My Perfect Automobile » Political Stance

Auto Bailout Controversy: Will it Decide Election?

Larry Bell — Fri, 20 Jul 2012 11:10:17 +0000

Presidents Bush and Obama

Many political and economic analysts are wondering whether the auto bailout of 2008 will decide the presidential election of 2012. Even if the issue is not the central part of President Obama’s or Governor Mitt Romney’s campaign, it promises to be a contentious topic in the upcoming presidential debates.

President Obama recently told a group of voters in Michigan that the move to help GM and Chrysler avoid default ended up saving more than one million jobs and creating well over 100,000 new jobs. At the time, Michigan’s economy was hurting badly, and Obama says the bailout was a shot in the arm for the state.

Auto Industry Bailout: Cost

Obama says the cost of the maneuver was a small price to pay for a now-solvent auto industry. At the same time, the president pointed a critical finger toward Romney’s earlier position, which was to let the companies go into a managed bankruptcy, with no government assistance.

Now that the presidential campaign has become a close race, the president’s political managers are surprised that he is not walloping Romney in Michigan polls. In 2008, Obama carried Michigan by a hefty 16 percentage points, but he is nowhere near that level of support now.

Auto Industry Bailout: Results

Continuous nameplate champ: Chevy Suburban

The result of the auto industry bailout has been to revive two of the nation’s largest car manufacturers, but also to help spur new, green industries in Michigan as well as a fresh cottage industry in electric batteries. With little more than three months before the election, Obama leads Romney in Michigan by a mere one percentage point, which is a carbon copy of the nationwide polls.

Regardless of how the bailout has panned out, and who claims victory for the results, the presidential election is going to be a close contest between Obama and Romney in November.

For an impartial analysis of this topic, see the following resource page:

Automotive Industry Crisis

Larry Bell

Larry Bell + is My Perfect Automobile’s Genius Author, but we call him ‘The Expert‘. Here is his full Blog: My Perfect Automobile. Larry lives in San Jose, CA and is also the Expert Author. Larry is a lover of the Automobile as well and shares a passion for Concept, Hybrid and Electric Cars…

The Great Debate: Texting & Driving

Larry Bell — Wed, 04 Jul 2012 18:14:13 +0000

Phone friendly: Hyundai Sonata

A majority of U.S. states are currently in a legislative uproar as a national debate heats up over what drivers should, and should not, be allowed to do while behind the wheel. More than 40 states now have laws that place some level of restriction on cell phone use, primarily texting, while driving. Though some states and municipalities have taken a measured approach, others have attempted to ban any use of handheld electronic devices during the operation of a car.

However, some voters and state legislators are not going down without a fight, especially when it comes to laws that overreach and take away personal freedoms. Several states have even attempted to ban hands-free phones, which makes almost as much sense as outlawing personal conversations between drivers and passengers. Another sticky area has been enforcement. How exactly does a traffic cop know when a driver has been using a phone? Unlike a bottle of alcohol, which can be detected via a blood test, phone usage is harder to prove.

Florida is a good case in point. As cell phone use skyrocketed, traffic fatalities decreased, and in 2010, the state recorded an all-time low in traffic fatalities. While cell phone use rose from 10 percent to 80 percent, traffic mishaps went down.

In addition, if texting is the evil that many legislators make it out to be, why not ban eating, smoking, talking, reading, adjusting the radio, and all other categories of distracted driving? The focus on cells and texts is akin to 1970s bans on the use of headphones while driving. Remember that? As car stereo systems became common, there was a rush of laws to control headphone use. Most of those laws died a natural death when ear-bud speakers were invented and enforcement was seen to be nearly impossible.

Cadillac CTS Wagon, another tech-friendly car

Phone companies now almost universally issue warnings with new devices about texting and even talking, while driving. Many police officials are unsure how to enforce the proposed bans, especially the strictest ones. One such bill in Florida tried to ban manually typing anything into a device, or reading anything from an electronic screen. You could still read the newspaper though!

There are even devices now that block all phone use from a car, except for emergency calls. Opponents to the surge of “distracted driving” laws ask, “Why is talking on a hands-free phone worse than having a conversation with a passenger, or gazing at the GPS?”

What are your thoughts about the new anti-texting and talking laws?

Larry Bell

Would a Romney Win Affect EV Market?

Larry Bell — Mon, 02 Jul 2012 09:46:59 +0000

A 1961 Henney Kilowatt electric car

Some leaders in the automotive industry are wondering what the presidential election results hold. Would an Obama victory mean business as usual, a continuation of government subsidies for alternative fuel vehicles, and an otherwise friendly atmosphere for everything green? Would a Romney win portend doom and gloom for federal government efforts on behalf of electric and hybrid innovation? The current mindset among most industry experts seems to be some version of the above, with Obama seeming to be the much better benefactor of the green sector.

One major voice among the important players is Elon Musk’s, himself the CEO of Tesla Motors. As is his tendency, Musk is bucking conventional wisdom on this topic, and saying that a Republican win would have nothing more than, in his words, a “minor impact” on the alternative vehicle scene.

This opinion, coming from Elon Musk, is especially surprising, considering that Tesla secured a government loan to keep his car company afloat three years ago. At the time, and since, Mitt Romney criticized that loan program. But Musk is unfazed, saying the momentum behind electrification of the auto industry is so powerful, even Romney couldn’t stop it now. Of course, Musk points to his recent offspring, the Tesla Model S, as being a prime ingredient of the momentum.

Three EVs parked in Norway

Always speaking in a language that is about 10 percent promotional, Tesla’s leader makes a good point in any case. The year 2009, when his company got the loan, was a lifetime ago as far as the auto industry is concerned. And Musk himself may know more than he reveals, citing his own opinion that Romney might not be anti-green after all. Whether Musk’s opinions are based on gut-feeling or personal knowledge, his assessments are hard to ignore.

For more about Mitt Romney, see the following resource page:
http://en.wikipedia.org/wiki/Mitt_Romney

Larry Bell

Obama, Congress at War On Energy Bill

Larry Bell — Mon, 25 Jun 2012 15:08:08 +0000

Natural gas fuel tanks in a car

In a political battle that has no clear end in sight, U.S. House members have written an energy bill that, if signed by President Obama, would widen oil and gas production if the President uses oil from the strategic reserve. So far, Obama has threatened to veto the bill, hoping for a watered down version that allows the chief executive to draw oil from the reserve without triggering expanded oil production.

Republicans in the House say it is all part of national energy security. If the reserve is drawn down, their argument goes, then we have to make up for that somehow. Their claim is that the best way is to develop more reserves through expansion of drilling and exploration.

The president made his case late last week in a statement, claiming that unlimited expansion of oil and gas drilling will, “undermine the nation’s energy security, roll back policies that support the continued growth of safe and responsible energy production in the U.S., discourage environmental analysis and civic engagement in federal decision-making, and impede progress on important Clean Air Act rules to protect the health of American families.”

Before gasoline prices went down recently, there was much talk of Obama using oil from the strategic reserve to dampen market prices, even though many critics said his planned action would not decrease prices in any case.

A Honda Civic natural gas car

For now, the bill’s fate is still up in the air, while Republicans continue to state that a temporary price fix should be tied to a long-term plan to expand production. The president’s team remains adamant that linking the reserve to drilling is not wise. The issue is sure to be revisited in presidential debates between challenger Mitt Romney and Obama in the course of the election cycle.

For more on the bill in question, see the following U.S. government site that gives all the specifics:
http://www.govtrack.us/congress/bills/112/hr4480

Larry Bell

Safe Driving Secrets for Summer

Larry Bell — Tue, 05 Jun 2012 18:14:15 +0000

Honda's very safe Civic hybrid

Safe driving is serious business. You can have all the latest technology in your car, even an efficient new hybrid or electric vehicle with low emissions and fantastic mileage, but if your driving habits are unsafe, you put yourself at risk. Now there is a new app for your phone that can help block distracting messages and alerts from interfering with driving.

Keeping eyes, and mind, on the road are critical to assure the safety of everyone. The short video clip below shows how the system works. It’s simple, really, but can go a long way toward helping all of us become better drivers. Face it; with all the new technology in cars these days, especially in hybrids and electric vehicles, it is easy to get overwhelmed by the gadgetry, when we should be concentrating on the simple task of driving.

Using a mobile phone while driving can be extremely dangerous, but it is a common occurrence. Recently, because of high accident rates, some cities and municipalities have begun to ban various types of phone use, typically text messaging. However, many of the jurisdictions that have made texting or talking illegal have allowed the use of hands-free devices.

There has been a good deal of controversy about whether hands-free driving is in fact safer than other forms of phone use. Apparently, some of the risk associated with hands-free devices actually can be attributed to dialing. Voice-dialers appear to increase the safety level of hands-free phones.

In any case, most of the areas that are tough about mobile phones are quite lax when it comes to hands-free technology. Most experts in the field say it is a near certainty that more stringent laws are on the way, so keep an eye out for news reports that pertain to your city and state.

For information about auto safety and some other things you can do to stay safe while on the road, see the excellent website of the National Highway Traffic Safety Association:
http://www.nhtsa.gov/

Larry Bell

EV Sales: The Controversial Saudi Connection

Larry Bell — Thu, 17 May 2012 21:57:58 +0000

Smart Electric Drive's motor

To the surprise of many auto industry analysts and international economists, it appears that certain practices by the Saudi Arabian government, and OPEC in particular, are working to keep electric vehicle sales afloat. In a strange mathematical interplay of financial cause and effect, the workings of the powerful Organization of Petroleum Exporting Countries (OPEC) are likely to keep the price of Brent crude oil above $100 per barrel for the near future.

When prices fall below that level, one of OPEC’s most powerful members, Saudi Arabia, would almost certainly decrease its oil output in order to keep supplies low. That, in turn, would work to hold the barrel price artificially high, even though current trends are seeing a fall in the global price of spot crude.

A recent survey of industry executives, bankers, and oil traders revealed that the majority feel the per-barrel price will remain above $100 but below $120 for at least another year. While world political events have made a decrease of Iranian oil a likely scenario, other global economic trends have been pointing toward lower demand. In any case, price support for $100 oil is good news for makers of electric vehicles, who have seen recent sales numbers react in direct proportion to the price of world petroleum stocks.

Honda Civic Natural Gas

Right now, petroleum prices are straddled around the magic $100 number, with WTI crude at about $93 (at the time of writing), but the cost of a barrel of Brent crude at almost $112. When and if Brent crude tags below the one-hundred mark, watch for the Saudis to cut production, stave off supply, and run the number back up.

A macro-economic result of all the oil shuffling is long-term demand support for electric and hybrid vehicles in the U.S., where the price of oil is one of the primary factors driving alternative vehicle popularity.

For a third-party information page about OPEC, see:
http://en.wikipedia.org/wiki/OPEC
For the official OPEC website (yes, they have one), see:
http://www.opec.org/opec_web/en/

Larry Bell

Final Roundup: Candidates’ Green Credentials

Larry Bell — Thu, 05 Apr 2012 13:00:36 +0000

Car guy: Obama sitting in a Chevy Volt

And then there were two, or three or four depending on who’s doing the counting. With the last wave of Republican primary battles going his way, Mitt Romney can now be called the “likely” nominee of his party. Barack Obama will be the nominee for the Democrats. With none of the remaining Republican contenders having anything except an outside chance, even mathematically, of facing off against the president come November, now is a good time to take a look at the green agendas and records of Romney and Obama.

Politicians being what they are, their positions change and get re-spun as circumstances demand, so it is usually better to look at their actions rather than their words. On the biggest of the big green issues, Mr. Romney has done a bit of morphing. Just two years ago, he pointed to ice-cap shrinkage as a sign of human-caused global warming, but as recently as this month he said that, “… we don’t know what’s causing climate change…”

Perhaps positioning himself to the right during a tough primary battle, Romney has also recently commented that spending significant federal dollars to fight global warming and reduce CO2 emissions, “… is not the right course for us.” Candidate Romney agrees with candidate Obama that natural gas drilling, also known as fracking, is a good thing, and can lead to U.S. energy independence in the long run. He is also in favor of the Keystone pipeline project.

Mitt, Ann, and the grandkids out for a ride

Barack Obama says that he supports the Keystone pipeline as well, but has been a firm adherent of regulating the construction of new coal plants. . A solid proponent of government solutions to reduce CO2 emissions, even if that entails spending large sums of money, Obama believes in using the EPA as a partner in fighting global warming. Unlike Romney, Barack Obama favors federal subsidies for alternative fuel development, though he has taken heat for several solar projects that ended unsuccessfully just this year.

For more about Mitt Romney and Barack Obama, see the following resource pages:
http://en.wikipedia.org/wiki/Mitt_Romney
http://en.wikipedia.org/wiki/Barack_obama

Larry Bell

Investments: Is Your Green in Green?

Larry Bell — Wed, 04 Apr 2012 13:37:37 +0000

Green investing is very popular

Socially responsible investing has been around for at least 40 years, with many large banks and brokerages creating funds back in the 1960s that put money into companies which were considered to be “responsible” in one way or another. Since then, every form of niche investing has taken root; there are funds that only back charitable organizations, for instance, and others that focus on environmental enterprises.

With social concern about sustainability reaching new heights, so-called Green Funds are making a comeback on Wall Street, to the tune of $3 trillion dollars invested so far. The Forum for Sustainable and Responsible Investment, which tracks such activities, says that the $3 trillion figure represents what has been put into over 250 funds that represent environmental efforts, corporate responsibility, and social awareness.

The green energy sector, a subset of the huge family of socially responsible funds, has drawn much attention in the last five years, with investors plunking their discretionary investment dollars into natural gas, solar energy, ethanol, and various alterative fuel instruments. The possibilities are almost endless, since every combination of alt-fuel can be mixed and matched in any one fund. Besides the popular choices like solar and natural gas, there are funds that include battery science, wind energy, biomass, geothermal, clean energy of all sorts, and many other green fuels.

This in not to say that green funds are financial winners or losers, but they tend to make capital available to a part of the economy where green research and development take place. Just as some religious investors would never put money into a company that produces alcohol or tobacco; green-motivated investors tend to look for funds that are on the cutting edge of sustainability and environmentalism.

Ford Focus Electric

See the links below for more detailed information on specific funds if you are interested in investing. Be sure to do plenty of research before committing your financial resources, and if possible discuss all the options with your accountant or banker.

Here is an information resource about socially responsible investing, providing some of the pros and cons of that approach: http://en.wikipedia.org/wiki/Socially_responsible_investing
If you are interested in some of the green and alternative energy ETFs (exchange-traded funds), see the following informative article: http://seekingalpha.com/article/30119-green-and-alternative-energy-etfs

Larry Bell

Cars Reveal Party Affiliation

Larry Bell — Tue, 03 Apr 2012 13:56:53 +0000

Democrat favorite: Honda Civic Hybrid

An extensive study by marketing consultants at Strategic Vision has documented that car purchases are a valid and reliable predictor of a person’s political party. After polling over 76,000 car buyers, the company laid out all the juicy details about the political statements made by various popular car models. Note that elsewhere on this site we reported the recent purchase of a Chevy Volt by former President George H.W. Bush as a gift for his son Neil, a purchase that goes against the grain and may be one reason that the Bush family was not included in the study.

Seriously, many of the study’s conclusions could be guessed correctly, and fit traditional patterns, like Republicans preferring large trucks while Democrats prefer smaller vehicles overall. A couple results that are not easily guessable: Democrats favor small station wagons but Republicans go for convertibles by a wide margin.

The data tabulated each make and model’s sales figures based on party affiliation, and practically every category showed at least slight differences between the two major party’s buying habits. However, there were two cars where red and blue staters were in exact statistical agreement, the same number of Democrats and Republicans preferring them. The two cars with that unusual distinction are the Toyota Camry and the Ford Fusion. They are officially “uniters, not dividers,” as any good politician might say.

Sadly, just like in the real world, differences outnumber similarities, and Dems had their top choices, which are a world away from those of the Repubs. Top Democrat-mobiles include the Honda Civic Hybrid, Volvo C30 compact, the Nissan Leaf (easy guess there), as well as the Ford Fiesta subcompact sedan. For the Grand Old Party, favs are Ford Mustang Convertible (another slam-dunk), Audi A8 luxury sedan, Ford Expedition full-size SUV (!), and the Ford F-150 pickup, a Republican ride if ever there was one.

Republicans' top pick: Ford Mustang convertible

For all the fascinating facts about the company behind the study, Strategic Vision, see their official website at http://www.strategicvision.com/company.php
If you aren’t quite sure what your own political party affiliation is, then read the following three Wikipedia pages to see where you stand:
http://en.wikipedia.org/wiki/Republican_Party_%28United_States%29
http://en.wikipedia.org/wiki/Democratic_Party_%28United_States%29
http://en.wikipedia.org/wiki/Libertarian_Party_%28United_States%29

Larry Bell

Colo. Governor Wants ‘CNG Now!’

Larry Bell — Thu, 26 Jan 2012 14:42:38 +0000

GMC Savana CNG vehicle

It’s Cheap, It’s Here, It’s Green

At an educational symposium last week in Colorado, the state’s Governor, John Hickenlooper, went on the offensive for compressed natural gas as a vehicular fuel. Noting that horizontal drilling was first used in Colorado, the Governor called on the automobile industry to produce more CNG cars and trucks. In exchange, the state’s highest-ranking politician promised that Colorado would buy the vehicles for its fleets. Hickenlooper is one of the nation’s biggest cheerleaders for compressed natural gas, one of the most promising of all alternative fuels both because of its abundance and low pollutant levels.

He went on to outline the promises already made by eight states which agree to purchase CNG cars and trucks if any major automaker will ramp up production. Saying that there is absolutely no need for any type of government subsidy, Hickenlooper pointed out that his state has pioneered the safe removal of natural gas, assuring environmentalists that drilling for the wonder fuel, at least in his state, will follow a strict set of green guidelines. Lately, horizontal drilling for natural gas, also known as fracking, has come under fire by some groups who claim that the process pollutes groundwater and causes permanent damage to the ecosystem

In the last decade, hundreds of municipal and corporate fleets have purchased CNG vehicles, but infrastructure for fueling remain weak nationally, especially for private consumers and non-commercial drivers. As electric and hybrid cars have started to build a following, advocates like Hickenlooper hope to get a share of the limelight for natural gas cars and trucks.

If natural gas wells are properly drilled, according to the Governor, there is no chance of ground water contamination. Ever since CNG has been used as a motor fuel, concerns have been raised about the safe extraction of the substance. Now it appears that technological advances might be able to address those concerns.

For more details on this topic, see: http://en.wikipedia.org/wiki/Compressed_natural_gas

Honda Civic CNG car

Larry Bell

CAFE Standards: Fight Brewing

Larry Bell — Tue, 24 Jan 2012 22:22:36 +0000

Compromise May Be In The Works

CAFE standards: Fuel economy is name of the game

A massive fight is brewing over automobile CAFE standards. At a recent public hearing in Detroit, doubts were expressed about whether a single, 54.5 mpg fuel economy standard for cars produced between 2017 and 2025 is feasible. At the meeting, representatives of auto companies, government agencies, large unions, and the U.S. Environmental Protection Agency squabbled about whether a mid-course review is needed, sometime later in the decade, to decide if the technology exists to reach the proposed standard. Since no publicly elected representatives were included in the meeting, the assembly was composed largely of appointed government workers and union bosses who have agreed to support the 54.5 mpg goal, with or without a technology review midway through the time period.

In order for the program to remain affordable for car makers, many auto companies have expressed the desire to revise the 54.5 number, depending how technological development goes. If car prices have to be upped by 40 percent or more, which some think is conceivable, then all the fuel standards in the world will not have much of an effect, since sales would be so low. One of the large car dealers who attended the hearing commented, “If consumers don’t buy enough of these products, we all lose.”

Some expressed the fact that it is ironic how the same administration which supported a bailout of the auto industry, because it was, “too large to fail,” is pushing for a fuel standard that might put the industry in even worse shape than it was before. In fact, between now and 2016, one of the attendees pointed out, the auto industry will spend over $50 billion just to comply with regulations which cover the 2012-2016 time frame. If the cost of new technologies has not come down by then, a hard adherence to the 54.5 standard could mean ruin for the industry, because auto prices would have to be raised at least 40 percent to cover the expense of building such fuel efficient vehicles.

For more information, see: http://www.epa.gov/fueleconomy/420f04053.htm

Chevy Spark: Are EVs the future?

Larry Bell

Political War: Driving While Phoning

Larry Bell — Wed, 18 Jan 2012 22:28:02 +0000

Audi phone system

A Legal Firestorm

One of the biggest controversies of this decade is about to reach critical mass. As auto companies equip cars with smart phoning technology which includes hands-free, voice-activated telephone interfaces, a legal war is already brewing over the subject of driving while phoning.

The National Transportation Safety Board has called for a total ban on all telephone usage by drivers. This is a much stricter concept than a texting ban, which already is on the books in more than 30 states. The NTSB wants to ban all non-emergency telephone use by drivers, as well as texting and using any electronic device. Oddly, and without logical reasoning behind it, the proposed NTSB regulation says nothing of in-car video screens which allow drivers to watch films, or of complicated, voice-activated musical equipment which requires driver interaction.

As in the case of many over-reaching federal regulations, the latest NTSB power play is based on a single, tragic accident in which a Missouri driver had sent multiple text messages just before a fatal crash. Whether the texting in that case actually caused the deaths is unknown, and to the NTSB, is apparently unimportant.

Many states’ laws, which tend to be more sensible than federal agency rules, ban hand-held phone devices but allow hands-free and voice activated technology. One reason that it is difficult, by force of logic, to ban all voice-activated technology is because many such devices are often part of driver interface control systems. In other words, how can a law ban a voice-activated phone but allow voice activated GPS devices?

Common sense and logic have never been the hallmark of unelected federal bureaucrats, and the NTSB’s latest call for a ban on all phones in all cars at all times is typical of that agency’s renegade behavior throughout its long history.

The question looms: Will driver technology get smart enough fast enough to defuse this potential crisis, or will strict new laws enact a virtual ban on driving while using a telephone of any kind? Or, will the NTSB take its own reasoning to its endpoint and ban all driving?

For more information about driving safety as it relates to cell phones and texting, see: http://en.wikipedia.org/wiki/Mobile_phones_and_driving_safety

Jaguar's smart-phone dock

Larry Bell