fleet-wide by 2011. It's actually a step back from the 27.8mpg standard proposed under the Bush Administration last April, but that may be in recognition of the struggle going on at General Motors and Chrysler, and to a lesser degree, the rest of the industry. The increases still mean a rise of 2.7mpg for passenger cars and 1.0mpg for pickups and SUVs. That's a 10% improvement on cars, for those keeping score - a significant figure for such a short time frame. The 4% figure for pickups is less aggressive, but will still require new technology both in powering the vehicles and in building them lighter, without losing functionality. Even though the new fuel economy floor is lower than what had been proposed, some environmental groups are still in favor of the measure, in part because of future promises made by the industry, effectively balancing out the small concession made in the short term. “The bad news is that the 27.3 mpg standard means that they’ll have to make up for it in future years,” Dan Becker, director of the Safe Climate Campaign, told Bloomberg. “The goods news is that they have promised that they will.” Whatever the eventual outcome of the decision in terms of climate change, its economic change that is the current pressing issue. And coming to a clear and certain decision about the requirements for 2011 gives automakers a definite goal. Perhaps the new standards will give new life to the small and hybrid cars abandoned by the market of late. Read More

  • Number of cars on U.S. roads set to fall for the first time since WWII

    Number of cars on U.S. roads set to fall for the first time since WWII March 14th, 2009 ByRalph Hanson Ralph Hanson, Author, March 14th, 2009 Ralph Hanson 2 Comments

    Number of cars on U.S. roads set to fall for the first time since WWII As a sign of how bad things are really getting for the U.S. auto industry, the number of cars on the roads are expected to drop for the first time in more than fifty years. We're not just talking several thousand cars either - the fall is expected to top several million vehicles.

    Last year, the number of vehicles on U.S. roads rose by about 1.3 million units due to new car sales of 15.3 million units outpacing 14 million junked vehicles. This year, analysts are predicting the number of new vehicle registrations to hover around the 10 million mark, which means if another 14 million cars are junked there will be roughly four million less... As a sign of how bad things are really getting for the U.S. auto industry, the number of cars on the roads are expected to drop for the first time in more than fifty years. We're not just talking several thousand cars either - the fall is expected to top several million vehicles. Last year, the number of vehicles on U.S. roads rose by about 1.3 million units due to new car sales of 15.3 million units outpacing 14 million junked vehicles. This year, analysts are predicting the number of new vehicle registrations to hover around the 10 million mark, which means if another 14 million cars are junked there will be roughly four million less vehicles on the roads. The last time there was a decline was in 1945, the end of World War II. Speaking with CNNMoney, General Motors' head of sales analysis, Mike DiGiovanni, said the news may not be all bad for the American auto industry, as it will create a "pressure point that will lift the industry" as older cars on the road eventually need to be replaced. However, this theory doesn't quite have a universal consensus, with other experts claiming that car sales will continue to decline or remain steady as unemployment keeps rising and people make do with fewer cars. Likening the auto industry to the housing industry, CSM auto consultant Joe Barker said the bubble has truly burst for the auto industry and that sales figures of around 10 million cars a year are to be expected in the coming years due to lower demand and structural changes. Read More

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