Does a bailout take a bite out of CAFE?
Chevy Cruze delayedA bailout to help GM and Chrysler merge now seems inevitable. So, why did Cerebrus buy Chrysler? That's right, to make money, and probably at taxpayer expense. Anyway, back to the bailout. It seems there are just too many jobs, healthcare and pension funds at stake for Congress to let the auto industry go under. So, when these companies emerge, one can only assume that means GM will then forever be too big to go under.
Whatever, right? It's the jobs. It's the economy.
Fine, but what happens if GM says it can't meet new CAFE requirements without tens of billions more of taxpayer money, or bankruptcy? How can the government enforce legislation like CAFE when the auto industry knows Congress won't let it fail?
Labels: CAFE, Congress, fuel economy
posted by Dahcredyns at
6:52 AM
3 Comments:
In only two words, "we're screwed"!
We may have to bail out the companies, but I think the CEO's and Board of Director's should be FINED or indicted or both.
Hey Dahc - can I ask you a question off line?
kdove2oh@gmail.com
thanks
Well, no way does Ford or GM get off the CAFE hook. Absolutely no bail out unless they agree to even higher CAFE standards and more importantly hybrid/ev vehicle production.
In fact any government bailout (I'm not talking loan guarantees) should be only used on next generation vehicle development and production. If the rest of Ford and GM needs to be closed, so be it.
You may be right that Detroit will try to play the "too big too fail" card, but I think there will be massive and organized pressure to INCREASE CAFE as the price for a bail out. Don't forget, the green jobs movement will be a key organizing economic principle in the next budget. If Detroit or anybody else wants government money in the next budget they will have to provide green jobs.
OK, now I just have to hope that my saying it makes it so! ;)
i hope your saying so also makes it happen.
still, it isn't detroit playing the "too big to fail" card. it's the governors and congress people from the states that have auto plants and auto manufacturers playing that card. i
t's something like 2 million jobs at stake when you add in the suppliers.
that's a lot of jobs and a lot of UAW votes. thus, dems can't afford to get too tough, the UAW represents a key voter bloc.
there might be some hope with the green angle. we'll have to wait and see.
Post a Comment
<< Home