Archive for April, 2009
As you most likely know by now, America’s 3rd largest automaker Chrysler filed for Chapter 11 bankruptcy protection today. You can read the email from outgoing CEO Robert Nardelli. In quick fashion, a new website appeared – www.ChryslerRestructuring.com. Instead of regurgitating what was said on the networks, cable channels, Twitter, and on the web today (read the NYTimes.com article for the details of the Chrysler situation), I thought I would research the fundamentals of bankruptcy. Given the state of our economy, I think this would be a great time to revisit the definitions of all types of bankruptcy.
USCourts.gov
Here are the basics defined in layman’s terms quoted directly from the USCourts.gov website:
Bankruptcy – A legal procedure for dealing with debt problems
Chapter 7 – The chapter of the Bankruptcy Code providing for “liquidation,”(i.e., the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.)
Chapter 9 – The chapter of the Bankruptcy Code providing for reorganization of municipalities (which includes cities and towns, as well as villages, counties, taxing districts, municipal utilities, and school districts).
Chapter 11 – The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.)
Chapter 12 – The chapter of the Bankruptcy Code providing for adjustment of debts of a “family farmer,” or a “family fisherman” as those terms are defined in the Bankruptcy Code.
Chapter 13 – The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)
Chapter 15 – The chapter of the Bankruptcy Code dealing with cases of cross-border insolvency.
What do you think? Will Chrysler reemerge under Chapter 11 as a stronger company, or will they eventually fall into Chapter 7 liquidation?
Will GM’s “Viability Plan” make the company viable?
Posted by: | CommentsOn Monday April 27th, GM’s press release “GM Accelerates its Reinvention as a Leaner, More Viable Company” generated tons of posts on Twitter. The key question is, “Will this actually make GM viable?”
GM's Viability Plan
GM focuses on Buick, Cadillac, Chevrolet, and GMC – Personally, I don’t quite understand why GMC is saved. Why not streamline GMC pickups, crossovers, vans, and SUV models into the Chevy brand? I think that it is a good move to phase out the Pontiac line. Even though as a teenager I loved my 1979 Pontiac Firebird and my wife loved her 1985 Pontiac Fiero. It is time to make all Pontiacs classics.
Restructuring the number of dealerships by reducing the number by 42% – This may be a great cost saving approach, but as a consumer I begin to worry. I own a Honda Civic and a GMC pickup. I like the idea of having a neighborhood GM dealership. In comparison, in rural areas not having a Honda dealership close is a negative thing for me. I guess it is a bottom line $ saving thing. I hope it works and doesn’t turn off customers. I believe some customers buy from local dealerships just because they are local. And this “local” decision may make them choose a specific manufacturer due to default. If they don’t have a local choice, they may be inclined to look at other manufacturers – further loosing GM’s market share.
Supply vs. Demand – Too many cars are sitting at dealerships. With the total annual US car sales predicted to be about 10 million units this year, this only makes sense. I learned back in high school economics the effects of supply and demand.
Reducing Costs – Unfortunately during this recession, more people at GM and their suppliers are going to lose their jobs. Some communities are going to be hit extremely hard, especially those where plants are going to close. The reality is…GM has to become more efficient and streamlined to compete in today’s global economy.
What do you think? Will GM survive? Will their viability plan work?
Ford Fusion Hybrid Challenge Vehicle
The Ford Story YouTube Channel
Even though driving for 69 hours to achieve 1445.7 miles means they averaged only about 21 mph (1445.7 miles/69 hours = 20.95 mph), this is still an amazing feat. I am motivated to see how eco-driving (also know as hypermiling) techniques could increase my Honda Civic’s mpg!
My Visit to Tesla Motors
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Mike Gray Sitting in a Tesla Roadster at Menlo Park, California
As I walked into the sales floor I saw several Tesla Roadsters on display just begging to be sat in. Adults and children were both excited about taking their turn to sit in the driver’s seat.
Tesla Motors Shop in Menlo Park, California
I asked the salesperson (also known as a client advisor) what the lead time was if a customer ordered a Tesla Roadster today. “November” he said. “All those in the shop are already taken.” Amazing. In an economic crisis like we haven’t seen since the Great Depression, a $100,000+ Tesla Roadster has a waiting list. And the idea of the Tesla Model S (ready in late 2011), a $50,000 sedan, being a practical electric family car (seats up to seven) gets me excited about where the automotive industry may be headed.
Tesla Charging Station - Dixon, California - Off I-80
What do you think? How long will it take for the electric car to be the first choice for an average car buyer?
California Automotive Teachers Conference – You Know Cars, They Know YouTube
Posted by: | CommentsThanks to 40 teachers that attended my two sessions titled “You Know Cars, They Know YouTube” at the California Automotive Teachers Conference at the UTI campus in Sacramento, California. Here is link to the presentation. This presentation discusses how generational differences exist in learning. Incorporating Twitter, Facebook, YouTube, and Wikis can engage the Millennial Generation.
Auto Teachers…Need a Collaborative Website? Create a Wiki!
Posted by: | CommentsEducation News…
Sometimes you just need an easy way to collaboratively share ideas with students, work colleagues, or family members. Why not use a “Wiki”? A wiki allows all users to have the editing power on your website using a simple WYSIWYG (What You See Is What You Get) editor. If you know how to use Microsoft Word, you can create a website. There are probably tons of free wiki sites out there…but the two I like are Google Sites and Wikispaces.
Google Sites YouTube Video
I developed a presentation titled, “You Know Cars, They Know YouTube” to highlight how automotive teachers can incorporate wikis, YouTube, Twitter, Facebook, and blogs into the classroom…keeping the interest of the Millennial Generation. I am giving this presentation to auto teachers across the country. As social media and technology changes, instructional methods also need to change.
Oil Leaks…Get them Fixed! Used Oil…Recycle it!
Posted by: | CommentsAfter yesterday’s post regarding “eco-driving” tips, I thought I should keep the theme going with “earth friendly” advice. I was driving today behind a 1990s era pickup that was burning and dripping oil. Since the smell was so bad, I wanted to get around it. At the next stop light I pulled alongside him and saw the oil dripping and smoking. It must have been leaking and hitting the exhaust, causing the burning smell.
If you have a vehicle like this, one that you have to add oil way too often, then you need to get the engine fixed or retire the vehicle. Ideally, you shouldn’t have to add oil between oil changes. Older vehicles, especially ones with oil leaks, pose a dramatic toll on our environment. According to the Massachusetts Department of the Environment “one quart of motor oil can pollute 250,000 gallons of water” and “Americans spill 180 million gallons of used oil each year into the nation’s waters” (See Source). Remember the Exxon Valdez oil spill? This annual spillage caused by all of us is sixteen times greater than the Exxon Valdez oil spill. And you know what? We can all help stop this annual massive oil spill by being better consumers and users of our cars and small engines.
Earth911.com Website
Does your engine leak or burn oil? Do you change your own oil at home? If so, do you recycle it?
Can you drive 1,000 miles on a tank of gas? With my fuel sipping Honda Civic I can go about 450 miles on a full tank (13 gallon). Ford is going to give the 1,000 miles on a tank for a test on its new 2010 Ford Fusion Hybrid using “eco-driving” techniques.
According to CNNMoney.com the driving team consists of a hypermileage champion, a NASCAR driver, and four others tag teaming and driving. They will need to average about 57 miles per gallon (mpg) on an unmodified factory produced car (the Ford Fusion Hybrid has a 17.5 gallon tank…so 1000 miles/17.5 gallons = 57 mpg) to reach 1000 miles. How do they intend to do it? They will use eco-driving techniques.
Ford recommends ten tips to improve mileage:
1. Slow down and watch your speed.
2. Accelerate and brake smoothly.
3. Don’t idle the engine.
4. Check your tire pressure.
5. Perform proper maintenance.
6. Don’t overload your car with extra weight.
7. Minimize the use of the A/C and heater.
8. Close windows at highway speeds.
9. Use the correct type of oil
10. Plan ahead by consolidating trips.
For a detailed description of the above eco-driving techniques, Click Here.
Ford Fusion Hybrid Website
For more information about the 2010 Ford Fusion Hybrid, Click Here.
What do you think? Can eco-driving make that much of a difference? Are you willing to try these driving techniques to save fossil fuels, the environment, and money in your pocket?
Which cost more…a Tata Nano or a Louis Vuitton Bag?
Posted by: | CommentsAccording to AutomobileMag.com and AutoBlog.com Tata Motors has received 500,000 pre-orders for its Nano in just 15 days.
Let’s do a little price comparison.
Tata Nano ~ $2250
Sears Craftsman Garden Tractor ~ $2700
Samsung HDTV ~ $2200
Apple MacBook Pro ~ $2500
Boetie GM Monogram Canvas Louis Vuitton Bag ~ $2580
Tata Motors - Nano Website
For more information about the Nano, go to www.TataMotors.com.
Will California become the new Michigan for automakers?
Posted by: | CommentsAs money is being bled by General Motors, Chrysler, and Ford in Michigan, will new start-up companies in California emerge as major players in auto manufacturing? Electric and plug-in hybrids are the driving force…along with President Barack Obama and the Federal Government waving $2.4 billion to get the ball rolling. The President spoke in California saying:
“…the Department of Energy is launching a $2 billion competitive grant program under the Recovery Act that will spark the manufacturing of the batteries and parts that run these cars, build or upgrade the factories that will produce them, and in the process, create thousands of jobs right here in America. Show us that your idea or your company is best-suited to meet America’s challenges, and we will give you a chance to prove it. And just because I’m here today doesn’t exempt all of you from that challenge – every company that wants a shot at these tax dollars has to prove their worth. We are also making a $400 million down-payment on the infrastructure necessary to get these cars on the road; and because these cars won’t leave the showroom unless consumers buy them, the Recovery Act includes a new tax credit of $7,500 to encourage Americans to plug one in at home.” (Source: U.S. Department of Energy)
So that’s the challenge. Four vehicle producers, little known to the general public in the rest of United States, are positioning themselves to be the leaders in the electric vehicle and plug-in race. These California manufacturers are:
Phoenix Motorcars Website
Fisker Automotive – Est. 2007, Location: Irvine, California – Producing the Fisker Karma.
Phoenix Motorcars – Est. 2002, Location: Ontario, California – Producing the Phoenix SUT (Sport Utility Truck) and the Phoenix SUV (Sport Utility Vehicle).
Tesla Motors – Est. 2003, Location: San Carlos, California – Producing the Tesla Roadster and Tesla Model S.
Will this new energy efficient electric era spawn an emergence of new automakers like what happened in the late 1800s and early 1900s? With the federal grant money, it is anyone’s ballgame. The recent start-up automakers may be small manufacturers, but so were Detroit’s Big Three Ford (Est. 1903), GM (Est. 1908), and Chrysler (Est. 1925) when they were formed about 100 years ago.
Range Anxiety – The Electric Car Challenge – Getting to Grandma’s House (and Back!)
Posted by: | CommentsTwo common questions asked by consumers if they would purchase an all-electric car are:
1) What is the cost?
2) How far can it go before it needs recharging?
Let’s address the second question. This question is also referred to as “range anxiety” – the fear of running out of power before reaching your destination. Even though the average American driver only drives 29 miles a day (Source: Bureau of Transportation Statistics), the fear is nonetheless there.
Hybrids (Toyota Prius, Honda Insight, and many more) and upcoming plug-in hybrids address the range anxiety issue, but they still are oil dependent. Even the upcoming Chevy Volt (an “Extended-Range Electric Vehicle”) has a back up gasoline generator to recharge the batteries after 40 miles. Given that these are still dependent on oil, what can we do to get to an all-electric option?
The key factor is the battery. How far can the car go before recharging and how fast can the battery be recharged? Many consumers want the reassurance when they jump in the car to go to grandma’s house three hours away that they will make it there and back. Or if they want to go on a road trip to Yellowstone, would they need a second gasoline powered vehicle?
Better Place Website
I really like the battery swapping idea. But it will take the collaboration of car companies to design an efficient standard battery that will fit many vehicles. What a nightmare it would be for battery swapping stations if every vehicle model has a different battery…not to mention the increased cost. If a battery can be standardized, the movement toward all-electrics will happen more rapidly. The main problem is that battery technology is still rapidly changing, so agreement by automakers (and battery producers) may take time.
What do you think? Would you have “range anxiety” with an all-electric car?
Don't Let this Happen to You
What do you need to do to get your car ready for summer? Here’s my top 10…
1. Read your owner’s manual. It’s that small little booklet in your glovebox that probably still has the plastic shrinkwrap on it. The owner’s manual has tons of great information in it. Most importantly, service schedules. Find out where your car is at in regards to servicing and perform the necessary maintenance as needed.
2. Check and readjust (if needed) your tire pressure. Always check tires when they are cold. The correct tire pressure is on the tire placard, usually on the driver’s side door or door jamb. Do not rely solely on your tire pressure monitoring system (if equipped, cars manufactured after September 1st 2007 are required to have this system). While you are fiddling around with the tire pressure gauge and valve stem, take a gander at the tread. You don’t want to be hydroplaning the next time it rains. Check your spare tire too! Put a quality tire gauge
3. Inspect your belts and hoses. One of the most common roadside failures is a broken belt or a bursting hose. You don’t want to spring a leak, do you?
4. Complete a light inspection. Replace any burned out bulbs. How often do you see an oncoming car with only one headlight? You don’t want that to be you! Check the bulbs all the way around and inside your car.
5. Assemble a roadside safety kit or purchase one online. Here’s a good one – AAA 73 Piece Adventurer Road Assistance Kit
6. Clean your battery and have it load tested. Many auto parts stores and service centers will complete a load test on your car battery for free. Here is a link to a video on how to clean your battery yourself.
7. Replace your wiper blades…it’s time if they are cracked or skipping across your windshield and adding a new rhythm to your sound system.
8. Wax your vehicle. (Yeah, that includes washing the road salt off first!) Waxing protects the finish from the summer sunlight. Your car needs sun block too! If you don’t have supplies, this is a good place to start – Meguiar’s Complete Car Care Kit
9. Go to the clinic! Many auto repair centers and educational facilities host “Car Care Clinics”. See if there is one in your area!
10. Find a reputable technician if you don’t know how to open the hood and don’t have a desire to learn. Look for shops that display its employees’ Automotive Service Excellence (ASE) certifications. You have three different types of repair facilities to research: dealerships, chains, and independents. Use websites from the National Institute for Automotive Service Excellence, AAA, and Motorist Assurance Program to find quality repair facilities.
That’s it! Now get on the road and stimulate this economy with your traveling dollar. And if you want to learn more about basic car care, go to www.AutoUpkeep.com.
Solar panels on car roofs? Yep, it’s a reality…and it’s smart!
Posted by: | CommentsOn a hot summer day you walk up to your car and gasp to get inside. You rush to lower the windows, but still, whew…it is hot inside! The 3rd Generation 2010 Toyota Prius will combat this common problem. By installing photovoltaic solar cells on the roof, the sunlight powers the Prius’s ventilation fans to exchange hot inside air for the air outside. This keeps the inside temperature of the vehicle near the outside ambient temperature. Not only does it conserve energy by minimizing how hard the air conditioning has to work right when you jump in the car, I believe it has an added value. Even though the Prius will start to use ecological plastics in interior components, some conventional (petroleum based) plastic remains. The active ventilation system run by the solar panels will exchange “new car smell” air for outside air.
2010 Fisker Karma Plug-in Hybrid with Roof Solar Panels
The 2009 Audi A8 uses a solar sunroof to exchange hot inside air for outside air when the ignition is off.
Solar panel integration with automobiles is exciting. As photovoltaic prices continue to decrease, we may see more integration in automobiles.
What do you think? Will we see more cars with solar roofs?
Ford helps teens drive safer with the turn of a key
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What can your key do for your teen? Click on the key above to learn about the Ford MyKey system.
According to the Ford Press Release (direct quote):
When the MyKey is inserted into the ignition, the system reads the transponder chip in the key and immediately identifies the MyKey code, which enables certain default driving modes, including:
• Persistent Ford Beltminder™ with audio mute. Ford’s Beltminder system typically provides a six-second reminder chime every minute for five minutes. With MyKey, the Beltminder chime continues at the regular interval and the audio system is muted until the safety belt is buckled. A message center display “Buckle Up to Unmute Radio” also appears on the instrument cluster.
• Earlier low-fuel warning. Rather than a warning at 50 miles to empty, MyKey provides a warning at 75 miles to empty.
• If MyKey is in the ignition, features such as Park Aid and BLISTM (Blind Spot Information System) with Cross Traffic Alert cannot be deactivated.
Additional MyKey features that can be programmed through the vehicle’s message center setup menu:
• Limited top speed of 80 mph
• Traction control system, that limits tire spin, cannot be deactivated
• Limited audio volume to 44 percent of total volume
• A speed alert chime at 45, 55 or 65 mph
The speed limiter feature is great! Some teen drivers during their first year or two of driving want to find out how fast their car will go. The limiter feature will help them not reach dangerous speeds. The traction control “always on” feature will help parents save money on tires. With the traction control always enabled, tire squealing/burnouts will be difficult. To help minimize distractions, the audio control on the sound system is definitely a plus.
According to the Center for Disease Control (CDC) vehicle accidents are the leading cause of death of teens in the United States. I applaud Ford for taking a proactive step in helping parents with their teen drivers.
What do you think? Will the MyKey ™ system make teens drive safer?
Build a paper car with your kids!
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Paper Cars by Mizorogi Akira
