Autoblog

The Canadian government and Ford have agreed on a deal to provide the Blue Oval $80 million worth of incentives over five years towards new and upgraded facilities. The deal specifically applies to Ford's Essex engine plant, which currently produces V8 engines for SUVs and trucks. Upgrades will be made to convert the plant to flexible manufacturing, which will enable Ford to keep the plant open by producing a number of different powerplants on one line. Flexible manufacturing will also help Ford shift production to meet whatever demand dictates, which is something Detroit automakers desperately want but generally don't have and can't afford to create. In return for Canada's hard-earned Loonies, 750 CAW jobs will be saved and or created.

Ford will also build a new center to research engine efficiency and fuel technologies using the Canadian money. The facility will work on hybrids and other alternative powertrains for Ford, which is a green feather in both Canada and Ford's cap. Outspoken CAW boss Buzz Hargrove wasn't in the mood to thank the Canadian government for its generosity, though. He feels the government should have stepped up long before thousands in the region lost their job.

[Source: Reuters]

Click above for high-res gallery of the Kuwaiti cop-issue Chargers

Choosing them for their portrayed image of "strength and power," officials in Kuwait have ordered 150 Dodge Chargers to be modified as police vehicles. As the Charger is the leading volume vehicle for Chrysler LLC in the Middle East, the choice doesn't come as much of a surprise. Delivery of the cop cars, however, isn't expected to take place for another couple months. In the meantime, the lot of them are heading to Canfield Equipment Service in Michigan where they'll be fitted for their new Kuwaiti roles in traffic, security, and emergency response. (Here's hoping none of our readers get a chance to check them out from the back seat once they're in service).

[Source: Chrysler]

As is usually the case when complaints of unintended acceleration are levied against a vehicle, the National Highway Traffic Safety Administration has concluded that no specific vehicular defects have been found in 2004-2008 Toyota Tacomas. The mid-sized truck had been under fire from over 400 owners who claimed their trucks had accelerated without them touching the gas resulting in 51 crashes and 12 injuries. According to Toyota, however, the truck features a drive-by-wire system and its computer records any event of a mismatch between the gas pedal and the engine's throttle. None of the trucks involved in accidents reported any such codes. The NHTSA has closed its investigation and believes that driver error is the most likely cause for the vast majority of complaints while a few could be attributed to loose floor mats.

While the fact that the Tacoma has received so many specific complaints is worrisome, we are not big believers in unintended acceleration and tend to agree that publicity of the issue may well have attracted more erroneous claims. Debris stuck under the brake or pedals that are just closer together than some drivers are used to remain possible explanations, but could hardly be considered defects.

[Source: The Detroit Free Press]

Click above to view video of the 2008 Smart fortwo crash test

Anybody who watches Autoline on Detroit or reads our Autoline on Autoblog posts will know that John McElroy is a certifiably nice guy. Bob Lutz is known more as a brash talker who isn't afraid to make his views known, regardless of what others may think. Both of them, though, are very closely attuned to the auto industry. The head product-honcho at GM and our very own Mr. Nice Guy share the opinion that the Feds should suspend their ever-increasing crash-testing standards for a few years. If a car is safe enough for our European relatives, it should be safe enough for us, right? In reality, this is not the case, as the U.S. standards differ enough from those across the pond that a car sometimes needs to be designed specifically to pass one or the other. For this reason, the Chevy Beat won't be sold on U.S. soil.

To complete the deal, McElroy also suggests doing the same for environmental standards. As with crash tests, though both the U.S. and the European regulations are strict, they don't quite match. Therefore, many cars -- especially those equipped with diesel engines -- can't be sold in the States despite being available in Europe. Lutz doesn't specifically touch on this point, but we'd hazard a guess that he'd go along with it as well.

[Source: Wards Auto]

When the land was flowing with milk and honey, GM didn't get medieval on folks who took just a little more than their fair share. Now that GM's diet has been pared back to a few nuts and the occasional berry... well, every nut counts. So when The General performed a random audit and found that employees had allegedly been sharing their employee discounts with ineligible buyers, instead of a big "whatever," GM initiated lawsuits.

Based on the known records, GM is trying to recoup $450,000 plus court costs and attorney's fees from at least nine court cases. In addition to offering the discounts to those who shouldn't have had access to them, GM said the the employees were using the discounts "for their own financial gain."

Some of the employees being sued no longer work for GM. Attorneys for the defendants have suggested that shady dealers simply used the employees' information to give the discounts to other buyers without the employees' knowledge or consent. At this point, no dealers are named in the lawsuits, so it's up to the employees in question to prove their innocence. And for now, when it comes to pennywise, GM isn't playing around...

[Source: Detroit News]

We're sure there are plenty of reasons some people would want to live in New York, but it's hard to see why a car guy would want to. Forget the traffic, the kamikaze cab drivers and astronomic insurance rates. Even if you can put up with all that, where the heck are you gonna park a car?

The New York Times' story, "The Ultimate Luxury: A Garage," gives us even more reason to shun The Big Apple as a place of residence. Apparently, New York houses, condos and apartments with garages command about 5% more than those that don't. In some neighborhoods, add 25%. So that means if you have a condo worth $1 million, adding a garage could get you at very least $50,000 more than your car-hating neighbors. One real estate broker estimated that a six-bedroom townhouse he's selling will bring an extra $1 million because of its car accommodations. The townhouse is priced at $18.75 million.

So why aren't real estate owners on a garage-building spree? Because convincing the city's Department of Buildings that you need a curb cut is a long, trying process. The government agency approved only 54 new Manhattan curb cuts in 2008; three less than last year.

And then there's the anecdote of one family paying $6,600 a year to put their car in a public lot. That's enough to convince this bunch of car guys that there are better places to call home.

[Source: New York Times]

No matter how you slice it, a proposed $25 billion loan from the Feds is a bailout, and that's exactly what Detroit's Big Three automakers are after, according to a report by the Wall Street Journal.

Lobbyists for General Motors, Chrysler and Ford have met with White House officials, Rep. John Dingell and a smattering of Michigan Democrats to discuss the loan, with plans to unveil the proposal after Labor Day.

The plan includes lending $25 billion to automakers in its first year at an interest rate of 4.5 percent (about one-third of what the companies are currently paying), with the government having the option to defer any payment for up to five years.

Details are scarce, and naturally, GM, Ford and Chrysler reps aren't saying much, but if the automakers and the Feds are serious, expect more information to leak out before the proposal is officially announced.

[Source: WSJ, Photo by Tracy O | CC2.0]

Click above for a high-res gallery of the Tata Nano

Raze 1,000-acres of farmland to build an automobile factory, and somebody is going to protest. Even in India. The automaker is Tata, and the protesters numbered at least 1,000 strong as they went head-to-head against police in eastern India yesterday at the future manufacturing site of the Tata Nano (rumored to be the world's cheapest car at just $2,380). The protests are rooted deeper than just "open space" issues. In fact, the real tension is between India's ruling party, and the communist-run government in West Bengal where the plant is to be located. The farmers are unwilling to part with their agricultural livelihood, while the government continues to promote industry. After blocking a highway for a few hours, the stick-wielding protesters were dispersed without injuries. Once again, progress wins out over pastures.

[Source: Automotive News, subs. req'd]

Safer vehicles and increased law enforcement has resulted in the lowest driving fatality rate ever last year. There were 41,059 traffic deaths in 2007, down 1,600 from 2006. Fatalities are now at 1.37 per 100 million miles traveled, which is the lowest number since the National Highway Traffic Safety Administration started keeping track. The proliferation of safety technology, like side curtain air bags, stability control, and traction control, are apparently helping to make our roads safer, and good old-fashioned seat belts are being used more than ever. The "Click it or Ticket" campaign isn't the only way law enforcement has helped to lower fatalities either, as increased drunken driving patrols have lead to a 3.7% decline in deaths. Still, 13,000 people died last year as a result of drunken driving, which is 13,000 too many.

News on the safety front isn't as good for motorcycle drivers, though. A record 5,154 bikers lost their lives on U.S. roads in 2007, which is over 200 more than in 2006. Part of the reason for that increase is that there are more motorcycle drivers on the road, with 6 million motorcycles registered last year, up 2.2 million in the past decade.

[Source: Kicking Tires via CNN]

In light of the current pain at the pumps, fuel economy is on all of our minds these days no matter what kind of car you drive. That being the case, it might not be surprising to you that the car we're buying are getting more fuel efficient. Don't believe us? The National Highway Traffic Safety Administration has just revealed that the U.S. auto industry set a new record in overall fuel efficiency during the first half of the 2008 model year by averaging 26.8 mpg through March. That's up from an average of 26.6 mpg through the entire 2007 model year.

While this is certainly good news for both consumers and manufacturers that need to meet the government's mandated CAFE standards, the numbers used by the NHTSA aren't really representative of the real-world fuel mileage you should expect to achieve on the road. The testing standards were initially created in 1975 and automakers get certain credits for creating flex-fuel vehicles, which can artificially inflate their miles-per-gallon numbers. Additionally, automakers earn credits for surpassing the CAFE requirements and can carry these credits forward for up to three years. Still, the numbers are somewhat worthwhile when comparing the current model-year with those of the past. Expect to see the year-end numbers set another new record as consumers continue choosing smaller and more fuel efficient models over larger, gas-guzzling choices.

[Source: The Detroit News]