On fair treatment for consumers, the president said, "There must be fairness in the marketplace, and there was common consensus that we need to hold people to account if they're not dealing squarely with the American consumer."
In addition to encouraging ethanol production and use, President Bush encouraged advanced battery development: "We talked about the need to continue research and development into new types of batteries so that the American consumer will be able to drive the first 40 miles on electricity."
He noted the need to use regulatory relief to expand U.S. refining capacity, recognizing a constraint faced by big oil companies when building new refineries. "If the American people want there to be a lower price of gasoline, we need more gasoline on the marketplace."
In summarizing the meeting, President Bush stated, " The prices of gasoline should serve as a wake-up call to all of us involved in public office, that we have got an energy security problem and a national security problem, and now is the time to deal with it in a forceful way. And I am heartened by the fact that we were able to have such a constructive dialogue, and that there's a commitment to get good legislation out of the Congress."
(Source: White House)
House Passes Lobbying ActWASHINGTON (May 3, 2006) - The House passed the Lobbying Accountability and Transparency Act (H.R. 4975) by a 217 to 213 vote. The bill's intent is to provide greater transparency and governance with respect to lobbying activities.
H.R. 4975 amends, strengthens and enhances the Lobbying Disclosure Act of 1995. The bill requires quarterly electronic filing by lobbyists - up from twice a year -that would be accessible to the public. Registered lobbyists must disclose contributions and details to federal candidates, leadership PACs and other PACs, political party committees, the amount and date of any gift that counts toward the cumulative limit. The legislation raises the civil penalty for failure to report from $50,000 to $100,000 and adds a criminal penalty of up to three years for "willingly" and "knowingly" failing to comply with the provisions of the act.
The measure requires members of Congress to notify and inform the Standards of Official Conduct Committee when a member begins salary negotiations with a lobbying employer within five days. It also requires a member of Congress to refrain from voting if it creates a conflict of interest. In addition, the act maintains the post-employment ban at one year for members of Congress and senior staff.
Privately funded travel for members of Congress has been suspended for the remainder of the 109th Congress, while the Ethics Committee considers recommendations on gift and travel rules to the Rules Committee by Dec. 15, 2006. Registered lobbyists are prohibited from traveling with members of Congress on corporate flights and requires the price of sporting or entertainment tickets to be valued at the highest price of the event if no face value of the ticket is listed.
The measure increases the oversight of lobbying and enforcement of the laws. The legislation requires random audits of lobbying reports filed by lobbyists by the House Inspector General and permits the House Inspector General to refer violations by lobbyists to the Department of Justice for prosecution. The act requires the House Inspector General to review lobbying disclosure and issue annual reports to the House.
H.R. 4975 requires a list of earmarks, to improve transparency, that include the sponsor's name and other details for general appropriations or spending bill or a report accompanying that bill's report. It creates a question of consideration, debatable for 30 minutes, that would lie against the rule for a conference report that does not include a list of earmarks or the rule waiving the point of order.
The bill creates mandatory ethics training for employees of Congress, and new employees must complete ethics training within 30 days of being hired. It also requires the publication of a new ethics manual, including updates to changes in policies for every Congress. The act strips members' of government contributions to Congressional pensions if convicted of bribery, acting as a foreign agent or conspiracy to commit bribery or act as a foreign agent, while the individual is a member.
The bill will now go to the Senate for consideration, as the Senate passed a different version of the bill last March. Differences will be worked out by a joint House-Senate committee, and the bill then will be voted on.
Some in the Senate feel that the House bill didn't go far enough. Senator Christopher Dodd (D-CT), Ranking Member on the Senate Rules and Administration Committee will likely have a seat at the conference committee table. The House, he said, has "a very, very weak bill. If we don't strengthen it, I'll consider voting against it."
The Senate bill differs from the House's in that it would allow Senators to strike appropriations earmarks that were not approved by the Senate. For tax-exempt 527 organizations (that are created primarily to influence the nomination, election, appointment or defeat of candidates for public office), Dodd noted that, "A significant majority in our caucus believes 527s have been a significant advantage for Democrats."
The Senate bill also goes further in regulating the lobbying-lawmaker relationship, including doubling to two years the lobbying moratorium on former members of the Senate, a ban on all gifts and meals from registered lobbyists and new disclosure for grassroots and coalition lobbying.
(Source: Thomas Register)
One-Third Considering Alternate-Fueled VehicleROCHESTER, NY (April 24, 2006) - A recent Harris Interactive poll, conducted for the Wall Street Journal during the first week of April 2006, surveyed consumer attitudes towards alternate-fueled vehicles.
Of those contemplating a new vehicle purchase, 34 percent of those surveyed said they are most likely to seriously consider an alternative-fuel vehicle for their next purchase. Of that 34 percent, 25 percent of them indicated a hybrid-gasoline vehicle would be their choice, 7 percent leaned towards ethanol/gasoline flex-fuel vehicles and 2 percent would buy diesel/biodiesel flex-fuel vehicles.
With such vehicles commanding a premium, 92 percent of those considering an alternate fuel vehicle would pay the premium. The average premium that respondents were willing to pay was $9,258. Women indicated they would be willing to pay, on average, a 38 percent higher premium than men.
Of the primary reason cited for choosing an alternate fuel vehicle, 47 percent said their main reason for doing this is because it is better for the environment. Another 45 percent say their fuel costs will be lower; 3 percent stated the Federal Clean Fuel Tax Deduction as their motivator; and 1 percent chose being able to drive in high occupancy lanes as their main reason. Twice as many women than men cited the environment, while nearly twice as many men than women chose fuel economy.
(Source: Harris Interactive Inc.)
Two-Mode Hybrid System PremieresVIENNA, AUSTRIA (April 27, 2006) - General Motors Corp. (GM), DaimlerChrysler (DCX) and the BMW Group's state-of-the-art full two-mode hybrid system - with its fully integrated combination of electric motors with a fixed-gear transmission - unveiled the system at an industry conference last month in Austria.
(Photo: GM)
The two-mode system consists of low- and high-speed electric continuously variable transmission (ECVT) modes. The sophisticated fuel-saving system also incorporates four fixed gear ratios for high efficiency and power-handling capabilities in a number of vehicle applications. The hybrid system uses the electric motors for boosting and regenerative braking.
The four fixed gears overlay two ECVT modes for a total of six operating functions:
* Input-split ECVT mode, or continuously variable Mode 1, operates from vehicle launch through the second fixed gear ratio.
* Compound-split ECVT mode, or continuously variable Mode 2, operates after the second fixed gear ratio.
* First fixed-gear ratio with both electric motors available to boost the internal combustion engine or capture and store energy from regenerative braking, deceleration and coasting.
* Second fixed-gear ratio with one electric motor available for boost/braking.
* Third fixed-gear ratio with two electric motors available for boost/braking.
* Fourth fixed-gear ratio with one electric motor available for boost/braking.
The result is a hybrid technology that provides improved fuel economy, performance and load carrying capability, the automakers said.
Traditional hybrid systems typically have only one torque-splitting arrangement and no fixed mechanical ratios. These systems are often called "one-mode" hybrids. Due to their less capable mechanical content, one-mode hybrids need to transmit a significant amount of power through an electrical path that is 20 percent less efficient than a mechanical path. This requires usually substantial compromise in vehicle capability or reliance on larger electrical motors, which can create cost, weight and packaging issues.
This full hybrid system features electric motors that are more compact and less dependent on engine size. It is particularly beneficial in demanding applications, say the automakers, that require larger engines, such as towing, hill climbing or carrying heavy loads.
Existing internal combustion engines can be used with relatively minimal alteration, and it enables the three automakers to package engines with the full hybrid transmissions more cost-effectively and offer the technology across a wider range of vehicles.
Initial applications are suitable for front-engine, rear- and four-wheel-drive vehicle architectures, but the full hybrid system has the flexibility to be used in front-engine, front-wheel-drive architectures in the future as well.
(Source: GM)
Dorman Offers New Automotive Hardware CatalogCOLMAR, PA (April 20, 2006) - Dorman Products today announced the introduction of its "2006 AutoGrade Automotive Hardware Catalog (#DAG2006) and Electronic Assortment Guide."
The 2006 catalog features new SKUs and updated coverage through 2006 for domestic and import applications. It also provides an extensive offering of non-application specific hardware. The guide displays pictures of wheel hardware, oil drain plugs, oil drain plug gaskets, axle spindle hardware and body hardware for easy identification at the counter. Most sections throughout the catalog feature convenient Tech Trays and Value Packs that contain assortments of the most popular items to save service dealers valuable bay time by not having to wait for a common hardware item to complete the job.
The AutoGrade(tm) Electronic Assortment Guide can be found at www.dormanproducts.com/assortmentguide. It contains recommended Distributor Assortments based on store size and stocking capabilities. Merchandising Solutions to accommodate distributor and service dealer stocking recommendations also are featured.
(Source: Dorman)
What Happens When Gas Hits$4 Per Gallon?
PALO ALTO, CA (May 3, 2006) - The recent reactions of consumers when gas prices hit $3 per gallon has been well-publicized. Yet two major question remains: At what price will people start to make significant changes to their lifestyles? At what price will they have no choice but to do so?
At $3 per gallon, driving 15,000 miles per year at 25 miles per gallon costs $1,800. If the price of fuel goes to $4 per gallon, this cost jumps to $2,400. At $5 per gallon, the total spent on fuel would be $3,000. In the recent Frost & Sullivan survey "The Price Of Fuel - What Happens at $4 Per Gallon?", the public was asked about the behavioral changes they would make faced with these price increases.
Survey choices included: reduce non-essential driving, increase the use of their most fuel-efficient vehicles, use alternative forms of transportation, purchase a more fuel-efficient gasoline-fueled vehicle or purchase a more fuel-efficient diesel vehicle. Chart 1 summarizes the results, and the responses have been sorted into those who have already made that choice, those who would do so at $4 per gallon and those who would react at $5 per gallon.
When asked about the purchasing criteria used in choosing their current vehicles, 54 percent of respondents included fuel efficiency in the top three criteria. Following fuel efficiency, 49 percent selected the type of vehicle, 41 percent chose vehicle safety, 38 felt engine performance (power, acceleration and smoothness) was most important and 38 percent responded handling.
The survey demonstrated that fuel efficiency becomes even more important to consumers as the price of fuel increases. At $4.00 per gallon, 81 percent of respondents would include it as a top-three priority, and at $5.00 or more per gallon, 84 percent would do so. This trend holds across all demographic segments - gender, age, household income, current vehicle, satisfaction with the fuel economy of current vehicle, and degree of concern about rising fuel prices. The importance of fuel economy increases as the price of fuel increases in all segments.
F&S noted that people are seen to be more willing to trade handling than engine performance for greater fuel efficiency. At higher fuel prices, handling drops progressively in importance; however, engine performance actually becomes a top-three priority for more people at higher fuel prices. The report concluded that it probably reflects the fact that people realize that with greater fuel efficiency, performance may be compromised. This finding says that many people are not willing to make this trade-off, and this may pose a major challenge to both automakers and government policy-makers as they seek to improve fuel economy.
(Source: Frost & Sullivan)
Wall Street Examines Auto IndustryBOSTON, MA (April 28, 2006) - A new Ceres report released today finds that uncertainty in the U.S. is a major problem for investors and Wall Street analysts in assessing the value of auto companies.
The report, "Climate Risk and Energy in the Auto Sector: Guidance for Investors and Analysts on Key Off-balance Sheet Drivers," highlights key findings from an auto analyst briefing last December at J.P. Morgan in New York City where Wall Street analysts. The briefing was co-sponsored by the Natural Resources Defense Council (NRDC), Ceres, Cornell University, the Office for the Study of Automotive Transportation at the University of Michigan (OSAT), JP Morgan, and the Investor Network on Climate Risk.
Regulatory uncertainty on climate change is a major problem for the auto sector. "Given that many corporate CEOs now agree that mandatory climate change regulations are inevitable, Wall Street needs more clarity from President Bush and Congress on the eventual structure of climate policy, so analysts can assess the financial and competitive implications on auto companies accurately," said Mindy S. Lubber, president of Ceres. "Investors are calling for policy certainty and better climate risk disclosure so analysts can better estimate the fair value of the auto companies in their portfolios."
Flexibility in auto manufacturing is central to future profitability. It takes time for automakers to implement strategic changes, and moving in the wrong direction due to unanticipated or undisclosed risks can easily result. Dr. Walter McManus, director of Automotive Analysis for the University of Michigan Transportation Research Institute stated, "The SUV cash cow has turned out to be a Trojan horse. Steadily rising fuel prices since January 2002 have already shifted consumer demand away from large SUVs and pickup trucks, but U.S. manufacturers responded not by shifting their future product plans but by lowering prices on the same inefficient vehicles they've been offering for years."
Analysts and investors also need improved disclosure on the risks and opportunities posed by fuel price uncertainty. The report, for example, included a prediction by the International Energy Agency that 95 percent of the world's economy may come to depend on oil from five or six politically volatile Middle Eastern and North African countries. The report also noted that only Nissan and Honda are capable of rapidly switching from producing SUVs to more fuel-efficient vehicles. Alternative technologies and fuels, geopolitics and government policy on climate change will result in leaders and laggards, as automakers try to determine where consumer demand is headed - flex fuels (ethanol and biodiesel), all electric, hybrids, or hydrogen fuel cells.
(Source: Ceres)
New Product Locates, Tracks and Immobilizes Stolen VehiclesCOVENTRY, ENGLAND (May 4, 2006) - Auto-txt is a new vehicle tracking solution that is making a major impact in vehicle security. The product is made by RDM Group, a British based specialty electronic equipment provider to the automobile industry.
(Photo: RDM)
The system, which is concealed in a vehicle, authenticates the driver using Bluetooth, GSM and GPS technologies. Using patented technology developed by RDM, Auto-txt facilitates driver recognition and tracking. If a vehicle is stolen, it can be remotely disabled from the Auto-txt control center, under police supervision, allowing the police to move in and recover the vehicle. Future applications will include navigation systems, remote diagnostics and pay-as-you-drive insurance, all linked to a mobile phone.
The product has also been has been given official police endorsement with an accolade and official logo called "Secured By Design." Secured by Design is the United Kingdom Police flagship initiative which supports the principles of 'designing out crime' by using effective crime prevention and security standards. Auto-txt has undergone strict testing by the national insurance industry research body Thatcham and is now qualified as having "police preferred specification" and is fully accredited.
The company noted that recent research suggests that currently over 50 percent of stolen cars are not being recovered; hence the need for this product. Both Jaguar Cars, Land Rover and Aston Martin have retained Auto-txt to supply car tracking and security systems for all their vehicles from 2006. The full version of Auto-txt, including the after-theft immobilizer feature, is $1100.
To view a short video of how Auto-txt works, click here.
(Source: RDM)
Carbon Fiber Cars Could Put U.S. On Highway To EfficiencyOAK RIDGE, TN (May 6, 2006) - Highways of tomorrow might be filled with lighter, cleaner and more fuel-efficient automobiles made in part from recycled plastics, lignin from wood pulp and cellulose.
Researchers at the Department of Energy's Oak Ridge National Laboratory (ORNL), working as part of a consortium with Ford, General Motors and DaimlerChrysler, are attempting to develop cost-effective, high-volume renewable sources of carbon fiber feedstocks in order to lower the cost of carbon fiber composites. ORNL progress in developing affordable carbon fiber composites has been steady.
One focus has been on finding optimizing the spinning processes for alternative forms of carbon fiber precursors from renewable sources. This would allow high-volume, cost-effective processing of carbon fiber, hybrid glass-carbon fiber and reinforced thermoplastic material forms that are lightweight and cost-competitive with metal parts they would replace, such as steel side panels and wheels.
Another focus is on developing an efficient carbon fiber oxidation process, which would significantly increase production and lower cost of processing the renewable raw materials. One promising possibility is plasma processing technology to rapidly oxidize precursor fibers. In this area, ORNL is working with Atmospheric Glow Technologies using a technique to generate and use plasmas in a non-traditional way: in the open atmosphere instead of in a carefully controlled environment, such as in inert gases and at very low pressures.
Bob Norris, leader of ORNL's Polymer Matrix Composites Group said, "Whereas today the cost to purchase commercial-grade carbon fiber is between $8 and $10 per pound, the goal is to reduce that figure to between $3 and $5 per pound." At that price, it would become feasible for automakers to use more than a million tons of composites - approximately 300 pounds of composites per vehicle - annually in the manufacturing of cars.
The big advantage of carbon fiber is that it is one-fifth the weight of steel, yet just as strong and stiff, which makes it ideal for structural or semistructural components in automobiles. Replacing half the ferrous metals in current automobiles could reduce a vehicle's weight by 60 percent and fuel consumption by 30 percent, according to some studies. The resulting gains in fuel efficiency, made in part because smaller engines could be used with lighter vehicles, would also reduce greenhouse gas and other emissions by 10 percent to 20 percent.
All of this would come with no sacrifice in safety, as preliminary results of computer crash simulations show that cars made from carbon fiber would be just as safe - perhaps even safer - than today's automobiles. Norris noted that today's Formula 1 racers are required by mandate to be made from carbon fiber to meet safety requirements.
(Source: ORNL)
OEM Flexible Vehicle Platforms Driving Suppliers To ChangeLONDON (May 3, 2006) - According to Frost and Sullivan (F&S), European automakers are increasingly implementing platform strategies that involve the sharing and standardization of components, to optimize costs and establish an efficient manufacturing process.
Original equipment manufacturer (OEM) strategies are shifting from standard platforms towards flexible architecture that allows the manufacture of vehicles with varying track and wheelbase dimensions. Sharing architectures across varied car segments and brands will offer vehicle manufacturers the flexibility of building cheaper car models with improved time to market.
Thus, manufacturers are working towards incorporating these strategies to build vehicles of varying design and features with a high degree of standard components and modules. The increase in the number of standardized components will assist in simplifying inventory tracking and logistics.
Further, with OEMs increasingly outsourcing complete module responsibilities, suppliers will face greater responsibilities and are likely to be involved in the early stages of the vehicle development process. Accordingly, suppliers need to focus on gaining better capabilities and know-how that will assist them in their collaboration with vehicle manufacturers.
However, the huge risk associated with sharing platforms remains a concern, F&S points out, as flaws associated with a specific platform could be distributed across all car models built upon the same components. Further, these flaws might require a number of recalls and redesigns, resulting in significant expenditure.
"The desired cost savings through platforms can be disrupted by costly mistakes and recalls that will affect all models built on a specific platform," said F&S Research Analyst Vigneshwaran Chandran. "Also, the standardized components or modules of a specific platform/architecture will need to be compatible with the differentiating model-specific parts to enable overall smooth functioning."
As the concept gains importance, the manner in which vehicle suppliers are organized in the market is likely to witness a significant transformation, adds F&S. The trend of designating suppliers to provide a complete platform, instead of individual models, will gain acceptance, thus allowing suppliers to boost their sales volumes. This will enable them to improve their value-addition through better integration, as well as lower costs as a result of economies of scale.
Further, with OEMs increasingly outsourcing complete module responsibilities, suppliers will face greater responsibilities and are likely to be involved in the early stages of the vehicle development process. Accordingly, suppliers will need to focus on gaining better capabilities and know-how that will assist them in their collaboration with vehicle manufacturers, F&S says.
(Source: F&S)
ASA Urges Members to Support Funding for Perkins ActBEDFORD, TX (May 5, 2006) - The president's fiscal year 2007 budget proposal aims to eliminate the funding for vocational education provided under the 1998 Perkins Vocational and Technical Education Act. If this funding for career and technical education programs is eliminated, early employee training will be in jeopardy, says the Automotive Service Association (ASA).
If funding for these vocational programs are eliminated, consumers will suffer due to shortages of qualified technicians resulting in increased prices for repairs and automobile insurance. TASA notes, for example, that the success of the mechanical and collision repair industries are highly dependent on the career and technical training provided by vocational education programs. The Perkins Act is vital to providing students with the rigorous academics and training that will further their careers and benefit the industry as a whole.
ASA is in support of continuing the full funding for the Perkins Act, and urges like-minded people to contact their elected representatives in both the U.S. House and Senate, asking them to support full funding of the Perkins Act. More information is available at ASA's "Taking the Hill" Web site.
(Source: ASA)
Technician of the Millenium IV Semifinalists Selected20060509_NB3_Fig1_ACDelco Logo_Courtesys of ACDelco.jpg
GRAND BLANC, MI (May 6, 2007) - Just 40 automotive service professionals remain as regional semifinalists, from the nearly 10,000 who entered ACDelco's Technician of the Millennium contest.
The contest was open to those at independent service centers who participate in ACDelco's Total Service Support (TSS) program. Entrants earned semifinal spots based on their performance on a 100-question, Internet-based test administered in February covering nearly all aspects of vehicle repair. The top five scorers in each of the company's U.S. and Canadian regions advanced. The semifinalists are set to compete against the clock and each other at ACDelco's Technician of the Millennium (TOM) IV Regional Semi-Finals taking place this week in Warren, MI at the GM Heritage Center.
Technicians competing in the semifinals will diagnose and repair pre-determined "bugs" placed in identical vehicles. They are judged on their professionalism and accuracy in their diagnosis and repair in a timed, hands-on skills competition for the title. One semifinalist in each of ACDelco's eight regions will advance to ACDelco's National TOM IV Finals taking place Oct. 27, 2006 at the ACDelco National Convention in Las Vegas, NV.
"As vehicles' complexity and sophistication increases, so does the need for qualified technicians who possess the required skills to diagnose and repair them," said Todd Dawn, ACDelco aftermarket training manager. "In addition to highlighting technicians' professionalism, skills, education, and training, ACDelco's TOM IV competition helps raise awareness of this important career. There are predictions for an industry shortage of trained technicians in the near future; ACDelco's TOM IV helps get young men and women excited about job opportunities in this field."
(Source: ACDelco)
