A heavy $1 million starting bid has been placed on the Chrysler 300C that President Obama previously leased.

Listing the car on eBay, and the starting bid, is Lisa Czibor, who says she is listing the car for another party, and has no personal stake in the sale apart from monetary gain.

Barrett-Jackson auto auction company Craig Jackson, says that her price is way too high. “Maybe this car would be worth $50,000 to $100,000.” Jackson is speaking from experience, as he has sold presidential cars before, including a limousine Franklin Roosevelt used, and his company sold the hearse used to carry John F. Kennedy’s body.

He also adds that because the car isn’t rare or unique in any way, there is nothing else to justify its price tag, which would otherwise be around $20,000.

Czibor notes other vehicles on the eBay motors listing that have sold for large sums of money, and posses the Illinois Certificate of Title with Barack Obama as the lessee. No information is provided as to how the current owner acquired the vehicle, however this is the vehicle Obama possessed while he was an Illinois Senator, before he purchased his 2007 Ford Escape Hybrid.

- By: Alexandra Koken

Source: CNNMoney

The Obama administration has been working on cracking down on fuel efficiency standards for some time now, but they have finally released the tab the automotive industry will have to pay to meet the 54.5 mpg standard by 2025.

The regulation, one of the biggest in U.S. history, will run $157.3 billion, in addition to the 2012-2016 requirement costs of $51.5 billion to get fleets up to 34.1 mpg. Light trucks will suck up $44 billion, while the rest of the $113 million increase will go towards passenger cars.

Where does this leave the consumer? Out about an extra $2,023 on average per car, a figure that can hit up to $2,800 depending on who releases the figures.

No prediction has been made from the Obama administration on the impact on sales numbers the change will have, but according to some analysts the only reason there would be a decline is if people didn’t see the value in paying extra for the fuel economy. The Obama administration’s side is that the benefits outweigh the costs by saving at the pump, but base this fact on ‘lifetime’ fuel savings.

Costs to each brand are as follows: General Motors Co. $37.8 billion, FoMoCo. $29.4 billion, Chrysler-Fiat $9.7 billion, Toyota Motor Corp. $23.2 billion, Honda Motor Co., $15.3 billion, Nissan Motor Co, $15 billion, VW $1billion, Hyundai Motor Co, $8.2 billion, and Kia up by $1.4 billion.

Mitch Bainwol, president & CEO of the Alliance of Automobile Manufacturers, said the administration “must consider that technology breakthroughs will be required and consumers will need to buy our most energy-efficient technologies in very large numbers to meet the goals.”

“Automakers have already invested billions of dollars in new technologies, so consumers now have many choices when shopping for fuel-efficient vehicles,” said Bainwol, who heads the group representing GM, Ford, Chrysler, Toyota, VW and seven others.

- By: Alexandra Koken

Source: Detroit News

President Barack Obama and South Korean President Lee Myung-bak both paid a visit to General Motors’ Orion Township assembly plant last Friday in order to promote a free trade agreement. The plan is said to potentially stimulate exports of US made products to South Korea, Colombia and Panama.

The plan calls for cutting South Korea’s taxes and tariffs on imported vehicles, which could stimulate sales of the American automobile industry to other countries, specifically South Korea.

“This levels the playing field,” said Gene Sperling, director of the National Economic Council. “It cuts the tariff in half. It took down non-tariff trade barriers. We feel absolutely confident this will increase the sale of cars made in the U.S.”

According to sources, the UAW supports the House of Representative’s and Senate’s passed legislation. However, word is that other unions have expressed concerned that any job increases could be offset by layoffs in the US from increased competition of South Korean imports.

“If Americans can buy Kias and Hyundais, I want to see folks in South Korea driving Fords and Chevys and Chryslers,” Obama said last month. “I want to see more products sold around the world stamped with the three proud words: ‘Made in America.’.”

- By: Chris Chin

Source: Free Press

The United States Treasury Department, which currently holds a 26.5 percent stake in General Motors, said that it plans to be ‘patient’ before selling its remaining 500 million shares in the automaker. The statement came Monday as GM’s stock fell to another all-time low – $19.65 a share.

GM, which is currently down 40 percent since its IPO last year, closed below $20 a share for the first time on Monday.

“We have to balance the goal of divesting these stakes — because the government should not be in the business of owning stakes in private companies — with the goal of maximizing taxpayer returns,” Assistant Secretary for Financial Stability Tim Massad said.

Previously, the U.S. government said that it will sell its shares in GM as soon as ‘practicable.’  Officials now say that the U.S. Treasury won’t sell any shares until after GM reports its third-quarter earnings in November.

- By: Omar Rana

Source: Detroit News

Earlier in the year, much of the news hitting everyone’s desk in the auto industry has been related to the Obama administration’s CAFE fuel efficiency mandate for 2025. Word is that the administration is now delaying the 2025 CAFE mandate of 54.5 mpg. However, not much detail has been released.

“Given the historic nature of this joint rule between EPA and DOT, as well as the necessary coordination with California, it was recently determined that additional time was needed and we expect to issue a proposal for MY 2017-2025 vehicles by mid-November,” NHTSA spokeswoman Lynda Tran said.

Because the current mandate has been delayed, experts are predicting a new proposal by mid-November of this year.

“We are working to complete these historic fuel economy and greenhouse gas pollution reduction standards which will save consumers money, help protect the air we breathe and strengthen our national security by reducing our dependence on foreign oil,” Tran said.

- By Chris Chin

Source: Detroit News

The President of the US of A has been known to travel pretty seriously. From armored plated Cadillac limousines, to Air Force One. Being the person of his stature, it’s obvious that he needs some serious form of transportation. That’s why President Obama is rolling around in a new tour bus for his Midwest US campaign. So I guess, if the presidential limousine is known as “the beast,” then the new tour bus can be called “the leviathan.”

The White House said that Obama’s bus cost about $1.1 million and features the latest and greatest security and communications technology. But of course, to keep the president will protected, neither the White House nor the Nashville, TN-based Hemphill Brothers Co. coachbuilder shared specifics.

Still, to give the public an idea of the kind of luxury Obama has been travelling around with, Hemphill hinted saying that the bus includes a full-sized bed stateroom, a bathroom with a granite shower, bunk beds with privacy curtains, leather sofas, kitchen space and much more.

Obama be ballin’!

Check out the video after the jump.

- By: Chris Chin

Source: ABC News

Ron Bloom was the man in charge of America’s automobile bailout back in 2008. Earlier this week, Mr. Bloom said that he will be stepping down and leaving his position in the White House.

“We’ve faced many tough choices and dealt with numerous challenges over the past two and a half years—from restructuring the American auto industry to developing fuel-efficiency standards,” Bloom said in the statement.

Some of Mr. Bloom’s other efforts included working with President Barack Obama on the new 54.5 mpg Corporate Average Fuel Economy mandate as well. Then of course, prior to that, Bloom helped bail out General Motors and the Chrysler Group. After the bailout, Bloom was Obama’s top manufacturing advisor.

“Ron Bloom’s leadership within the President’s Auto Task Force helped America’s auto industry steer toward the road to recovery,” said General Motors’ vice president of global public policy, Bob Ferguson. “As a result, the prospects look bright for auto manufacturing to contribute toward jobs and a stronger economy for years to come.”

Bloom, who is now 56, will be ending his post at the end of this month so he can return to his home in Pittsburgh.

- By: Chris Chin

Source: Automotive News

President Obama has just come around to making a historic agreement in which thirteen major automakers have agreed to meet a 54.6 mpg Corporate Average Fuel Economy goal by 2025. This decision was made after a couple weeks of long talks to see if automakers can achieve the new CAFE requirements without too much financial risk.

The President was joined by General Motors, Ford, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota and Volvo as well as the United Auto Workers and California state officials.

“This agreement on fuel standards represents the single most important step we’ve ever taken as a nation to reduce our dependence on foreign oil,” said President Obama. “Most of the companies here today were part of an agreement we reached two years ago to raise the fuel efficiency of their cars over the next five years. We’ve set an aggressive target and the companies are stepping up to the plate. By 2025, the average fuel economy of their vehicles will nearly double to almost 55 miles per gallon.”

Standard for fuel economy weren’t the only topics of discussion during this agreement as a new standard for emissions has been released as well. Companies will have to meet the equivalent of 54.6 mpg or 163-grams/ mile of CO2 for cars and light-duty trucks by Model Year 2025.

“These standards will help spur economic growth, protect the environment, and strengthen our national security by reducing America’s dependence on foreign oil,” said U.S. Transportation Secretary Ray LaHood. “Working together, we are setting the stage for a new generation of clean vehicles.”

The new targets are projected to help American families save nearly $1.7 trillion in fuel costs with an average fuel savings of over $8,000 per vehicle by 2025. Additionally, it will help our country reduce our oil consumption by saving a total of 12 billion barrels of oil.

So far many automakers seem happy with it except Volkswagen.

Read statements from automakers after the jump (we will keep updating them as they come in).

General Motors: General Motors has agreed in principle on proposed fuel economy standards from 2017 through 2025. This proposed rule presents a path forward that greatly improves fuel economy while preserving customer choice and future industry growth. GM plans to pursue the technical challenge ahead and to lead in delivering new fuel-saving technologies in cars and trucks customers want to buy and can afford.

Chrysler: Chrysler Group supports in principal the agreement on proposed fuel economy standards from 2017 through 2025 under a continued National Program. We remain committed to the goal of a single, national, and coordinated program that will reduce greenhouse gas emissions, and enhance our country’s energy security. We appreciate the Obama Administration’s leadership in bringing together stakeholders to reach agreement on a set of principles.

Nissan: Nissan Americas today announced its support for the U.S. government’s proposal to set new nationwide greenhouse gas and fuel economy standards for passenger cars and light trucks between MY2017 and MY2025.The Obama Administration has committed to continuing on the path of a harmonized national greenhouse gas and fuel-economy program for passenger cars and light-duty trucks. Nissan endorses this “one national program” approach as essential to future technical innovations across the automotive industry.

BMW: The BMW Group is in agreement with the direction outlined today by President Obama and his Administration on proposed new fuel economy standards for the period 2017 – 2025. The proposal is a result of extensive negotiations between the Environmental Protection Agency (EPA), the Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) and the California Air Resources Board (CARB) and will result in one national standard for regulating future greenhouse gas emissions and fuel economy.

Volkswagen: Volkswagen does not endorse the proposal under discussion. It places an unfairly high burden on passenger cars, while allowing special compliance flexibility for heavier light trucks. Passenger cars would be required to achieve 5% annual improvements, and light trucks 3.5% annual improvements. The largest trucks carry almost no burden for the 2017-2020 timeframe, and are granted numerous ways to mathematically meet targets in the outlying years without significant real-world gains. The proposal encourages manufacturers and customers to shift toward larger, less efficient vehicles, defeating the goal of reduced greenhouse gas emissions.

- By: Chris Chin

Image Source: Official White House Photo by Pete Souza

In case this news has somehow evaded you, Obama is asking automakers for some major leaps in fuel economy standards. The White House proposals are now aiming to require a 54.5 mpg standard average fuel economy.

In contrast to previous reports, it seems that while some details are still being worked on, most automakers that were opposing the plan, are now in favor of it. As of yet, none have made their stance on the matter official, but The White House is getting some support form Ford, General Motors and Chrysler, among other.

Due to the numerous technical, and otherwise, issues that arise from the proposal, all of the automakers are still working with the Obama Administration in attempts to reach some more neutral territory.

The Association of Global Automakers CEO Michael Stanton comments that “These are challenging new standards, and many important details still need to be worked out as the proposal moves through the federal regulatory process.”

If this proposal goes though, cars in general will all be going through major changes, but trucks and minivans will see the most drastic differences. One positive that may come of this is that it gives the industry a hard shove towards electric vehicles.

Some automakers are still unlikely to sign off on the proposal, such as Daimler, BMW and Volkswagen, as they are unhappy about the drastic changes and the possibility of multi-million dollar fines.

As of now, the proposal is at a 5% annual efficiency increase for model years 2017-2025. Light trucks and SUV’s will initially have a lower goal of 3.5%, which will increases from 2022-2025. In cases of extreme difficulty, such as the Ford F150, more leniency will be received.

Targets are still being reviewed to see if there are ways to cut down manufacturing costs, Wile early targets may be easier to hit, the ones further down the line are asking for a huge change over what we have today. New targets will be issued in September.

California has played a vital role in those matters. It has been said that if they did not endorse the deal automakers would have never seen it.

- By: Alexandra Koken

Source: Automotive News

Several senior auto executives met up with the White House on Friday in order to talk about the latest fuel economy standards. The proposed fleetwide target average of 56.2 mpg by 2012, according to analysts, are proving to be very difficult both financially and technology, especially since cars have continued to get bigger and heavier.

One of the downsides to the 56.2 mpg standard is the potential for car prices to jump by as much a $2,100 or more. So the purpose of the meeting was to figure out whether the current standard is sensibly feasible and if not, work slowly towards a balance that automobile manufactures can achieve without risking too much financially and politically.

That said, one of the ways that automobile manufacturers can get an easier break at meeting the fuel economy standards is by requesting credits. For example, the current 56.5 standard says that majority of the major automobile companies have to increase overall fuel economy for their products by 5% on average per year, which for some, like producers of trucks, can be a lot. As a result, the administration is content with allowing for a 3.5% increase for light trucks between 2017 and 2021 instead of the aforementioned f5%.

“Automakers are eligible for a mileage and emissions credit if they switch to cleaner air conditioning fluid before 2016. The plan would give them the same credit again after 2016, even if they had made the switch,” said Dan Becker, the director of the Safe Climate Campagin. “Another would give a disproportionately large break to companies that make electric vehicles, allowing them to sell additional nonelectric vehicles that give off more emissions than the electric vehicles save.”

- By: Chris Chin

Source: Detroit News

Last month, we delivered some coverage regarding the US President Barack Obama’s visit to the United Kingdom… in the form of some humor where his presidential Cadillac limousine bottomed out when leaving the US Embassy in Dublin, Ireland. On a somewhat similar note, Barack Obama is being fined for not paying London’s annoying congestion charge. You’d think politicians with as much stature as Obama would be exempt from such a thing.

But nope. Mr. President of the US of A has to dolly up $193 for not paying the $16 London congestion charge. Story has it that the US presidential motorcade was able to “slip” past the charge because the limousine didn’t have proper UK license plates and since London’s fine system is run off of roadside cameras, the city took some time to realize that those cars were President Obama’s.

Yet apparently, this isn’t the first time London has asked a foreign political figure, let alone the United States government, to pay congestion charge. The US currently has an outstanding amount of $160,000 in congestion charges due to London’s Ministry of Transport, making it the leader for the amount of money owed for congestion charges for a country with an active politician visiting London. But the US isn’t the only one since other countries were found to be racking up just as much.

- By: Chris Chin

In efforts to come to a reasonable agreement on the 56.2-mpg by 2025 proposal, the White House is starting to bend a bit. To offer some flexibility to the automakers, the White House is willing to give them more time to make the improvements on crossovers and pickups.

This change to the proposal directly addresses the issues automakers had initially cited. It will help with both easing the burden of hitting the 2025 target, and maintaining more jobs.

Another offer to gain the support of the automakers is to lessen the fuel economy improvement requirement for light trucks from the 5% requirement for cars, to a lesser 3.5%. Yet this change may result in more problems. Since Detroit automakers build so many of these popular light truck models, production for the smaller models could be impacted. A viable option for automakers to save is to ship the production to locations outside the U.S.

On the other side of the issue is the support of the environmentalist groups and the state of California. Either can be lost with the loosened numbers.

The UAW and Detroit automakers met to discuss their concerns. Contracts between the UAW and Detroit automakers are expiring as of September 4, and the UAW was seeking to take advantage of the recent upswing in sales the domestic brands have been experiencing with better security.

First quarter earnings for the Detroit Three have been reported as follows: Chrysler reached $116 million, Ford reported $2.6 billion, and GM brought in $3.2 billion. Second-quarter earnings are soon to be released and bound to have an impact on White House and UAW negotiations.

- By: Alexandra Koken

Source: USAToday

Thursday, legislation was introduced that states that drivers are to be banned from holding cell phones while operating vehicles. The proposal is titled the Safe Drivers Act of 2011.

The act is directed towards the Department of Transportation, and would require them to set a national standard that holding a mobile device as a driver, with the exception of specific emergencies, is no longer permitted by law.

“Driving while making a phone call, texting or using apps cam be as dangerous as driving drunk, and much more common… With some basic common-sense rules that are already in place in some parts of the country, we can reduce injuries and save lives in America,” said Rep. Carolyn McCarthy, D-N.Y.

The motivator for the proposal is the total of 5,400 deaths related to distracted driving in 2009.

Hands-free devices would still be legal, but the DOT would receive further instruction to conduct research on the dangers of driving and talking on the phone. This allows the bill to tighten up regulations even more down the road. The upside here is that automakers are already expanding hand-free technologies and making them available quickly. That aside, should we eliminate passengers, next? I don’t advocate the use of these devices while driving, of course, but I can’t readily subscribe to more rules like this, because I fear we are beginning to cross a legal interference threshold, overall. Or, perhaps, the argument is that society is no longer capable of acting responsibly due to technology?

A new proposal may mean hardship for automakers and buyers. The Obama administration is weighing the possibility of making it a requirement that cars, and even lightweight trucks, average 56.2 miles per gallon as of 2025.

The initial proposal was a requirement for an efficiency increase of 5 percent over eight years. If automakers are forced to do so, this could mean a price increase of over $2,000 per vehicle for consumers.

Although the they were all consulted on the matter, General Motors Co., Ford Motor Co, and Chrysler Group LLC, none are expressing much support for it. Foreign automakers will have the same type of meetings, as well, to be briefed on the legal matters. The Administration is continuing efforts to get the support of the automakers, and has also met with UAW.

Apart from the in initial cost increase to the consumer, the efficiency will pay for itself over approximately 3 years, and eventually save up to $7,000 over the lifetime of the car.

The proposal is already receiving support from many sides, including Environmentalists, whom are pushing for even tighter regulations, and former Republican EPA administrators have brought this up as well.

Among those seemingly against the proposal are Detroit’s big three, as previously mentioned, Toyota Motor Corp, and eight more automakers, have all expressed concerns about the strong potential of excessive job loss. Advertisements protesting the epa standards.

Many lawmakers were under the impression that the proposal would be lower than the mentioned 56.2-mpg requirement, and that it was only in the meetings that they learned of any difference.

U.S. automakers are still expected to respond within the upcoming weeks. It is likely they will ask for time extensions, and flexible numbers and standards. Part of the proposal is that that a regulatory review be conducted around the mid-point of the agreement to maintain the attainability of the goal.

What is on the table now sounds more like a starting point than actual figures. I would guess that there is still much room to bend on the 56.2 mpg requirement. Readers, what side of this debate are you on? Are you willing to pay slightly higher premiums for a return over time? Do you think the time frame and mileage requirements are fair to the automotive industry?

- By: Alexandra Koken

Source: Detroit News

Raising the fuel-economy standards is a big debate between the Obama administration, environmentalists and automakers. A recent study by the nonprofit Center for Automotive Research found that increasing the federal fuel economy standards to as high as 56 mpg in the 2025 model year would yield fuel savings to consumers that more than offset an increase in vehicle prices.

The study also found that by lifting the corporate average fuel economy to 62 mpg would result in price increase that exceed fuel savings over a five-year period. the study provides room for compromise on the Obama administration’s preliminary proposal to increase the CAFE to between 47 mpg and 62 mpg from 2017 to 2025 model years.

“Assuming consumers behave rationally, there is lots of opportunity for the Obama administration to achieve its fuel economy goals,” said Center president Jay Baron.

Current rules will require a 35.5 mpg CAFE by the 2016 model year.

- By: Omar Rana

Source: Automotive News

The report said that the IRS should have done more to verify who was actually making the claim for the qualified motor vehicle (QMV) deduction. The tax break, which ended on Dec. 31, 2009 was a part of the Obama administration’s economic stimulus package.

The inspector general said that taxpayers who claimed the deduction were not required to show independent proof that they bought a vehicle.

“While no amount of fraud is acceptable, more than 4.3 million taxpayers claimed more than $7.2 billion in qualified motor vehicle deductions and only a small percentage involved questionable claims,” the IRS said in a statement. “In instances where there are questionable deductions, the IRS will take steps to review the claims and conduct audits as warranted.”

The report said that the IRS failed to identify 4,257 people who made QMC claims – those people claimed more than $151.1 million in deductions.

- By: Omar Rana

Source: Reuters

Last week, President Obama paid a visit to the Jeep plant in Toledo to talk about the impact his administration had on keeping Chrysler thriving, and helping to improve the automotive industry. Part of the discussion also included the concerns around the job report released Friday.

The Jeep Wrangler also ended up a hot topic of conversation. The people who help build the vehicle take pride in the Wrangler’s tough reputation. So Chrysler plant workers took offence to an analogy the President made about the road to recovery being something a Wrangler would not even be able to navigate.

Obama, who has a solid reputation when it comes to speeches, still managed to amuse his audience, commenting “A Wrangler can go over anything, huh?”.

Hit the jump for the video of Obama speech at Toledo.

- By: Alexandra Koken

Source: USAToday

President Barack Obama’s Cadillac One, aka ‘The Beast,’ faced a couple of challenges during its trip to Europe. Not only did the vehicle get stuck coming out of the U.S. embassy in Dublin, London Mayor Boris Johnson has asked Obama to pay the congestion charge for his Cadillac.

Johnson told the Evening Standard newspaper that each car in the Obama’s motorcade will be billed $16. He said that he spoke to Obama about the U.S. embassy’s refusal to cash out $8.7 million in C-charge fines.

“Our roads were not closed during the President’s visit so his motorcade will pay,” Johnson said. “The Beast will pay the charge, I’m delighted to say. We didn’t charge the Pope when he was here because all the roads were closed, so the Popemobile was exempt. But this was different.”

The unpaid C-charge bill is from Obama’s visit during a state banquet at Buckingham Palace.

“We had a very friendly conversation. Suffice to say discussions will be ongoing, ” Johnson said.

- By: Omar Rana

Source: AFP