Ouch - North America

I read two articles last week that on the surface seem to have nothing to do with each other, but I managed to connect them in my silly little head

The first article was in a magazine in my doctor's office - I don't even remember the magazine, but I do remember the topic.

Seven years have passed since 9/11 and seven years have passed since we were told that the site of the World Trade Centre will be rebuilt. And yet...there is still a hole in the ground. Numerous organizations can't agree on how to proceed, building permits and other regulatory agencies can't get on the same page. Seven years have passed, and there is still a hole in the ground.

In the meantime, China has built about half of the equivalent US infrastructure during the same period of time. Now, I know there are issues with their approach, etc with respect to feeding that amount of growth, but...it is a reality. North America has to wake up to this new reality.

Another reality facing North America is our slow pace in adopting the labelling the carbon footprint of consumer products. UK has begun, and now Japan. Walker Crisps (chips in North America) now state right on their bags of chips that each bag is responsible for emitting 75 grams of CO2. I actually carry two empty bags of Walker chips in my briefcase to share with people I meet.

Whether it is carbon labelling or construction or manufacturing more fuel efficient vehicles, North America has to wake up, or else we are in big trouble...

Peter Corbyn

100 Days 100 Solutions

I once asked a good friend of mine about how quickly we should move on a project that addresses climate change. I will never forget his answer, "the planet is on fire, let's do it now!". Good answer.

With that thought, I have started a project called 100 Days 100 Solutions. This project, of which I seek the assistance of any and all willing to help, runs from August 5, 2008 to December 31, 2008. There are essentially 100 working days between those two dates.

Each working day for those 100 days I will post a different climate change solution for GreenNexxus members to comment on, add information and links, and add other solutions. This list will ultimately end up with 10 solutions from 10 sectors, those being residential, transportation, construction, energy sources, legislation, manufacturing, business, sports, culture and education (all one), financial mechanisms and food and agriculture.

Please vist and participate - the planet is on fire.

Thanks!

Peter

Rain Rain Go Away

Hurricane Katrina, melting ice, drought, flooding - all indications of climate change. Add another - rain, rain, rain.

Eastern Canada (where I live) is experiencing roughly a 50% increase in precipitation over the last three decades. Generally this increase doesn't seem to be noticed, until this summer; the wettest on record.

It is almost the middle of August and we have had virtually two straight weeks of rain. I have had one available day to mow the lawn in the last two weeks. The stream beside my home is running like it is April not August. I wouldn't want to own a golf course this summer.

I have presented the live version of An Inconvenient Truth 65 times - one of the slides illustrates the increase and decrease in precipitation around the world over the last few decades. A few people have asked me after the presentations what the difference is between weather and climate. My answer goes something like this...

If the climate is Wayne Gretzky's or Gordie Howe's career then the weather is one game. Weather is what is happening right now. Climate is essentially a running 30 year average. There are good days (games) and bad days (games).

Gretzky and Howe had stellar careers and generally predictable results year over year - a bit like the climate. But how they did in any given game was anyone's guess (weather), yet somewhat predictable. Like weather there is good chance it will by sub-zero in February and warm in July, but how warm or how cold, or how much snow or rain on a given day - who knows.

Bottom line - the rain this summer is a drag.

Peter Corbyn

Detroit is in Trouble

I spent twelve years in the automotive manufacturing industry, including four years as the Environment Director for the Canada Automotive Parts Manufacturers' Association (www.apma.ca). It is a great industry in which to learn continuous improvement, creativity and how to make car seats with moody robots.

I have commented recently on the demise of Detroit, but today's news really makes me worry more about Detroit than ever before. I want Detroit to survive and thrive, but they have to turn it around very fast!

GM and Chrysler recently announced that they are getting out of the leasing business. Why? Because the after lease residual value of their vehicles have plummeted recently. Why? Because no-one wants to buy a four year old SUV today. Why? Because the price of gas is very high? Why? Because demand is going up on the other side of the Pacific. Why? Because North Americans are buying lots of stuff from the other side of the Pacific. I think that is enough why's.

Automotive leases have been attractive for years because they reduce the cost of use for consumers. Lease payments cost less than loan payments because at the end of four years, you essentially give the vehicle back to the dealer. The trouble is that the lease you signed in 2005 assumed a residual value of $15,000 on a vehicle which is now only worth $11,000 - the car company is left holding the bag.

When I heard the news today I did a less than scientific study of two four year old vehicles - a Prius and a Ford Explorer.

A brand new Prius today costs a Canadian $27k to $30k (yes, I know they are much lower in the U.S.). A quick trip on Autotrader.ca tells me a 2004/2005 will fetch $24k to $28k; that is more than a brand new Prius in the U.S. In other words - if you leased a Prius in 2005, you got great gas mileage and when Toyota gets it back, they are going to make a good margin flipping it again.

Now let's look at a 2005 Explorer. My less than scientific study brings up a cost of about $15k for a four year old Explorer. A new Explorer will set you back $38k to $50k. Do the math...how much is Detroit losing on bringing back after lease SUV's? It has to be in the billions! Ouch!

I promised myself that I am going to start writing about solutions to climate change - useful information, focused on solutions. But...this subject really bothers me (can you tell).

One more thing before I sign off...have you seen the ads on TV and billboards at some vehicle dealers - guaranteed $2.99 per gallon of gas or $1,000 worth of free gas with your vehicle...argh, did you think you would ever see the day that vehicle dealers would do something like that!

To quote one of the greatest philosophers of our time, Forrest Gump, "That's all I have to say about that".

Please Detroit - turn it around, start manufacturing vehicles that will take on the Prius and Civic Hybrid; you will sell a whole bunch of them. Competition is good.

Remember Henry Ford - he built and priced cars that his employees could afford to buy - brilliant. Let's hope, one hundred years later that Detroit continues to manufacture vehicles that North Americans can afford, will want to drive and most importantly, respect the environment.

Peter Corbyn