New Cadillac Bumpers That Do More Than Bump

GM Ren Cen

We focused on General Motor’s invention of new aluminum welding technology in our Manufacturing Renaissance post yesterday. We will stick with GM today, as we present news of the reinvention of the Cadillac.

This GM model, that has been on the road since 1902 will have new technology available that will keep you, those in the car with you and those in cars around you, safer. More on this new technology below:

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Three new Cadillac models, including the ATS sport sedan, have a new advanced safety system that can automatically stop the vehicle in low-speed conditions to help avoid crashes.

 Cadillac’s Front and Rear Automatic Braking acts like a “virtual bumper,” slamming on the brakes as a last resort to help drivers in heavy traffic or even in parking lots and driveways where the driver might fail to see another vehicle or object in his path.

 Automatic Front and Rear Braking is part of the new optional Driver Assist Package on the 2013 ATS sport sedan, XTS luxury sedan and SRX crossover. Relying on a network of sophisticated sensors and advanced electronics, the system can help drivers avoid crashes in low-speed conditions and reduce impact speed under higher speed circumstances.

 “Radars, vision, and ultrasonic sensors in the vehicle are constantly analyzing data and working together to determine if a crash may be imminent,” said Charles Green, the driver performance specialist responsible for the development of the Driver Assist Package technologies. “Based on these calculations, the vehicle can automatically brake to avoid a crash or reduce impact speed, and if necessary, can apply the vehicle’s maximum braking capability.”

Smart Bumpers Anyone?

 If the driver fails to respond to other alerts, such as the Safety Alert Seat vibrations, and a potential collision is imminent, the automatic braking is designed to apply the brakes and stop the vehicle.  The driver may override any automatic braking action taken by the vehicle. If the system brings the car to a stop, the electronic parking brake will hold the car in place until the driver presses the accelerator pedal.

 In developing the technology, engineers had to finesse the system to avoid unwanted activations, ensuring that it is only a last resort.

 “We have spent eight years researching driver behavior which has been incorporated into the design of automatic braking in the Cadillac ATS, XTS, and SRX,” said Green. “Our goal is to effectively provide an extra level of safety support while keeping the driver in complete control of the vehicle at all times.”

 The Driver Assist Package will be available on Performance and Premium trim levels of ATS, XTS, and SRX. The package also includes side blind zone alert and full-speed range adaptive cruise control. ATS and XTS models will also feature a full-color, reconfigurable head-up display that helps keep the driver's eyes on the road.

 

Last Chance Mile: The Reinvention of an American Community, the story of how Grand Rapids, Mich. got ready for the 21^st century, and the people who helped make it happen, is available now at your favorite online retailers, like Abbott Press, Barnes & Noble, and Amazon. Direct links to all three are posted on the Welcome Page of www.rodkackley.com

GM Invents New Aluminum Welding Technology

The GM Ren Cen in Detroit

The reinvention of manufacturing begins with the reinvention of products and processes. GM has done that by first creating a new kind of technology. The impact on you? Greater fuel efficiency.

More below:

General Motors Research & Development has invented an industry-first aluminum welding technology expected to enable more use of the lightweight metal on future vehicles, which can help improve fuel economy and driving performance.

 GM’s new resistance spot welding process uses a patented multi-ring domed electrode that does what smooth electrodes are unreliable at doing – welding aluminum to aluminum. By using this process GM expects to eliminate nearly two pounds of rivets from aluminum body parts such as hoods, liftgates and doors.

 GM already uses this patented process on the hood of the Cadillac CTS-V and the liftgate of the hybrid versions of Chevrolet Tahoe and GMC Yukon. GM plans to use this technology more extensively starting in 2013.

 “The ability to weld aluminum body structures and closures in such a robust fashion will give GM a unique manufacturing advantage,” said Jon Lauckner, GM chief technology officer and vice president of Global R&D.

 “This new technology solves the long-standing problem of spot welding aluminum, which is how all manufacturers have welded steel parts together for decades,” Lauckner said. “It is an important step forward that will grow in importance as we increase the use of aluminum in our cars, trucks and crossovers over the next several years.”

 Spot welding uses two opposing electrode pincers to compress and fuse pieces of metal together, using an electrical current to create intense heat to form a weld. The process is inexpensive, fast and reliable, but until now, not robust for use on aluminum in today’s manufacturing environment. GM’s new welding technique works on sheet, extruded and cast aluminum because GM’s proprietary multi-ring domed electrode head disrupts the oxide on aluminum’s surface to enable a stronger weld.

Imagine how much fuel we could save

 Historically, automakers have used self-piercing rivets to join aluminum body parts, because of variability in production with conventional resistance spot welding. However, rivets add cost and riveting guns have a limited range of joint configurations. In addition, end-of-life recycling of aluminum parts containing rivets is more complex.

 “No other automaker is spot-welding aluminum body structures to the extent we are planning to, and this technology will allow us to do so at low cost,” said Blair Carlson, GM manufacturing systems research lab group manager. “We also intend to consider licensing the technology for non-GM production in automotive, heavy truck, rail and aerospace applications.”

Ducker Worldwide, a Michigan-based market research firm, said aluminum use in vehicles is expected to double by 2025. The material offers many advantages over steel. One kilogram of aluminum can replace two kilograms of steel. It is corrosion-resistant and offers an excellent blend of strength and low mass that can help improve fuel economy and performance.

According to AluminumTransportation.org, a 5 percent to 7 percent fuel savings can be realized for every 10 percent weight reduction, and substituting lightweight aluminum for a heavier material is one way to do it. Cars made lighter with aluminum also can accelerate faster and brake quicker than their heavier counterparts.

 “GM aims to be an industry leader in mass efficiency,” said Roger Clark, manager of the GM Energy Center. “Many little things can add up to big improvements in fuel economy. Incremental mass reductions, like using welds instead of rivets, can help our customers save at the pump.”

(Author's note: Communities can also be reinvented, just as Grand Rapids, Mich. has been reinvented. Last Chance Mile: The Reinvention of an American Community holds great lessons for any city or town struggling to face the challenges of the 21st century.

Beyond that, it tells some great stores of the people who are putting a new spin on a very old American community.

To find out more about Last Chance Mile: The Reinvention of an American Community, please visit www.rodkackley.com)

 

Manufacturers Investing, Growing In Michigan

The Michigan Economic Development Corporation today announced that five companies were approved for incentives by the Michigan Strategic Fund through the Michigan Business Development Program to support their expansions in the state. The projects are expected to generate up to $59.6 million in investments and add 387 new jobs in Michigan. 

 

“From leading edge technologies to a food producer, these five companies are demonstrating that Michigan can compete with any state in the country as a great place to grow a business,” said Michael A. Finney, MEDC President and CEO. “These new investments show once more Michigan’s highly competitive business climate and tremendous workforce capabilities mean real opportunities for leading edge companies.” 

 

The Michigan Strategic Fund approved incentives for the following projects: 

 

Alternative Automotive Technologies,LLC is a Troy-based automotive contract engineering company that designs and builds niche prototype vehicles as well as after-market performance enhancement products. The company plans to rehabilitate a vacant brownfield facility to relocate and expand its operations in the City of Troy. The company will invest up to $5.7 million and create 176 new jobs, resulting in a $500,000 Michigan Business Development Program incentive. The City of Troy has offered a 12 year tax abatement valued at $161,290. 

 

Mayser Polymer USA is the North American presence of Mayser, an international producer of headware, foam technology, molding and safety technology. Mayser Polymer USA plans to expand its operations in Canton Township to include light assembly of their anti-pinch sensors. The company will invest $3.9 million and create 50 new jobs, resulting in a $200,000 Michigan Business Development Program incentive. Canton Township is offering a three year property tax abatement valued at $68,000. 

 

MERSEN USA Midland is a subsidiary of MERSEN, a global company focused on materials and solutions for extreme environments as well as in the safety and reliability of electrical equipment. MERSEN plans to relocate and expand its existing manufacturing operations in Williams Charter Township. The company plans to invest a total of $21.3 million and create 32 new jobs, resulting in a $320,000 Michigan Business Development Program incentive for the project. Williams Charter Township is offering a 12 year tax abatement valued at $1.2 million. 

 

Pinnacle Foods Group, headquartered in Parsippany, NJ, is a leading producer, marketer and distributor of high quality branded food products through the Duncan Hines Grocer, Birds Eye Frozen Foods and Specialty Foods divisions. Pinnacle owns two facilities in Michigan – one in Imlay City, producing products under the Vlasic brand, and Fennville, producing Comstock products. Pinnacle plans to consolidate its Millsboro, DE pickle operations to its Imlay City facility, investing $14.3 million for the expansion and creating 29 new jobs. As a result of the expansion, Pinnacle has been awarded an $800,000 Michigan Business Development Program incentive. The City of Imlay City is considering property tax abatement in support of the project and Lapeer County is requesting tax abatement through the I-69 Next Michigan Development Authority. 

 

RSB Transmissions NA, a high volume machining manufacturer of automotive and heavy equipment components, plans to expand its existing operation in the Village of Homer by constructing a new 66,000 square-foot manufacturing facility. The company plans to invest approximately $14.4 million and create 100 new jobs, resulting in a Michigan Business Development Program incentive of $350,000. The Village of Homer has offered support to the project in the form of a property tax abatement. 

 

Signed into law by Governor Rick Snyder in December, the Michigan Business Development Program provides grants, loans and other economic assistance to qualified businesses that make investments or create jobs in Michigan, with preference given to businesses that need additional assistance for deal-closing and for second stage gap financing.  

 

The MSF will consider a number of factors in making these awards, including: out-of-state competition, private investment in the project, business diversification opportunities, near-term job creation, wage and benefit levels of the new jobs, and net-positive return to the state. Business retention and retail projects are not eligible for consideration of these incentives. 

 

The Michigan Business Development Program replaces the state’s previous MEGA program that was a feature of the Michigan Business Tax that was eliminated under business tax restructuring legislation approved and signed into law by Snyder in May 2011. 

 

The Michigan Economic Development Corporation, a public-private partnership serving as the state's marketing arm and lead agency for business, talent and jobs, focuses on helping grow Michigan's economy. For more on the MEDC and its initiatives, visit: MichiganAdvantage.org.

 

For more on the importance of manufacturing, please visit www.rodkackley.com

 

Manufacturing: We Can't Do Without It

No one in the Amway Grand Plaza Hotel’s Ambassador Ballroom could have missed the message about the need to revitalize and reinvent manufacturing for the 21^st century, not even Quicken Loans CEO Dan Gilbert.

Bruce Katz, the director of the Brookings Institution’s Metropolitan Policy Program made a strong case for the need to rebuild a strong manufacturing sector in the U.S. economy. That came after Gilbert told the hundreds of business, government and civic leaders who had come from across Michigan for the two-day 2012 West Michigan Policy Forum that manufacturing is exactly what the “New Economy” doesn’t need.

Gilbert was part of a panel discussion at the Sept. 13 morning session of the WMPF in downtown Grand Rapids entitled, “Why Strong Cities Matter.” The Detroit businessman, who also owns the Cleveland Cavaliers NBA franchise, delivered a closing comment that included a call of a New Economy focused on finance, but not manufacturing.

“This is something like a 5- to 7-year runway and it takes a couple hundred million dollars to build a manufacturing plant,” Gilbert pointed out. “The ‘New Economy’ does not need that. What it needs is an open environment and culture.”

Of course that was something less than a veiled reference to a reoccurring theme at the WMPF, the need as conference attendees see it, to cut business regulation to the bone. Or as fellow “WhyStrong Cities Matter” panelist Dick DeVos put it, “Government needs to be held in check.”

That is another discussion for another time.

We don’t know if Gilbert’s mind was changed by Katz’s presentation, but it certainly opened more than a few eyes and minds.

He began by taking what might have been a direct shot across Gilbert’s bow. “We need an economy that is fueled by production and not debt,” Katz stressed. “Manufacturing exports will be our path to prosperity.”

Katz also said that the U.S. is third in the world now in manufacturing exports, while it is number-one in service exports.

He also made another assertion that must have started more than a few sabers rattling in the conference sponsored by the Grand Rapids Regional Chamber of Commerce. Katz argued strongly for participation in what he dubbed, the “Low Carbon Revolution.”

“You can use it as a political football if you want,” Katz told his audience with a very strong voice and an impressive power point presentation. “But this revolution will be very big going forward,” and he explained that China is far ahead of the U.S. in low-carbon research.

He never let go of the call for a revitalized manufacturing economy in the presentation that would have sounded so good to the generation that gave birth to the Baby Boomers.

“If we don’t produce, we won’t innovate,” Katz said. “We need to build an economy that works for families. And, there is a premium on manufacturing wages.”

In other words, the U.S. will not survive with a population that is making less than a living wage. And there is nothing like manufacturing to fix that.

Here’s the problem: Do we know have enough qualified workers to fill those manufacturing jobs? That is a topic that I explored in a series of articles posted at www.rodkackley.com, and will be a major theme of Manufacturing Renaissance, that is due to be published this fall.

Medical Manufacturing is a big part of the reinvention of Grand Rapids, Mich., documented in my first book, Last Chance Mile: The Reinvention of an American Community. More information on that is also available at www.rodkackley.com

 

Reshoring Makes Sense, Could Drive Revival

Manufacturing work is coming back to the U.S. from overseas. We wouldn't have believed it several years ago, but a new study shows that it is happening. The extent to which it will continue is open to debate as are the long-term implications of reshoring.

Here's a new study on the subject from PwC:

"Consensus views on a U.S. manufacturing resurgence have largely centered on rising labor costs in markets such as China as the key driver of re-shoring back to the U.S. However, a new PwC US report, A Homecoming for U.S. Manufacturing?, reveals that while rising labor costs are part of the story, a range of factors—including transportation and energy costs and protecting the supply chain—could drive a sustained manufacturing renaissance in the U.S. beyond any cyclical recovery, potentially improving investment, employment, production output and research & development (R&D). 

 

 

PwC's new report identifies seven factors—including transportation and energy costs; currency fluctuations; U.S. market demand; labor costs; U.S. talent; availability of capital; and the tax and regulatory climate—as the primary catalysts influencing manufacturers' decisions to establish production facilities domestically and produce products closer to their major customer bases.  PwC's report also notes that localizing production can mitigate supply chain disruptions, which totaled $2.2 billion in financial impact for U.S. industrial products companies in 2011.  

 

"The reviving industrial manufacturing sector is instrumental to U.S. economic recovery," said Bob McCutcheon, PwC's U.S. Industrial Products leader.  "Beyond the cyclical rebound, however, a host of structural changes is emerging that may lead to the U.S. becoming an important location for basing production and R&D facilities for several industries.  In addition to trends in labor costs, other factors include the need to reduce transportation and energy costs; the emergence of the U.S. as a more attractive exporter and the relative attractiveness of the U.S. markets."

 

Relocating manufacturing production in the U.S. generally holds greater advantages for some industries over others.  When taking into account costs spanning labor, materials, transportation and energy, the PwC report shows that chemicals, primary metals and heavy equipment manufacturing industries stand to benefit most from maintaining or expanding facilities in the U.S. given opportunities and cost incentives to re-shore domestically.  Wood, plastic and rubber products companies could also benefit from changes in domestic costs, but lower net imports in these industries may limit the full economic benefits of on-shoring in the U.S. 

 

"Industrial manufacturers may increasingly rethink their U.S. strategies, including the merits of continuing to separate production and R&D and producing abroad and importing back to U.S. buyers.  Depending on the industry, there may be considerable benefits to establishing regionalized supply chains and R&D facilities in the U.S., such as reducing costs, shortening lead times, protecting intellectual property and mitigating many of the risk factors inherent in developing markets," added McCutcheon. 

Author's note:There are several great stories that wrap around this theme in Manufacturing Renaissance, my next book that is scheduled to be published this fall.

For more information on Last Chance Mile: The Reinvention of an American Community, the story of how Grand Rapids, Mich. has transformed itself for the 21st century, please visit www.rodkackley.com.

 

German-American Manufacturing Connections Strong

I think you would be hard-pressed to find a U.S. community with stronger ties to Germany than Grand Rapids, Mich., especially when you concentrate on manufacturing.

The point is made in my book about Grand Rapids' Medical Mile, Last Chance Mile: The Reinvention of an American Community, that for that health sciences cluster of prosperity to be successful it has to think of itself as a concentric circle around the globe.

Same thing is true for manufacturing.

There is a very strong connection between Grand Rapids and German thanks in large part to the work of Birgit Klohs and The Right Place Inc. For more information on that economic development organization and the Grand Rapids manufacturing community, please click here.

With that in mind, I thought you would be interested in this press release on the way manufacturing machinery has connected the U.S. and Germany.

German-American Economic Ties Strengthened by Machines

Germany Trade & Invest presents business opportunities at this year's International Manufacturing Technology Show

BERLIN and CHICAGO, September 9, 2012/PRNewswire/ --

The German and American machinery industries are more interlocked than ever. Demand for German machines in the USA, Canada, and Mexico have grown by 25 percent since the beginning of the year, according to a recent report from Germany's VDMA industry association. And with 56 projects in 5 years, the USA is the number one investor country in Germany's machinery and equipment industry, a further sign of strong business ties. Germany Trade & Invest will have representatives at this year's IMTS in Chicago from September 10-15 to highlight business opportunities for international companies in Germany.

"The stable German market remains a key reason that American companies continue to invest in Germany. Sales last year approached the record levels seen before the economic crisis. Germany is the top exporter of machines worldwide, meaning that companies based here have quick access to important markets beyond Germany's borders," stated Emilio Brahmst, Germany Trade & Invest representative in Chicago

Germany is also the leading investor in the US machinery and equipment industry. Since 2007 German companies have invested millions in factories and sales offices across the USA. With 105 projects recorded, Germany comes in well ahead of Japan (65 projects), the UK (55 projects), or Canada (33 projects). In terms of FDI projects in Germany, the USA ranks ahead of China and Japan, with 48 and 40 new investment projects in Germany respectively.

"German and American machinery companies make natural partners. Both countries are at the cutting edge of groundbreaking engineering and technological developments. Both countries deliver high quality products to customers worldwide. We see enormous chances for the further integration of the industry," continued Brahmst.

Most of Germany's machines go to its EU neighbors, but growth rates in North America have helped the region strengthen its position as the most important market for German goods outside of Europe.

Germany Trade & Invest is the foreign trade and inward investment promotion agency of the Federal Republic of Germany. The organization advises foreign companies looking to expand their business activities in the German market. It provides information on foreign trade to German companies that seek to enter foreign markets.

    
    Germany Trade & Invest
    Andreas Bilfinger
    Email: andreas.bilfinger@gtai.com
    T: +49(0)30-200099-173
    http://www.gtai.com/press-subscription
    http://twitter.com/gtai_com
    http://youtube.com/gtai

Aerospace: Flying Under The Radar?

THE AEROSPCE MANUFACTURING SECTORis one that seems to be if not unappreciated, at least flying under the radar in West Michigan.
This is an area that I have a special appreciation for since it fed my family when I was growing up. My father was a technician-engineer for Chrysler Corp. when it was in aerospace, and then for Ling-Temco-Vought, another aerospace and military contractor.

Here is news of a new contract award to GE Aviation operating near Gerald R. Ford International Airport in Grand Rapids:

GE Aviation announced Aug. 29, 2012 that they were awarded a contract worth nearly $9 million in support of surveillance systems such as the U.S. Marine Corps Ground-Based Operation Surveillance System (G-BOSS) program. The contract includes the inertial reference unit, lab testing assets, integration, repairs and engineering support for the program. The work will take place at GE's facility in Grand Rapids, Michigan, with deliveries starting this year and ending in the third quarter 2017.
"GE has provided inertial reference systems to our customers for more than half a century," said George Kiefer, vice president and general manager of Avionics with GE Aviation. "Tactical inertial navigation is an area of expertise for our team and we're proud to be part of this program."The inertial reference unit provides the technology to provide orientation and position utilizing Global Positioning System (GPS) data for a wide variety of land vehicle, airborne and seaborne applications for the purposes of surveillance, target acquisition, and satellite antenna pointing. The reference unit combines inertial data and GPS data to provide the user with high-accuracy continuous location, heading, pitch, and roll data in both stationary and moving vehicles. The G-BOSS is an integration of sensors to provide a "beyond the fence" surveillance capability to afford the war fighter the flexibility to adjust to a variety of terrain, threats and missions. The Naval Surface Warfare Center in Crane, Indiana is the sourcing customer administering the contract. Find additional information about the G-BOSS system at: http://www.marcorsyscom.usmc.mil/sites/cins/INTEL/SURVEILLANCE%20&%20TARGET%20IDENTIFICATION/G-BOSS.htmlGE Aviation Systems provides similar reference product systems to many different applications for the purpose of war fighter protection and for satellite communications antenna pointing for commercial and military use. GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings.

Author's note: Manufacturing Renaissance, the story of the reinvention and rebirth of manufacturing in the Great Lakes region is schedule to be published in late September.

Last Chance Mile: The Reinvention of an American Community is available now. Go to www.rodkackley.com to purchase it now.

Are We Better Off Today?

ARE WE BETTER OFF today, than we were four years ago? I don’t want to take sides, but as far as the Detroit Three are concerned, the answer has to be, “Yes, we are!”

Four years ago, General Motors reported total August 2008 sales down 20.7% from August 2007; the report had a silver lining, however, as August marked the best month for GM sales in 2008 largely due to the popular Employee Pricing for Everyone sale the automaker has been running since Aug. 20. That is the public relations spin on a very bad month, which actually was the best month in a disastrous year

August 2012 sales numbers are out today.

Chrysler Group LLC today reported U.S. sales of 148,472 units, a 14 percent increase compared with sales in August 2011 (130,120 units), and the group's best August sales since 2007.

Ford Motor Company's U.S. total sales increased 13 percent in August compared with last year – and 19 percent for retail sales – with gains in cars, utilities and trucks

How did GM do?  I saved this for last. General Motors Co. reported August 2012 sales of 240,520 vehicles in the United States, up 10 percent compared with a year ago. GM increased its sales to retail customers by 11 percent, making August its best retail month of the year. Sales to fleet customers were up 6 percent compared with a year ago. All four GM brands posted higher total and retail sales.

This good news was not limited to the Detroit Three:

Mazda North American Operations (MNAO) today reported August U.S. sales of 22,234 vehicles, representing a decrease of 1.8 percent (5.4 percent DSR) versus last year. Year-to-date sales through August are up 11.8 percent (11.3 percent DSR) versus last year, with 185,349 vehicles sold.

American Honda today reported August 2012 U.S. sales of 131,321 units, an increase of 59.5 percent compared with August 2011 (an increase of 53.6 percent based on the daily selling rate*). The Honda Division posted August 2012 sales of 115,675 units, an increase of 57.9 percent compared with August 2011. Acura's U.S. August sales of 15,646 units increased 72.8 percent compared with August 2011.

Nissan North America Sales increased 7.6 percent in August

Kia Motors America recorded its 24^th consecutive monthly sales record in August. Sales over same period last year were up 21.5 percent

Hyundai Motor America reported record August sales and Subaru of America reported August was its ninth straight month of sales gains.

This is more than great news for and about the auto industry. Somebody’s buying all of these cars and trucks. That means people are getting auto loans, money is flowing, the economy is moving again.

There will be more on the rebirth and reinvention of the U.S. auto industry in Manufacturing Renaissance due out later this month.

Today, I invite you to check out Last Chance Mile: The Reinvention of an American Community at www.rodkackley.com

 

Presidential Influence On Auto Industry



: Government officials join President Eisenhower as he signs Highway Bill. (PRNewsFoto/Hagerty, The National Park Service and the Eisenhower Presidential Library)

This is a very interesting piece from Hagerty is the world's leading insurance agency for classic vehicles and host to the largest network of classic car owners, looking at the influence of the Oval Office over the auto industry.

Where would we be without the national highway system? Would there be as many cars and trucks on the road? How would they have been designed differently? And what about the EPA and federal gas mileage requirements?

I think you will enjoy this if you are a fan of both the auto industry and presidential history:

"As a company that is passionate about automotive history and the classic car world, we have discovered that the President of the United States can impact the automotive world as much as a Henry Ford or William Durant," says McKeel Hagerty, CEO of Hagerty.  "While some of the policies and legislation on this list remain controversial, their influence is undeniable and they clearly show how a presidency can affect the cars we drive."

Thomas Schwartz, Presidential Historian and Professor of History at Vanderbilt University, agreed. "The U.S. automotive industry, in its current framework, has been strongly affected by the legislative initiatives and mandates of several American Presidents over the last century.  Their actions have not only shaped the cars we drive and roads we travel, but have profoundly influenced the overall American economy as well."

Automotive Industry Crisis (2008 - 2009) – George W. Bush and Barack Obama

Initially started by President Bush as auto sales fell throughout 2008, President Obama ordered a huge financial bailout ($80 billion) which allowed Chrysler and General Motors to address upcoming cash shortages in 2009.  While contentious at the time, the automakers are currently turning profits, and time will ultimately tell if the bailout leads to long-term prosperity.

 

Chrysler Bailout (1979) – Jimmy Carter

In 1979, Chrysler was struggling to pay expenses and was on the verge of bankruptcy.  In response, President Carter agreed to order federal loan guarantees providing Chrysler $1.5 billion to cover manufacturing costs.  Without those guarantees, Chrysler's bankruptcy may have resulted in a depression as the U.S. economy was experiencing a significant downturn at the time.

Corporate Average Fuel Economy (1975) – Gerald Ford

In 1975, President Ford signed the Energy Policy and Conservation Act which contained the C.A.F.E. provision requiring automakers to increase overall fuel efficiency. As a result, the Big Three made changes, including offering smaller cars for sale in the U.S. during the 1980s.

Emergency Highway Energy Conservation Act (1974) – Richard Nixon

In 1974, President Nixon signed this act, which included the National Maximum Speed Law limiting drivers to 55 MPH on U.S. roadways.  The intent of the law was to help lower gasoline consumption due to the OPEC oil embargo which lasted from October 1973 to March 1974.  The law was lifted in 1995 when the power to set speed limits returned to individual states.

Creation of the Environmental Protection Agency (1970) – Richard Nixon

In December of 1970, President Nixon and Congress established the EPA.  It was created to research, set standards and enforce policy to ensure environmental protection. The organization continues to work for a cleaner and healthier environment for U.S. residents, which primarily includes setting vehicle emissions standards.

Highway Safety Act and National Traffic/Motor Vehicle Safety Act (1966) – Lyndon Johnson

In response to growing fatalities and injuries involving vehicles, these federal acts produced the first safety standards for motor vehicles and roadways.  Vehicle safety requirements included seat belts, headrests, impact-absorbing steering wheels, shatter-resistant windshields and road safety measures such as enhanced guardrails, break-away signs and greater illumination of roadways.

Department of Transportation (1966) – Lyndon Johnson

Signed into law by President Johnson on October 15, 1966, the Department of Transportation (DOT) was developed to coordinate transportation policies and systems throughout the U.S.  The DOT is responsible for the quality, proficiency and safety of all U.S. transportation systems including highways, railroads, waterways/ports and mass transit, among others. 

Interstate Highway System (1956) – Dwight Eisenhower

With national security in mind, President Eisenhower signed the Federal-Aid Highway Act on June 29, 1956.  This act provided funding for the development and construction of the 41,000-mile Interstate Highway System and is commonly referred to as the "Greatest Public Works Project in History."

Federal Aid Road Act (1916) – Woodrow Wilson

Due in part to lobbying interest groups representing farmers and urban motorists, on July 11, 1916, President Wilson signed the Federal Aid Road Act, which officially became the first federal highway-funding legislation in the history of the United States.  At the time, U.S. roadways were in poor condition, and the roughly $75 million in aid drastically improved their quality.

National Road - Cumberland Road (1784 - 1806) – George Washington and Thomas Jefferson

Originally conceived by President-to-be George Washington in 1784 and approved in 1806 during Thomas Jefferson's administration, the National Road was the largest U.S. road project ever at the time.  Construction began in 1811, was completed in 1834 and became the first major U.S. road to utilize macadam-style road construction – raised layers of stones bound together with a cementing agent which became a major upgrade over the soil-based roadways popularly used at the time. 

Have a great Labor Day weekend, and as always, please go to www.rodkackley.com for more on manufacturing.