Cerberus fights Senate fuel economy proposal
Monkay
07-20-2007, 02:06 PM
Cerberus fights Senate fuel economy proposal(David Shepardson, Detroit News)
Chrysler's buyer wants to convince members of Congress to get behind less stringent standards.
WASHINGTON -- Chrysler's buyer-in-waiting, Cerberus Capital Management LP, has redoubled its lobbying effort in Washington as it seeks to quash a stringent Senate fuel economy proposal. Even before Cerberus officially owns Chrysler Group, the private equity firm has mounted an intensive effort to convince Congress, rally dealers and sway public opinion that some tough fuel economy proposals could have a devastating impact on Chrysler.
Cerberus officials have met with Chrysler executives to plot strategy, and the firm has blanketed Capitol Hill with lobbyists hoping to persuade Congress to support a less severe, alternative fuel economy bill. Top executive Stephen Feinberg has made two trips to Washington to meet with more than a dozen lawmakers.
Cerberus Chairman John Snow, a former Treasury Secretary, will address the National Press Club today to make the case that a softer fuel economy increase is more sensible. Cerberus, Detroit's three automakers and Toyota Motor Corp. have endorsed a proposal by Reps. Baron Hill and Lee Terry that would require the companies to increase fuel economy to at least 32 miles per gallon by 2022 for cars and trucks combined, including 35 mpg for cars.
The "Hill-Terry" bill is a softer increase than what the Senate approved in June. That bill would require automakers to increase fuel efficiency by 40 percent to 35 mpg for cars and trucks combined by 2020, while U.S. Rep. Ed Markey, chairman of the House global warming committee, has proposed requiring automakers to average 35 mpg by 2018.
It's not clear when the House will take up the issue. One complication: Several prominent Republicans, including the ranking member of the House Energy and Commerce Committee, Rep. Joe Barton, R-Texas, are expected to introduce a fuel economy proposal today that would require automakers to average 35 mpg for passenger cars and 27.5 mpg for light trucks by 2022.
Cerberus has retained Patton Boggs as its primary outside lobbying firm on fuel economy regulations, including former Transportation Secretary Rodney Slater.
Slater addressed a group of about 100 auto dealers from the Detroit Three and Toyota, who were on Capitol Hill Tuesday to meet with legislators. He noted that the Hill-Terry bill "gives us a positive alternative to be in favor of." As a result, about 45 members of the House have signed on.
"We want to be on offense," Slater said.
"Unlike some private equity that find, strip and flip, (Cerberus) is a company committed to patient investment. This is a company committed to finding, fixing and holding," Slater said. "They believe the best days of the auto industry are ahead of us."
On July 3, Slater also became the chairman of Driving America's Future, a group largely funded by General Motors Corp. Its purpose is to generate grass-roots support for softer fuel rules using tools such as a Web site. At least five separate Patton Boggs lobbyists have been working on the fuel economy issue for Cerberus. Early last year, Cerberus hired Billy Cooper, a Denver-based partner at Patton Boggs as a full-time managing director at Cerberus. Cooper is a close adviser to Feinberg, officials say, and he remains a partner at Patton.
Patton's top two lobbyists, Thomas Boggs Jr. and former U.S. Sen. John Breaux, are working for Cerberus, accompanying Feinberg to meetings. Another Patton lobbyist, Robert Horn, a former head of government affairs for Detroit Edison, has been working to convince Michigan members of Congress to endorse the Hill-Terry bill. Kathleen Ireland, also a Patton lobbyist and a former congressional aide, is also working on the issue.
Feinberg met with Michigan Sens. Debbie Stabenow and Carl Levin on June 6 and then accompanied Stabenow to the Senate chamber, where he met with a half-dozen or so senators, including several of the auto industry's leading critics, to explain how devastating the Senate bill would be.
While higher fuel economy standards would be a burden for all automakers, they would be especially challenging for Chrysler because 70 percent of the automaker's sales are SUVs, pickups and minivans.
Fuel rule fears halt Chrysler Imperial(Josee Valcourt, Detroit News)
Carmakers rethink lineups as mileage debate heats up
The Chrysler Group has scrapped plans to build the Imperial, a big luxury car based on the Chrysler 300C, citing concerns about fuel economy in a market shifting away from gas guzzlers.
Chrysler officials said pending legislation in Washington that would dramatically increase Corporate Average Fuel Economy standards influenced the decision.
"It was based on our largest sedan and yet it was going to be considerably larger and considerably heavier," said Chrysler spokesman Dave Elshoff. "Based on the current economic climate and based on stricter fuel efficiency regulations, we couldn't justify building a car like that."
Chrysler isn't alone in rethinking its product plans because of fuel concerns. Amid the battle in Congress over CAFE, consumer tastes are changing as gas prices soar and concerns mount about global warming.
Domestic and foreign automakers are heavily investing in gasoline-electric hybrids, hydrogen fuel cells and other alternative powertrains. They're adding fuel-saving technologies such as cylinder deactivation, which shuts down engine cylinders when less power is needed. And they're ramping up development of more fuel-efficient models such as small cars and crossovers.
Chrysler's decision to kill the Imperial comes as legislation is moving through Congress that calls for raising CAFE standards 40 percent to 35 miles per gallon for cars and trucks combined by 2020. The Senate has already approved the measure and the fuel debate is heating up in the House.
Detroit automakers have said the Senate measure would cost them $85 billion. That makes it one of the "contributing factors for us not being able to build the business case" for the Imperial, Elshoff said.
Unveiled as a concept at Detroit's 2006 auto show, the Imperial was to be a V-8-powered luxury model positioned above the 300C in Chrysler's lineup. It was set to go into production in 2009, in Brampton, Ontario, near Toronto.
Elshoff said Chrysler will look at other opportunities for the plant. Canadian Auto Workers President Buzz Hargrove said he was told right-hand drive and diesel versions of the 300C would be made in Brampton.
The rear-wheel drive Imperial drew mixed reviews and its demise also suggests that Chrysler is taking a hard look at its product plan as its sale to equity firm Cerberus Capital Management LP is finalized by DaimlerChrysler AG.
Rear-wheel drive models are also under review at General Motors Corp., which has tabled development of future models but still plans to bring the Chevrolet Camaro and Pontiac G8 to market.
"Until we understand the full impact of the future CAFE regulations, whatever it might be, certain programs such as next-generation rear-wheel drive vehicles that are in the plan are in sort of a hold status," said GM spokesman Chris Preuss. "The programs aren't canceled. There's certainly work being done, but there's still looming questions about whether or not those vehicles would comply in a much more onerous CAFE environment."
Spokeswoman Sara Tatchio said Ford Motor Co. is improving fuel efficiency in response to consumer demands.
"We have plans to significantly improve fuel economy over time for our individual vehicles," Tatchio said. "That's existed in our strategic thinking for some time."
Paul Lacy, an auto analyst with consultant Global Insight Inc., said there is no single best answer for improving fuel efficiency. Automakers will need to combine a variety of strategies.
"One of them will be new powertrain technologies like hybrids," Lacy said. "Diesel will pick up market share, and they'll need to produce smaller, lighter vehicles."
But according to a recent report, Detroit automakers aren't producing gas-sipping vehicles fast enough.
While the average price of a gallon of gas rose from $1.12 in 1998 to $2.72 in 2007, the number of vehicles that get at least 30 mpg fell from 61 to 46, and the number that get less than 30 mpg rose from 745 to 1,083, according to the study, released Tuesday by the Consumer Federation of America.
Additionally, 73 percent of 1,000 consumers surveyed this month for the federation said U.S. automakers would sell more vehicles if they made more fuel-efficient models.
Maybe a inline 4 "HEMI"?:rolleyes::2cents:
Chrysler's buyer wants to convince members of Congress to get behind less stringent standards.
WASHINGTON -- Chrysler's buyer-in-waiting, Cerberus Capital Management LP, has redoubled its lobbying effort in Washington as it seeks to quash a stringent Senate fuel economy proposal. Even before Cerberus officially owns Chrysler Group, the private equity firm has mounted an intensive effort to convince Congress, rally dealers and sway public opinion that some tough fuel economy proposals could have a devastating impact on Chrysler.
Cerberus officials have met with Chrysler executives to plot strategy, and the firm has blanketed Capitol Hill with lobbyists hoping to persuade Congress to support a less severe, alternative fuel economy bill. Top executive Stephen Feinberg has made two trips to Washington to meet with more than a dozen lawmakers.
Cerberus Chairman John Snow, a former Treasury Secretary, will address the National Press Club today to make the case that a softer fuel economy increase is more sensible. Cerberus, Detroit's three automakers and Toyota Motor Corp. have endorsed a proposal by Reps. Baron Hill and Lee Terry that would require the companies to increase fuel economy to at least 32 miles per gallon by 2022 for cars and trucks combined, including 35 mpg for cars.
The "Hill-Terry" bill is a softer increase than what the Senate approved in June. That bill would require automakers to increase fuel efficiency by 40 percent to 35 mpg for cars and trucks combined by 2020, while U.S. Rep. Ed Markey, chairman of the House global warming committee, has proposed requiring automakers to average 35 mpg by 2018.
It's not clear when the House will take up the issue. One complication: Several prominent Republicans, including the ranking member of the House Energy and Commerce Committee, Rep. Joe Barton, R-Texas, are expected to introduce a fuel economy proposal today that would require automakers to average 35 mpg for passenger cars and 27.5 mpg for light trucks by 2022.
Cerberus has retained Patton Boggs as its primary outside lobbying firm on fuel economy regulations, including former Transportation Secretary Rodney Slater.
Slater addressed a group of about 100 auto dealers from the Detroit Three and Toyota, who were on Capitol Hill Tuesday to meet with legislators. He noted that the Hill-Terry bill "gives us a positive alternative to be in favor of." As a result, about 45 members of the House have signed on.
"We want to be on offense," Slater said.
"Unlike some private equity that find, strip and flip, (Cerberus) is a company committed to patient investment. This is a company committed to finding, fixing and holding," Slater said. "They believe the best days of the auto industry are ahead of us."
On July 3, Slater also became the chairman of Driving America's Future, a group largely funded by General Motors Corp. Its purpose is to generate grass-roots support for softer fuel rules using tools such as a Web site. At least five separate Patton Boggs lobbyists have been working on the fuel economy issue for Cerberus. Early last year, Cerberus hired Billy Cooper, a Denver-based partner at Patton Boggs as a full-time managing director at Cerberus. Cooper is a close adviser to Feinberg, officials say, and he remains a partner at Patton.
Patton's top two lobbyists, Thomas Boggs Jr. and former U.S. Sen. John Breaux, are working for Cerberus, accompanying Feinberg to meetings. Another Patton lobbyist, Robert Horn, a former head of government affairs for Detroit Edison, has been working to convince Michigan members of Congress to endorse the Hill-Terry bill. Kathleen Ireland, also a Patton lobbyist and a former congressional aide, is also working on the issue.
Feinberg met with Michigan Sens. Debbie Stabenow and Carl Levin on June 6 and then accompanied Stabenow to the Senate chamber, where he met with a half-dozen or so senators, including several of the auto industry's leading critics, to explain how devastating the Senate bill would be.
While higher fuel economy standards would be a burden for all automakers, they would be especially challenging for Chrysler because 70 percent of the automaker's sales are SUVs, pickups and minivans.
Fuel rule fears halt Chrysler Imperial(Josee Valcourt, Detroit News)
Carmakers rethink lineups as mileage debate heats up
The Chrysler Group has scrapped plans to build the Imperial, a big luxury car based on the Chrysler 300C, citing concerns about fuel economy in a market shifting away from gas guzzlers.
Chrysler officials said pending legislation in Washington that would dramatically increase Corporate Average Fuel Economy standards influenced the decision.
"It was based on our largest sedan and yet it was going to be considerably larger and considerably heavier," said Chrysler spokesman Dave Elshoff. "Based on the current economic climate and based on stricter fuel efficiency regulations, we couldn't justify building a car like that."
Chrysler isn't alone in rethinking its product plans because of fuel concerns. Amid the battle in Congress over CAFE, consumer tastes are changing as gas prices soar and concerns mount about global warming.
Domestic and foreign automakers are heavily investing in gasoline-electric hybrids, hydrogen fuel cells and other alternative powertrains. They're adding fuel-saving technologies such as cylinder deactivation, which shuts down engine cylinders when less power is needed. And they're ramping up development of more fuel-efficient models such as small cars and crossovers.
Chrysler's decision to kill the Imperial comes as legislation is moving through Congress that calls for raising CAFE standards 40 percent to 35 miles per gallon for cars and trucks combined by 2020. The Senate has already approved the measure and the fuel debate is heating up in the House.
Detroit automakers have said the Senate measure would cost them $85 billion. That makes it one of the "contributing factors for us not being able to build the business case" for the Imperial, Elshoff said.
Unveiled as a concept at Detroit's 2006 auto show, the Imperial was to be a V-8-powered luxury model positioned above the 300C in Chrysler's lineup. It was set to go into production in 2009, in Brampton, Ontario, near Toronto.
Elshoff said Chrysler will look at other opportunities for the plant. Canadian Auto Workers President Buzz Hargrove said he was told right-hand drive and diesel versions of the 300C would be made in Brampton.
The rear-wheel drive Imperial drew mixed reviews and its demise also suggests that Chrysler is taking a hard look at its product plan as its sale to equity firm Cerberus Capital Management LP is finalized by DaimlerChrysler AG.
Rear-wheel drive models are also under review at General Motors Corp., which has tabled development of future models but still plans to bring the Chevrolet Camaro and Pontiac G8 to market.
"Until we understand the full impact of the future CAFE regulations, whatever it might be, certain programs such as next-generation rear-wheel drive vehicles that are in the plan are in sort of a hold status," said GM spokesman Chris Preuss. "The programs aren't canceled. There's certainly work being done, but there's still looming questions about whether or not those vehicles would comply in a much more onerous CAFE environment."
Spokeswoman Sara Tatchio said Ford Motor Co. is improving fuel efficiency in response to consumer demands.
"We have plans to significantly improve fuel economy over time for our individual vehicles," Tatchio said. "That's existed in our strategic thinking for some time."
Paul Lacy, an auto analyst with consultant Global Insight Inc., said there is no single best answer for improving fuel efficiency. Automakers will need to combine a variety of strategies.
"One of them will be new powertrain technologies like hybrids," Lacy said. "Diesel will pick up market share, and they'll need to produce smaller, lighter vehicles."
But according to a recent report, Detroit automakers aren't producing gas-sipping vehicles fast enough.
While the average price of a gallon of gas rose from $1.12 in 1998 to $2.72 in 2007, the number of vehicles that get at least 30 mpg fell from 61 to 46, and the number that get less than 30 mpg rose from 745 to 1,083, according to the study, released Tuesday by the Consumer Federation of America.
Additionally, 73 percent of 1,000 consumers surveyed this month for the federation said U.S. automakers would sell more vehicles if they made more fuel-efficient models.
Maybe a inline 4 "HEMI"?:rolleyes::2cents:
KManiac
07-20-2007, 05:42 PM
My 1980 Dodge D-50 Sport (Mitsubishi) Pick Up has a 2.6L, inline 4-cylinder engine with a "Hemi" head design. So the idea of an inline 4 Hemi has been done in the past.
Monkay
07-20-2007, 06:05 PM
i can imagine it has... i'm just saying maybe they should relax on the gas guzlers for a wile, since I4 can get similar performance. there srt4 engines wern't bad, why can't they put that in a minivan? :grinyes:
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