Do Americans Support a Gas Tax?

Barry Ritholtz:

“A significant number would go along with an increase if it reduced global warming or made the United States less dependent on foreign oil, according to the latest New York Times/CBS News poll.

The nationwide telephone poll, conducted Wednesday through Sunday, suggested that a gasoline tax increase that brought measurable results would be acceptable to a majority of Americans.

Neither the Bush administration nor Democratic Party leaders make that distinction. Both are opposed to increasing the gasoline tax as a means of discouraging consumption, although President Bush, in recent speeches, has called for the development of alternative energy to reduce dependence on foreign oil.”

DSG: Death of the Stick Shift?

Robert Farago:

OK rivet counters: Audi didn’t invent the double clutch. Citroen offered something similar over 70 years ago, and Porsche’s formidable 962 racer also gave it a go. But Audi has just about perfected the DSG. (The only drawbacks are a certain sluggishness when gently tipping-in and a slight hesitation when paddling down more than one gear, as the DSG shuffles through the intervening ratios.) Even with its quirks, the DSG rules– to the point where the clutch pedal and traditional manual gearbox is a mechanical redundancy, a dead device shifting. In fact, any car manufacturer who doesn’t have a DSG or something similar installed in their performance-oriented products will soon be at a tremendous disadvantage.

The Birth of the Toyota Prius

Alex Taylor III:

New York (FORTUNE Magazine) � In late 1995, six months after Toyota decided to move forward with its revolutionary hybrid, the Prius, and two years before the car was supposed to go into production in Japan, the engineers working on the project had a problem. A big problem.

The first prototypes wouldn’t start. “On the computer the hybrid power system worked very well,” says Satoshi Ogiso, the team’s chief power train engineer. “But simulation is different from seeing if the actual part can work.” It took Ogiso and his team more than a month to fix the software and electrical problems that kept the Prius stationary. Then, when they finally got it started, the car motored only a few hundred yards down the test track before coming to a stop.

It’s hard to imagine Toyota (Research), with its aura of invincibility, running into such trouble. But the story of how it brought the Prius to market — a tale of technological potholes, impossible demands, and multiple miscalculations — reveals how a great company can overcome huge obstacles to make the improbable seem inevitable. The gas-electric auto represents only a tiny fraction of the nine million cars and trucks the Japanese company will produce this year. But it is the first vehicle to provide a serious alternative to the internal combustion engine since the Stanley Steamer ran out of steam in 1924. It has become an automotive landmark: a car for the future, designed for a world of scarce oil and surplus greenhouse gases.

More on General Motors

Robert Farago takes a look at GM’s supplier situation in his latest “Deathwatch” editorial:

A couple of days ago, I was talking to an auto industry analyst about the world’s largest automaker. We were discussing the cracks in GM’s hull, trying to figure out which of The General’s compartments were already breached, which are filling with water and which remain viable. A wistful tone in the analyst’s voice indicated head-shaking dismay. “I’m no longer hearing anything positive about GM,” he revealed. “The conversations range from how bad it is, to how bad it’s going to get.” I didn’t want to sound like a paranoid fantasist to a new source, so I tried not to out-pessimist the doomsayers. But it wasn’t easy.

GM operates a large SUV assembly plant in nearby Janesville, WI

BMW’s Turbo Steam Fuel Saving Concept

Deutsche Presse-Agentur:

MW engineers are working on a steam-powered auxiliary drive system that reduces fuel consumption by up to 15 per cent and boosts performance at the same time, the car maker said.

The ‘Turbosteamer’ concept applied to a 1.8 litre, four-cylinder petrol engine recycles the waste heat in the exhaust gases and cooling system.

In tests, the Turbosteamer produced 13 additional hp in performance with 80 per cent of the energy in the exhaust gases recycled, according to the manufacturer.

BMW Audio Books

www.bmw-audiobooks.com:

Put on your seatbelt and prepare for highs, lows and plenty of twists and turns. BMW, in conjunction with Random House, brings you BMW Audio Books, a unique series of specially-commissioned short stories showcasing the work of some of the finest contemporary writing talent. Each gripping tale is yours to download for free and a new book will be available to download every two weeks. Listen to them on your MP3 player, your laptop or ideally, in the car. So sit back, hit play and enjoy the ride.

Thinking Different About the Car Sales Process

Robert Farago:

First, there were no cars. Why anyone selling an expensive product would want potential customers to contemplate a large number of them is beyond me; “pile ‘em high and sell ‘em cheap” is programmed into us on the genetic level. Second, Phaeton customers were isolated, indoctrinated and, most importantly of all, relaxed. The average car dealer’s showroom is more uncomfortably exposed than a public urinal and less relaxing than a dentist’s chair.

GM Deathwatch: 07 Tahoe Sales

Robert Farago:

This is a tale of two Tahoes. The first is a wildly successful SUV that’s flying off the lots at full price: a Hail Mary pass that will put General Motors back in the end zone, saving them from the unthinkable humiliation of bankruptcy, with only moments to spare. The second is a gas-guzzling truck that’s being swept out to sea by the vast receding tide of SUV buyers: a four-wheeled indictment of GM’s inability to build what America wants to drive at a price that makes the company enough money to stay in business. For the time being, which vehicle you see depends entirely on which one you want to see.

The Chevy Tahoe is built in Janesville.

Ford Selling the Fusion via Mockumentary

Jean Halliday:

To promote its new Fusion sedan, Ford is airing a “mockumentary” online film series about a band of Norwegian performance artists who would give the Maytag repairman fits. The rock group Hurra Torpedo cranks out cacophonous tunes by smashing clothes dryers, kitchen ranges and what looks like an outboard motor.

By linking with the group, Ford hopes to attract consumers between the ages of 25 and 35 to the Fusion. Ford is sponsoring the three-man band’s U.S. tour. The promotion includes an online sweepstakes that will give away the red Fusion SEL the band is driving on the road.