A trade group representing Detroit’s three automakers as well as Toyota is currently urging the Obama administration to say no to a proposal that could mandate a 62-mpg CAFE (Corporate Average Fuel Economy) industry standard by 2025.

The Alliance of Automobile Manufacturers, in a letter addressed to Transportation Secretary Ray LaHood and Environmental Protection Agency administrator Lisa Jackson, said, “fuel economy and greenhouse gas targets should not be arbitrary numbers, chosen before the necessary analyses are completed,” claiming that the proposed standard would ”circumvent the rulemaking process and undermine the ongoing collaborative effort to set sound standards.”

In April 18 senators led by Democrat Dianne Feinstein and Republican Olympia Snowe, California and Maine respectively, urged the administration to consider a 62-mpg standard by 2025, which equates to a 6-percent annual increase from 2017 to then. Depending on how stringent the administration wants to make things, the increase could cost anywhere from $770 per vehicle built to $3,500.

The automakers believe that this requirement could reduce car sales by 14%, owing to the increase in cost per car to meet the requirements (that are then passed onto you, dear consumer). This could lead to an equal 14% reduction in jobs, or 250,000 people—automakers ”depend on reasonable regulations that provide clarity and certainty, without pricing our customers out of the market or preventing them from choosing vehicles that can meet their diverse needs,” cites the Alliance.

Currently there is a 35-mpg CAFE standard set in lace for 2016.

[Source: The Detroit News]

A more significant recall of Ford F-150 trucks is probable, as talks between the automaker and the National Highway Traffic Safety Administration (NHTSA) continue.

In February Ford issued a recall of 144,000 F-150 models dating from 2005-2006 in response to a request by the government agency. That recall was not, however, satisfactory, with NHTSA requesting a total of 1.3 million trucks be fixed.

The dispute between the agency and Ford is expected to end “soon”, according to Transportation Secretary Ray LaHood.

Currently NHTSA’s records show 269 cases of airbags deploying without cause with 98 recorded injuries from vehicles dating from 2004-2006. That is up from 238 reports and 77 injuries when the first recall was issued in February.

Since the Toyota recall crisis NHTSA has been busy, issuing recalls for issues as trivial as rusting hood ornaments on Bentley models. While that might make the agency look like it’s hunting for work, Ford has shown a general unwillingness to cooperate with the government agency as of late, initially refusing to issue recalls for its Windstar minivan.

[Source: TheDetroitNews]

Transportation Secretary Ray LaHood seems to have found a “smoking gun,” in the Toyota recall controversy, alleging his department now has proof the automaker shirked its legal responsibilities. “We now have proof that Toyota failed to live up to its legal obligations,” he said yesterday. “Worse yet, they knowingly hid a dangerous defect for months from U.S. officials and did not take action to protect millions of drivers and their families.”

As a result, the Transportation department is looking to fine Toyota $16.38 million – the highest penalty possible and the largest ever handed out.

The National Highway Traffic Safety Administration (NHTSA) has the right to fine automakers that don’t inform the government body of a problem within five business days. According to the NHTSA, Toyota took four months to confirm the sticky accelerator pedal issue, long after it acknowledged such a problem existed by sending repair instructions to distributors in Europe and Canada. (Toyota Canada has since refuted this claim, saying no such repair info was sent to distributors in that country).

Toyota has two weeks to challenge any such fine by the NHTSA and has not yet said if it will, instead releasing a statement referring to its efforts to improve safety and communication at the company. Meanwhile the transportation department has said it is continuing to review internal Toyota documents and that more fines could be levied if additional violations are discovered.

[Source: FinancialTimes.com]

As though Toyota needed any more to deal with right now, the automaker could face a fine from the Federal Government for not acting quickly enough in issuing recalls. Legally, automakers that don’t issue recalls in a timely manner can be stuck with a fine for as much as $16.4 million. That amount, however, pales in comparison to the almost $2 billion that Toyota says the recent recalls will cost the company.

On Wednesday Transportation Secretary Ray LaHood said that until then Toyota had been uncooperative in working with the government and that it had taken a considerable effort to get the automaker to issue recalls.

To date, the largest fine the DOT has dolled out was to General Motors, for $1 million.

Toyota has said it has received no word tat a fine is pending.

[Source: Automotive News via eGMcartech]

Just hours after Department of Transportation Secretary Ray LaHood advised Toyota owners affected by the recent recall to “stop driving” their cars, LaHood has retracted his statement. LaHood made the comments earlier today appearing before a heading into the recalls.

“What I said in there was obviously a misstatement,” said LaHood. The DOT is now urging owners to contact their local dealership to have the problem fixed as soon as possible.

Toyota currently has two major recalls, the first being a floor mat entrapment issue for 5.5 million vehicles, and the second is a sticking gas pedal recall for 2.3 million vehicles.

Toyota recently announced a fix for the 2.3 million recalled models, which include the 2009-2010 RAV4, 2009-2010 Corolla, 2009-2010 Matrix, 2005-2010 Avalon, 2007-2010 Camry, 2010 Highlander, 2007-2010 Tundra and 2008-2010 Sequoia. The automaker has insisted that the recall is due to a mechanical fault, however, the DOT has now said it will look at the possibility that unintended acceleration is related to electronics and not a mechanical issue with the pedal.

In a statement Toyota said that, “We appreciate Secretary LaHood’s clarification of his remarks today about Toyota’s recall for sticking accelerator pedals. We want to make sure our customers understand that this situation is rare and generally does not occur suddenly. In the rare instances where it does it occur, the vehicle can be controlled with firm and steady application of the brakes. Our message to Toyota owners is this – if you experience any issues with your accelerator pedal, please contact your dealer without delay. If you are not experiencing any issues with your pedal, we are confident that your vehicle is safe to drive. Nothing is more important to Toyota than the safety and reliability of the vehicles our customers drive. Our entire organization of 172,000 North American employees and dealership personnel is working around the clock to fix the accelerator pedals for our customers.”

For more information on Toyota recalls, visit the automaker’s new recall website:

http://www.toyota.com/recall/

[Source: PressConnects]

If you are currently driving a recalled Toyota model, you shouldn’t be, says Transportation Secretary Ray LaHood (above). In a statement given at a House Appropriations subcommittee on transportation, looking into the recent Toyota recalls, LaHood told owners to, “stop driving it. Take it to a Toyota dealer because they believe they have a fix for it.”

Toyota currently has two major recalls, the first being a floor mat entrapment issue for 5.5 million vehicles, and the second is a sticking gas pedal recall for 2.3 million vehicles.

LaHood urged owners of recalled cars to contact their dealer and, “exercise caution until repairs can be made.”

Toyota recently announced a fix for the 2.3 million recalled models, which include the 2009-2010 RAV4, 2009-2010 Corolla, 2009-2010 Matrix, 2005-2010 Avalon, 2007-2010 Camry, 2010 Highlander, 2007-2010 Tundra and 2008-2010 Sequoia. The automaker has insisted that the recall is due to a mechanical fault, saying in a statement that:

“After many years of exhaustive testing—by us and other outside agencies—we have found no evidence of a problem with our electronic throttle control system that could have caused unwanted acceleration. Our vehicles go through extensive electromagnetic radiation testing dynamically. We have our own test facility in Japan, we are also building one in Ann Arbor. The testing examines microwave radiation and every other type of magnetic wave and we have never been able to force our systems to fail through any of the tests that are done on them. There are many redundancies and fail safes that are built into our system.  If the accelerator pedal and the throttle on the engine don’t match in their communication to each other the throttle returns to an idle position.”

The U.S. Ministry of Transportation has also been investigating electronic throttle issues and unintended acceleration issues on Toyota and Lexus vehicles for years but has never been able to find a problem.  The Ministry of Transportation, has now said it will look at the possibility that unintended acceleration is related to electronics and not a mechanical issue with the pedal.

For more information on Toyota recalls, visit the automaker’s new recall website:

http://www.toyota.com/recall/

[Source: CNBC]

With the Cash-for-Clunkers program officially ending last night, the U.S. Department of Transportation has now released its top 10 list of the most purchased vehicles under the program, with the most popular car purchased being the Toyota Corolla.

Toyotas actually took three of the top 10 spots, with the Camry placing third and the new Prius ranking seventh. Honda did equally well, taking three of the top 10 spots, with the Civic coming in second, the Accord 8th and the Fit 9th.

Nissan and Hyundai each had one spot on the list with the Versa in 6th and the Elantra in 5th. Ford was the only U.S. automaker to break into the top 10, with the front-wheel drive Focus in 4th and the FWD Escape in 10th.

The “Top 10″ list doesn’t tell the whole story, however. While no General Motors products are listed in the top 10, collectively, GM products accounted for 17.6% of the total of new cars purchased under the program, second only to Toyota with 19.4%.

In total, the Car Allowance Rebate System (CARS) generated 690,114 transactions worth a total of $2.8 billion.

“American consumers and workers were the clear winners thanks to the cash for clunkers program,” said U.S. Transportation Secretary Ray LaHood. “Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment. This is one of the best economic news stories we’ve seen and I’m proud we were able to give consumers a helping hand.”

In total, 84 percent of consumers traded in trucks, while 59 percent purchased cars. The average fuel economy of a car traded in was 15.8 mpg, whereas the average fuel economy of a car purchased was 24.9 mpg – an improvement of 9.2 mpg or 58 percent.

[Source: Department of Transportation]

The Cash for Clunkers program has come to an end and its impact can now be evaluated.

According to U.S. Department of Transportation, dealers submitted 690,114 transactions under the Car Allowance Rebate System (CARS), more commonly known as Cash-for-Clunkers. Those rebate applications account for $2.877 billion out of the $3 billion approved by Congress.

That number may rise considerably, however, as rejected filings are resubmitted. The DOT has said that filings approved after last nights deadline will be reimbursed. The DOT reported several issues with its servers approaching the deadline, which may account the fact that only $229 million in claims were filed during the last 36 hours of the program, while over the previous weekend $611 million in claims were filed.

A preliminary analysis by the White House Council of Economic Advisers says the CARS program boosted economic growth in the third quarter of 2009 by 0.3-0.4 percent, will help sustain an increased fourth quarter GDP and create or save 42,000 jobs in the second half of 2009.

“American consumers and workers were the clear winners thanks to the cash for clunkers program,” says U.S. Transportation Secretary Ray LaHood. “Manufacturing plants have added shifts and recalled workers. Moribund showrooms were brought back to life and consumers bought fuel efficient cars that will save them money and improve the environment.”

Ford and General Motors recently announced production increases for the second half of the year due to the demand generated by the CARS program. Honda also said it will increase production at its plants in East Liberty and Marysville, Ohio, and in Lincoln, Ala.

“This is one of the best economic news stories we’ve seen and I’m proud we were able to give consumers a helping hand,” said LaHood.

[Source: DOT and Automotive News]

Car owners hoping to take advantage of the “cash for clunkers” incentive program will have to do it by this Monday (Aug. 21) at 8 p.m., as the Obama Administration shuts down the popular program.

U.S. Transportation Secretary Ray LaHood said the Car Allowance Rebate System (CARS), offering incentives for trade-ins, should have enough funding to support one more weekend of sales. Earlier this month, the U.S. government pumped $2 billion into the program on top of the original $1 billion in funding. At the time, LaHood estimated the total $3 billion in funding would last until Labor Day. Looks like LaHood was off by a couple of weeks.

LaHood said there are no plans to expand the program again, but some representatives, including Democrat Sander Levin or Royal Oak, Mich.,  say Congress should add another $1 billion into the program.

[Source: The Detroit News]

The National Automobile Dealers Association (NADA) has asked the U.S. government to suspend the Cash-for-Clunkers program immediately as it believes the $3 billion in earmarked funds have already been used up.

NADA Chairman John McEleney told Automotive News that based on a survey of its dealers it believes the $3 billion in funding could be used up as of today. But according to the Transportation Department, only 411,624 claims have been filed, accounting for a total of $1,72 billion. The difference says McEleny is due to rejected claims that have yet to be re-submittted.

Transportation Secretary Ray LaHood, has said that the $3 billion should last until Labor day, but NADA’s track record is also pretty good, as the group was the one to raise the alarm that the initial $1 billion in funding, intended to run for several months had dried up in just two weeks.

Earlier in the week LaHood said that the Transportation Department is readying a plan to wind-down the Cash-for-Clunkers program, commenting that even if the fund dries up, the dealers will still be reimbursed.

[Source: Automotive News]