To many, it will most likely be familiar as the controversial Cash for Clunkers deal. But regardless, Suzuki Motor Corporation is all for it, looking forward to the formal implementation of the Car Allowance Rebate System (CARS).

The new CARS law will provide consumers up to $4,500 when they trade-in their old cars for a new one. The qualifying cars under this new law signed by U.S. President Barack Obama covers cars, mini vans, SUVs and small light-duty trucks that get less than 18 mpg, and large light-duty trucks that get less than 15 mpg city/highway combined.

However there are certain conditions for passenger cars. If the new vehicle is at least four mpg more fuel efficient than the old vehicle, consumers will receive a $3,500 voucher toward a new vehicle. If the new vehicle is at least 10 mpg more fuel efficient than the old vehicle, the voucher is good for $4,500.

For reference purposes, here are the cars that Suzuki detailed as eligible for the new CARS law:

• All SX4 Crossover models
• All SX4 Sedan models
• All Grand Vitara models
• All XL7 models
• All Equator models (4-cyl and 6-cyl)

(Source) Press

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We may not feel it now but if the fuel trends continue, alternative sources of fuel are bound to dominate and become an important resource in the near future. But if there is one person who know their importance, it has to be the most important person in the U.S. today, President Barack Obama.

President Obama lauded advanced renewable transportation fuel as one of the important needs in the 21st century and the National Corn Growers Association have thanked him for it. Corn-based ethanol happens to be one of the key fuel alternatives found today although a lot of fine-tuning is still needed to make it suitable for majority of cars today.

“With oil prices on the rise, ethanol’s critical role in the U.S. economy, especially promoting energy security, is more important than ever,” NCGA President Bob Dickey said. “We are pleased to hear the president’s clear statement of corn-based ethanol’s pivotal role in the nation’s future energy strategy, and we will continue to make sure the Administration understands the current and future value of corn ethanol.”

(Source) PR Web

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After the guessing on who would succeed the Opel brand, Magna of Canada is the likely successor of the General Motors line. General Motors is on the brink of filing bankruptcy but as far as their brands are concerned, successors are being wooed to take over.

But while that may sound like a big sigh of relief, it is no easy picking. The partnership is expected to encounter rough sailing similar to that of a new company being brought up and make its way into the automotive industry niche.

While Opel is a popular brand, one cannot deny that that tarnish of a bankrupt GM company looms over its head. It may take some time for the new ownership to sink in and hopefully Magna comes up with great strategies to overcome these boundaries.

A more conciliatory Merkel on Saturday said a telephone call to President Barack Obama had helped seal the deal. But she lashed out at what she called the “huge mismanagement” by GM executives.

(Source) AFP

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On whether their claim for restructuring is a fluke or an escape clause will be known soon as all eyes are now on the celebrated restructuring program of Chrysler and General Motors. No other than U.S. President Barack Obama is keenly awaiting what restructuring plans are being done, closely overseeing if they are doing good on what they promised.

Obama said in an interview broadcast Saturday on C-SPAN that the beleaguered automakers should aim to have product lines that appeal to consumers — and that means fuel efficient and high-performance vehicles that Americans hunger for.

Now if direction is what both companies need, these remarks from President Obama should be something worth putting into consideration. Obama and the world are eagerly awaiting the restructuring plans, hoping that it will be something truly worth waiting.

(Source) AFP

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The Obama Administration is set to reveal the new vehicle emission standards to help guide current car manufacturers and curb down the growing issue of greenhouse gases. As far as these new standards are concerned, expect them to be stricter as U.S. president Barack Obama leads the way in making sure that eco-friendly issues are being addressed from the car sector.

It will also establish high fuel efficiency targets for new vehicles that would set a 35.5 mile per gallon average for new passenger vehicles and light trucks by 2016, four years earlier than required under the 2007 energy bill, sources close to the administration said.

This development is also seen to be in line with the call of the State of California in address the long standing problem of carbon emissions. The administration is embracing standards stringent enough to satisfy the state of California which has been fighting for a waiver from federal law so that it could set its own guidelines.

(Source) Washington Post

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U.S. President Barack Obama has scrapped the $1.2 Billion development fund for a fuel cell-powered car that was a brainchild of the previous Bush Administration. The issue of fuel cells has been a contentious one, with many believing the technology is of dubious benefit when battery-electric cars offer a far simpler solution. The USA’s newly-minted President agrees, and last Thursday scrapped the fuel cell funding plan set up by former President George W. Bush in 2003.

Instead, President Obama plans to spend just US$68.2 million on fuel cell research – less than half the amount spent last year. With Bush’s US$1.2 billion plan in the bin, a further US$100 million will be saved each year. In contrast, the Bush administration spent a total of $500 million in automotive fuel cell research, with limited results and no prospect of wide-scale adoption of the technology in the near future.

Battery-electrics are the new darling of the Obama administration, with Energy Secretary Steven Chu saying the government wanted to target more “immediate energy-saving solutions”.

(Source) The Motor Report

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If you think Chrysler’s declaration of bankruptcy is one setback, wait until it amplifies on the affiliated suppliers. Apparently, the auto suppliers will also have some problems coming their way, potentially losing one of their biggest clients for some time now.

Problems with suppliers could also impact production at the US plants of other major automakers such as Ford, Toyota and Honda which have been working with months to ensure to stability of their supply.

Under a plan announced Thursday by President Barack Obama, Chrysler aims for a “surgical” bankruptcy to wipe out a portion of its debts, allowing the creation of a new firm tied to Fiat to put the Detroit firm on the road to profitability.

Chrysler said it will idle most plants during the bankruptcy process, which it anticipates will take 30 to 60 days. But analysts warn the process could take significantly longer.

And suppliers were already smarting from news that General Motors — which has until June 1 to present a viability plan to the US Treasury — plans to shut most of its assembly plants during May, June and July to help control inventory and avoid difficulties with parts shortages.

US auto sales, which collapsed last fall amid a deepening economic crisis, were down 34 percent in April and are not expected to improve for months.

(Source) ABS CBN

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The PHEV (Plug-In Hybrid Electric Vehicle) will be tested in public in the coming weeks, a demo that will certainly draw a lot of interested bystanders curious about the concept of plug-in hybrid electric cars. The demonstration will take place in Corbin, Kentucky, where the vehicle will be test driven and evaluated by industry representatives. The plug-in hybrid electric vehicle will be driven on a simulated city driving test route. The company expects to demonstrate that during an eight hour delivery day simulation this plug-in hybrid vehicle can exceed 150 miles while exhibiting an efficiency of over 75 mpg (miles per gallon).

Earlier this month, Green Star Products along with its International Consortium partner Global Green Cars had publicly tested its full electric vehicle version at tracks in Utah and Kentucky. Global Green Cars is a U.S. and International Consortium of automobile companies and associated supply companies which includes Green Star Products as an engineering and technology provider.

President Barack Obama’s New Energy For America program calls for deployment of 1 million plug-in hybrid vehicles by 2015, and on March 19, 2009, he announced programs directing $2.4 billion to electric vehicle development.

(Source) Press

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With the impending demise of General Motors that may even include Chrysler creeping in, the U.S. auto industry is in absolute turmoil. What would the effect be on the US market? Better yet, how would it affect the global car market? These are the questions running in the minds of many consumers, a picture that is not entirely a sight to behold.

The GM and Chrysler saga has rumbled on for months, but one thing is clear: anyone who promotes bankruptcy as a quick, painless cure is wrong.

“This is truly scary,” said John Wolkonowicz, senior automotive analyst at IHS Global Insight. “Neither the government nor GM has any control over the outcome if this goes to bankruptcy court.”

President Barack Obama and officials from his administration’s vehicle industry task force have spoken of their commitment to sustaining the US domestic car industry. However, some restructuring experts believe a Chapter 11 filing by GM and possibly Chrysler is unavoidable and chances are that the days of US automotive supremacy are over.

(Source) The Herald

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It seems that United States President Barack Obama is really kicking his green campaign into high gear, recently explaining to the public that we desperately need to form a greener society.

Apparently, Obama thinks America is ready to “be part of a mission” to end our dependency on foreign oil and move towards a cleaner energy source. But how?

Well, enforce a CO2 cap & trade program, of course! Not to mention the need to move away from those damn gas guzzling vehicles. Let’s hope America believes in the President enough to follow his words because if not, it could cost us our future.

Read (HybridCarBlog)

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The Idea from Bright Automotive will be officially unveiled in Washington D.C. The vehicle is expected to get 100 miles per gallon and was developed at Bright’s headquarters at the Flagship Enterprise Center.

“We founded the company based on doing the right thing for the transportation sector,” said Bright President and CEO John Waters. “We’ve leveraged some of our expertise of our team’s abilities, which is strongly experienced in advanced automotive technology, electrification of vehicles and sustainability.”

The Bright team hopes to find capital in the capitol city. The company will lobby to receive $55 million in government funding to produce 50,000 vehicles by the end of 2012. On Tuesday morning, the company will hold a briefing before members of the House of Representatives, including Rep. Mike Pence, and perform a vehicle preview on the streets of Washington. Carol Browner, chief energy counselor to President Barack Obama, is expected to attend, along with companies interested in fuel-efficient transportation, including Duke Energy and Frito-Lay North America.

Waters said the vehicle has undergone “stealth tests” on public streets but, for all practical purposes, Tuesday will mark the Idea’s world premiere.

Bright plans to create 550 new jobs through 2010 and more than 5,000 by 2013. That may sound ambitious for 15-month-old startup company, but Bright has the pedigree to pull it off.

(Source) The Herald Bulletin

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Unlike some companies who are waiting for some action from U.S. President Barack Obama, Turning Wheel RV Center announced that “After a comprehensive review, we have taken what we believe are bold steps to restructure the Company’s balance sheet and reformulate its business strategy,” stated Marco Martinez, Turning Wheel RV’s President.

One such bold step is that on April 9th, 2009, the Company voluntarily entered into an agreement with its Floor Plan financing lender, which allows for the Company to completely reduce its inventory and avoid the cash drain related to operating its business using Floor Plan financing. Floor Plan financing is a loan under which RV dealerships typically borrow money from lenders to purchase inventory from manufacturers for sale to RV buyers.

Floor Plan financing can create significant cash shortages for RV dealers due to the requirement to pay down the loan on certain aged units in their inventories despite dwindling sales. As a result of the agreement with its lender, Turning Wheel RV is now positioned to rebuild its inventory without the use of Floor Plan financing. “We believe the agreement with our lender significantly strengthens our balance sheet,” Martinez added.

Like most other RV dealerships in the U.S., Turning Wheel’s business operations have been significantly affected by the severe economic climate. However, unlike some RV dealerships that have simply given up or others that are bleeding financially while waiting around for the benefits of President Obama’s stimulus package and the economy to rebound, Turning Wheel RV decided it had to take bold action to secure its position in the current challenging environment.

Earlier this year, the Company engaged the New York-based investment banking firm The Reid Group LLC as advisors to assist the Company with a restructuring and to reformulate its business strategy.

(Source) Press

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It was recently brought to the public that the United States government is prepping to spend $285 million to buy 17,600 vehicles created by the Detroit 3.

The government is hoping that by spending this money they will make their fleet of cars more gas efficient while also giving a boost to auto sales for GM, Chrysler, and Ford.

The purchase is expected to go down before June 1st and the government is saying that it will save 1.3 million gallons of fuel annually. That’s cool and all, but I think I’d rather see some more of that money back in my pocket, don’t you think?

Read (KickingTires)

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Though General Motors denies it and continues to claim that it can restructure itself to weather the financial crisis, the U.S. government thinks otherwise. In fact, the US Treasury Department has told General Motors to make all necessary preparations for a possible bankruptcy filing by June 1.

Citing unnamed people “with knowledge of the plans,” the instructions had been conveyed by members of President Barack Obama?s automotive task force, who spent last week in meetings and on conference calls with GM in Detroit and Washington.

The automaker already has been granted 13.4 billion dollars in federal aid, and its managers are insisting the company’s image should not be damaged. The preparations are aimed at assuring a GM bankruptcy filing is ready should the company be unable to reach agreement with bondholders to exchange roughly 28 billion dollars in debt into equity in GM and with the United Automobile Workers union, which has balked at granting concessions without sacrifices from bondholders.

(Source) AFP

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President Obama unveiled a new plan for electric cars for the USA. The plan will give $1.5 billion to US manufacturers to produce batteries, $400 million to evaluate plug-in hybrids and to implement the needed infrastructures and $500 million for any related components.

How is this plan good for you? Well if you purchase a hybrid vehicle you will get a $7,500 tax credit. The goal of the whole plan is to have 1 million cars sold by 2015 which is an impressive number. Will you buy a hybrid?

via physorg

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