Michigan's congressional Democrats are pushing for $4 billion in aid to the U.S. auto industry as part of a second economic stimulus bill, one that Sen. Barack Obama endorsed to UAW workers Friday.

While Republican presidential contender Sen. John McCain held a town hall talk in Warren focusing on the industry, Obama pledged support for low-interest loans to automakers, saying, "America cannot truly prosper unless Michigan prospers."

"By providing tax credits and loan guarantees for our automakers and by expanding consumer tax incentives for ultraefficient vehicles, I will provide real solutions necessary to help this industry compete and win in the global economy," Obama said in the letter to UAW members released by his campaign.

Obama and other congressional Democrats have said they would push for a second stimulus plan in September that could reach $50 billion, an idea that the Bush administration has not favored so far.

In a letter to Senate Majority Leader Harry Reid, Michigan's two Democratic senators urged Reid to include $3.75 billion in funding for loans, which could provide up to $25 billion that automakers and parts suppliers could use for revamping old factories and engineering new models. The loans would be made directly from the U.S. Treasury to automakers at below-market interest rates. The funding would cover the government's borrowing costs.

Sens. Debbie Stabenow and Carl Levin also asked Reid to include $250 million for research into advanced batteries.

McCain opposes the loan program, as his campaign says his proposals -- a $5,000 consumer tax credit for buying efficient vehicles, a $300-million prize for electric vehicle batteries and strict goals for building flexible-fuel models -- would accomplish the same thing.

The UAW, which has endorsed Obama, has pushed the loan program for some time as a way to give Detroit automakers aid without the specter of a government bailout. Last year's energy bill authorized the loans, but provided no funding for them after Republicans blocked a tax measure that would have paid for the program.

Automakers have been lukewarm to the idea in the past, but as all three face the worst market in decades, they've warmed to the idea.

U.S. Rep. John Dingell, D-Mich., said Friday he would work with Obama and other Democrats "to see to it something of this kind is included in the economic stimulus package."

"The prospects for this are getting better as the economic news gets worse," Dingell said.

via freep 

The Detroit-based automaker said on Wednesday that vehicle sales fell 3 percent to 4.54 million vehicles in the first half as higher sales in Europe, Asia and Latin America failed to offset a 15 percent decline in North America.

Toyota sales, meanwhile, rose 2.2 percent to 4.8 million in the first six months of 2008. The tally includes sales at mini-vehicle unit Daihatsu Motor Co (7262.T: Quote, Profile, Research) and truck unit Hino Motors Ltd (7205.T: Quote, Profile, Research).

Higher U.S. gas prices have "put an enormous amount of pressure" on GM's truck sales, said Erich Merkle, an automotive consultant with accounting and consulting firm Crowe Chizek and Co LLC. "That is equating to lower sales for GM and causing them to now fall behind Toyota."

Both the automakers have cut U.S. truck production in response to weak U.S. auto sales and a consumer shift from low-mileage vehicles because of high fuel prices.

The slump in U.S. demand for large SUVs and pickup trucks has hit GM particularly hard as the high-margin vehicles historically account for a majority of the automaker's sales.

Toyota, on the other hand, has been able to weather the downturn better because of its strong car line-up, but plans to cut its global sales target for 2008.

GM and Toyota were roughly even in 2007 for the top spot among the world's automakers, with GM slightly ahead if sales from a China business were included.  Continued...

via  reuters

The midsized sedan has been growing in all directions for decades, but soaring fuel prices have customers begging for something smaller. GM is heeding the call as it is preparing a smaller batch of next generation Saabs. The next 9-3 was originally slated to be underpinned by the Epsilon II, but in March GM decided to instead utilize the lower-medium Delta architecture. The Delta platform will also be used for the next-gen Chevy Cruze, which is slated to eventually replace the Cobalt. The end result will be a smaller, lighter, more efficient Swedish sedan.

With the 9-3 shrinking, Saab will also need to down-size its planned 9-1, which was originally scheduled to be Delta-based. Speculation has Saab reaching into GM's global architecture bin to use the Gamma platform that currently underpins the Opel Corsa. The idea has legs, too, as the Swedish automaker calls the idea "imaginable." Both vehicles are said to contain small, efficient turbocharged powertrains, which is in line with what Saab already uses. We're all for smaller, more agile Saabs, and killer fuel economy wouldn't hurt either.

via  autoblog

This yellow rechargeable radio-controlled Hummer H3, officially licensed by General Motors, is a perfect scale 1:20 model of the luxurious SUV.

Features:

• Full function radio control series
• Full Function Remote Controller (6 Ways Controls)
• Functions: Decoration, Collectable, Home and Office Fun
• Rechargeable batteries for Hummer H3 (included)
• Required 2 pieces AA batteries for remote control (included)

via geekalerts

They aim to fine-tune the technology, safety, and customer experience for car-charging stations by 2010, when the Chevy Volt is due to be produced.

The challenges include providing an affordable, reliable electricity source that's weather-proof and child-proof at locations such as public garages, curbside meters, and workplace parking lots.

Another aim is to prevent utilities from being overwhelmed during peak hours when the grid is already challenged. Electric cars can be charged at night when electrical rates and demand are low, but that's not feasible for drivers either traveling away from a home outlet or living where a personal plug-in isn't available.

A national car-charging infrastructure will be far from being established by the time consumers can take the Volt for a 40-mile spin on a full charge of its lithium-ion battery.

However, Jonathan Lauckner, GM's vice president of global program management, said that involvement by big automakers will accelerate the spread of greener transportation, leading to a meaningful reduction of carbon emissions and dependence on foreign oil.

"Thousands of cars is a fail," he said at a dinner before the Plug-In 2008 conference, which is taking place here Tuesday through Thursday. "We need tens of thousands, hundreds of thousands over a number of years."

Lauckner said he hopes another 50 to 70 of the approximately 3,000 U.S. utilities will join the partnership by year's end.

"What's happening is the convergence of the energy and transportation industries," said Sherry Boschert, former president of the San Francisco Electric Vehicle Association and author of a 2006 book about plug-in hybrids.

Many electric car advocates have accused Detroit, at best, of lagging and, at worst, of killing progress to protect profits while lauding innovations in green transportation by Silicon Valley start-ups such as Tesla.

San Francisco Mayor Gavin Newsom, meanwhile, hopes for his city to become a hub for electric cars. He has discussed partnering with Project Better Place, which is working toward electric-car infrastructure in Israel, Denmark, and Portugal.

Newsom's office on Monday invited companies to submit ideas by September 19 for charging infrastructure for plug-in hybrids and full-battery vehicles. The city next will seek requests for proposals.

"We will be the first bidder," said Richard Lowenthal, CEO of Coulomb Technologies, which is designing charging stations for cars. The company launched a two-year demonstration contract on Monday with the city of San Jose.

via news.cnet 

When Coke-bottle glasses just won't cut it for safe driving, a futuristic windshield might do the trick.

General Motors Corp. researchers are working on a windshield that combines lasers, infrared sensors and a camera to take what's happening on the road and enhance it, so aging drivers with vision problems are able to see a little more clearly.

Though it's only in the research stage now, the technology soon will be more useful than ever.

The 65 and older population in the U.S. will nearly double in about 20 years, meaning more people will be struggling to see the road like they used to.

GM's new windshield won't improve their vision, but it will make objects stand out that could otherwise go unnoticed by an aged eye.

At the same time, the developers say the technology won't cause drivers to plow into trees. It is enhancing just a few objects that are already in a driver's view, not splashing distracting information onto the glass.

For example, during a foggy drive, a laser projects a blue line onto the windshield that follows the edge of the road. Or if infrared sensors detect a person or animal in the driver's path during a night drive, its outline is projected on the windshield to highlight its location.

It's possible because of a transparent coating on the windshield that lights up when struck by ultraviolet light.

Of course, much more goes into it than that. Sensors have to determine the position of the car in relation to the road, while other devices track the driver's head and eye movement to make sure the image on the windshield isn't skewed.

The technological issues mean it probably will be a while before the view through the windshield of a Buick looks anything like a pilot's head-up display in an F-16.

"You can see the difficulty of implementing technology like this," GM researcher Thomas Seder said.

It's also been a bit of a struggle to get skeptics to see how helpful the windshield could be, he said.

"They say, `That would be very frustrating or confusing, to have things on my windshield. I need to see the world,' " Seder said. "I'm enhancing the world. I'll take a feature that should be important to you, like the edge of the road, and paint a line over the real edge."

The windshield is designed specifically for older drivers, who have vision problems at a much higher rate than other age groups. Currently, 12.4 percent of the population is 65 or older, but by 2030, that percentage is projected to jump to 20 percent, or 71.5 million people, according to the U.S. Census Bureau.

"They're not only the fastest growing group of drivers on the road in the U.S., but they are driving more miles per year than previous generations," said Cynthia Owsley, a professor of ophthalmology at the University of Alabama-Birmingham.

"This has enormous implications for road safety in our country," said Owsley, who has worked with Seder on the high-tech windshield's design.

Chrysler LLC spokesman Nick Cappa said the company is also working on such windshield technologies, but he declined to provide details. Ford Motor Co. spokesman Alan Hall said that automaker didn't have any similar plans.

Some cars already head-down displays, small screens in the dashboard that show an enhanced view of what is in front of the car.

Head-up displays, so called because a driver doesn't have to look down to see the information, also are available. But the technology is limited: The head-up display in a Cadillac STS features information such as the speed or radio station projected onto a small area of the windshield.

Seder's system seeks to solve at least one problem with a normal head-up display: It can be seen only if the driver's head is in a certain position.

"What's novel here is, it's the entire windshield, no little headbox I have to have my head in. Here, you can see the image from any position," he said.

Head-down displays can be helpful, but a common vision problem in older drivers is a difficulty adjusting to different visual planes: looking down at something close and then back up and out to the road ahead.

"If I can keep their eyes out of the vehicle, so they're not looking down as much, that's a really good assistive technology," Seder said.

Some features would be helpful to drivers of all ages. If a driver is speeding, a pink box frames an approaching speed limit sign to draw the driver's attention.

Another feature solves what Seder calls the problem of the last 50 yards in Global Positioning System navigation.

"The GPS got me on some road. What building is it? Point, there it is," Seder said.

But the windshield mainly is geared to assist older drivers.

Seder said he wants to provide technology that helps them but isn't distracting or overwhelming.

AARP spokeswoman Nancy Thompson said she believes that drivers heading toward old age will embrace the technology.

"The boomer population has grown up with technology and is comfortable with technology," Thompson said. "Our research shows a willingness to adopt technology to make life easier. It seems like a logical extension of the boomer lifestyle to include technology that makes them safer on the road."

Owsley, who has researched vision in drivers for 15 years, is running focus groups to interview aging drivers about the issues they face but said there's a common theme among the drivers.

via cnn 

CarTribe has procured a few shots and the initial details of the production Chevrolet Camaro ahead of its official unveiling this Monday. According to their report, the Camaro will come in LS, LT and SS trim, equipped with either a six-speed manual gearbox or a six-speed automatic. Of course, that doesn't account for the RS car that is shown in the official photos, so who knows what the whole story is.

Engine choices include either a 296 hp, 3.6-liter V6 or a 416 hp 6.2-liter V8 which will feature cylinder deactivation to boost fuel economy. Underneath the retro sheetmetal is a full independent suspension and StabiliTrak traction control system. Four-pot Brembo brakes are mounted up front on the SS variant, and the 3,700-pound coupe will reportedly have a weight balance of 52/48, front/rear. The neuvo-retro theme is carried inside with a gauge cluster inspired by the 1969 model, along with leather seats and blue LED lighting.

via camaro5

The Saturn "Kiss My Astra" contest is worth looking into, not just for the chance to win a 2008 Saturn Astra XR five-door hatchback, but for the opportunity to get a sense of what kind of kisser GM Vice Chairman Bob Lutz may be. In its promotional material for the contest, the Detroit automaker issued two bizarre photos of Lutz laying his lips on an Astra outside corporate headquarters here.

In one photo, Lutz is shown with one foot awkwardly twisting off a curb as he snogs the roof line of the Astra with puckered lips; in another, he appears to be stroking the Astra while kissing its rear bumper.

To participate in the contest, contestants can kiss any Astra and then upload the photo of the kiss at I M Saturn. The photos will be judged in September by the "online Saturn community," according to GM. To be eligible, contestants must log on and join the ImSaturn online network.

That Saturn Astra XR has a 138-horsepower 1.8-liter four-cylinder engine mated to a five-speed automatic transmission.

What this means to you: GM public relations can apparently talk Lutz into any goofy idea, or is it the other way around? But if we get a vote, Lutz should win the Astra. — Anita Lienert, Correspondent

via edmunds 

General Motors Corp. researchers are working on a windshield that combines lasers, infrared sensors and a camera to take what's happening on the road and enhance it, so aging drivers with vision problems are able to see a little more clearly.

Though it's only in the research stage now, the technology soon will be more useful than ever.

The 65 and older population in the U.S. will nearly double in about 20 years, meaning more people will be struggling to see the road like they used to.

GM's new windshield won't improve their vision, but it will make objects stand out that could otherwise go unnoticed by an aged eye.

At the same time, the developers say the technology won't cause drivers to plow into trees. It is enhancing just a few objects that are already in a driver's view, not splashing distracting information onto the glass.

For example, during a foggy drive, a laser projects a blue line onto the windshield that follows the edge of the road. Or if infrared sensors detect a person or animal in the driver's path during a night drive, its outline is projected on the windshield to highlight its location.

It's possible because of a transparent coating on the windshield that lights up when struck by ultraviolet light.

Of course, much more goes into it than that. Sensors have to determine the position of the car in relation to the road, while other devices track the driver's head and eye movement to make sure the image on the windshield isn't skewed.

The technological issues mean it probably will be a while before the view through the windshield of a Buick looks anything like a pilot's head-up display in an F-16.

"You can see the difficulty of implementing technology like this," GM researcher Thomas Seder said.

It's also been a bit of a struggle to get skeptics to see how helpful the windshield could be, he said.

"They say, `That would be very frustrating or confusing, to have things on my windshield. I need to see the world,' " Seder said. "I'm enhancing the world. I'll take a feature that should be important to you, like the edge of the road, and paint a line over the real edge."

The windshield is designed specifically for older drivers, who have vision problems at a much higher rate than other age groups. Currently, 12.4 percent of the population is 65 or older, but by 2030, that percentage is projected to jump to 20 percent, or 71.5 million people, according to the U.S. Census Bureau.

"They're not only the fastest growing group of drivers on the road in the U.S., but they are driving more miles per year than previous generations," said Cynthia Owsley, a professor of ophthalmology at the University of Alabama-Birmingham.

"This has enormous implications for road safety in our country," said Owsley, who has worked with Seder on the high-tech windshield's design.

Chrysler LLC spokesman Nick Cappa said the company is also working on such windshield technologies, but he declined to provide details. Ford Motor Co. spokesman Alan Hall said that automaker didn't have any similar plans.

Some cars already head-down displays, small screens in the dashboard that show an enhanced view of what is in front of the car.

Head-up displays, so called because a driver doesn't have to look down to see the information, also are available. But the technology is limited: The head-up display in a Cadillac STS features information such as the speed or radio station projected onto a small area of the windshield.

Seder's system seeks to solve at least one problem with a normal head-up display: It can be seen only if the driver's head is in a certain position.

"What's novel here is, it's the entire windshield, no little headbox I have to have my head in. Here, you can see the image from any position," he said.

Head-down displays can be helpful, but a common vision problem in older drivers is a difficulty adjusting to different visual planes: looking down at something close and then back up and out to the road ahead.

"If I can keep their eyes out of the vehicle, so they're not looking down as much, that's a really good assistive technology," Seder said.

Some features would be helpful to drivers of all ages. If a driver is speeding, a pink box frames an approaching speed limit sign to draw the driver's attention.

Another feature solves what Seder calls the problem of the last 50 yards in Global Positioning System navigation.

"The GPS got me on some road. What building is it? Point, there it is," Seder said.

But the windshield mainly is geared to assist older drivers.

Seder said he wants to provide technology that helps them but isn't distracting or overwhelming.

AARP spokeswoman Nancy Thompson said she believes that drivers heading toward old age will embrace the technology.

"The boomer population has grown up with technology and is comfortable with technology," Thompson said. "Our research shows a willingness to adopt technology to make life easier. It seems like a logical extension of the boomer lifestyle to include technology that makes them safer on the road."

Owsley, who has researched vision in drivers for 15 years, is running focus groups to interview aging drivers about the issues they face but said there's a common theme among the drivers.

"Older adults are like adults of all ages," she said. "They want to drive."

via cnn 

Of DOW JONES NEWSWIRES

DETROIT -(Dow Jones)- Republican presidential candidate John McCain said Thursday he doesn't believe General Motors Corp. (GM) needs a federal government bailout, but if conditions worsen enough for the auto maker, all options need to be considered.

"I hope GM does not require it, but if it looks like it is approaching that, everyone has to consider every option," the Arizona senator said in a phone interview with Dow Jones Newswires. "I'm not ready to assume that's the case right now."

McCain has previously said he doesn't support a traditional bailout of any of Detroit's auto makers, but would offer tax incentives and infrastructure support aimed at encouraging companies to create more fuel-efficient vehicles and increasing availability of alternative fuels.

GM has been losing money since 2005, and matters have worsened this year as consumers shun the large pickup trucks and sport-utility vehicles that Detroit's auto makers have depended on for years to generate profits.

Earlier this week, as talk intensified among investors that the top U.S. auto maker faced a cash crunch, GM unveiled a wide-ranging plan to add $15 billion in liquidity, which the company says will provide ample cash through 2009. The plan involves several cost-cutting measures - including white-collar job cuts, reductions in executive compensation and the elimination of the dividend it pays to shareholders - as well as asset sales and debt issuance.

The dramatic deterioration in the operating environment as gasoline prices topped $4 a gallon in the U.S. led to an erosion in investor sentiment in recent weeks that pushed GM shares to their lowest levels since the mid-1950s.

The stock has rallied the past three sessions, following the release of the liquidity-boosting plan, which eased concerns that GM could face the threat of bankruptcy, aided by a sharp drop in the price of oil.

GM shares gained 12% Thursday to close at $12.85, and the stock has gained 37% since Monday's close. The stock, however, is still down 48% since the start of the year.

Sen. McCain will tour a GM technology facility in suburban Detroit on Friday.

Democratic presidential candidate Sen. Barack Obama, a vocal critic of the auto industry's opposition to stricter fuel economy regulations, took a more sympathetic stand toward Detroit's Big Three earlier this week following news of GM's cuts, noting the combined impact of a slumping economy, rising commodity prices and record gas prices on the companies.

"Obama supports the auto makers' moves to restructure their operations without government intervention, and is willing to work with the companies to develop fuel-saving technologies," campaign spokesman Tommy Vietor said.

Obama, of Illinois, said he has met in recent weeks with GM Chief Executive Rick Wagoner and Ford Motor Co. (F) Chief Executive Alan Mulally.

McCain is scheduled to meet with Wagoner before Friday's event.

-By Sharon Terlep, Dow Jones Newswires; 248-204-5532; sharon.terlep@ dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/al?rnd=3ru6gTaivZCBBtacGq6Qnw%3D%3D. You can use this link on the day this article is published and the following day.

  (END) Dow Jones Newswires

07-17-08 2043ET
Copyright (c) 2008 Dow Jones & Company, Inc.

via money.cnn