If Chrysler, GM Get a Bailout They Should Stop Making Gas-Powered Cars

A lot of people are only reacting to the immediate issue of bailing out the the big three.

What about the downstream impact?

The bright side of the economic crisis is the demonstration of the linkage between reduction in auto use related to the reduction in the cost and production (from the Alberta tar sands) of oil and the reduction in GHG emissions,

The only way the big three can survive in the long term is to build more hybrid, and even better electric only, vehicles faster than they had planned. By doing this they will reduce the demand for fossil based fuels to below even the present levels!

The Canadian and U.S. governments must also restructure the energy sector when they restructure the auto sector. Not to do so will lead to another crisis in the early future

There are a number of neat strategies that could be used to do this in such a way that will not cost the tax payer another cent,

Transportation costs can drop and our pollution emission targets met with no extra costs if the bailout tax dollars are spent properly.

tom hobbs 1:20PM February 24, 2009

My cousin, uncle and myself have converted our vehicles to Gas/hydrogen. The 2001 Suburban went from 13mpg to 17mpg (8.1l engine, tows boats), the 2007 Chevy HHR from 32mpg to 48mpg, my Saturn Vue v6 from 25mpg to 35mpg and 20mpg city to 30mpg. All for just using water in the hydrogen generator to mix with Gas. Yes the kits to self convert cost around $250 each. The Suburban needed two kits, the HHR and Vue one each.

Real question: Why won't the car manufacturers do this?

Seen the Light of OH 9:58AM February 23, 2009

This column displays a real ignorance of the situation involving the automakers.

- Gm and Chrysler only received a portion of what they originally asked for last fall. If the government had given the full amount originally asked for, they wouldn't be going back right now to ask for more.

- GM is asking for money from other countries because it has operations all over the world. There are factories in other nations which make cars unique to those regions. These overseas divisions are suffering because the economic crisis has now spread from the U.S. to those regions.

- GM and Chrysler are not the only car companies in the world asking for help. Many European companies and some Asian companies are now asking for money from their governments.

- The aid is in the form of loans, not gifts, and must be repaid with interest. GM in particular has already taken steps to drastically slash costs, and is substantially reducing production capacity so they can be profitable at a much lower sales volume.

- Car companies can't borrow from the private sector because of the financial crisis, which was caused by the federal government forcing banks to make sub-prime loans.

- It is reasonable for the government to demand that the car companies take steps to become profitable. The loans require specific steps be taken, and much progress has already been made in meeting these requirements.

- Allowing the car companies to fail is not cost free. Independent financial analysts agree that the cost of sudden failure will be many times the cost of loans, and there is no chance that any of these costs will ever be recovered.

Regarding the idea of forcing them to stop making gas powered cars, this is not realistic in 2009. Even is this is made a national priority, it will take decades to make a switch to alternative powered vehicles. Consider that the gasoline powered cars we now drive are the product of over 100 years of intense research and development. It is likely that 100 years from now electric cars will be highly developed, but battery technology still has a long ways to go before it is ready for prime time.

To completely eliminate gas engines, we need a battery capable of going 300-500 miles on a single charge, which doesn't lose half the charge at 0 degrees F, and which can be recharged or changed in minutes. Furthermore, it will need to be small, lightweight, reliable, safe, and inexpensive to produce. While a portion of current needs can be met with electric only cars, most of us will need a gas engine back up for years to come, until this dream battery comes closer to reality.

The biggest problem with current alternative vehicles is that they are money losers. Even Toyota loses money on every Prius it sells. This will continue for years, and forcing Detroit to make only alternative fueled cars, rather than cars demanded by customers, is a sure-fire way to make sure they keep losing money for a long time to come.

Dobe Lover of TX 8:17PM February 22, 2009

true, technology is getting better toward electric cars but its not there yet. I think what's more important here is the fact that only the strong survive, I was part of the uaw "did nothing for me" don't even see they were worth paying. let these car company's fall. the American spirit will prevail some smart kid will suddenly come up with revalutionary ideas for our transportation needs We have "as a country" always been like the phenox and will rise from the ashes (It's the American way)

Greg of PA 9:38AM February 21, 2009