US Auto Industry Still a Powerhouse

The recent recession brought the failures of the auto industry to the forefront.  The government was forced to bailout major automakers to stave off the collapse of a significant contributor to the overall economy.  Since its heyday in the mid-twentieth century, the auto industry has been a key employer, a major factor in the GNP and an indicator of the overall US economic health.

It’s good to know, then, that 2012 was the best in five years for the US auto industry and that 2013 looks to be even better.  With vehicle sales accounting for 30% of the country’s domestic economic growth, a good year for auto makers is a good year for the United States.

Vehicle Sales

Over 14 million cars, trucks and other vehicles were sold in the US in 2012. Part of the reason for the increase in sales is the recent financial crisis.  Families couldn’t afford to buy a new vehicle in the past five years resulting in the average age of cars on US road rising to 11 years or older.  Those older cars are now beginning to be replaced, with some experts predicting that 2013 and beyond will see even larger increases in car purchases

The leading seller in 2012 was General Motors who sold almost 2.6 million vehicles.  Other domestic manufacturers did well with Ford selling 2.17 million and Chrysler 1.65 million and Toyota sales also topped 2 million. While middle-class brands like Dodge selling 524,000 vehicles, luxury brands like Lincoln actually slipped.

Other Indicators

Investors are seeing growth in the auto industry.  Stock prices for GM and Ford both rose in 2012. GM saw a gain of 42% compared to 2011 while Ford shares finished the year more than 20% higher than 2011.

Much of that stock investment is a reflection of predictions from industry experts at Polk automotive information and marketing solutions.  They expect vehicle registrations to climb another 6.6% in 2013. Registrations of new vehicles should rise to 15.8 million in 2014 and in 2015 reach 16.2 million. This will approach the 17 million mark from pre-recession years.

A major contributor to this resurgence is the automakers themselves.  In the coming year they are expected to introduce 43 new vehicles to the market as well as redesigning 60 of existing models. So much novelty should draw car lovers to the showroom which will translate to increased sales.

Other factors that could positively influence auto sales include lower interest rates, improved vehicle quality, and a weak-but-stable value for the US dollar.

May 22, 2013Permalink Leave a comment

The Rules of the Track

It may not seem like it, but there are actually a ton of different rules and regulations out there.  Whether you’re building a house, walking across the street, or addressing an envelope, there are certain laws and regulations that you have to follow if you want to make sure that your house stands up during an earthquake or your letter arrives where you want it to.  Well, auto racing is no different.  Not only are there regulations from racing bodies and individual tracks, but there are regs from the government as well.

NASCAR is one of the most rule-laden organizations out there.  Nearly everything about the cars is regulated, down to the length of the fuel lines and the type of carburetors.  Thanks to Smokey Yunick and others, who grew their careers around finding loopholes in the rules for a competitive advantage, NASCAR has had to essentially design the cars for their teams.

Iowa race trackOne set of rules that all racing bodies adhere to are track rules.  There is a certain etiquette that drivers use while racing to make sure that everything is fair and reasonably safe.  For example, not driving over a certain speed in the pits ensures the safety of the crews.  Meanwhile, intentionally wrecking another car is frowned upon.

Individual tracks a lot of the time have their own rules, usually to comply with their insurance policies and to keep the hooligan behavior to a minimum.  One such rule is in effect at many drag strips.  If a car runs faster than 11 seconds in a quarter mile the driver must wear a helmet, and if the car breaks 10 they must have a roll cage.  These individual tracks also have their own etiquette, like appropriate passing areas, crash protocol, and unique messages for flags.

While governments rarely interfere with motorsports, they do have some rules about them.  Luckily, the EPA hasn’t bothered NASCAR, F1, or any other series about emissions, but many local communities have piped up about noise.  In recent years many race tracks have been closed because of constant noise complaints from neighbors.  One of such is Fontana Speedway in California, which has been switching between open and shut down for some years.  One thing the government doesn’t appreciate is racing cars on the street.  Street racing, or driving cars that aren’t street-legal on public roads is a recipe for a crushed car and some hefty fines, so if you have to satisfy your need for speed, do it on a track.

Yes, rules are everywhere and motorsport is no exception.  But the rules that are in place help keep the sport safer and as thrilling as ever.

Glenn Sheldon is an avid race fan as well as a former government lawyer. He’s now enjoying a second career as a sports journalist, writing about NASCAR, Scott Tucker, American Le Mans, and other racing topics for blogs and news sites all over the web.

May 19, 2013Permalink 7 Comments

A Letter to Congress…and some sound advice

Dear United States Congress,

I have watched with interest and now shock the attempts to negotiate the debt ceiling and the current debt crisis.  I would like to offer some advice on how the small business of America and the single highest source of new jobs in the country has been dealing with the impact of this economy and their own debt crisis caused by the reckless gamblers on Wall Street and their unregulated rampage which destroyed the world’s economy.

The recession caused by greed and recklessness, much of that recklessness authorized by you such as two wars we could not afford has caused the US small business and hardworking US citizens in general extreme hardship. I keep thinking but they must know this…now I am not so sure.   However,  we have worked out how to deal with it.  When faced with a reduction of 60% in our revenues we started with major cutbacks.  You see Congress we do not have the option to increase out debt ceiling as the banks the ones we bailed out with your bill which you passed really quickly destroyed our credit.  When they got back on their feet they were quick to identify the US small business as “toxic assets” and closed down  our working capital credit lines.  Faced with the possibility of default with the hardship their clients were experiencing they closed those lines and promptly reported the debt to the credit  bureaus, in some cases such as Bank of America selling the debts to ruthless speculators.  This ensured that under no circumstances could we get any more credit for anything.  But we carried on and we made more cuts, downsized and found new and creative ways to keep going and feed our families because you see in a small business the only income we have is the revenue from our business.  We worked 24/7 to fill in for the staff we had to let go and we focused heavily on increasing our revenue, offering new services, cutting our fees and working closely with clients affected by the recession.  We continued to build trust despite the fact that the banks had decided that we were losers.  We found new and creative ways to cook ramen noodles and explain to our children why we no longer took vacations and why they could no longer have a MacDonald’s as a special treat.  When the State of Arizona decided that all our contract workers including out of state service providers and student interns were subject to Arizona Unemployment tax we were faced with the additional burden of proving they were wrong and the high legal fees associated with that.  When our health insurance was at risk because of our drop in staffing numbers we found new and creative ways to stay in our health insurance plan.  Not a good situation to be in with two children who suffer from chronic illnesses.  When my hair fell out due to the stress I was under I bought a wig and put on a brave face and carried on because that is what we do.

So we survived in spite of what congress did not because of it.  We have received no help no support and the SBA has been rendered redundant since all SBA funding goes through banks who now consider the US small business too toxic to touch.   The US small business is out there surviving with grace, dignity, ingenuity, creativity and sheer hard work.  I will never vote in a congressional election again.  I refuse to support a process that has no common sense and will not look to the people that they pretend to represent for answers.   Might I remind in case it is necessary that these are the very people who voted for you whom you now have abandoned.

To summarize the small businesses of America are surviving because they have to and because they did two things.

1) They cut their costs sometimes having to make painful decisions.

2) They increased their revenue.

This principal is not just being applied in the US small business but in homes across the country every day.  Families are increasing the revenues working two three and sometimes 4 jobs just to survive.   While families struggle through this and and give up their dream of sending their their kids to college you sit in Washington wasting their precious tax dollars, playing more games with their lives.

All you have to do is cut costs drastically, and increase revenue and since the only revenue the government has access to is taxes, you must increase taxes.  If we have to cut medicare so be it the painful decisions have to be made.  DO YOUR JOBS.   Sounds simple right! Yes it is that simple.  I assure you if you do not start listening you will lose your seats because there is no common sense.  We do not make this stuff up we live it.  You can continue to ignore us and continue with what seems to be an assumption that we are too stupid to notice your hidden agendas and support of nonsense like the Norquist pledge.    People like us do what we do because we care, because we love our families and our way of live.  You are missing that passion and you do not care.  We are intelligent people and in 2012 we will show just how intelligent we are with our vote of no confidence in the US Congressional system.

 

May 15, 2013Permalink 4 Comments

The 2012 Presidential Campaign

The Democratic Party has been put to the test, and while the mudslinging has been particularly rampant this year, it is not unlike all presidential campaigns throughout history. Last April Barrack Obama officially announced his plans to run for re-election. He has kept his headquarters in Chicago, Illinois and has members from his previous campaign, such as David Axelrod and Jim Messina, back on staff for this second run for the President of the United States.

This choice to base his campaign back in Chicago stands testament to the grassroots organization Obama has been known for generating. No other president in office, has based their headquarters outside of Washington DC. Obama’s supporters have found alternative ways for fundraising and money financing, again breaking history by raising a substantial amount of funding through the use of social networking sites such as MySpace, Facebook,
money mutual and Twitter accounts. Some of the donations were just a dollar…one dollar by one dollar, he raised the money to run and win the Presidential election

Throughout his first term, Obama has succeeded in signing many pieces of legislation including stimulus packages for economic relief, tax breaks, the Job Creation Act, and the Patient Protection and Affordable Care Act just to name a few. In the last twelve months, new jobs in the private sector have been consistently on the rise. This is evidence that as the President has worked for those, who worked for him. Providing people with the means to make it through this recession with as much care and comfort as is possible. Visit Daily Motion for more information.

And the people of his country are paying him back once again. The telephone lines opened for calls for donations. Online donations were coming in the day he announced his run for Presidency last April. Within 24 hours more than twenty thousand individual donations were accepted, each of those totaling under two hundred dollars a piece. This is once again a grass roots money financing campaign. Regular, hardworking people feel the need to give anything they can to Obama’s re-election campaign. Those in the financial sector believe that this may be the first campaign in American history that will raise over one billion dollars. While the list for corporate contributions is long, the main bulk of the funding for Obama’s 2012 Presidential campaign is coming in the form of smaller donations from regular citizens. As stated before, one dollar by one dollar. It’s the belief in this 44th President of the United States, that has US citizens participating in one of the most impressive fundraising acts in history.

April 30, 2013Permalink 6 Comments

How Much Did the Inauguration Cost?

Millions of people around the world tuned in to watch President Barack Obama’s 2013 inauguration. People watched in amazement at the star-studded production which included superstars such as Beyoncé Knowles and Alicia Keys. Crowds cheered as the President and First Lady got out of the Presidential Limo and strolled down the street waving to admiring fans. Lavish balls were thrown in celebration.

All this pageantry came with a big price tag. There were logistical costs, costs of security, production costs, and other hidden costs such as implications to businesses that had to shut down to accommodate the inauguration.

The Price Tag of the 2013 Inauguration

The price tag is estimated to be about $180 million. Though it will be months before the exact price can be tallied up, this is a fair estimate. It is about $10 million more than was spent on the 2009 inauguration and consistent with inflation.

Inauguration 2013Where Did the Money Come From?

Some of the funds were raised by donors. Eva Longoria, known best for her role on the television series Desperate Housewives, chaired the Presidential Inaugural Committee (PIC) that raised a chunk of the money required to fund the inauguration. Though the amount of each donation has not been fully disclosed, the list of donors has. On the list are interesting donors such as AT&T and the Coca-Cola Company.

What was different about this year’s was how the funds were raised. In 2009, donations were limited to $50,000. In 2013 there was no limit to donations. Interestingly, there were fewer large donations from celebrities and more donations from corporations in 2013 vs 2009.

The People’s Price Tag

The committee’s goal was to raise $50 million. It came close. Coming in at $45 million, which left an approximate balance of $135 million. The remaining costs were paid for by the federal government and the District of Columbia. The combined governments paid for the security, crowd control, the ceremony, transportation, cleanup, and wages for the federal holiday.

All in all, the American people were treated to a spectacular delight that included A-list celebrity guests, a large parade, and reason to celebrate the successful and peaceful election of another president. The funds raised by the PIC went largely to cover the costs of putting on the inaugural balls and related celebrations

Chad Marcum is a political and financial journalist.  His work has appeared on sites like getmoneymutual.com, popular news sites, and the top political blogs.

February 19, 2013Permalink 3 Comments

Fiscal Cliff Fallout

With the future of the United States’ economy – and the rest of the world – left to the whims of an ineffective Congress, business owners and investors around the world were on edge as 2012 came to a close. Everybody watched with appropriate amounts of angst and nail biting as President Obama and the Tea-Party influenced leaders in congress bantered back and forth over the fabricated crisis driven by expiring tax cuts for the wealthy and mandatory spending cuts across the board.

With no action, falling over the Fiscal Cliff likely would have reversed the painfully slow growth the US economy experience over the last few years. The US would have almost certainly spun back into a recession, dragging the rest of the world with it.

Uncertain Outlook

The most frustrating part for the citizens of the US did not know what 2013 would bring. With the lackadaisical do-nothing attitude in Congress, it looked like 2013 would be a rocky year. Businesses held off on investing in equipment and staff, people saved rather than spent, and banks hesitated to loan money. The mentality was to save to survive the coming crisis.

The debate turned into a ridiculous stand-off with John Boehner doubling down on his unpopular stances. He was in a horrible position, and rather than work with the President, the Democrats, and a large portion of his own Republican Party, he extended the misery.

Instead of calling for a vote on the much anticipated compromise bill Dec 31, 2012, he ended the session abruptly, then delayed action for nearly two more days. It was not until the 2nd of January that the compromise was passed with overwhelming support.

tax formWhat Are the Results of the Fiscal Cliff Compromise?

While there is still a whopping debate on spending limits and consequently austerity measures due in the spring, the compromise settled some outstanding tax issues and froze spending cuts to the Pentagon. Beyond that, the following changes were made:

  • Bush Tax Cuts permanently extended for those earnings less than $400K/450K for couples. Taxes above those levels increased to a maximum of 39.6%
  • Estate taxes increased from 35-40% for estates over 5.12 million
  • Bonus Depreciation was extended to include investments on equipment put into place before 2013. (Too bad this was not decided sooner)
  • Social Security payroll withholdings returned the to normal rate of 6.2%, effectively reducing all employees take-home pay
  • Capital gains and dividend taxes jumped 5% to 20% for people earning over $400K/$450K for couples.
  • AMT is now tied into the inflation index and exemptions were increased to $50,600 individuals and $78, 450 for couples.
  • Unemployment Extensions were funded for millions of long-term unemployed. This was one of the most significant actions because it prevented millions from becoming poverty stricken and possibly homeless.

While the debates over the financial state of the nation will continue, and leadership in the US House will no-doubt continue its mission to hold the economy hostage, at least business owners and individuals can now plan ahead with clarity.

Marcus Hill is an Arizona lawyer and guest blogger with a background in government, politics, and the law. His writings appear on news blogs as well as legal sites and magazines.

January 23, 2013Permalink 4 Comments

Laws Banning Texting & Driving

From cell phones to smart phones, technology has become both a great help as well as a hindrance. Studies have begun to flood in about the distractions that drivers face if they decide not to ignore their texts. For instance, some studies have shown that texting is actually more dangerous than drunk driving because the drunk driver is impaired but not distracted. This has led several states to ban texting while driving and create penalties for people who disobey.

driver textingWhich States Have Anti-Texting Laws

Because of the number of accidents caused by texting while driving texting has been banned in all but seven states. These states, Arizona, Idaho, Montana, Ohio, South Dakota, South Carolina and Florida do not have anti-texting laws on the books, but it’s likely that they will at some point in the future. A handful of states, Indiana, Kansas, Mississippi, Missouri, Nebraska, Texas and West Virginia, simply ban new drivers from texting because the majority of accidents that occur are while younger drivers are texting.

How Can a Police Officer Prove I Was Texting

Much like talking on a cell phone while driving, texting while driving is an offense that relies on a police officer’s observation. If there is no police officer around, then you will not be caught. However, you are taking a risk much as with speeding and because some of the penalties are relatively high, it’s not advisable to take the risk.

If you happen to have an accident while texting, then it might get filed in the police report. This means that you will be saddled with both a fine and higher insurance premiums for your car insurance. Not only that, but because texting significantly delays your reaction time it you are at a greater risk for injuring yourself and your passengers.

What Penalties Are There

Most states have instituted fines similar to not wearing a seatbelt. The fines for texting range from $20 to hundreds of dollars for a first offense. These fines increase for repeat offenders and are intended to be prohibitively expense so that the action is discouraged. Because there is no federal law against texting while driving, everything is decided by the state. This makes it important to check with your state’s laws to find out just how steep the fines are. In Alaska texting while driving is actually considered a misdemeanor and can get you in much more trouble,

Gordon Bailey is a reporter and blogger who covers subjects as varied as politics, law, cars, and auto repair. He has even written reviews on cars, rims link Wheel Works, and car accessories from audio systems to hands free wireless.

 

January 1, 2013Permalink 5 Comments

First Step Fails for Genetically Modified Food Labeling Requirements

Efforts to require labeling on genetically modified foods failed in California this year. Proposition 37, a California ballot initiative, was defeated in the November 6, 2012 general election. The final vote tally was 53 percent opposed to 47 percent in favor. Called “Right to Know,” the initiative garnered much attention in the media and general population.  If it had been successful, California would have been the leader in such labeling requirements for foods sold in that state. It also would have prohibited labeling or marketing products as “natural” if they contain genetically modified ingredients.

Genetically modified soybeans, corn, or other crops are used in most processed foods sold in the USA. The DNA of these crops has been spliced with other species’ genetic material. Such methods have been used for 16 years. These modified crops are able to survive despite applications of weed killer. They are even toxic to the bugs and insects which eat them.

Genetically modified foods are already required to be labeled in 50 countries, including:

  • Australia
  • Europe
  • Japan
  • China
  • Russia.

Supporters of the California initiative believe that citizens have the right to know whether their food has been genetically modified. The issue has forced attention on the value of sustainable farming and humane treatment of animals. Consumer groups instigated grassroots activities, and were joined by the organic industry.

Opponents cited increased food costs to consumers. They called labeling “deceptive” because they say science has not shown modified foods to be harmful, according to major medical groups. Those opposing the measure included well-funded agricultural and industrial interests.

Next steps are already being planned.

  • Similar petitions are planned next for California’s neighbors to the north: Washington State and Oregon.
  • Supporters will also attempt to force change at the federal level in Washington, D.C. The primary agency for food and food additives regulatory oversight is the U.S. Food and Drug Administration (FDA).

Strategists had hoped that a victory in California would ease the uphill climb in D.C., but it was not to be. However, state passage is not absolutely necessary for legal strategies concerning the FDA.

A citizen’s petition with over one million signatures is pending with the agency.It demands that the FDA re-examine its policy that foods containing genetically modified ingredients do not have to be labeled.The petition points to FDA’s failure to mandate pre-market safety testing and its permissive labeling policy. Supporters suggest that this effort could bring about a federal lawsuit naming the FDA.

reported by Irene Vashdi, a freelance journalist and natural health advocate. Ms. Vashdi’s work has appeared in newsmagazines, blogs, and sites like this.

November 14, 2012Permalink 7 Comments

Don Bivens a breath of fresh air to Arizona politics

Dons Bivens the long term chair of the Arizona democratic party has announced his run for the Arizona senate seat to be vacated by John Kyl.  I have known Don professionally and he is a great attorney and a great person.  He has come into the race talking about standing up for the middle class in Arizona.  Arizona is treated a a joke around the country and is seen as a hotbed for extremists and racists.  This is not true it is just that the extremists and racists have the loudest voice. Don will hopefully bring that breath of fresh air to the Arizona politics and as long as he stays away from the exteme bi-partisanship we have seen in the past few years he has my vote.
See Don’s announcement to run here.



September 30, 2011Permalink 4 Comments

How to get the best gas mileage out of your truck

As a truck driver you must always be thinking about how to reduce your fuel costs as prices continue to rise each day.

However, just switching to another alternative is not enough if you are not aware of how to get the maximum mileage out of your truck. A few simple pointers in your mind can help you save more than you could have imagined.

Good maintenance: Like all other machines or devices, automobiles also need proper maintenance; this will ensure that your truck gives you the maximum mileage possible. Check the alignment of the wheels on your truck.  If they are not aligned properly, you will get less than ideal gas mileage. Also be careful about choosing tires; more friction generally leads to less mileage.

Aerodynamics: Try employing aerodynamics best practices to enjoy maximum mileage out of your truck. Install a bed sheet in such a way that your truck has less friction with the air it is cutting through.

Do not over burden your vehicle: Always be careful not to overload your truck. Get anything that’s not absolutely critical off your truck and you’ll observe a significant difference.

Plan your route and time intelligently: If you do not have to reach your destination at a particular time of the day, opt for a time when traffic is less. In the event you have to be there at a certain time, pick off peak hours, and try to think of the alternate routes that could let you avoid the traffic, while saving fuel in the process.

Speeding up and Braking: Frequent acceleration and braking puts a lot of pressure on the engine and burns gas so it helps to maintain a consistent speed. Even when you get the road clear, do not accelerate like a jack-rabbit! Gain speed slowly and steadily. Keep an eye as to where must you slow down, and do it gradually.

Mark is an automotive enthusiast and also a writer for TruckertoTrucker.com, a site dedicated to helping owners sell trucks and to discuss the joys of trucking from being an owner operating to the steps it takes to become financially comfortable in the trucking industry.

March 17, 2011Permalink 5 Comments