Showing posts with label Ford. Show all posts
Showing posts with label Ford. Show all posts

Wednesday, August 5, 2009

The Wheels Turn?

There is a slight buzz in the air about a program that the Obama Administration likes and pushed for may actually be working.

Yes, it is the Cars 4 Clunkers program that seems to have Washington, D.C. and the liberal media all abuzz.

There are a few problems with this however. But first, lets look at a couple of the positives. Yes there are some positives. But don't get me wrong, the positives in no way make this program worth the cash being spent on it. Read "cash" as tax dollars of the American people.

It looks like a lot of older SUV and Mini-vans have been taken off the road. Yes those vehicles that environmentalist nut jobs hated have been scrapped in large numbers. It seems that people have bought smaller cars as replacements for the larger gas guzzlers.

That is good in two ways. It does reduce pollution (but don't read that as me capitulating to the enviro-leftist on global warming) and people will save a lot of money by getting better gas mileage on the American roadway.

However, if you notice the top 10 selling models, most of them are Japanese models where as most of the top 10 traded and scrapped models were American...Ford to be exact.

These smaller cars often mean less safe. Yes it is true, smaller cars are less safe than larger cars and SUV's and trucks.

The other issue is that this $1 billion boondoggle was actually thought to be of help to the government owned GM and Chrysler. It seems that Ford and Toyota and Honda are the big winners in this with about 7 of the top ten models being non US manufacturer vehicles.

Now sure, there is a nice bump in sales for the auto dealers and manufacturers while this program is in existence, and the Obama Administration is touting it on high. But what happens when the cash for this program runs out? Will Americans all of a sudden begin buying new cars in droves? What about those who bought the new cars? Will they be able to keep up with their car payments?

You see, whenever you have a government give away, it has to continue forever in order for the affects to last. Otherwise it is just an expensive blip or up-tick that is sure to drop back to earth once the program dies.

So watch out America, this may be another one of those temporary government programs that last forever.

Wednesday, December 10, 2008

The Auto Bailout is Strike Against Liberty

A Car Czar? Are you kidding me? Our government is actually holding the auto industry for ransom. They are telling them that if they want bailout money, they will have to let the government run them basically. Talk about nationalizing an entire industry.

This car czar as they call it, would get to approve or deny anything over $25 million in spending. That's right. The CEO's and Board of Directors would have to ask a government appointed official for permission before they spent a dime more than $25 million on anything.

Now understand this, it can cost a few billion dollars to develop a brand new vehcle. Yes you read that right. Billion. Developing cars to the specs and regulations that the government has mandated to begin with is not cheap. So if the car company wants to develop a new car, they will have to get the permission of the government first.

Now lets break this down. Car companies usually do extensive research in to what they think the public wants and is willing to buy. Obviously the big 3 US auto makers have been getting poor research of late for some kinds of cars and trucks but they still do their own research and in effect, the market pretty much dictates what Detroit makes.

This car czar will not have that information nor will he have to nor will he care. He can basically tell a car company you will have to develop and make this kind of car even if the public doesn't want to buy it. Now isn't that the reason Detroit is in trouble now? They are making too many cars that the buying public does not want to buy?

How about the fact that if the car czar doesn't like the restructuring of the car company, he can revoke their loans and funding and force the company into bankruptcy. How much power are we willing to give one person? Do you understand how many jobs are on the line? We are talking a few million between all three manufacturers. The auto industry employs millions of people and when a major car company has a sniffle, then the rest of the industry could catch a cold. Now you let these companies catch a cold and you got the makings of a flew epidemic in our nation. And Congress wants one man to see to the health of all of this? An unelected man at that.

Plus the fact that Nancy and the gang wanted to make all these loans conditional. The big three would have to drop their court battles over CA and other states emissions standards and such. So you see, the very people who brought us this financial debacle now wish to hold the country and its many private businesses hostage for their own gain.

Oh, don't worry, Nancy and the gang have their eye on the foreign car companies in our country too. They can't figure it out yet but they want to force those companies to somehow increase their labor cost to equal that of the Detroit three. Instead of looking for ways to help Detroit lower their cost, they want to raise the cost for others. There goes the incentive for innovation.

Congress is reaching far outside the limits of the Constitution and it affects me and you directly. You thought that the government would never be able to tell you what to drive didn't you? Well don't look now but our government is poised to be able to do just that. The main point is, will you want to pay for and drive what some in Congress want you to? I know I sure as hell don't and no I don't own an SUV.

But damn it all, this is the USA! If I want one and can afford one, I should be able to get one. Period.