Bailout Nation: Calling Big 3 haters and supporters
Are the Big 3 ready?"Get me a plan that works."
That's what President Obama is hoping for on Tuesday, when automakers present their restructuring plans to the Treasury Department. Is such a plan, however, even possible?
Auto sales sunk 37 percent in January as automakers struggled for survival. GM, for instance, is slashing 10,000 white collar jobs and offering early retirement to every hourly worker as it tries to raise cash from partnerships in China and Korea. Additionally, GM is trying to unload brands such as Hummer.
Serious changes are occurring within the auto industry, which is good, but is it enough? And, what about the product?
In recent weeks and months, all of the Big Three have been showing off their EV plans as proof of how they will help America reduce foreign oil dependency and global warming? But is this all just poppycock?
If these cars are going to save the Big 3, the Big 3 will need to sell millions of such vehicles EVERY year, right? When is that going to happen? 2020? Later?
Yet, in just a few months, California might put into law emissions requirements that will soon make most of the Big 3's money makers unfit for sale in the Nation's most important auto market. How will GM or Chrysler compete with the Toyota Prius or the Honda Insight in such an environment?
So, what should Obama and Congress do? Undoubtedly, a new bailout is inevitable, but should America's new energy vision focus only on protecting the Big 3, or should it be more focused on achieving results, on achieving real change?
For instance, why not do just enough to keep the Big 3 afloat, while providing massive consumer-driven tax incentives for highly efficient, manufactured in America, vehicles made by any automaker? Besides, isn't competition the mother of innovation?
Labels: barack obama, Big 3, Congress, Foreign Oil Dependency
posted by Dahcredyns at
8:38 AM
9 Comments:
If we can give hundreds of billions to the financial industry, I think we can give a few hundred billion to Detroit, but there should be strict requirements. For instance, make new CAFE requirements that are at least equal to California's.
And, get rid of loopholes and tax incentives for flex fuel and the like. Get rid of CAFE. Get rid of averages.
Achieve 40 mpg in mixed driving or don't build it.
I definitely like your "strict requirements" idea, especially getting rid of CAFE.
Many have already suggested that GM is so focused on the Volt simply because it will help their CAFE more dramatically than hybrids.
For instance, instead of the Prius giving Toyota the CAFE credits to build two extra gas-guzzlers, each Volt will give GM the credits to build 5 extra gas-guzzlers (I'm just making up numbers, but I think you'll get the point).
That's insanity.
It's time to stop playing games.
I like 40 mpg, or maybe 35 is a bit more fair. But not an average of 35. 35 is the minimum.
Either that or a serious gas tax that makes $4.00 the floor for a gallon and then let market forces do the rest..
None of this is going to happen guys....
These people are in bed with each other...pure and simple. Anyone who thinks the oil/auto/government entities are not chattering with each other is either delusional or dumb.
They make the rules, they make the demand, they make the products. While we continue to be comatose everyday and watch Everybody Loves Raymond, and cheer for $2 fuel, nothing will change.
Who do we think wrote these pathetic SUV loopholes? How do you think it got passed? How do you think it's completely ignored for years and years while these auto companies keep selling their junk and the oil companies keep feeding the heroin to drug addict consumers?
It's clear to me.
I don't disagree Noz, but there has been a bit of a power shift in Congress and the White House. Granted, many of the current players have been part of the system for decades, and to expect great change from them is probably silly.
Still, we can't just give up. More and more people are becoming open-minded to these issues. Some day critical mass might even be attained.
Is that going to happen in the next four years? Probably not.
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In September 2005 Ford announced that by the end of the decade (2010) they would be producing 250,000 hybrids. And also said that more than 1/2 Ford Lincoln and Mercury products would be hybrid capable. Ford's CEO also said new Flex-Fuel versions of the F-150, Crown Victoria, Grand Marquis and Town Car in 2006 for a total production of some 250,000 E85-capable vehicles by 2006.
By 2006 Ford Chairman William C. Ford Jr. dropped that pledge. In a letter to employees, Ford said the 250,000 goal was "too narrow" to achieve substantial improvements in vehicle fuel economy or curb carbon dioxide emissions.
In 2008 I had decided to get a hybrid vehicle. But Ford did a crazy thing, they upgraded Ford Escape Hybrids' looks but not the engine and the brakes that would happen next year. I had to wait until June to order one since they were ONLY MAKING 25,000. And the funny thing is YOU CAN'T JUST GO INTO ANY FORD DEALER AND ORDER A HYBRID!!! You have to search, and call to find out if the dealer has allocation! Allocation is how many that dealership can sell, sometimes 0 or only or 2 or 3! What silliness is this?? I think the big 3 are mismanaged! I didn't get my vehicle until October 15th. Sad!
By the way I average 33mpg highway, over their proposed 29.
Great post Stephanie. The Big 3 have been out of touch for decades, and they've over-promised and under-delivered as a practice.
Still, I have to say I have a little hope for Ford since Mulally took over.
No doubt, however, 25,000 Escape hybrids is not enough every year. Nor will the 25,000 Fusion hybrids that is Ford is planning.
I imagine that Ford is tempering its investment in NiMH technology as Lithium is developed, but I think that's a mistake.
I guess only time will tell though.
Dahc:
I'm not saying give up. What I'm saying is we need a freaking revolution in this country in order for there to be real change.
Anyone waiting for change by voting and a democratic process is going to be waiting a LONG LONG time.
Agreed, although I think that our political system could be a tool of the revolution.
Still, it all comes down to the people. It's not so much that a revolution is needed, but an enlightenment, or an enlightened revolution. Or, maybe a revolution of enlightenment?
Whatever, but you're right. Waiting for Obama and Demcrats to save the world isn't going to happen. Too many Democrats have been part of the same crap that killed Republicans in the last election.
i like Obama, but he can't do everything, and we need a lot better leadership in Congress. In fact, I'll take a whole new Congress filled with random, honest taxpayers over this Congress, or any other recent session, any day.
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