January 7, 2009
Auto Industry Growth at Dead End | www.thebigmoney.com
It is not at all surprising that the American owned and operated OEM automotive industry has declined domestically nor should it be a surprise that the foreign owned segment of that industry is now also declining. There is no point at all to manufacturing purposely short-lived durable assets in the USA. Ruthless competition for raw materials and energy coupled with a surplus of low cost labor overseas have propelled unit costs of producing durable goods in the USA to an all time high. The OEM American automotive industry has not had an easy let-down; it has had shocks from the withdrawal of easy credit to the foolish consumer class that finally had to be drawn from the totally unqualified just to keep up the fantasy of open ended growth. Now comes the reconciliation of what we can do with the resources we have modified by what should we do. Government can only address the second part of the question. The laws of supply and demand will give the answer to the first part.
December 29, 2008
Toyota delays Mississippi assembly plant | www.msnbc.msn.com
Toyota has both manufacturing and financial flexibility perhaps more so than any other OEM automotive assembler on earth. But even Toyota cannot afford to continue a marketing strategy laid low by external factors it did not foresee. The American credit market has been stopped dead in its tracks by greed, short sightedness, unethical, and illegal behavior. If the American economy is to be brought back to an even keel in a way to insure that it remains there then it will be necessary to reduce both the size and power of cars made in America no matter who owns the companies that make them. Oil is going to be more expensive in dollar terms in the future than it has ever before been in American history. Foreign demand for oil and oil products, such as plastics, will rapidly erode America's per capita domination of oil-use statistics, and the first statistic that will have to change is average miles per gallon for noncommercial use. The age of the small car has arrived.
December 22, 2008
Platinum Falls to Gold's Level | online.wsj.com
The global OEM automotive industry is going to double in size by 2015. The electrification of cars will develop slowly, if at all. Therefore the demand for platinum group metals for exhaust emission catalysis will also double by 2015. The prinicpal power train growth will be in diesel and turbodiesel. Unless there is a game-changing innovation in exhaust emission catalysis this will demand much more platinum that is in use today.
December 17, 2008
Long-Lived, but Not Immortal: Fears Fade on Hybrid Batteries | www.nytimes.com
The success of the nickel metal hydride utilizing hybrid power train is one of the truly outstanding successes of Japanese automotive engineering, and it demonstrates clearly the short sightedness of American OEM automotive management. The nickel metal battery was invented in a suburban Detroit laboratory by a company, Energy Conversion Devices, Inc, which was at the time looking for a material to store hydrogen in the solid state. The idea was to create a safe hydrogen 'fuel tank' for vehicles. At that time the nickel cadmium rechargeable battery was being discontinued for reasons of he toxicity of cadmium. ECD decided to try a developmental hydrogen 'alloy' in place of the cadmium, and the rest is history. The new rechargeable battery was offered to GM, but it was not as capable as an electric car traction battery as lead-acid so GM lost interest. Toyota however had another idea, the hybrid battery electric/ internal combustion drive. The rest is also history.
Why Has Toyota Slowed Down Its Agenda To Build Its Best Selling Prius In North America?
December 16, 2008
Toyota delays Mississippi assembly plant | www.forbes.com
The Prius line of best selling hybrids in the world is due to be expanded next month with the introduction of several new models at the Detroit 'International" Auto Show. Most of the Priuses made are now sold are sold in North America. The Prius is only built in Japan. The nickel metal hydride battery (NiMH), used for the Prius, based on a rare earth metal (lanthanum) alloy with nickel and cobalt, is made only in Japan by Toyota. Has Toyota been looking for an excuse not to build the Prius in North America? Was the genral sales slowdown too good an excuse not to use?
Ford's Fusion Hybrid With Its Advanced Nickel Metal Hydride Battery May Crush The Chevrolet Volt
December 15, 2008
First Drive: 2010 Ford Fusion Hybrid | www.autoblog.com
While GM ignored the success of the Toyota Prius apparently for no other reason than that they wanted the public to believe that it wasn't invented here Ford decided to watch and learn. Ford has now reached the point where it about to challenge Toyota and Honda for a place in the hybrid sun. There is no longer much point to continuing the development of the Chevrolet Volt, or, for that matter, to continuing the existence of GM as an incompetent and bloated bureaucracy with far too much production capacity for making cars that no one wants to buy.
December 12, 2008
Green Obama’s official limo is a gas guzzler | www.timesonline.co.uk
Battery powered utility vehicles such as industrial forklift trucks and the 'traction' motors that pull 100 ton+ airplanes into and out of their 'parking' slots at airports are very impressive. However, to put forward the idea that there is a comparison between and a possibility of utilizing them to replace any part of the huge fleet of diesel and gasoline engine powered freight carrying trucks that keep the commerce of the USA and the rest of the world flowing is very misleading. It's time to take a deep breath and to look at what electric vehicles and hybrids cannot do in our motorized society.
Indicators Show Base Metal Prices are Establishing a Floor
December 11, 2008
Rio Cuts 14,000 Jobs, Spending as Demand Falters | www.bloomberg.com
Rio announcing major job cuts and expense reduction has major bullish inclination to base metal pricing.
Toyota's Business Model is The Reason That Detroit Should Not be Bailed Out
December 10, 2008
Toyota Tsusho Launches Rare Earth Business | www.toyota-tsusho.com
There is a simple reason that Toyota has grown steadily over the last 25 years from a maker of low quality inexpensive cars for the Japanese domestic market into the world's largest and most profitable-from the sale of vehicles-auto maker. The reason is long term planning coupled with continuous feedback sought from its customers on how to improve its products. No matter what is said about the management of General Motors it, the arrogant and self-absorbed and self perpetuating group that has run GM for more than 25 years has failed miserably to even notice how Toyota achieved its success. Now in league with politicians bought and paid for by union interests the pathetic management of GM having exhausted its right to a seat at the free market capitalist table will apparently simply continue on as a nationalized company until finally it cannot sell anything and simply disintegrates on the same day as its 3rd or 4th government handout is finally refused.
Not All Metals Are Commodities. Critical Ones Must be Recycled No Matter What The Cost.
December 9, 2008
Back at junk value, recyclables are piling up | www.iht.com
As finite supplies of critical raw materials are used up or squandered in dissipative uses from which they cannot be economically recovered their supply becomes more and more price sensitive. Many minor metals are for this reason rapidly becoming more valuable even though this fact has been masked by the blind attempt of the investment community to class all metals as 'commodities" and to denigrate their value and to simplify ignorantly the amount of work necessary to restore their production.
Chesapeake Energy bites the natural gas bullet
January 25, 2012
Flurry of newbuild drilling rig deliveries in 2012 may dampen rig rates
January 20, 2012
Talisman joins the ranks of cautious E&P companies
January 12, 2012
Early signs of caution begin to cloud frontier exploration and production
January 4, 2012
It's too early in the game to write off Shtokman
December 8, 2011