31 January 2012

Great Lakes Reps Want to Separate from Mississippi River

First appeared in Associated Press
Groups representing states and cities in the Great Lakes region on Tuesday proposed spending up to $9.5 billion on a massive engineering project to separate the lakes from the Mississippi River watershed in the Chicago area, describing it as the only sure way to protect both aquatic systems from invasions by destructive species such as Asian carp.

The organizations issued a report suggesting three alternatives for severing an artificial link between the two drainage basins that was constructed more than a century ago. Scientists say it has already provided a pathway for exotic species and is the likeliest route through which menacing carp could reach the lakes, where they could destabilize food webs and threaten a valuable fishing industry.

"We simply can't afford to risk that," said Tim Eder, executive director of the Great Lakes Commission, which sponsored the study with the Great Lakes and St. Lawrence Cities Initiative. "The Great Lakes have suffered immensely because of invasive species. We have to put a stop to this."

The report's release is sure to ramp up pressure on the U.S. Army Corps of Engineers, which is conducting its own study of how to close off 18 potential pathways between the two systems, including the Chicago waterways. The corps plans to release its findings in late 2015, a timetable it says is necessary because of the job's complexity and regulatory requirements. A pending federal lawsuit by five states - Michigan, Wisconsin, Minnesota, Ohio and Pennsylvania - demands quicker action.

"This study shows that hydrological separation is both technically and economically feasible," said Rep. Dave Camp, a Michigan Republican.

A spokeswoman said the corps would not comment until it could review the report.

The project that linked the two drainage basins began in the 1890s when engineers reversed the flow of the Chicago River to flush sewage away from the city and into a newly built, 28-mile-long canal that created a connection between Lake Michigan and the Illinois River, a tributary of the Mississippi. It is now a network of rivers, locks and canals.

In their report, the two groups call for placing barriers at key points to cut off the flow of water between the two drainage basins by 2029.

One alternative would put barriers in five locations near Lake Michigan. Another would erect a single barrier in the ship canal before it branches off into connecting waterways. A third plan would use four barriers.

The report does not express a preference but says the four-barrier plan would cost less than the others - between $3.26 billion and $4.27 billion. That plan, the report says, would cause less disruption of waterborne commerce and fewer problems with flood and stormwater control, all of which opponents contend would result from dividing the two systems. It also comes closest to restoring the natural divide between the watersheds, said David Ullrich, executive director of the Great Lakes and St. Lawrence Cities Initiative.

The report doesn't make a detailed proposal for covering the costs but says the four-barrier plan could be done if the average household in the Great Lakes basin paid about $1 a month through 2059.

The five-barrier and single-barrier plans' price tags could reach about $9.5 billion.

Despite the high cost, the report's sponsors said the project would save money in the long run by shielding both systems from species invasions. Zebra and quagga mussels and sea lamprey already have exacted a heavy toll on the Great Lakes economy, and the region's leaders fear the Asian carp could make things much worse.

"Yes, it's expensive. But the cost of doing nothing is greater," Ullrich said.

Asian carp escaped from Southern fish farms and sewage treatment plants decades ago and migrated up the Mississippi and its tributaries, gobbling up plankton that is essential for other nourishing other fish.

The study, commissioned by the two groups and developed by a private engineering firm, will make the idea of separation easier for people in the region to grasp, said Joel Brammeier, president of the Alliance for the Great Lakes, a Chicago-based environmental group.

"It's a natural, practical, on-the-ground map of how to get it done," Brammeier said.

Mark Biel, chairman of an Illinois business coalition called UnLock Our Jobs that opposes separating the watersheds, said the Great Lakes groups' proposals would take many years to carry out and would devastate cargo shipping and pleasure boating in the Chicago area while doing nothing to prevent species invasions elsewhere.

"Calling this a solution is ludicrous," Biel said.

But the report's authors said their plan envisions upgrades to docks and other infrastructure that, in the long run, would boost water commerce while improving water quality and flood protection. The barriers themselves would make up just 3 percent of the total cost.

The Army Corps of Engineers contends an electric barrier in the shipping canal is preventing Asian carp and other fish from swimming upstream toward Lake Michigan, although carp DNA has been found beyond the device. Eder said the barrier is a good temporary measure, but not a permanent solution.

"It's kind of like the old Clint Eastwood adage, 'How lucky do you feel?'" he said. "We can take chances that the electric barrier and other measures will work, but I don't think we should."

19 January 2012

Legislation to Tax Internet Purchases?

First appeared in Up North Live
Governor Rick Snyder is set to deliver his state of the state address -- and many retailers hope that this year he takes action on a bill that would close a tax loophole on online sales.

If you shop online, chances are you're probably breaking the law. That's because internet retailers like Amazon.com don't collect Michigan's 6% sales tax. They don't have to, but you are legally obligated to pay it.

The loophole is something many local businesses want changed.

Horizon Book Sales Manager, Amy Reynolds says it puts them at a competitive disadvantage.

By forcing internet retailers to charge the sales tax it could also bring millions of much needed revenue to Michigan.

The legislation would require online businesses to offer a link to another website where the buyer would make purchases and the internet store could then collect the taxes.

Michigan Unemployment

First appeared on Associated Press
Michigan officials say the state's unemployment rate fell sharply again in the latest month to 9.3 percent, the lowest level in more than three years.
The state said Wednesday that December's seasonally adjusted unemployment rate was down 0.5 percentage points from November's 9.8 percent and down 1.3 points from October.
The national unemployment rate was 8.5 percent in December.
The Bureau of Labor Market Information and Strategic Initiatives says the number of Michigan residents working rose for the fourth straight month in December. Meanwhile, the size of the civilian labor force continued a drop that saw 100,000 fewer people working or looking for work last month than one year earlier.
The last time the Michigan unemployment rate was lower was September 2008, when it stood at 8.9 percent.

Windpower Project Cancelled

First appeared at Up North Live
Duke Energy pulls plans to build 112 turbines in Northern Michigan

After months of debate, Duke Energy has decided it will no longer move forward with it's wind project plans in Benzie and Manistee Counties.

The company spent more than a year signing contracts with dozens of landowners, setting up job fairs, and hosting public input meetings.

Community members were divided over the Gail Windpower Project that would have created 112 turbines in their backyards. The issue even led to the recall of three Joyfield Township board members in 2011.

Duke Energy says the decision was made because they couldn't secure a long term agreement with a power purchaser.

The company notified landowners earlier this week about their decision.

11 January 2012

GM Sales Soar

First appeared on CNN Money
General Motors is poised to once again be No. 1 in global auto sales, after three years out of the top spot.
It's a comeback that will be official when final 2011 sales figures are reported in the coming weeks.

Recapturing the top spot seemed unthinkable in 2008 when GM lost the title. At the time, the company was in a tailspin. Its very future was uncertain, and a bankruptcy filing and federal bailout loomed.

Toyota held the title between 2008 and 2010.

GM's feat is also a contrast to other U.S. industries that lost leadership to overseas competitors, never to see it return.

Cool cars from the Detroit Auto Show

GM (GM, Fortune 500) never lost the lead in U.S. sales, but its market share here slid nearly continuously for decades, from 44% in 1980 to only 19% in 2010. But for at least the last two years that trend has been reversed, helping GM quickly return to profitability in the wake of its bankruptcy.

But its home market is only part of the sales story.

It is also the largest automaker in China, which has become the world's largest market for auto sales. It sold about 2.5 million vehicles in China, narrowly edging out its U.S. sales once again, as it increased both sales and share there.

"They continue to be awfully strong in the U.S. and China. If you can conquer those two markets, you've got two-thirds of the world," said Rebecca Lindland, director of research for IHS Automotive.

GM CEO Dan Akerson downplayed the significance of the title when speaking with reporters at the Detroit auto show Monday.

"I like profitability more than I do market share," he said. "We're a mass producer, and scale matters to us, therefore we're pleased with that accomplishment."

Market share vs. profitability: In the past GM had held onto market share and its No. 1 rank by cutting prices on cars to the point where they were unprofitable. Bob Lutz, former vice chairman of GM, said worrying about their market share rank did the companies more harm than good. (Fiat 500 sales goal 'incredibly naive')

"There is absolutely nothing to be gained by being the world's biggest," he said. "I tried to tell them to say, no, it's not our objective to be No. 1. But they just couldn't do it."

But Lindland said GM can be pleased that it got back on top without that kind of deep discounting and grab for market share.

Through the first three quarters of last year, GM's 6.8 million vehicles sold was well ahead of both No. 2 Volkswagen, at 6.1 million, and No. 3 Toyota Motor (TM), at 5.8 million.

VW has reported final global sales of 8.2 million for the year, but GM should easily top that mark, analysts said.

How long GM will be able to hold onto its lead is uncertain. Toyota is is expected to post a sharp rebound this year after disruptions caused by the earthquake and tsunami that hit Japan in March.

"I don't think we've set the goal to be the largest manufacturer in the world. I think the lead is going to trade off," said Akerson. "I wouldn't count Toyota or any of our competitors out. But we're having a good run now. I'm very pleased by our product."

Lincoln Needs to be Good for Ford

First appeared in CNN Money
It's been a long time since the Lincoln car brand has been a serious luxury contender, but Ford Motor Co. hopes to change that, starting with new the MKZ sedan, a preview of which was unveiled at the Detroit Auto Show.

The MKZ concept car is sleek and elegant and, perhaps most importantly, looks like something you'd expect to pay real money for. It also sports some intriguing technology like automatic adaptive suspension that, Ford executives boast, will give the car a combination of smoothness and performance that will stand up against the best in the business.

Also planned will be a panoramic sunroof that actually opens wide over the entire cabin for a near-convertible experience.

Panoramic sunroofs aren't new, but most only open over the front seats.

Now that Ford (F, Fortune 500) has sold off the European luxury brands -- Aston Martin, Land Rover, Jaguar and Volvo -- and killed off the mid-level Mercury brand, the automaker wants to turn Lincoln back into a real luxury player.

Cool cars from the Detroit Auto Show

"We don't have the luxury of getting anything wrong," said Kevin Cour who's in charge of sales and service for the brand.

Others have gone down this path before and made it work. Ford needs only to look at GM's success with Cadillac and Buick, experts say.

In fact, Ford's task with Lincoln may be easier than GM's with Buick. Buick had a negative image with many car shoppers, having long been seen as a maker of cars for the elderly and infirm.

"With Buick it was like 'What? Are you getting me a fedora as well?" said Rebecca Lindland, an industry analyst with IHS Global Insight. "Well, guess what. Fedora's are back in style and so is Buick."

Lincoln, by contrast, is simply big question mark to many Americans.

And with younger shoppers now entering the car market, it's a good time to shape a new brand image, Lindland said.

"The consumer has a very open mind right now," Lindland said. "It's helping Kia and Hyundai and it could help Lincoln."

The image Lincoln is going for, said Jim Farley, head of marketing at Ford, is something different from what most other luxury brands have aimed at. Lincoln won't be targeted at those looking for a brash "get out of my way" luxury image.

Instead, Lincoln is looking at more of a "boutique image." Where other luxury brands have a few high-style models like the curvy Mercedes-Benz CLS or the bulbous BMW X6, Lincoln wants to do only high-style cars with nothing middle-of-the-road in the line-up.

To hone Lincoln's image, Ford hired designer Max Wolff away from GM where he had been in charge of exteriors for Cadillac.

But Ford is faced with somewhat of a conundrum with Lincoln, said Ed Loh, editor-in-chief of Motor Trend Magazine.

GM (GM, Fortune 500) turned Cadillac back into a player by tossing out the "platform sharing" playbook -- where the same bone structure is simply re-skinned to create "different" models.

Today's Cadillac cars, like the CTS, the SRX and the upcoming XTS, aren't Chevrolets -- or some other GM product -- with a different body. They're uniquely Cadillac products.

Today's best American cars

While Ford has reportedly invested as much as $1 billion into remaking Lincoln and has even given Lincoln car designers their own separate building to work in -- like Cadillac designers have -- they're unlikely to go so far as to make the cars truly unique under the sheet metal, said Loh. That would go against Ford CEO Alan Mulally's stated mission to cut costs by sharing as much engineering globally as possible.

The MKZ, for example, still shares its underlying engineering with the new Ford Fusion mid-sized sedan.

And without that, Lincoln is unlikely to be taken seriously as a big-league luxury player. It's not impossible -- Toyota (TM) pulls it off with Lexus -- but, more likely, Lincoln will be relegated to some sort of second-tier "near luxury" status similar to GM's Buick which, unlike Cadillac, openly shares engineering with brands like Chevrolet.

Not that that that would be the worst place in the world.

"I bet, secretly, they would die to have the resurgence Buick's had," said Loh.

09 January 2012

Saginaw Too Expensive for Solar Firm

First appeared in Contra Costa Times
The chief executive of a San Jose-based solar power company says a lack of market demand and costs to operate its Saginaw plant led to its decision to relocate to the northern part of Michigan's Lower Peninsula.

The Saginaw News reported Friday that GlobalWatt Inc. CEO Sanjeev Chitre held a news conference in Saginaw County's Kochville Township to discuss cancelling plans to stay and grow in the area.

Chitre says GlobalWatt would have paid $35,000 a month for the Saginaw location. It has moved equipment to a renewable energy product maker in Copemish, about 25 miles southwest of Traverse City.

He called it a "manufacturing partnership."

Chitre says GlobalWatt hasn't received taxpayer money and could return to Saginaw if the market grows and prices stabilize for solar panels.