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Bailout those that deserve it

You can guess how I feel about the #1 target from this comment I just left at this thread at gm-volt.com. Yes, the same bunch of idiots who scoffed at me and others a few months back who said the Volt wouldn't make it because GM was going Chap 11.

Hint: Ford might be worth throwing a life-jacket to. The others? (Outer blockquote is me).

It’s also important to remember that it wasn’t only the U.S. automakers who built these lumbering behemoth trucks and SUVs. Toyota, the auto maker with the fallen green halo is slowing down production of its Toyota Tundra monster truck plant here in San Antonio. They have also stated that they do not plan to build a plug-in hybrid and have talked down GM’s progress on the Chevy Volt.
More crap from denialists.

Honda and Toyota didn’t fight CAFE kicking and screaming and getting loopholes for awful SUVs and pickup trucks. Toyota sells trucks to those who want them, sure, but hasn’t tried to create the market from those who didn’t want them and never needed them.

As for talking down the Volt, they’ve sold a million Prii. Even if the Volt was an obvious success, talking down the Volt to sell the Prius isn’t damaging to the economy, the environment, or our national security the way it was when GM spent years talking down hybrids so they could continue to sell polluting inefficient SUVs.

GM needs to die in a fire. Yesterday.

I always forget to mention GM's role in destroying urban rail. Yes, a lot of the stuff you hear is exaggerated if not myth, but they did play a large role in it nonetheless.

If GM was a person, I have a hard time believing we wouldn't be charging him with treason for enabling our enemies (and disabling our ability to pressure our 'friends' the Saudis) and destroying our environment and our economy.

This entry was posted in the following categories: Economics , I Told You So

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Comments

I've got a good bailout plan. How 'bout we change our testing restrictions to allow vehicles that have passed European crash testing to automatically pass here.
Then they can bring all those European vehicles that we want to buy that get great fuel efficiency over here with a minimum of red tape. $0 cost to the US consumer.

We could even build them in the US since the dollars worth so little and ship them over to Europe.

I don't see giving the plan to give them money with strings attached as working. History says that they'll sink it into green projects that make them look good, but that they have no intention of bringing to market.

GM is dead. If the economy stays down they're dead. If the economy picks up they're dead because gas prices will soar. You can't bailout a dead company. We'd be better off setting our money on fire.

I think recent events demonstrate why CAFE is unnecessary -- the market is rewarding those who had foresight and punishing those who did not. The only argument for CAFE I see is some kind of systemic-risk argument (i.e., what we're seeing today), but that wasn't how the standards were sold and they certainly didn't work if that was the goal.

Maybe CAFE is counter-productive. GM's best bet for survival may be as a niche producer of SUVs and pick-up trucks. If it abandoned the sedan market to companies who produce more fuel-efficient cars, we'd get the same or better gas savings at lower cost.

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stupid typepad changed something; I hope this works now.

Tim, as a Prius owner I'm very used to the idea that there's cars in Europe with fuel economy that will supposedly rock our world. Problem is that every time they actually show up to be tested (like the Jetta TDI), they end up less efficient, smaller, and much dirtier than advertised.

AC, I agree that the best case scenario would be a larger gasoline tax. But we can't get there - so we're stuck with CAFE, and the Big 2.8 should have just done what we told them to instead of weaking the standards with loophole after loophole.

It doesn't make CAFE genius business, but it DOES make the Big 2.8 less deserving of our money than they otherwise would be. A "you didn't do what I told you but you still want my money?" argument.

You can guess my knee-jerk reaction to a bail-out, although I am worried about systemic effects right now.

Agreed - but I'd like to see the government help with an orderly bankruptcy of GM, and an orderly shutdown of Chrysler. The only one that deserves to survive is Ford, since they didn't treat small car buyers with active malice this whole time.

I feel pretty much the same way as M1EK. Honestly, even Ford would be better off spinning off the good parts (like Mazda, and the Eurocar types like the Focus) and liquidating the rest.

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