How many meetings over how many years did Congressional leaders like Nancy Pelosi, Henry Waxman, Barbara Boxer, Edward Markey and others go hat in hand to the automakers and beg them to do something to help America, to improve fuel economy, to stop suing the states over clean car initiatives... and were shown the door.
Congress has used its regulatory muscle before to force Detroit to make other improvements to our cars, from seat belts and air bags to catalytic converters, all of which Detroit refused to do voluntarily. Now that the tables are turned and Detroit is doing the begging for a handout to save itself, Congress should demand in return a serious, long-overdue increase in fuel efficiency standards for new cars and trucks.
Just as they did with the Wall Street bailout stipulating an end to golden parachutes for CEOs, Congress should put some real teeth into any bailout negotiations with Detroit.
The Big 3's greed and lack of vision led them to the cliff's edge where they stand today, facing financial implosion unless the federal government swoops in to prop them up. These companies invited their impending destiny, and some have argued they ought to face the consequences of the market without federal intervention. But the fact is that America can't afford to lose the millions of jobs Detroit provides and the opportunity to lead on a manufacturing product that will see explosive foreign sales in the near future, especially in China and India.
So it's time for some tough love. What would you say to your kid who came to you looking for a handout after he or she had been warned repeatedly? Would you fork it over, no questions asked? Is that the life lesson you would pass on to your child? No way.
If Detroit needs more taxpayer bailouts to survive, we ought to demand some serious and real concessions in return, starting with an immediate cease-and-desist order for Detroit to drop its lawsuits against California, Vermont, Rhode Island, New Mexico and any other state that passes clean cars legislation requiring more efficient, less polluting vehicles. Enough already, Detroit. Stop fighting and start building clean cars now.
Congress should set strict guidelines to ensure that Detroit moves as quickly as possible to get clean cars into American driveways where they can help power a new smart grid like the one Al Gore described in Sunday's New York Times. Congress should also open the process beyond the Big 3, offering financial support to smaller entrepreneurial carmakers for large-scale production of their innovative all-electric and plug-in hybrid prototypes which lack financing to move from the concept contests and into dealer showrooms and consumer hands.
It's past time for Detroit to get serious about regaining America's once-proud role as a leader in automotive engineering. Congress must hold the automakers accountable in any bailout to ensure that our clean car 'future' starts now.
Read More:
Should the Government Bail Out the Big U.S. Three Automakers? HuffPost Bloggers Weigh In
GM and Ford make things of value, unlike Wall ST institutions, thus enabling them to pay back this modest amount and allow you to keep your job, feed your family, while supporting the butcher, the baker, the candlestick maker....
Your words, though eloquent, represent an overabundance of misinformation.
And speaking of eco-friendly technology you might appreciate this link relative to "Quasiturbine":
http://quasiturbine.promci.qc.ca/QTEmotionReports0312.html
Get a good cup of coffee and... read.
We (government) should have been on their ass a long time ago - not just US companies, but importers, too (no progress, no selling here).
No. New companies need to be started to build fuel efficient vehicles. Someone with a real plan and a real vision should get that money not the lying big 3 that are responsible for the ripple affect. We, the taxpayer are not responsible for the loss of jobs/homes - the big 3 are and those who refused to demand change.
This will be the biggest waste of the bail out money. More of the same - how utterly, profoundly, disgustingly disastrous. A phoenix can only rise from the ashes!
To bail out the auto industry with Billions of our tax dollars is rewarding failure and propping up old failed dinosaurs who need to be replaced.
When the taxpayers are forced to blindly risk hard earned money, it will never see a return, for politicians only really allow for crony capitalism, not true free market capitalism.
Crony capitalism, which is what we have 99.9% of the time with politicians in the driver seat, will suck us all dry and stifle true free market capitalism.
We are going down a road of Corporate Fascism mixed with Corporate Socialism:
*CORPORATE FASCISM because corporations and Wall Street dictate to elected leaders who carry out their wishes and get us into wars and violate our privacy, outsourced.
*CORPORATE SOCIALISM because the same bankers who wanted to change the bankruptcy laws so the little guy could not file bankruptcy for being maxed out, are the same bankers who want easy bankruptcy for themselves and free money to fix failed corporations owned by those who still have their strings on the puppets in Washington.
I urge everyone to stand up and demand our elected leaders say NO to all of this.
Unlike the banks and interlinked associate institutions, GM and Ford are able to produce things of value which will enable them to repay the LOANS, not a bailout. If you recall, when Chrysler corporation received its Congressionally mandated loan guarantee in th 1979/1980 timeframe, they not only paid it back, BUT AHEAD OF SCHEDULE AND WITH INTEREST.
It is important to remember that the total Wall St./banking sector bailout approaches USD2 Trillion at moment--as opposed to the paltry 25 billion loan guarantee sought by the auto industry -- with no arrangement to repay the taxpayer. Did you forget that automotive and aerospace industries provide the core jobs for the world: eEery other industry in existence, even the fields of medicine and tree logging, supports it.
If GM and Ford go down, believe me, my friend, writing expressions of angst to the HP will be the least of your worries...
Why do Lexus and BMW vehicles retain more value than american cars? It's not the workers - the workers build what they are told to build, and honestly, there are few ways to screw up assembling a car ... 2 rules - righty tighty - lefty loosey.
So this leaves the engineers. If a car is poorly engineered, it will not perform as well, and will not retain value for a long period of time. The engineers, along with shoddy management are the reason why the US auto industry is failing, and has been failing for the last 40 years. Let them die.
Chevy should spin off the Corvette, and just get rid of 80% of their model lineup, which by all indications are failures. Ford needs to just plain close, enven the venerable Mustang is a pile of steaming garbage. Chrysler - the only segment that Chrysler is competent in is Minivans. The rear wheel drive sedans are hideous, especially the ones with the hemi. Sorry rednecks, the Hemi is going to die again. Not a single one of those hemis can hold a candle to a 20 year old engine from Toyota - the 3L inline 6 cylinder 2JZ-GTE (Toyota Supra, earlier Lex GS300).
Nov. 13, 2008
Mr. Neil Macdonald
CBC News
529 14th St., NW, # 500
Washington. D.C. 20004
Dear Mr. Macdonald:
I was quite surprised to hear your report on The National last evening talking about the American government bailout when you said that auto companies that make inferior products are asking for a handout.
If you had taken a look at the latest Consumer Reports quality survey of 1-1/4 million new car drivers, you would have found that two of the three American auto companies are nearly at or on a par with Japanese auto makers that are considered the benchmark for the industry. In fact, Ford Motor Co. surpassed Toyota, one of those standard bearers, with a superior quality rating for its Ford Fusion and Mercury Milan midsize sedans over the Toyota Camry V-6. Ford, which also is nearly on a par with Honda, is expected to gain in the survey next year when three remaining vehicles that needed to be revamped will be in the running. I fail to understand how this can be categorized as "inferior."
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Letter to Neil Macdonald CBC News excerpt
But perhaps you might want to investigate the financial support that has been provided to Toyota and Honda for years by the Japanese government during the time those companies were developing their hybrid autos. The cost of developing that technology is prohibitively expensive, and without their government's support, Japanese companies never could have developed it when they did. Those companies also have sold those vehicles at steeply discounted prices, far below the cost of producing them (proved by "teardowns" of those vehicles), while they gained the reputation of being the leading "green" auto companies. American companies working on similar technologies have been required to do it on their own, without governmental support or subsidies. The American executives are not stupid. They simply have been left to do the job with the proverbial both hands tied behind their backs, and without the support of their government, while still competing with offshore companies while selling vehicles that would meet their shareholders', and Wall Street's, demands for profits. It's about time the American companies got some help from their government comparable to what their competitors have gotten. "
Anyone remembers how GM killed the electric car not too long ago? Today the CEO's are faced with the consequences of their unwise association with the oil corporations and we are asked to pay the price. If we do that, we must ask GM to give us what we want for our money: not only truly fuel efficient cars (50 mpg and up) but mostly cars that use alternative forms of energy.
I invited Laurie to investigate the range of GM vehicles and their EPA ratings, I did not provide them.
When one does their own research, the data tends to stick and becomes part of their personnel knowledge base -- a base I suspect sir/madam you lack the necessary intellectual capacity to absorb or develop owing to genetically based myopia.
As far as Malibu, if you bothered to look at sales figures and talk to owners, you'll find extraordinary satisfaction with the car. In fact, GM can't build them fast enough. What Editors are you talking about? Virtually every major and responsible automotive journalist of substance, and I know them all, can't say enough good things about this vehicle.
And tell me, do YOU have a 50 mpg vehicle in your driveway? If you happen to have a Prius, you know, that Toyota Hybrid? Its Synergy Drive Technology was 100% subsidized by the government of Japan.
Finally, fuel efficiency is relative to vehicle purpose. And let's now forget about safety; best accomplished by a being in a vehicle capable of absorbing and redirecting, through the intensity of mass, impact forces. .
Please go back under your rock of solace please and stop trying to pretend that you, or the writer of this under-researched, US auto sector biased narrative, have anything resembling expertise in this arena...
More GM analysis...
Restoration of GM Viability: A European Solution of Einsteinian Simplicity?
EDT Wednesday, 2 July 2008, 838pm
UTC(or GMT/Zulu) Thursday, 3 July 2008, 00:39:49
Detroit --- Sources close to GM and GM Europe ( http://www.gm.com/europe/) are advising the company is either close to, or examining closely, bringing in several high-mileage European models such as a LHD version of the all new Vauxhall Agila with a range of engines inclusive of diesel (1.3L CDTi Twin Cam Ecotec), to bolster its U.S. dealer line-up technologically and reputationally.
According to a source speaking on condition of anonymity, GM's primary problem is not that it doesn't have high mileage vehicles -- it has a range of product exceeding 30 mpg -- or styling (look no further than Buick Enclave, Corvette, Chevy Malibu and the entire Saturn line-up) it is perception.
"In my view," the source says, "this perception is fueled by Wall Street analysts and too many industry pundits who should know better, stating that GM needs to build vehicles Americans will buy, and that the U.S. auto industry is playing catch-up technologically. These statements are beyond inaccurate.
"The fact is, the world's auto industry, Toyota, Honda, Nissan, Renault, VW, Citroen, among others, owes a heavy debt of gratitude, even their very existence, to the design, engineering, manufacturing and financial visionaries behind the traditional Big Three; GM, Ford and Chrysler, and of course, Karl Benz."
And while you're reviewing the Malibu analysis -- a car which GM can't build enough of -- consider the real issues part and parcel to the US auto industry's existence in the following two analyses from this automotive/aerosapce industries research and analysis site:
http://www.emotionreports.com/downloads/pdfs/GM_ANALYSIS070608.pdf
http://www.emotionreports.com/downloads/pdfs/Super4[1].pdf
Continued in next post
That being said, I felt it appropriate to honor the life of the American efficiency expert revered by the Japanese, Dr. W. Edwards Deming, by providing analyses that may provide essential knowledge -- especially about the US auto industry -- for your readership.
In this current conversation, I think it appropriate to talk about the vehicles like Malibu, Chevy Volt and Lincoln MKS and that are helping GM and Ford to regain their balance; despite having to play on a notoriously unbalanced playing field thanks to Federal apathy and the predatory market devouring strategies deployed over the last 2 decades by their heavily subsidized offshore counterparts...
The (GM) Empire Strikes Back: 2008 Chevrolet Malibu
http://www.emotionreports.com/downloads/pdfs/Malibu2008.pdf
Editor's note: "eMOTION! REPORTS.com editors are convinced that Malibu will enable GM to create a significant sales buffer for the world's number one automaker, and thus preclude the possibility of Toyota claiming a position of ascendancy either globally or in the all important US market. And yes, we said all important US market. Industry observers should be aware that the presumed growth of the Chinese market will not meet glowing expectations for vehicle consumption... China's directive is to create an export oriented economy that will eclipse that of Japan."
2) CNG is not renewable and is subject to the same price shocks and control issues oil is.
3) The primary proponents of CNG in the US have oil industry ties - Not too long ago BP/Amoco was the largest holder of natural gas reserves in the country.
http://www.america.gov/st/washfile-english/2007/February/20070215165316saikceinawz0.1187403.html
As for Ford and Chevrolet, assist them, but put in management to see that they actually concentrate on mileage, quality, and the vehicles people want, and make them bring all manufacturing and asembly back to the United States for the assistance. The government should OWN THEM, and they should pay back every red cent.
People keep criticizing the unions, but the unions would have to add flexibility, but it is the MANAGEMENT WHICH HAS FAILED THE COMPANIES. They were still fighting increased mileage standards earlier this year. They have very efficient vehicles in Europe which are very popular there, are quality vehicles, and high mileage at reasonable prices. They claim it will take them to 2011 to bring them here. THEY SHOULD SPEED UP THE PROCESS, AND WORK LIKE THEIR SURVIVAL DEPENDS ON IT, BECAUSE IT DOES.
Secondly, Americans are totally OK with not having health coverage. OK with losing their homes and/or assets when an urgent medical need happens. Americans don't like "socialized" medicine because they like to "choose their own" MD (and mostly don't understand or like the word "socialism"). Now exactly how many choices do you have without med insurance? No matter. Too stupid to matter. Corporations need not offer this as a benefit that workers don't care about. Should save GM a bundle if negotiated w/ workers. If they get hurt on the job, Worker's Comp. insurance will cover. Universal health care WILL NOT HAPPEN in the US in the foreseeable future. Americans like it that way.
Did you know that in Brazil consumers have the option of alternative fuels at their fueling stations? Do you know who builds the cars to run on those alternative fuels? The only reason it's not happening here is because the oil companies control fuel distribution in the US.
Detroit currently makes flex fuel vehicles. When will Americans demand that those alternative fuels be made widely available for purchase?
Even if you could buy American E85 at your local gas station, it would need to be $2.00 less per gallon that gas to be worth it. An auto that get 30mpg using gasoline, will only get 22mpg using E85.
And you also incorrectly believe that corn is the only source for ethanol? And it doesn't matter that ethanol is produced in the US, meaning our money stays in the US?
It is correct that a gallon of E85 yields lower overall mileage than a gallon of gasoline but, given the numbers you state, do you realize that the dilution of gasoline that is E85 a 27% reduction in mpg for an 85% reduction in gasoline content? Do you realize that a gallon of gasoline blended with ethanol into E85, again using your numbers of 22 and 30, yields enough fuel to go over 146 miles? That's right - 1 gallon of gasoline diluted down to E85 yields over 146 miles worth of fuel.
And if it weren't for the oil lobby that E85 could easily become 100% ethanol, which was Henry Ford's original choice of fuel for his vehicles way back when.