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Green Is the Color of Money

Green MoneyFinally, Ford gets rewarded for staying out of bankruptcy. Today it got a $5.9 billion loan from the Department of Energy to develop more fuel-efficient cars. Nissan got $1.6 billion, and Tesla (yes, Tesla) got $465 million—all coming out of a $25 billion pot to help car companies retool and get green.

GM and Chrysler got nothing, as they were not “financially viable,” per the terms of the loans.

Reportedly, Ford will use its money to “upgrade factories in five Midwest states to produce 13 fuel-efficient vehicles.” Nissan will build a new battery facility and advanced vehicles in Smyrna, Tennessee. Tesla will build electric vehicles (presumably the new Model S, below) and powertrains in Silicon Valley.

2010 Tesla Model SInteresting coincidence: $5.9 billion is the same amount Ford reported losing in its fourth-quarter 2008 report. GM lost that amount in its first quarter of this year. This activity is what the media calls “burning through cash,” and you’ll note that nobody rounds up to $6 billion.

Did these firms deserve it? Should other, smaller firms have gotten a piece of the pie? Give us your opinion, please.

—jgoods





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The American (sort of) car company you’ve never heard of

eco-emc3Which car would you rather buy:

  1. A $27,000 made-in-America commuter that gets 60 miles per gallon, or
  2. A $14,000 car that’s identical, but made in China

That’s a question the founders of ECO Motor Company had to address as they discussed bringing their three-wheeled commuter car to production.

ECO Motor Company began as a summer project between CEO David Joner and his son. Eventually design engineers from around the world were brought in and the innovative EMC3 Commuter was born.

Rated at 54 horsepower from its 1.0-liter, three-cylinder engine, the rag-top convertible is officially classified as a motorcycle. In truth, though, it’s a car and built to automobile safety standards that include front airbags, dynamic side impact beams, and reinforced A and B pillars. ECO Motor Company is having crash testing performed on the EMC3 by the same laboratory used by big automakers and the NHTSA.

A base price of $13,995 will get you a manual transmission, convertible top, power windows and locks, air-conditioning, an AM/FM/MP3 player, and those precious front airbags.

eco-emc3-interiorI believe the EMC3 represents the kind of innovative thinking required for the auto industry to succeed. It is very basic transportation with a smart design that uses a regular gas engine and should deliver phenomenal mileage numbers while not compromising safety.

Quality is a natural concern, though… as ECO Motor Company has elected to have their car built in China by Geely, China’s largest privately held automaker. Even so, I think they made the right choice, as the pricetag is affordable, and the warranty is the same as if the car had been built in America: a three-year/36,000-mile bumper-to-bumper warranty and a 100,000-mile powertrain warranty.

Production on the EMC3 has already started, with the first deliveries expected by May of this year.

So what do you think: Are you more apt to buy a $27,000 car made in America or an identical car made in China costing about half that?

-tgriffith



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The Grease Lady Comes Clean on Biodiesel

dscn19192No way would you call Sarah Miller a greaser. In her mid-thirties, she’s working on a Master’s in Sustainable Studies at Goddard College in Vermont. However, she does drive a greasecar, an oil-burner that sometimes smells like French Fries, and she is a good sport about it.

We got together to discuss what it means to own and operate one of these babies—and why it may make sense in this world of crazy gas prices and unsustainable habits.

Tell me what got you started on this path.

Well, it probably evolved naturally from my values about creating a sustainable way of living and my attachment to mobility and my car. I’m a car lover, but more than that a mobility lover. I do lots of commuting and trips to visit family.

My cousin Megan introduced me to the idea of alternative fuel. She started making her own biodiesel, which is either some kind of veggie-based oil or a blend of that and petroleum-based diesel. So I started searching for a diesel in 2005, and they were hard to find. I was ready to get on a plane and fly to the Midwest, the only place I was finding them online. But this one showed up in Rhode Island, so I trekked down there and bought it, a 2003 VW Golf.dscn19121

Nine months later I went to Western Massachusetts to greasecar.com and had my grease kit installed. What’s involved is a second fuel tank—in the trunk where the spare was—with a capacity of 12-13 gallons. You need separate fuel lines, and there’s a heat exchanger in the tank to heat the grease, especially in our climate. Everything else is the same except for a separate fuel pump.

The whole thing—to buy the kit and have it installed—was approximately $2000. You can save money by doing your own installation.

Did you find the performance any different? The power?

No different as far as miles per gallon, and sometimes it has run more smoothly on my grease setting than on my regular diesel setting. Power is the same. You can switch over whenever you want, but you always start up on regular diesel, then when you reach about 140 degrees, you can switch.

What about the fuel? Where do you get it? How do you process it?

dscn1925I get it from a local restaurant and bar called The Depot in Gardiner, and they have plenty of it. I approached Steve the owner and was very professional, had this little contract written out and everything, and he looked at me like . . . “I don’t need a contract, I’m happy to leave the oil out for you.” They have a Fry-O-Lator, and after a week they clean it out, and instead of paying a renderer, they leave it for me for free.

Every week I get about 10-15 gallons of used oil, which is ample. I’ve got a stockpile now and haven’t picked up any in probably two months. Stays warm in the cellar.

Storage Corner (batteries not included)

Storage Corner (batteries not included)

Filtration Corner (toilet not included)

Filtration Corner (toilet not included)

I have a 50-gal. plastic barrel, pour the grease into that, and let it settle (debris from the French Fries and other goodies). Then I siphon from that to a transfer container and go over to my Filtration Corner, a series of polyfiber gravity filters hanging over 5-gal. buckets. There are two steps: filter once at 5 microns and filter again to 1 micron. Then it’s ready to go to the car.

As to the time it all takes: that depends on the quality of your oil and the temperature and the kind of oil. I’ve been using soy oil which can be thicker than corn oil or canola.

What kind of mileage are you getting?

Just under 40 mpg for highway miles. I wanted to know how long I could make a tank of diesel last by supplementing with the veggie oil. I’ve gone 2000 miles without having to refill diesel. Biodiesel is a little scarce - a few stations sell it in Maine, usually just a B-20 or a B-5 blend, which means percentage of the bio component. Some people make their own. I recently found a company in Maine called Bean’s Commercial Grease, in Vassalboro. They pick up grease from restaurants, institutions, take it back to their processing plant and make biodiesel from 100% Maine sources.

What about the cost of regular biodiesel? It must be more expensive.

It can be, depending on your oil source. If it comes from Iowa cornfields, yes, plus the cost of transportation. But Bean’s gets its oils locally and cheaply, so this summer when gas prices were really high, it was much cheaper to get my fuel there. Currently, there’s maybe a 10-cent difference in the price.

In the gas crisis, it’s been wonderful to have basically free fuel, and that wasn’t my intention with the car. I was very lucky.

Have you had any maintenance issues, problems?

Not really, besides a filter change. I have taken it to a couple of local garages, and I tell the mechanics not to worry if they see some different things under the hood. Sometimes I get a raised eyebrow. They haven’t seen too many of these around.

I’m sure you get plenty of comments and cute remarks.

Oh, yeah. You know, “You can smell Sarah coming,” and “Here comes the Fish Fry lady.” I don’t smell it in the car, and if people stand behind the car when it’s running, it’s their problem. They send me stories like “Thefts of vegetable oil from restaurants on the rise,” things like that, and the Internet is full of stories. Like the one about someone with a veg oil sticker on the back of their car being pulled over by police because they aren’t paying their road tax on fuel. I kind of hope that will happen to me.

So what do you think is the future of using veg oil or biodiesel?
dscn19201
It’s not the silver bullet, but just another strategy to answer the question of how are we going to power our machinery when the petroleum runs out. And of course, not everyone has a diesel vehicle. The issue is complicated by politics and power and money and marketing, consumer choice, consumer habits and the market, and then the shifts in petroleum supply. I support veggie oil and biofuels as one of several avenues for addressing this problem.

But it’s an involved process, messy and takes a lot of time, right?

Well there are lots of ways to do it. You can have a collective in order not to do it yourself, but it’s worth it. I’m not afraid of a little elbow grease—or elbow fat.

Clearly, biodiesel and grease cars are not for everyone. Would you try one? Any other biodiesel owners out there? Let us hear from you!

—jgoods



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The Bailout Collapse: Getting Partisan

The Senate, house of political intrigue, punts on the auto bailout bill and here we are, now looking to the White House to solve the industry’s cash flow problems. Imagine what Jon Stewart and Jay Leno will have to say on this tonight. In fact, leave us your comments on that!

As we’ve said before in this blog, there has to be an element (or appearance) of fairness in these matters. Yet we should have learned a long time ago that politics has to do with advantage, not fairness. The Democrats put themselves at a big disadvantage by offering up a bill with so many flaws and so little to enforce a restructuring. Republicans seized the moment by piling on to the UAW which, whatever its past sins, had been the only stakeholder to come to the table.

In a news conference, UAW Chief Ron Gettelfinger “felt the union was being asked to make immediate sacrifices that other ‘stakeholders’—bondholders, executives, retirees, and others—were not. . . . The GOP caucus was insisting that the restructuring had to be done on the back of workers and retirees rather than having all stakeholders come to the table.”

Said Sen. Jim DeMint (R-S.C.), “It sounds like UAW blew up the deal.” Sen. John Ensign (R-Nev.) agreed. Really?

Given the fact that labor cost, as we reported, is only about 10% of vehicle cost, that does seem a mite unfair. Josh Marshall in TPM today thought so too and offered three Republican motives:

“Finally, this issue now goes well beyond the fate of the American automakers. Senate Republicans are following this course for three key reasons—first is payback against a major industrial union; second is payback against states like Michigan and Ohio who have been moving away from the GOP; third is the desire to advantage Japanese auto manufacturers who disproportionately do business in their southern states.”

With all this leveraging for political position and jockeying for power, maybe the best course is bankruptcy after all. Jospeh Stiglitz, Nobel Prize-winner and one of our most insightful economists, has this to say in the Financial Times:

“The debate about whether or not to bail out the Big Three carmakers has been mischaracterised. It has been described as a package to help the undeserving dinosaurs of Detroit. In fact, a plan to bail out the carmakers would benefit shareholders and bondholders as much as anybody else. These are not the people that need help right now. In fact they contributed to the problem.”

The problem was created, says Stiglitz, by the industry’s mismanagement and the financial markets “which failed in their oversight” and allowed the companys’ shortsighted, short-term focus on profits to continue.

“As the bail-outs continue, numbers that once looked huge are starting to seem almost normal. Hundreds of billons are being given to banks and insurance companies. AIG got $150bn. Compared with that $34bn, or even $125bn, for the automotive industry seems a modest request. Even so, we should not forget that a few months ago, President George W. Bush said there was not enough money for health insurance for poor children although it cost just a few billion dollars.”

If Stiglitz is right, then a prepackaged bankruptcy finally may be the best and only real option. I urge you to read the article.

Let us know how badly you think the government has fumbled this bailout question. Is Stiglitz right?

–jgoods



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