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Posts from the "Cars" Category

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Pitchfork-Wielding Consumers Hold Auto Industry Hostage!

"What do we want? More of the same! When do we want it? Now!" Image: Untold Entertainment

It’s sad, really. Tremendous gains in vehicle fuel efficiency have been squandered, MIT’s Christopher Knittel demonstrates in a study published in the American Economic Review. Knittel’s analysis quantifies how, while automakers have applied meaningful fuel economy innovations over the past several decades, these have produced only modest gains in miles per gallon, because at the same time the companies inflated horsepower and vehicle size. As MIT’s press release put it:

Thus if Americans today were driving cars of the same size and power that were typical in 1980, the country’s fleet of autos would have jumped from an average of about 23 miles per gallon (mpg) to roughly 37 mpg, well above the current average of around 27 mpg. Instead, Knittel says, “Most of that technological progress has gone into [compensating for] weight and horsepower.”

Based on this history, Knittel rightly concludes that market forces cannot drive the social and environmental good of fuel efficiency; he supports an increase in the gas tax. Unfortunately, he goes on to perpetuate a convenient fallacy that has provided cover for an industry looking to evade regulation and avoid responsibility:

“I find little fault with the auto manufacturers, because there has been no incentive to put technologies into overall fuel economy,” Knittel says. “Firms are going to give consumers what they want, and if gas prices are low, consumers are going to want big, fast cars.”

In response to calls for less polluting or less dangerous vehicles, the auto industry has often depicted itself as hostage to a voracious, and quite imaginative, consumer mob that stands in the way of such progress. Apparently, car buyers expend great energy dreaming up spectacular new ideas for cars, which they then conspire to demand from the industry.

NHTSA should act swiftly and decisively on the plethora of distracting technologies being built into vehicles.

The truth is, consumers rarely want a product that they don’t know exists or that doesn’t exist yet. As marketing expert James Twitchell puts it, “In reality people often do not know what they want until they learn what others are consuming. Desire is contagious, just like the flu.” It isn’t until they see others wanting a product — in the media or in real life — that consumers start to want it.

Suburbanites across America were not collectively thunderstruck in the 1980s by the realization that living the good life meant clambering up into a giant vehicle. Instead, automakers, eager to sell more high-margin products, took advantage of regulatory loopholes to push bigger and bigger vehicles. They repositioned clunky trucks as “sport utility vehicles,” transforming them into symbols of wealth, leisure, and suburban family values. In ads, they implied that SUVs were safer by virtue of their heft and hammered on the need for capacious cargo space. The effort was so successful that despite the recession and outcry over gas prices, SUVs and SUV crossovers currently account for 31 percent of U.S. auto sales.

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Dislike? Mercedes-Benz Wants to Put Facebook in Your Dashboard

Earlier this week, at the Consumer Electronics Show in Las Vegas, Mercedes-Benz USA unveiled “mbrace2,” an in-dashboard service that enables the use of Facebook, Yelp, and Google behind the wheel. The service will likely be available in all 2013 models.

Mercedes' mbrace2 system allows drivers to update their Facebook status while driving. Photo: PCWorld

Mbrace2 will be the latest entry in a growing list of built-in communications interfaces currently offered by major automakers. Ford, GM, BMW, and Kia all feature systems that allow drivers to “read” and “write” emails or text messages using voice commands, which distracted driving prevention group Focus Driven says doesn’t cut it as a safe alternative to hand-held devices. (Mercedes’ new system is operated by knob, not by voice.)

The move was almost inevitable, Facebook’s VP of Partnerships and Platform Marketing Dan Rose told Reuters:

“Now that cars have screens that are intelligent, you would expect that more and more car manufacturers will want to make those screens capable of allowing people to connect with their friends and take advantage of the social context that comes along with that,” Rose said in an interview.

“One of the core things that people do on their screens in the car is GPS navigation and the ability to see which of your friends are nearby is something we think will be really interesting for people.”

So where is the line between “really interesting” and “dangerous distraction”? After all, the announcement comes at a time when the National Transportation Safety Board has recommended a ban on the use of all portable electronic devices, GPS devices excepted, in all 50 states and the District of Columbia. Additionally, Secretary of Transportation Ray LaHood has made the anti-distracted driving campaign something of a cornerstone issue for his department. So how will Mercedes’ new feature fare in the face of multiple public awareness campaigns and regulatory efforts aimed at combating distracted driving?

To date, U.S. DOT has made no judgments regarding these in-dash communications systems. But in a move that shows at least some recognition of the system’s potential for distraction, Mercedes has programmed mbrace2 to disable certain functions while the car is in gear, like web browsing and Facebook’s News Feed and Wall features. However, drivers can still scroll through phone numbers and addresses of their friends, check event information, and update their statuses while the car is in motion. Mercifully, Mercedes’ version of Facebook will not support third-party apps like Farmville.

In the end, though, mbrace2’s limitations may end up curbing its potential to distract. In a hands-on review of the system, PCWorld pointed out that, besides the stripped-down functionality of the apps, “Websites also look less-than-stellar on the Mbrace2′s interface, so you may just want to use your phone instead — after all, you’re already parked.”

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Getting Young People Back Into Cars Is Auto Industry Job #1

Maybe Kia could have been just a little less transparent about marketing cars to kids than this Super Bowl ad from last year. Photo: AutoEvolution

While the choked parking lots at many suburban high schools might mislead you, young people today are less interested in driving and owning cars than their counterparts in previous generations. This is happy news for environmentalists and complete streets advocates, who see fewer vehicles on the road as key to a healthier, wealthier society. For the global auto industry, though, it is an existential threat not to be ignored.

Generation Y’s reluctance to embrace car culture may be temporary, reflecting merely the tough economic times, especially for those burdened with college debt. But studies show teens now maintain connectivity through the internet, not though cars, and teen driving rates have been in steady decline since the late seventies. So young people’s lack of interest in driving may presage a more fundamental shift in how we connect with other people, where we choose to live and work, and how we construct our identities. Either way, the auto industry isn’t taking any chances. Here are just a few tactics car makers are employing to take back the future.

Ratcheting up marketing to kids. Marketing cars directly to children pays off big for car companies even though they won’t be driving or buying their own for years. American children in particular hold real sway over family purchases: more than half of parents surveyed by JD Power said their children had meaningful input in choosing the family vehicle.

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Mapping the Consequences of Our Automobile Addiction

Leave it to the Brits to create an incredible tool for examining America’s own crisis of traffic fatalities. Behold this somber map, made by ITO World, a UK-based transportation information firm. Each dot on the map is a traffic-related death. The entire eastern United States is blanketed with them.

The purple dots represent vehicle occupants – not necessarily drivers – who were killed. It may look like a lot of purple, and it certainly is, but when you zoom in closer you see a lot of blue dots, for pedestrians, as well as an awful lot of yellow dots, for motorcyclists. The green dots for bicyclists are fewer and farther between, but if you zoom into the cities, you’ll find them. Each dot even lists the year of the crash and the victim’s age and gender.

ITO World got their fatality data from the Fatality Analysis Reporting System of the National Highway Traffic Safety Administration. It appears they’ve captured not just fatalities on highways but on local streets as well.

The World Health Organization reports 12.3 annual traffic deaths per 100,000 inhabitants in the United States. Compare that with 3.85 in Japan and 4.5 in Germany. If the U.S. achieved similar rates, more than 20,000 deaths would be prevented each year.

This map is a useful way of visualizing the terrible consequences of our auto-addicted culture. Beyond that, it can be an indispensable tool for community transportation advocates to show local officials where problem spots are and how their community compares to others.

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Nice Try, GM

GM pulled its offensive ad that tried to depict biking as uncool in response to complaints from bicycling advocates, but they’re still running this ad, showing what a drag it can be as a pedestrian because cars will ruin your day. (Best just to get your own car and ruin someone else’s day.)

A GM spokesman said that they listened to the complaints they received about the bike ad and “there are changes underway.”

“The content of the ad was developed with college students and was meant to be a bit cheeky and humorous and not meant to offend anybody,” said Tom Henderson. “We respect bikers and many of us here are cyclists.”

But the hell with you, pedestrians! Sucks to be you, out on the street getting exercise and sunlight and not sitting in a two-ton steel bubble!

We renew our call for the GM marketing department to get with the program already.

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GM to College Students: Stop Pedaling, Start Driving

Car ads that try to appeal to the desire for social status are nothing new, but here’s one that just gets it wrong: GM is trying to convince college students that driving a Buick is hipper than riding a fixie.

Nice try, GM. Unfortunately for you, college kids aren’t falling for it. People between the ages of 20 and 40 are driving way less today than people that age drove just 10 years ago.

So, in this picture, who would be the one smiling and who would be the one hiding her face? In the deliciously sarcastic words of Andy Clarke at the League of American Bicyclists:

If you are a student looking to add tens of thousands of dollars of long term debt, care little about the environment, and want to lump two tons of steel around campus while paying through the nose for insurance, gas, and parking… General Motors has got a perfect deal for you. Bonus: it’ll make you fat and unhealthy! All you have to do is give up that dorky bicycle that’s easy to use, practically free, gets you some exercise and is actually fun to ride.

The ad is so wildly off the mark that the League is mostly poking fun at GM’s misperception of the collegiate idea of Cool — but for good measure, they’ve got an action alert in case you want to tell GM just how out of touch its marketing department has become.

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Do We Treat Our Cars Better Than We Treat Ourselves?

Running Saturday morning errands, you may have found yourself in traffic, only to realize you’re stuck behind a line of vehicles inching into a car wash. Each month, nearly half of all American car owners head into one of the nation’s estimated 100,000 car washes to bathe their vehicles in some loving suds.

Some people show more love for their cars than they do for their families. Photo: Guide to Detailing

“Then there are those—and I love these people—” says Mark Curtis, CEO of the Splash Car Wash chain, who visit weekly, core customers “who truly care for their cars” and “see them and their upkeep as a reflection of themselves, and have it as part of their regular routine.” This ardent minority keeps alive the cliché that we Americans love our cars, an oversimplification that fails to capture our divergent, ambivalent, evolving feelings about them. Still, on the whole, we may treat our vehicles better than we treat ourselves.

Take a gander at how much cash and credit we lavish on them. On the household level, transportation accounts for one out of every six dollars Americans spend, the crushing majority of which goes to owning and operating cars. (By contrast, families who use public transportation and own one less car can save up to $8,400 a year, according to APTA). Only housing accounts for a bigger chunk of our budgets; we fork out less for food.

It’s especially illuminating to look at spending “per capita”—that is, how much we spend per person and per vehicle in our household. Though we spend more than twice as much to fuel each body in our home with food than we do to fuel each vehicle in our garage with gasoline, there are several measures by which we treat our cars nearly as well or better than we treat ourselves—and our families.

The average American spends nearly as many dollars annually on the health and well-being of each vehicle—$2,536 for repairs, maintenance, and insurance—as we spend on each humanoid member of the family, whose allocation for healthcare and insurance is $2,747. That’s just $18 more a month preventing and treating disease than repairing dings and replacing tires. The amount we dedicate to buying and financing each car is triple what we spend educating each family member. In other words, we pour three times as much into our depreciating assets than we invest in our own, and our children’s, futures.

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Another Shutdown Avoided

It’s getting to be a little like the Boy Who Cried Wolf over on Capitol Hill. I mean, it’s hard to get all revved up about an impending government shutdown when Congress always insists on taking negotiations to the edge and they always figure out something right before the deadline.

The House of Representatives was nearly empty when three members voted "by unanimous consent" to fund the government for another few days, avoiding a shutdown. Photo: Brendan Hoffman / Getty Images

The 2011 fiscal year ends tomorrow, and up until a few minutes ago lawmakers were still fighting about funding the first few days of the next fiscal year. But the House just voted to approve the Senate’s bill to fund the government through Tuesday, at which point Congress will vote on another measure that would keep the government open through mid-November.

Actually, only three members of the House voted on the stopgap bill, because the House is in recess this week, and they were the only ones around. The session lasted five minutes.

The GOP had been insisting that money be cut from additional disaster funds inserted into the bill, or else that it be cut from another program — specifically, a Democratic favorite that gives loans to auto companies to encourage the development of green car technology. The standoff fizzled when FEMA “found” some money “under a couch cushion.”

Michigan Democrats had fought hard to protect the clean car subsidies from GOP cuts, saying the program is responsible for 40,000 jobs in their state and others.

Auto companies that receive the loans have kept auto plants in the U.S. rather than move them overseas, according to central Michigan’s Daily Tribune: “Ford elected to build its new Ford Focus in Michigan rather than Mexico and Nissan now plans to build electric vehicles in Tennessee thanks to the loans.”

There seems to be a new battle over spending cuts every couple of months, though, so if the Republicans have already given notice that they’ve got the auto loan program in their sights, don’t expect the issue to go away too quickly.

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Would President Romney Build Roads or Rail?

All eyes are on Texas Gov. Rick Perry these days, the faraway frontrunner in the Republican race. But as the primary goes on (and on and on) more Republicans might take note of the fact that in a matchup with President Obama, only one candidate stands a chance of winning: former Massachusetts Gov. Mitt Romney.

As governor of Massachusetts, Romney had a mixed record on transit and smart growth. Photo: Daily Caller

According to the most recent polling data, Obama trounces Gov. Perry. He makes mincemeat of Bachmann and Gingrich. Only one poll shows a winning Republican candidate, and that’s Romney, with a two percent edge over the president in a recent USA Today poll.

We took a hard look at Rick Perry’s approach to transportation last fall, when he was running for re-election. As Texas governor, Perry championed a mega-highway plan that would make the Road Gang blush. He blocked metrorail extensions and vulnerable users legislation.

But what about Romney? His record as a red governor of the blue state of Massachusetts is a little more complex, and worth exploring.

In a recent Boston Globe story comparing current Democratic Governor Deval Patrick with his predecessor, Romney emerges as the more inspired candidate when it comes to smart growth. (It doesn’t help that Patrick was caught driving around in an SUV last week while telling his constituents to observe car-free week.)

According to the Globe, Patrick has done away with a program originated under Romney to encourage “mixed-use, walkable, downtown-centered, transit-oriented growth” and counter sprawl.

Under the Romney program, communities got credit for green building, saving energy, preserving open space, and zoning reform, among many other categories. Those that scored highest went to the front of the line to receive about $500 million per year in grants and revolving loan funds for infrastructure including water and sewer projects. The idea was to put state funding to municipalities through a filter, and reward innovation in sustainability at the local level; previously the money was just doled out.

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Dealbreaker: Senate Rejects House Budget Due to Lack of Car Subsidies

What’s keeping Congress from passing an extension to the federal budget? Democratic protection of automobile subsidies.

Top Senate Democrat Harry Reid vows to keep an clean-car subsidy in the budget, come hell or high water. Photo: J. Scott Applewhite / AP

After midnight last night, the House finally managed to narrowly pass a budget extension bill, but Senate leaders have already rejected it out of hand, since it includes about half the disaster relief they’d like and cuts $1.5 billion from a clean-fuel technology manufacturing program for the auto industry.

The disagreement is strong enough that it threatens to keep Congress in session longer than intended — likely through the weekend, and possibly even into next week’s scheduled recess.

That gives them a week, if necessary, to avert a government shutdown — the potential consequence of inaction on a bill to extend federal government spending past September 30.

Clean vehicles are great, but if Democrats really want to meet important environmental goals, just imagine how much good they could do by spending that $1.5 billion to implement better bus systems or provide emergency assistance to transit agencies struggling to keep up with higher ridership.

In addition to highlighting how Senate Democrats highly prize car subsidies, this situation also puts in perspective the brewing fight over the FY2012 budget. If Congress can’t even pass a simple extension to keep government operations for a few months, with just a few billion dollars’ difference, how will they ever agree to bridge the enormous gap between their visions for FY2012?

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