Bailing out Detroit Again?
Here a Bailout, There a Bailout Every Where a Bailout
Detroit is the brain of USA auto manufacturing. From there thousands of suppliers of both parts and services branch out and provide jobs for even more Americans. It is an important US manufacturing business. A quick destruction of this industry would be devastating.
The industry has been in trouble for many years now. Since the 80’s the auto industry has been in trouble to one point or another. The conventional thinking of meeting the demand is just not going to work any more. Too many others can meet the demand. Instead, we must change the demand. The only way to do that is produce something that people will want once they know they can have it.
The leader of the House of Representatives is urging a bailout of the industry, Chrysler, once again is in critical condition while GM says it is very short on cash. Ford too is in the emergency room.
While we can’t afford to allow the patient to die, we’ve been here before. The US was the leader in auto sales for a long time but now conventional cars are not so high tech and other nations can build them too. While we should leave life support on for a bit longer, the time for pulling the plug is approaching, at least on conventional automobiles.
Going green and robotic is the way to go. High tech autos that other countries have more trouble producing. Cars that drive themselves are not that far away, its time to develop that and cars that burn anything other than fossil fuels. Once the patient is stabilized, it is time for the US government to push the auto makers, kick and screaming if we must, toward these high tech options.
The government should make changes to the tax code that will make development of green the more profitable way to go. Once that is done, we will go green. The American auto makers argue that the people want SUV’s. We build them because that’s what the American people want. Okay, fine, let them buy those from Toyota. The technology to build conventional autos is already out there, Toyota, quite frankly, does it better than US auto makers.
The USA has always excelled on high tech and that means computers. If we build the fastest and most capable computers we will control the world economy the same way OPEC controls much by controlling the oil. Even opec needs computers to operate their businesses, so lets be the best at that, we might save the earth and save our standing in the world too.
Hi Rusty - I am right with you on this issue. The thing that I find ironic on this is that the Bush administration has steadfastly refused to bail out the Auto Industry this time. The people that are pushing for it are the Democratic leaders - specifically Harry Reed and Nancy Pelosi. These same people have been preaching for a decade that we must reduce our carbon footprint, abandon the automobile as much as possible, etc. Now they want to subsidize the companies that make those dinosaurs! Unbelievable.
Develop something green and clean. Make a car that Americans want to buy. It’s the only way to go.
Personally, I want a Hummer and a vet and I want them to be as green as they can be as long as it doesn’t cut back on performance. LOL
That is the problem, I’m not alone. When I left though, I could barely afford to drive and it was only around $2.00 a gallon then.
American’s wont give up their big cars until they have too. Gasoline might have to have a sin tax added to it but that pushes the price of everything else up.
There are no easy answers on this. I don’t think it is a matter of keeping the auto industry as the major player. It is time to scale it down, slowly. We can’t just pull the plug on it. It’s kind of like getting into a war we shoudl have never been in, once your there you gotta stay in it.
I heard an economist saying the same thing. IF we bail them out it has to be with ties to green and we have to accept that our auto makers will take a back seat. I see no reason they shouldn’t.
The day I bought my TOYOTA 4-Runner, I went to a Chevrolet Dealer the same day. The high that day was 17 degrees *F* (I guess about -10C)the salesman asked me if I was serious about buying when I asked about test driving. Strike one, then I asked what he could let it go for and he said $500 off the sticker. I said, cu you later.
I drove over to the Toyota dealer, saw a 4-runner I wanted, drove it. told him the stereo sucked and he took $5K off the sticker. I drove it home, for about $12K that was way back in 1988. I sold that car last Jan, yes 20 years later for $1800.00 It took me 2 days to sell it! Do that with an American made car.
The Camero I bought in 1983 was so much fun to drive and it lived in the repair shop. Until that issue is resolved, American auto makers will continue to tank.
After being treated that way by the dealer and having a very good experience with my first import, not much reason for me to buy American and I really wanted too.
I’m usually an Adam Smith kind of person, invisible hands and those French words I don’t remember how to spell, Lazze Faire but in this case, we need to practice protectionism, put a massive tariff on the gas guzzlers that come into the country.
This is one of those times that where we need government to act, the American people may never. I would much rather have a Hummer myself. I can’t point any fingers. :)
You know what, if my health hadn’t taken me off my career path, I’d probably be one day closer to a heart attack or stroke, but I’d be having in a Hummer. :) Probably have a speed boat trailered to my Vet. But I’d be making about $120K MORE than I’m making now…..
Grrr and I’d be eligible for retirement in 5 years. Full retirement.. Now I”m getting pissed again. But there isn’t anyone to be mad at. My retirement would have been about $90,000 Oh man is that hard to swallow because what was done was illegal.