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Krafcik says US Gov. shutdown is slowing Oct. auto sales

The government shutdown is eroding consumer confidence in the auto market, says John Krafcik, CEO of Hyundai's US sales unit, and could lower October sales by as much as 10 percent, Automotive News reports. "It's that anxiety that keeps customers, potential buyers, on the sidelines when making a big purchase like an automobile," Krafcik says, adding that industry sales could be off by five to 10 percent in October compared to September.
The fourth quarter, which started October 1, usually consists of increased auto sales as dealerships clear their lots to make room for the next year's models. Leading up to the fourth quarter this year, the auto industry was doing well in the fragile, recovering US economy, although September deliveries decreased by 4.2 percent, due in part to this year's Labor Day sales being recorded for August.
To help its customers, Hyundai announced it is deferring new-car loan and lease payments for furloughed federal workers until they're called back to work and also offering them a three-month payment deferral if they buy a new Hyundai in October. "We have already had requests from over a thousand people to have their payments deferred," Krafcik says.

Old Toyota Camry Hybrid batteries find new life in Yellowstone

Beginning this fall, used hybrid batteries that would otherwise be recycled will get a second life in Yellowstone National Park. 208 nickel-metal hydride batteries are being retired from the Toyota Camry Hybrids they once helped power and will become part of an off-the-grid energy system at Yellowstone's remote Lamar Buffalo Ranch field campus. The Lamar campus provides field seminars and other education and research in the northeastern corner of the park. The energy stored in the battery packs will come from solar panels and micro-hydro turbines. The total storage capacity of the batteries is 85 kWh, which is sufficient to provide plenty of emissions-free power to the five buildings at the field campus. Toyota says this program essentially doubles the life of the batteries that are no longer suitable for driving. It's great to see the batteries get another life cycle before recycling, especially in a place where wild animals easily outnumbers the cars. The battery project is part of a larger partnership between Toyota and Yellowstone. Toyota has previously donated a RAV4 and $50,000 to support sustainability projects at the park. In addition to the energy system being implemented at the Lamar Buffalo Ranch, Toyota has taken part in similar energy projects. Beginning last year, Toyota dealers in Japan have been using hybrid batteries for power storage. Also, Toyota Motor Manufacturing Alabama is testing a system to use hybrid batteries to power operations and for emergency backup power. Learn more in the press release from Toyota below. Buffalo and Bears and Batteries – Oh My! Toyota Brings Power to Yellowstone National Park June 04, 2014 Yellowstone...Where the Deer and the Antelope and the Prius Play Torrance, Calif. (June 4, 2014) – The nation's oldest National Park is ready for some new power. Toyota Camry hybrid batteries will soon power the Lamar Buffalo Ranch field campus in Yellowstone National Park. It's a new lease on life for the batteries and new, zero emission, energy option for the Park. Now that's a "bear-able" solution! The stationary distributed energy system will feature 208 used Camry Hybrid nickel-metal hydride battery packs and a total storage capacity of 85 kWh, more than enough pluck to power the five buildings on the Ranch field campus.

Senator pushes for up to life sentence for auto execs found to delay recalls

Democratic Senator Claire McCaskill (shown above) has had it with automotive execs stalling when it comes to recalls. The Missiourian has proposed a new bill, the Motor Vehicle and Highway Safety Enhancement Act, which aims to improve the automotive safety following the high-profile fiascos involving General Motors and Toyota. Aside from a doubling of the budget for the National Highway Traffic Safety Administration over the next six years and the removal of the $35-million limit for fining automakers, the plan includes a provision that would punish auto executives if it's discovered they knowingly delayed recalls. How will it punish them, you ask? Oh, you know, just life in prison. The bill "gives federal prosecutors greater discretion to bring criminal prosecutions for auto safety violations and increases the possible penalties, including up to life in prison for violations that result in death," McCaskill's office told The Detroit News. If a delayed recall led to serious injuries, meanwhile, execs could still face a 15-year stint behind bars. As for that change in the fine structure for automakers, the removal of the limit is complemented by a hefty increase in the per-vehicle fine, from $5,000 to $25,000. With this change, GM could have been on the hook for $55 billion (with a "b") in fines for its bumbling of the ignition switch recall, rather than just $35 million. The News says, though, that NHTSA has "wide discretion" in handing out the fines. Considering a $55-billion fine is enough to sink any automaker, it is unlikely that such a monumental sum would be handed out. Still, the potential threat of such a death sentence should be enough for any automaker to sit up and take notice. "With millions of Americans behind the wheel every day, and more than 33,000 killed on our roads each year, we've got to do more to keep our cars and the roads we drive them on safe," McCaskill said, according to The News. "Painful recent examples at Toyota and GM have shown us we also must make it easier to hold accountable those who jeopardize consumers' safety. For too long, auto safety resources have remained virtually stagnant while cars and the safety challenges they present have become more complex." What do you think? Do you agree with McCaskill's proposed bill? Should the punishments for automakers and execs be more or less harsh? Have your say in Comments. News Source: The Detroit NewsImage Credit: J.