Take a Ride in Detroit's Best: Shameless Senate Auto Bailout PR
Reader Comments
Detroit's Best
The combination of Detroit Auto Executives and the US Congress working together to create and execute plans to revitalize the US Auto Industry is frightful to me.
Just think what the financial wizards who have led the USA into a National Debt that our great grandchilren will inherit and the manufacturing/marketing wizards who have transformed three of the once-leading auto manufacturers on this planet can do--with tax dollars--to rescue the US Auto Industry.
Who knows? We might wake up to discover a bold new auto that runs on hot air, has no steering wheel, and requires over 1,000 committees to decide what to name it.
Its a loan, not a bailout
The Big 3 already make the best cars in the world and the most fuel efficient.
"Its the economy stupid." The banks caused the crisis.
Remember Long Term Capital? The hedge fund that collapsed in 1996. Greenspan knew the potential problem back then!
The US economy has been in the tank for the past 7 years under Bush. Lowest savings rate, record corporate bankruptcy, 2.5 million manufacturing jobs lost under Bush.
Fual Efficiancy
No one can tellme that we could not have avoided this. American enginuity never won out over American greed. Now the big three are running with their tails between their legs. We should pay for Detroits arrigance, I THINK NOT!!!
Auto Bailout/Bad Economics, Bad Socialism
Americans are dumb! That's right, thousands of mostly upper middle class folks bought (literally)the PR/media hype of the car companies that they needed a three ton behemoth to protect THEIR kids from everyone else's cars! Now, guess what, gas prices are TEMPORARILY down, thanks to the recession of '08. Will these same jerks roll over and buy yet another SUV (aka Stupid Ugly Vehicle)? Not likely, as jobs are being lost at an alarming rate. Sooo, let's subsidize a bloated and wasteful vehicle industry while waving the flag, and eating a generous helping of mom's apple pie. Blah, blah, blah. Of course we can't compete with cars produced in semi-Third World countries. Why should our skilled auto workers work for $10/day? But bailing out these idiotic CEO's is contrary to the so-called "free enterprise system", which includes penalties for failure. We're not Sweden, or Uganda. Take the hit up front, re-organize, and make better products, or perish.
Detroit bailout
There is no denying that Detroit automakers made a lot of mistakes. In the last few years, however, they have done a lot of catching up. Their cars are higher quality. They've learned how to make profitable small cars. They've built labor-cost reductions into the future with tiered wage rates. They've invested heavily in green and fuel efficient technology.
They should have started sooner but they would have made it had they not been knocked out by the double whammy of higher fuel costs and the credit crunch which was brought on by Wall Street greed that far exceeds their own.
I say give them a chance. They're only asking for bridge loans. We'll get our money back from them if we do the loans. They will take a lot of us down with them if we don't.
Detroits Best
When congress first imposed fuel economy standards for cars and trucks, Detroit downsized their cars and the public rejected those cars. Gasoline was cheap, and the public moved to trucks and SUV's because they preferred them to the cars available. When gasoline prices rose, economic reality set in and the public started to switch to more fuel efficient cars rather than SUV's and trucks.
Congress has now imposed a new set of fuel economy standards on cars and trucks, and may let several states impose higher mileage standards in the guise of CO2 emission limits. Cars and trucks will become smaller and more expensive.
The real question is "will the public buy them"? The public attempts to make rational economic decisions. With current fuel prices, there is no incentive to spend four to five thousand dollars more for a vehicle to improve fuel economy. Gasoline prices will have to incresae to six or seven dollars a gallon to provide the public with an economic payback (less than 5 years of ownership) to justify the extra cost of the more fuel efficient cars and trucks.
If there is no incentive to buy these vehicles, the public will reject them and the auto in the US will suffer.
Detroit's Best
No, no, and again, no! Detroit NEVER worked hard for safety, fuel economy, or reasonably priced cars. Don't blame the unions, blame the managers who ran these companies into the ground, now shamelessly standing there waving the flag w/one hand, and holding the collection plate with the other. SUV's are a great example of this arrogant, self important attitude. Detroit designed and marketed these monstrosities to the gullible middle class, now people have to keep them because their resale value is low. The price of gas WILL rise again, then what? Just Say No, in the words of an ex-First Lady.
FUTURE OF AMERICAN AUTO INDUSTRY
IT IS GREAT THAT THE AUTO COMPANIES ARE DEMONSTRATING WHERE THE AMERICAN AUTO INDUSTRY IS CAPABLE OF GOING IF IT CAN GET THROUGH THE PRESENT ECONOMIC TURMOIL.
MAYBE IT IS A GOOD THING THAT THE ISSUE OF ENVIRONMENTAL FRIENDLY VEHICLES IS BEING PRECIPITATED NOW RATHER THAN POSTPONING IT UNTIL 2020.
I CAN ENVISION A HUGE BOOST TO THE ECONOMY IF A MASSIVE EFFORT IS MADE TO DEVELOP THE NECESSARY INDUSTRIES TO PRODUCE ALTERNATIVE ENERGY SOURCES AND APPLICATIONS IE. TRANSPORTATION, ELECTRICITY GENERATION, AND HOME HEATING.
IF WE WERE ABLE TO WIN WORLD WAR II, PUT A MAN ON THE MOON, ETC, WE CERTAINLY HAVE THE CAPACITY TO MEET TODAY'S CHALLENGES IF THE POWERS THAT BE WILL ALLOW. IF THE PRIMARY MOTIVE OF CAPITALISM IS TO MAKE A PROFIT THE OPPORTUNITY WAS NEVER BETTER.
