Democratic presidential hopeful Barack Obama's love – hate relationship with Detroit automakers– they're evil, foot-dragging SUV-builders who need federal green initiatives (i.e. taxpayer money) to protect votes jobs– continues apace. Yesterday, Obama visited The Wolverine State to promise he'd meet with American automakers– unlike George Bush, who didn't have a sit-down with The Big 2.8's well-compensated execs until the sixth year of his presidency. Actually, it was his third year. But, as The Detroit News reports, "Late Monday, Obama's campaign acknowledged the misstatement as an 'unintentional oversight.' But they said it didn't take away from Obama's broader point. 'When the auto industry needed help the most, President Bush delayed for months meeting with them and now American workers are feeling the devastating effects of record layoffs and job losses,' said Obama spokeswoman Amy Brundage. Yes, well, one can only imagine how that meeting would go. "You are bad, bad people. Now take these billion dollar handouts and go!" Make no mistake, the former Chrysler 300C driver (yes it's got a Hemi) is ready to ask "what's in YOUR wallet?" when it comes to helping Detroit: "Obama today reiterated in his speech his pledge to spend $150 billion over 10 years to help create 5 million jobs in the 'green' sector, including helping automakers retool older plants to make plug-in electric vehicles."
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We don’t needs $150 billion in hand outs. We need sensible laws that encourage green energy development. If there’s money to be made in a stable regulatory environment, business will invest and solve the problem for us.
How about tilting the student loan program so it favors engineering and science degrees instead of degrees in XXXX studies, law, and basket weaving? I could go for that.
D2.8 are in this mess b/c of inept and obtuse management which is killing the companies from the top down coupled with an environment of greedy workers whose collective bargaining are killing the companies from the bottom up. I do not want my tax dollars bailing such corrupt enterprises and trying to keep business as usual. Bankruptcy is the best avenue for them – it will do a much better job of flushing out the cancer from both ends – bailing them out use reinforces the paradigm they’ve been following and will do nothing except make them feel they don’t need to change b/c when the going gets rough Uncle Sam will always pickup their bill.
http://en.wikipedia.org/wiki/Partnership_for_a_New_Generation_of_Vehicles
There you go. Gov’t funding in action. And we STILL can’t buy 40 mpg Detroit vehicles…
Nope, I don’t see much value in my tax dollars spent on Detroit.
If Detroit REALLY felt like they were threatened by the current fuel prices they would roll out some efficient vehicles really fast – like a Aveo with a GOOD (Honda quality) engine or a hybrid Aveo. Nope they just keep tap dancing until OPEC raises production or the gov’t steps in with some sort of fuel economy rule that lets Americans keep their gas hogs – like the 55 mph speed limit which will reappear if the prices stay high long enough.
Meanwhile I hope high fuel prices keep hammering Detroit until they “wake up” and get with the program.
I guess this is all just talking out my *** b/c as soon as our income catches up with prices or if prices drop folks will go right back to driving their lumbering SUVs. The average consumer is as much a part of the problem as Detroit.
Talking to a neice-in-law this weekend who spontaneously wanted to tell me what her MPG was on her SUV. She quickly admitted that her mileage would be better if she would accelerate slower but “she just couldn’t do that”…
The whole conversation seemed like a confessional. They are driving an SUV and a full sized pickup and prices are killing them to the tune of $220 a week for fuel. Don’t know how they are doing it really.
She did mention that the truck had become a commuter vehicle only. No weekend mileage at all. That cut their weekly consumption to $80 a week on that truck. Don’t know WHY they would spend that kind of money.
For us that represents a week of fuel for two vehicles or taking the $220 per week figure, I could be making the payments on a decent house or two nice used cars or investing it.
Unless management is overhauled and compensation packages are reformed, a handout will solve very few of Detroit’s problems.
It’s not even my taxes, but I’d feel annoyed for hardworking Americans everywhere to see Rick Wagoner, Robert Nardelli, Mark Fields, Mark LaNeve, Bob Lutz, Fritz Henderson and William Ford Jr paying themselves more…….with taxpayers’ money!
Katie is right, w/o management overhaul nothing will change. Alan can stay if he takes a drastic pay cut. The others must go.
This foolishness from Obama makes McCain look absolutely Keynesian.
For all the Obama supporters on TTAC, this should be THE wake up call for you. Obama has his head in the sand. He wants to reward D3’s bad behavior and spend OUR good money after bad.
Hey Barak, why not $150b for small business to install lighting timers in offices and energy efficient lights in all homes? You know, that energy policy you keep referencing. Why not tax credits to the END CONSUMERS… you know, the ones whose pockets you’ll be picking if we’re blind enough to elect you.
What a fool this guy is. I sure hope the electorate has enough brain cells to do the calculus for where the money for programs like this will come from. I doubt it though.
Next on Obama’s docket: Let’s bring back Wolworth and Packard!!! Hey, let’s give Tesla $10b to make 3 more cars!
This is just Obama’s way to kiss and make up for his earlier statements about Detroit and SUV era, and also to get exposure in a state he hasn’t campaigned in in over a year. (Pardon my English on that last sentence…)
I think that the current fuel issue IS affecting Detroit, if you consider the actions of the last couple of weeks; i.e., GM closing truck plants, and increasing production at small car plants, and Ford taking similar actions.
To quote Busbodger: “The average consumer is as much a part of the problem as Detroit.” I’m glad to see that someone else is awake. We (as a family) started moving to smaller cars several years ago (and other conservation methods), long before any of the intervening issues occured, i.e., Hurricanes, gas price spikes, etc.
We did this mostly because of a sense of stewardship of the planet, and the need to simplify our lives, not because we have such fantastic foresight. If I did, I surely would be living much differently than I am…
However, if you shop the Detroit makers carefully, you can find something quite economical and livable. You just have to look around.
Yes, the 2.8 can use help with sustainability. But I’m not talking about the environment.
Who’s to say that any money thrown at them is actually going to development of “green” vehicles and manufacturing processes? They need that money just to stay alive!
I sure hope the electorate has enough brain cells to do the calculus for where the money for programs like this will come from. I doubt it though.
The money comes from the government (i.e. I have very little hope that a majority of the electorate will be able to figure out where it really comes from and will care). Obama’s got “wonderful” ideas about how he’s going to lop off the top teir of wealth in our society and redistribute it to those who “deserve” it. Of course the top teir will take their money elsewhere or lobby (bribe government officials) for loopholes that protect their money and the brunt of the cost will be borne by the middle income earners (what few are left) and the country as a whole (in the form of inflation due to ever increasing government borrowing). The big problem that I have is that I can’t trust McCain to do any better.
Actually, it was his third year. But, as The Detroit News reports, “Late Monday, Obama’s campaign acknowledged the misstatement as an ‘unintentional oversight.’ But they said it didn’t take away from Obama’s broader point. ‘When the auto industry needed help the most, President Bush delayed for months meeting with them and now American workers are feeling the devastating effects of record layoffs and job losses,’ said Obama spokeswoman Amy Brundage.
Not his first “misstatement” and let’s not let the facts get in the way of his wonderful intentions. And, what if President Bush had met with the Detroit automakers in 2001, the first year of his presidency? Unless he was willing to give billions of dollars to them-though I suppose that would have been a distinct possibility as he seems to like giving away billions of dollars-how many jobs would that meeting have saved?
well, according to the never-wrong interwebs, there are 117 million taxpayers in the US. A $150b giveaway costs each taxpayer almost $1300 on average.
sooooo…if I purchase a domestic auto, i’ve pissed away thousands of dollars; if i don’t buy a domestic auto, i’ve pissed away thousands of dollars. sounds about right. Obama 2008! USA! USA! USA!
$150B is a lot of frakking money, My gods!! But most of that will NOT go to the D2.1, or whoever is left making cars in this country within the next few years. Still if it comes at the expense of the subsidies given to Big Oil or to companies who get tax breaks for shipping jobs to 12 year old girls in Micronesia, I’m all for it.
marc :
June 17th, 2008 at 12:30 pm
$150B is a lot of frakking money, My gods!! But most of that will NOT go to the D2.1, or whoever is left making cars in this country within the next few years. Still if it comes at the expense of the subsidies given to Big Oil or to companies who get tax breaks for shipping jobs to 12 year old girls in Micronesia, I’m all for it.
In other words, just so long as you can convince me that it’s not my money you are taking.
“In other words, just so long as you can convince me that it’s not my money you are taking.”
Hey, I give till it hurts, and boy does it hurt. So yeah, take it from somewhere else.
Qwerty,
As a regretful holder of a basketweaving degree, I agree with your statement whole heartedly. Had my scholarships been contingent on a degree that would be a better investment for the country – and me – I would have likely gone a different route and been more successful. I could have had all the same jobs that I did have, but likely would have been able to do them even better, or I would have more likely gotten to take some of the even better opportunities that were denied me due to my degree.
That being said, the joy of winning a disagreement with a guy who did get the degree, and can do the math is awfully sweet even if a bit bitter.
marc:
Another option would be to take less and give out less.
Of course nobody will vote for that as most people assume that the money will come from somebody else and be given to them or possibly somebody else to whom they want the money to be given.
Obama’s plan for the auto industry is one aspect of his overall plan to reign in energy costs, reduce ppollution, and support a green economy.
I challenge anyone to post John McCain’s well thought out ideas for us to analyze.
From the Obama website:
“Deploy Cellulosic Ethanol: Obama will invest federal resources, including tax incentives, cash prizes and government contracts into developing the most promising technologies with the goal of getting the first two billion gallons of cellulosic ethanol into the system by 2013.
Expand Locally-Owned Biofuel Refineries: Less than 10 percent of new ethanol production today is from farmer-owned refineries. New ethanol refineries help jumpstart rural economies. Obama will create a number of incentives for local communities to invest in their biofuels refineries.
Establish a National Low Carbon Fuel Standard: Barack Obama will establish a National Low Carbon Fuel Standard to speed the introduction of low-carbon non-petroleum fuels. The standard requires fuel suppliers to reduce the carbon their fuel emits by 10 percent by 2020.
Increase Renewable Fuel Standard: Obama will require 36 billion gallons of renewable fuels to be included in the fuel supply by 2022 and will increase that to at least 60 billion gallons of advanced biofuels like cellulosic ethanol by 2030.
Set America on Path to Oil Independence: Obama’s plan will reduce oil consumption by at least 35 percent, or 10 million barrels per day, by 2030. This will more than offset the equivalent of the oil we would import from OPEC nations by 2030.
Increase Fuel Economy Standards: Obama will double fuel economy standards within 18 years. His plan will provide retooling tax credits and loan guarantees for domestic auto plants and parts manufacturers, so that they can build new fuel-efficient cars rather than overseas companies. Obama will also invest in advanced vehicle technology such as advanced lightweight materials and new engines.”
carlos,
Couple questions about the “well thought out” stuff.
According to our Constitution, Senator Obama should be proposing much of that now in the Senate, because if he becomes President, he will then have to ASK Congress to fulfill much of his promises. Has he introduced ANY of this as legislation?
“Set America on Path to Oil Independence: Obama’s plan will reduce oil consumption by at least 35 percent, or 10 million barrels per day, by 2030. This will more than offset the equivalent of the oil we would import from OPEC nations by 2030.”
This sounds like a nice wish. Exactly how does he propose to do this? This is a desired result, not a plan. I suspect he is hiding how he wants to do this on purpose? It’s like the general saying their plan is destroy the enemy, really not inspiring.
The whole last few lines are more of same. No real solutions, only declarations of what he wants to see happen. If you think that is well thought out, I think your foolish. He is pandering to the ignorant.
So, carlos.negros, how long have you been working on the Obama campaign anyway?
Obama is a a character straight out of “Atlas Shrugged”.
Maybe, just maybe, McCain figures that it’s not the government’s job to try to manage the auto companies.