Death by Car

capitalism's drive to carmageddon: news & comments

warpeace “The mission of the Energy Department is to ensure America’s security and prosperity by addressing its energy, environmental and nuclear challenges through transformative science and technology solutions.”

Of course, in market-totalitarian America, “America” means corporate capitalists. Hence, we find the U.S. Energy Secretary out pimping for extension of the reign of human history’s most wasteful lifeblood-to-a–ruling-system product. As reported by Automotive News:

WASHINGTON — The U.S. Department of Energy wants auto suppliers to know that it still has $16 billion in low-interest financing available to support efficient-vehicle programs, and it wants them to step forward for a share of those funds. The department’s lending authority comes under the Advanced Technology Vehicles Manufacturing Loan Program, which Congress created in 2007. Early in the Obama administration, the Department of Energy used the program to lend about $8.4 billion to Ford, Nissan, Tesla Motors and Fisker Automotive. Suppliers were always eligible, but none secured funding. Now, under Energy Secretary Ernest Moniz, the program is being overhauled to make it easier to fund production of technologies such as lightweight materials, efficient engines and low-friction tires.

The changes that Moniz announced today include legal clarifications to show that suppliers are eligible for the program, a promise to respond more quickly to applicants and the creation of a new online application portal.

Moniz announced the program changes on Wednesday during a speech to the Motor & Equipment Manufacturers Association, or MEMA, a trade group representing auto suppliers.

Today we are presented with an opportunity to hit the accelerator on U.S. auto manufacturing growth,” Moniz said.

To restate: In the year 2014, the person in charge of solving the nation’s energy challenges is bragging about “hitting the accelerator” on making automobiles.

Orwell was an amateur.

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Differential Danger

Per the WHO, via Harper’s magazine:

Number of deaths in traffic accidents for every 100,000 vehicles on the road in developed nations : 11

In Ethiopia : 3,865

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Usury and Upselling at Dealerships

usury Automotive News reports on an important advance in business practices within corporate capitalism’s auto-industrial complex:

Service orders and profit have jumped at Garber Buick in Saginaw, Mich., since the store started offering credit-card applications and interest-free credit to cash-strapped customers.

When a service customer declines suggested repairs or maintenance beyond the reason for the visit, a store representative sits down with the customer to explain financing options, said Bobbie Herron, director of digital sales and marketing for Garber Automotive Group’s four Michigan stores.

If affordability is the problem, and often it is, the dealership offers to help the customer fill out a GE Capital credit card application. The financial services company often accepts or rejects the application within minutes, Herron said.

If the application is rejected, Garber Buick has arranged with CrossCheck Inc., a provider of check approval and guarantee services, to guarantee as much as $4,000 in repairs interest-free so long as the customer can pay the balance by check in a month, Herron said. The plan requires 25 percent of the bill to be paid upfront and the remainder paid within 30 days.

“It’s work that would have been denied because our customers didn’t have the funds,” she said.

Auto News doesn’t report what percentage of people who don’t have the cash to pay for car repairs and are rejected for a new credit card are typically able to pay off their new CrossCheck tab within 30 days, but it certainly has to be almost none. Any guesses as to what interest rate kicks in after 30 days? It can’t be low.

Hence, a more-than-100% growth in profits on a 40% hike in repairs:

Herron credits the financing initiative, launched three months ago, for a big boost in service work. Over the past two months, monthly repair orders have risen from 125 yielding net profit of $8,900 to 175 generating $19,750, she said.

And here’s the “work” of the car dealership, the labors that unleash such economic wonders:

Herron said the initiative grew out of a strategy session five months ago during which she met with Garber Buick’s general manager, Rich Perdue, and other employees to devise a way to increase customer-pay service work.”

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The least surprising possible news from today’s New York Timess:

New legislation to pay for transportation is a priority for both parties because the nation’s Highway Trust Fund is nearing insolvency. Anthony Foxx, the transportation secretary, has said the trust fund could begin “bouncing checks” by this summer. That would force a halt to construction projects around the country, officials have said.

Note the equivalence between “transportation” and “the nation’s Highway Trust Fund.”

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earthapple This is how they do it:

Driven by the rise of the millennial generation and a global growth boom, the auto industry is in the midst of a new golden age, said Mark Fields, Ford Motor Co. COO, in a speech at the Automotive News World Congress. The industry should take advantage of that to lure new talent, he said. Fields called it “the most exciting time for the auto industry in the last 25 years.”

Growth of small cars and luxury sales are pushing industry growth from different ends.

“There are 2.1 billion people reaching driving age in countries where the number of middle-income consumers is growing. These countries have huge potential for growth of first time buyers,” he said.

“Today the luxury segment accounts for 8 percent of the total global market,” he said. “Globally, the luxury market is forecast to add approximately 2.3 million vehicles in the next five years — with lots of opportunity in markets like China, the U.S., Russia, Turkey and Brazil.”

An exciting golden age, indeed! Is this how Thelma and Louise felt in their last 30 seconds?

[Source: Automotive News, January 14, 2014]

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In Flagrante Delicto

When Tesla starts its fires, its execs always leap out and issue indignant denials of any inherent problems.

For those keeping track, this is what happens next.

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House Afire

Teslas burn houses, too.

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Cars and Space

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Not sure who made this animated gif (click on it to activate), but it shows the implications of cars-first transportation for urban design.

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Clooney v. Musk

Clooney: “I had a Tesla. I was one of the first cats with a Tesla. But I’m telling you, I’ve been on the side of the road a while in that thing. And I said to them, ‘Look, guys, why am I always stuck on the side of the f**king road? Make it work, one way or another.’”

Musk: “In other news, George Clooney reports that his iPhone 1 had a bug back in ’07.”

This Elon fellow is one of the easier targets around. His ego must be immense, as he clearly can’t hear himself pratfalling. A bug? A bug is an annoyance in an otherwise functional product. A $100,000 car that repeatedly leaves you physically stranded is a bit more than a bug. And need we remind that “electric” cars are not new inventions? Quite the contrary.

And, then, of course, there’s that other bug:

Telsa Model S automobile destroyed by a fire is seen in a handout picture from the Tennessee Highway Patrol

 

 

 

 

 

 

Musk tries to excuse this one by pointing out that gas cars also catch fire. Of course, the average gas car that catches fire is over a decade old and worth about 1/100th of these Tesla bombs.

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Tesla Fire #3

Tesla Fire3

They have the chutzpah to say this: “We have been in contact with the driver, who was not injured and believes the car saved his life.”

Yes, it saved his life — from itself!

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