NEWS BRIEFS FOR THE WEEK OF NOV. 10, 2005SBA Simplifies Requirements
for Loans
WASHINGTON (Oct. 13, 2005) - Responding to the issues faced by business owners who lost important documents in the aftermath of Hurricanes Katrina and Rita, the U.S. Small Business Administration (SBA) today announced that it will relax some of its disaster loan filing requirements.
"Relaxing some of the loan processing criteria will ease the approval process, allowing business owners to rebuild more quickly and lay the foundation for the revival of the region's economy," said SBA Administrator Hector V. Barreto.
In response to the devastation caused by Hurricanes Katrina and Rita, SBA has hired more than 2,300 loan officers, damage inspectors, loan closers and customer service staffers. The employees are working 12 to 14 hours, seven days a week in 103 Disaster Recovery Centers (DRCs) located in the Gulf states, and in the Agency's loan processing center, customer service center, and disaster field offices in Atlanta and Sacramento. In addition, the Agency says that establishment of loan closing centers in Louisiana, Alabama and Mississippi will expedite loan closings and disbursements.
Some of the SBA initiatives include:
* The title or record search will now only be required for loans exceeding $50,000, rather than the previous $25,000.
* Loans to businesses of all sizes and non-profit organizations are available up to $1.5 million to repair damage to real estate, machinery, equipment and inventory.
* Economic Injury Disaster Loans (EIDLs) of up to $1.5 million also are available to small businesses unable to pay bills or meet operating expenses.
* Interest rates may be as low as 4 percent for businesses with terms up to 30 years. Loan amounts and terms are set by SBA and are based upon each applicant's financial condition.
* SBA will also waive the usual requirement of the submission of tax returns from the last three years. To fill in the gaps for the missing information, the Agency will, in the case of the missing tax documents, access income tax transcripts from the IRS to verify the applicant's income.
Homeowners, renters and businesses in the areas affected by Hurricanes Katrina and Rita are encouraged to apply for federal assistance by registering online with FEMA at www.fema.gov or by calling (800) 621-3362.
Help with the disaster loan application is also available at the Small Business Development Centers (SBDCs). SBA assistance with the disaster loan application also is available at the Small Business Development Centers (SBDCs). Addresses for the DRCs and the SBDCs can be found online at www.sba.gov or by telephoning (800) 659-2955.
(Source: SBA)
Robotic Vehicle Nets DARPA PrizeVW Robotic Car
(Photo: Volkswagen AG)
PRIMM, NV and SAN FRANCISCO, CA (Oct. 10, 2005) - A Stanford University team using a remote-controlled, driverless Volkswagen Touareg, with technological support of the VW Electronics Research Laboratory (VWERL), won the DARPA Grand Challenge. Sponsored by the Defense Advanced Research Project Agency (DARPA), a division of the U.S. Department of Defense; the team was awarded a $2 million first prize.
To advance autonomous vehicle technology, the agency sponsored the race under grueling conditions in the Mojave Desert near Primm, NV. The Stanford robotic vehicle known as "Stanley" completed the 130-mile course with a time of 6:53:08, just 42 seconds faster than the second-place finisher.
Stanley is built from a stock, diesel-powered Volkswagen Touareg R5 modified with full-body skid plates and a reinforced front bumper. It is actuated by a drive-by-wire system developed by the ERL. All processing takes place on six Pentium M computers. Measurements are incorporated from GPS, inertial measurement unit, wheel speed, lasers, a camera and a radar system.
Using only on-board sensors and navigation equipment with no human assistance, a total of 23 autonomous vehicles went head-to-head over a route of tough desert roads, mountain trails, dry lake beds and tunnels. Those 23 finalists were narrowed down from a field of 195 teams that attempted qualifying for the race.
Dr. Carlo Rummel, executive director for VWERL said, "The lessons we have learned in building this highly complex vehicle will ultimately benefit consumers as we apply this knowledge to make our vehicles safer, smarter and more exciting to drive."
The winning Touareg will be present at the upcoming 2005 Intelligent Transportation Systems (ITS) World Congress in San Francisco from Nov. 6 through 10. VW announced it also will showcase new and conceptual technologies in four areas at the event: advances in communication with a glimpse into vehicle-to-vehicle and vehicle-to-infrastructure communications; safety; hydrogen fuel cell technology; and advanced vehicle electronics. VW and Audi vehicles incorporating these technologies will be available for visitors to drive, and the automaker will have researchers and engineers available to discuss the displays.
(Source: VW AG)
Magna's CNG-Powered ConceptTurns Heads
The MILA Concept Car
(Photo: Magna Steyr)
FRANKFURT, GERMANY - Magna Steyr unveiled MILA, a completely new compressed natural gas (CNG)-powered vehicle concept car at the 2005 International Auto Show in Frankfurt, Germany.
According to Magna, the MILA demonstrates its "complete vehicle competence,", as well as its engineers' creativity and their skill in meeting innovative and technically demanding challenges. The vehicle incorporates technical innovations such as:
* An environmentally friendly CNG-powered engine combined with sporty performance - The car a standard 1.6L four-cylinder model that was converted to CNG operation. Its maximum power of 150 horsepower, a top speed of over 125 miles per hour and acceleration from 0 to 60 mph in under seven seconds meets California's Advanced Technology Partial Zero Emission Vehicle standard.
* Consistent lightweight construction - MILA's fuel tank is a composite CNG safety pressure cylinder aluminum liner wrapped with carbon fiber. An extra-light and extra stiff space frame made of 6000 series aluminum alloy, together with a lightweight high-strength steel chassis enable the vehicle to weigh in at 1,875 pounds.
* Modular design - Different models can be built on a mix and match basis: single or two-seater, normal or high-power engine. Magna says the vehicle's components and modules have been developed in advance and optimized in terms of cost and weight.
* Advanced vehicle safety - A monocoque body provides high stiffness, and the incorporation of high-strength materials provides improved crash performance, fatigue strength, thermal analysis and aerodynamic qualities.
The company would like to partner with an automaker to produce the vehicle. All the development steps up to the complete concept vehicle were modeled using computers. The vehicle introduced in Frankfurt was built in less than six months; Magna estimates it would take 23 months to ramp up to commercial production.
(Source: Magna Steyr)
GM: Good News and Bad NewsDETROIT, MI (Oct. 17, 2005) - It's been a good news-bad news day for General Motors Corp. (GM). On a day where GM reported a $1.6 billion loss for the third quarter of 2005, it also had a measure of stability with a tentative agreement reached with the United Auto Workers (UAW) over healthcare costs. As well, GM also commented on General Motors Acceptance Corp. (GMAC) and Delphi Corp. proceedings.
The huge loss by GM comes in a quarter where unit sales surged with employee pricing programs, which converted idle inventory and overproduction into much needed cash, albeit it at a substantial loss.
According to the automaker, the tentative agreement will provide an overall cost structure reduction for GM of $5 billion per annum by the end of 2006. Highlights of the tentative agreement with the UAW include:
* A reduction in GM's retiree health care liabilities by approximately $15 billion, an amount that is 25 percent of GM's hourly health care cost.
* A cut in GM's employee health care expense of nearly $3 billion annually on a pretax basis.
* Estimated health care cash savings for GM of $1 billion annually.
* Offsetting the cash savings, GM will make an annual $1 billion contribution for each of the next three years to a new independent Defined Contribution Voluntary Employee Benefit Association that will be used to mitigate the impact of reduced GM health-care coverage on individual hourly retirees.
The tentative agreement is subject to union ratification, and specific details regarding modifications to the health care plan will be shared with affected employees and retirees soon. Additionally, GM and the UAW have agreed to continue to look at other options to further reduce health care expenses and to improve other areas of competitiveness.
GM also stated that the sale of its controlling interest in its financing arm GMAC to a strategic partner will be explored. The goal is to restore GMAC's investment-grade rating and renew its access to low-cost financing.
In regards to the Chapter 11 filing by Delphi Corp., GM stated that its limited guarantees to workers who transferred to Delphi when the parts maker was spun off could cost GM up to $12 billion overall, although the company felt the eventual liability would be closer to $6 billion.
(Source: GM)
Toyota Initiates Repair For Software-Related Prius ShutdownsTORRANCE, CA (Oct. 14, 2005) - Toyota Motor Sales USA has recognized a software problem in 2004 and 2005 Prius hybrids that can lead to unexpected shutdowns. The company has initiated a service campaign for 75,000 vehicles sold in America and is seeking to rectify the problem on its own volition before a formal recall. Toyota will inform owners of the affected vehicles with a Special Service Campaign notification letter sent via first class mail beginning by month's end.
The automaker says that an issue with the software program's logic in the Electronic Control Module (ECM) system may cause some or all of the following warning lights to illuminate: Master, Hybrid System, Engine, Vehicle Stability Control, and Brake.
If this occurs, the vehicle will enter a "fail-safe" mode that allows limited operation via the electric motor. However, the electrically powered brake and steering operation will continue to function normally if this condition occurs. The electric motor also will provide enough power to allow the driver to pull the vehicle over and away from traffic. Once the vehicle is stopped, the driver may be able to restart the gasoline engine in the vehicle by pushing the start button.
(Source: Toyota)
Diesel Emissions ComplianceCould Cost $5,000-$10,000 Per Engine
WARRENVILLE, IL (Nov. 8, 2005) - Stricter diesel emissions standards starting with 2007 models could add $5,000 to $6,000 to the price of new medium-duty diesel-engine powered trucks and buses and $7,000 to $10,000 to a big bore Class 8 engine, according to Dee Kapur, president of International Truck and Engine's truck group.
"We recognize that this is a pretty significant increase in pricing," Kapur told trade media at a Tuesday teleconference, "so our focus has been to work to mitigate - to the extent possible - the financial impact to our customers."
International says it will draw heavily on its experience as an integrated manufacturer as well as its Green Diesel Technology, which has been available on school buses and trucks since the early 2000s. Plans for International's 6-cylinder "I-6" engines include exhaust gas recirculation (EGR), optimized combustion, increased injection pressure, and a diesel particulate filter (DPF) based on the Green Diesel program. Its V-8 products will follow basically the same recipe. The after-treatment system will also include pressure and temperature sensors that will monitor particulate burn-off or regeneration.
Company executives said they're working closely with suppliers of big bore engines and all products for 2007 will use EGR and particulate filters with active regeneration. Kapur said they are not yet ready to disclose details of International's own 12-liter engine, currently being developed with MAN. The engine is scheduled to go into production in late 2007.
International has trucks running in captive tests, and some trucks are being tested by customers in a variety of applications. At this point the company doesn't anticipate any significant impact on maintenance, other than routine maintenance of the particulate filters. Fuel economy is harder to peg because it depends largely on the application. For instance, a heavily loaded tractor running in the southwest where ambient temperatures are high would see very little regeneration time and therefore very little degradation in fuel economy. But other applications create a lot more particulates to be burned off, and that burn-off process will decrease fuel economy.
Manufacturers are hoping to ease the sting of higher prices by keeping fuel economy, maintenance, reliability and other cost factors as close to pre-2007 levels as possible. As Kapur noted, the industry has also come together in support of an effort led by the American Trucking Associations to win an investment tax credit for the new engines. Two bills (HR 3301 and S1240) each propose a 5 percent Investment Tax Credit for Class 8 trucks purchased from January through December of 2007. The measure has strong support in Congress but is bucking a movement to reduce spending and curb tax breaks spurred by the high cost of recent hurricanes.
(Sources: MEMA, International Truck and Engine Corp., truckingnews.com)
Automotive Additive Benzene Priceson Significant Rise
RESEARCH TRIANGLE PARK, NC - Benzene, an additive used to increase octane ratings in gasoline, has experienced tremendous demand and price increases in the wake of Hurricanes Katrina and Rita, according to Market Analysis, MEMA's quarterly research and analysis newsletter.
While crude oil and gasoline prices have risen rapidly, the price of benzene is skyrocketing, according to Richard Anderson, MEMA's senior research analyst. "The doubling of gas prices pales in comparison to the four or fivefold increase in benzene prices. Chemical manufacturers including Reichhold and Hexion Specialty Chemicals have already announced price increases and surcharges, noting the impact of the Gulf storms," Anderson said.
High gasoline prices are an "in-your-face" reminder of the sharp increase in crude oil prices, while the manufacturing sector feels the effects of both higher crude oil and benzene prices, something not as readily apparent to other industries and the general public, he noted. "The largest use by far for benzene is in the manufacture of other chemicals such as plastic and resin, as well as some rubber products, detergents, lubricants and dyes - all used to produce some types of automotive products. The impact of benzene price increases goes well beyond finished goods as product packaging also is affected," Anderson said.
(Source: MEMA)
SEMA Compiles State Laws and Regulations Impacting Specialty VehiclesWASHINGTON, DC (Nov. 8, 2005) - On behalf of SEMA's Hot Rod Industry Alliance (HRIA) and Antique Restoration Market Organization (ARMO), the SEMA Government Affairs office has compiled all of the state laws governing specialty motor vehicles. Available on CD to SEMA members, the document is a collection of state statutes and regulations that lists each state's specialty vehicle definitions, registration and titling provisions, inspection criteria, and other requirements and exemptions.
The term "specialty vehicle" includes the following vehicle classes: ancient, antique, assembled, classic, collectible, collector, custom, exhibition, historic, homemade, horseless carriage, kit, modified, parade, parts, rebuilt, reconstructed, replica, show, special interest, specially constructed, street cruiser, street rod, and vintage. Given that a uniform system for defining such specialty vehicles does not exist among the states, applicable definitions for each state are listed separately to clarify the language in the statutes and regulations. In addition, some immaterial portions of the statutes and regulations have been omitted in order to make searching the documents easier.
"For years, the SEMA Government Affairs office has been researching the statutes in order to identify states that don't have registration and titling classifications for the variety of specialty vehicle classes or have laws that are lacking in some way," said SEMA Vice President of Government Affairs Steve McDonald. "Using these statutes as an information resource and reference tool, we drafted legislation to both create titling and registration classes for street rods/custom vehicles and to create tax breaks, emissions test exemptions, backyard restoration opportunities and use allowances for older cars. SEMA's legislation has been enacted into law, in one form or another, in several states around the country."
SEMA members can use the CD to determine if their state provides adequate specialty car protections and, the information is current for 2005 but subject to change in the future, adds the association. SEMA advises members to also directly consult the statutes and regulations for states of interest, to ensure the accuracy of the information.
The state laws are available on CD to SEMA members. SEMA members interested in obtaining the CD of state laws applicable to specialty vehicles should contact Jan Desma at [email protected] or 909/396-0289, ext. 134.
(Source: SEMA)
EPA Names Top 10 Most Fuel-Efficient Vehicles
WASHINGTON (Oct.12, 2005) -The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) released the "2006 Fuel Economy Guide" to help consumers make well-informed choices when purchasing new vehicles.
"This year's fleet offers a wider variety of cleaner, more fuel-efficient vehicles for car buyers to select from - encouraging more Americans to heed President Bush's call to reduce the demand on the nation's energy supply," said EPA Administrator Stephen L. Johnson.
DOE Secretary Samuel W. Bodman added, "In January, consumers can take advantage of tax credits worth thousands of dollars by purchasing a hybrid, electric or hydrogen fuel cell vehicle. Also, we are working with car manufacturers through our FreedomCar initiative to develop next generation technology that will bring more fuel efficient vehicles to market."
Hybrid and diesel vehicles continue to lead the government's fuel economy rankings, and for 2006, several hybrid SUVs made the top 10 list, while only one conventional gasoline-fueled vehicle made the list. A complete listing of the 2006 fuel economy leaders by vehicle class as well as the lowest fuel economy models are listed here and available online on EPA's Web site.EPA's Top 10 2006 Fuel-Efficient VehiclesRankModel Fuel - PowertrainMileage (City/Highway)1Honda InsightHybrid/gasoline-auto60 / 662Toyota PriusHybrid/gasoline-auto60 / 513VW Beetle and VW GolfDiesel - manual37 / 444VW JettaDiesel - manual36 / 415Ford Escape 2WDHybrid/gasoline - auto36 / 316VW Beetle and VW JettaDiesel - automatic35 / 427VW GolfDiesel - automatic33 / 448Ford Escape Hybrid 4WD, Mercury Mariner Hybrid 4WD and Mazda Tribute Hybrid 4WDHybrid/gasoline - auto33 / 20
9Lexus RX 400H 2WD and Highlander 2WDHybrid/gasoline - auto33 / 2810Toyota Corolla (manual) 32/41Gasoline - manual32 / 41(Table source: U.S. Environmental Protection Agency)
EPA fuel economy estimates, which appear on the window stickers of all new cars and light-duty trucks prior to sale, are determined by tests conducted by manufacturers and EPA according to the Agency's specifications. To ensure these estimates continue to remain as reliable as possible, EPA plans to propose updates to the methods used to determine the sticker fuel economy by the end of the year.
(Source: EPA)
Bi-Fuel System(Photo: Robert Bosch GmbH) Engine Management System Handles
Both Gasoline and CNG
STUTTGART, GERMANY - Robert Bosch GmbH recently introduced its Bi-Fuel Engine Management System. The technology is specifically geared to bivalent vehicles, which can be alternately powered by either gasoline or compressed natural gas (CNG).
As shown in the graphic, the Bi-Fuel System for bivalent CNG and gasoline operation consists of an engine control unit (ECU), components for fuel supply and mixture formation as well as the required sensors. The system allows switching from gasoline to CNG operation while driving without interrupting the power output of the combustion engine.
(Photo: Robert Bosch GmbH)
The centerpiece of the system is the Natural Gas Motronic control unit, says Bosch. It is specifically designed for the requirements of engine management, whether blowing in natural gas or using gasoline injection. Integrating both fuel systems in one single ECU saves costs and reduces wiring and cable connections in the vehicle. The module's outer dimensions correspond to the company's traditional gasoline injectors and can thus be integrated into existing systems without problems.
According to Bosch, CNG is a viable alternative fuel for today's vehicles. And for very good reasons: CNG is produced without sophisticated refining; its combustion generates a very low degree of emissions compared to a gasoline engine; and the combustion of CNG produces 25 percent less carbon dioxide. The exhaust fumes, furthermore, do not contain any particulates and are odorless.
In the future, CNG power will offer even greater potential because the high knock-resistance of the fuel makes it an ideal candidate for combustion engines with performance-enhancing supercharging, adds Bosch. This provides development potential for downsizing concepts, which are the basis for designing engines of lower displacement with higher degree of efficiency and performance rating similar to stronger ones.
Production on the CNG engine management system will start in 2006.
(Source: Robert Bosch GmbH)
Toyota Grabs Sales LeadWESTLAKE VILLAGE, CA (Oct. 14, 2005) - Power Information Network (PIN), a division of J.D. Powers and Associates, reported that while overall vehicles sales were down by 33 percent in early October, Toyota Motor Sales USA had surpassed General Motors (GM) in market share.
Tom Libby, senior director of industry analysis at PIN, highlighted a number of drivers that include the end of high-impact incentives from the major automakers, higher gas prices, low inventory levels and a possible market adjustment due to exceptionally strong sales during the summer months.
Every one of the nine major new-vehicle manufacturers suffered a retail sales decline in early October versus a year ago, with the two traditional domestics down the most. Retail sales of GM and Ford Motor Co. new vehicles were down 57 percent and 45 percent, respectively, compared to early October of 2004. American Honda had the smallest decline at 8 percent, followed by Toyota at 14 percent, Nissan North America at 21 percent and DaimlerChrysler was off 32 percent.
Toyota seized the retail market share lead for the first nine days of October with 18.2 percent of the retail market, followed by Ford with 15.6 percent and GM with 14.6 percent. DaimlerChrysler followed with 13.8 percent, Honda captured 13.6 percent and Nissan with 8.4 percent.
(Source: J.D. Powers and Associates)
Ford, Citro