May 20, 2009
Where Have You Gone, Henry Ford?
Unless you just got back from Mars, you know the Federal government has given huge sums of money to General Motors and Chrysler. Both are now in bankruptcy and President Obama has appointed a 'car czar' (Ed Montgomery) to figure out how to save the auto industry.
This Keynesian approach to saving corporations has only proved successful on rare occasions, and it will not be successful here. Now, to make things worse, the President has issued stricter fuel economy standards. From this AP article:
"The new rules would bring new cars and trucks sold in the United States to an average of 35.5 miles per gallon, about 10 mpg more than today's standards. Passenger cars will be required to get 39 mpg, light trucks 30 mpg."
The rules will begin to go into effect in 2012 and must be achieved by 2016. If we're lucky, Obama will be a one term President and we'll get someone in the White House who is serious about saving the auto industry. Tightening fuel economy standards is one of the worst things the government can do right now, which tells me that the move is only being made to satisfy the Earth First crowd. And we're all going to pay for it.
The government needs to get out of the auto industry completely. Let GM and Chrysler go into bankruptcy and re-structure their debt. Let them re-negotiate their bloated union contracts. Let them build cars and trucks that Americans actually want to buy. Bankruptcy doesn't mean the doors are going to close; it simply means that the companies are going to have to emerge leaner and meaner. Take a look at the federal government and let me know if you think the auto industry will be leaner and meaner under its guidance.
Posted by Matthew at May 20, 2009 07:57 PMTrackBack URL for this entry:
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First of all, GM is not yet in bankruptcy and secondly, although he he is under investigation by NY Attorney General Andrew Cuomo for illegal dealings with a state pension fund, Steve Rattner is the head of Obama's Auto Industy Advisors. Ed Montgomery was considered for the car czar post back in March but that went nowhere.
As for the present Chrysler bankruptcy and the GM Chapter 11 filing shortly, Obama is making a mockery of the rule of law. Only a courageous bankruptcy judge can save us all from this fascism.
Posted by: gadfly at May 21, 2009 02:14 AMWhat part of mpg regulations are a bad idea?
We have the technology, we have the resources, and we can still make gobs and gobs of horsepower despite getting great gas mileage. It can and should be done.
This has nothing to do with hugging trees, it has to do with the fact that I spend $125 or more a week on gas. Its a financial decision. I have a large family (7 kids) and I like to play music or host events as a DJ, both of which are accomplished with a quad cab truck and a V8 engine. The mileage is atrocious. However, I also can't justify the extra expense of two cars. In 06-07 I had 3 cars at the same time. I was carpooling to work and couldn't afford to go anywhere. I put 6000 miles on my cars that year. I dumped the two cars I didn't use, and the very next week the carpool disbanded and I was driving my truck everywhere I went.
Either way, its time the auto industry built cars that we do want... I don't disagree with that. Just explain why Ford has a 65MPG Fiesta overseas that will be 2 more years before it hits our shores, when the majority of autos on the road today have to look up to see 20MPG.
He's not asking for all electric, or something like 50MPG. Its reasonable, and we're capable. It's innovation like this that made America great.
Build me a truck that fits my needs and I'll buy it from the people that make it. Problem solved.
Posted by: troy14![[TypeKey Profile Page]](http://www.opaquelucidity.com/nav-commenters.gif)
at May 22, 2009 09:52 AM