Bailout busters: How could you support the Big 3?
More hybrids?According to numerous polls, most Americans are not very supportive of further bailout money for the Big 3. Is there, however, certain bailout strings that could make more Americans supportive of the US auto industry?
For instance, a requirement that each of the Big 3 would produce at least 1/2 million hybrid cars and plug-in vehicles per year?
Or, perhaps even better, how about agreeing to new CAFE legislation that is as strong as what California's EPA waiver request would require? Such a requirement would inevitably lead to a serious ramp up of of hybrid and plug-in production.
What would it take to make you more supportive of the US auto industry?
Labels: bailout, fuel economy, Hybrid Vehicles, plug-in hybrid vehicles
posted by Dahcredyns at
8:14 AM
10 Comments:
I'll support them once they come out of bankruptcy. Nothing else will do!!!! Otherwise, this nonsense will be going on for years.
It seems pretty obvious to me that bankruptcy is not in the cards for GM. Enough statements have been made by both Obama and Geithner indicating that the administration views bankruptcy as too destructive at this time.
Thus, again, if bankruptcy simply isn't on the table, what kind of requirements would make bankruptcy more tenable?
For me, the higher fuel economy requirements would be a good sticking point, and I'm glad to hear that Obama's people are investigating this.
Ultimately, there will be no perfect world solution, but I think Obama is handling this fiasco pretty well, and I'm excited to hear the auto task force's final plan.
I am ready to support Detroit, and the reasons are:
1. The Volt, which shows serious investment in battery technology and manufacturing in the next 5 years.
2. Waxman as head of Energy and Commerce in the House, which shows that Detroit will be forced to bend to rational policies on energy and the environment GOING FORWARD. (now that that dinosaur Dingell is gone)
3. The California EPA waiver being all but a sure thing, which gives the Federal govt all the leverage it needs to start CO2 regulations or much higher CAFE type standards.
So those are just the points I am personally following as key when it comes to Detroit and whether I support more Federal bailouts for them. I'm sure there are more or better requirements, but IMHO with these pieces in place I already support Detroit.
Doesn't mean I'm buying a Fusion hybrid, though! Detroit still needs to produce. I see the bailouts as a public investment that will produce fruit in the future, starting with making sure the Volt doesn't die and an American battery industry gets seeded. But for now, Detroit hybrids are just PR vehicles, so I'm not buying. Pun intended, ha!
Not to sound like a broken record, but I'm covering this topic again in my next post, which will be up in about an hour.
Ultimately, I think the bailout needs to be accepted as reality and used as a major rallying point for change in America. This is something, I believe, main street needs to rally around.
The auto industry bailout is an intolerable example of taxing the poor to give to the rich. Abolish the UAW. Fire all current employees and open the jobs up to the working public at market wages. This would allow prices to go down, sales and profits to go up and eliminate the need for a perpetual subsidy. It could even make possible future investment, expansion and market penetration.
I can understand the UAW hate. I'm not a big fan, but calling them the "rich" isn't a stretch, it's incomprehensible.
Ultimately, bailing out the Big 3 has much more to do with Main St. than Wall Street. Much more to do with Middle Class people, but certainly not rich people.
Inevitably, it could take years to recover from such a bankruptcy that would lead to the destruction of all UAW contracts, etc. I don't think this is the time for such action.
We need to move forward, not backward.
My career peak pay was about 1/3 of what UAW members get. They need a drinkng buddy or cousin on the inside and a high-school diploma. My post-secondary education with multiple degrees in engineering and computer science plus many years of experience in the implementation of manufacturing automation systems just doesn't measure up to their standards.
What you need to learn in high school is how to pick drinking buddies. That's the real key to financial success.
Sadly, there is a lot of truth in what you say. However, most of those contracts expire in the next couple years and new UAW workers are on par with the transplants.
Still, key lesson for kids - pick your drinking buddies wisely. It's not what you know, it's whom you know.
Ok first of all CAFE and regulations are exactly what we do not need on the auto industry.
CAFE forces the automakers to build cars that NO ONE WANTS.
Imagine if the government forced mcdonalds to sell 40% veggie burgers, and 60% meat burgers. THey'd have to give away the veggie burgers in order to meet their quota, this is what happen to the auto industry.
How about instead, we tax fuel more so people have their own incentive to buy cars. Its better to regulate the demand than the supply.
As for not wanting to buy a fusion hybrid just a big : ? mark
Fusion in all trims beats every car in its class in fuel economy and safety. Fusion hybrid gets 41/36 mpg city/highway. Its conventional 4 cylinder and v6 variants are the most fuel efficient as well, also with 5 star crash rating its a great car.
Have you not seen sync, and the new interiors? How about the nice styling, it doesn't look like a whale like the camry either.
The other thing we are not realizing here is that only 16% of toyotas sold in the US are built here, and almost non of the high cost engineering is done here either. A Ford built in a place like mexico is better for the US economy than a Honda built in Indiana due to the MANY factors of economics involved in automobile manufacturing.
last anon-
Aren't you contradicting yourself? CAFE leads to cars no one wants? Yet, CAFE would lead to more cars like the Fusion hybrid, a car you're supporting?
I don't get it?
Still, I've long supported some sort of gas tax. So, yes, i'd prefer a fuel tax over CAFE any day.
However, if our elected politicians are going to frame the move off foreign oil through CAFE, rather than fuel taxes, then we need higher CAFE standards.
And you need to quantify your last statement. A ford built in Mexico is better for corporate America, perhaps, not mainstream America. Didn't we vote for Obama because trickle down economics don't work?
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