It would have been better for everyone if General Motors had just been left to file bankruptcy, but it's too late to rehash that decision now. GM has officially become Government Motors.
One (of many) scary things about this government takeover, is President Obama's extreme fuel economy standards which mandate all new vehicles average 35.5 miles per gallon by 2016.
What this means for the future of the auto industry is, only those companies that are successful selling the smallest cars (with the smallest engines) will be allowed to sell the larger vehicles on which they make a decent profit - pickup trucks, midsized sedans, luxury vehicles and sports cars.
As we all know here in the Motor City, GM produces many high-quality and market-competitive automobiles - the Chevy Malibu, the large Buick Lucerne and Cadillac DTS, as well as, trucks like the Chevy Avalanche, Silverado and GMC Sierra. And since we love muscle-cars around here, let's add the Chevy Camaro, Corvette and the 556-horsepower Cadillac CTS-V to the list as well.
Out of all 9 cars listed above, only the 4-cylinder Malibu gets as mush as 25 mpg. The rest of them average between 12-17 mpg (competitive with similar foreign brands). In other words ... the only way GM is likely to become profitable (meaning jobs), is to focus on doing what it does best - producing and selling midsize to large sedans, pickup trucks, SUVs and sports cars!
This little tid-bit of reality is more important today than it has ever been too! Why? Because "we the people," as in taxpayers, are now on the hook for any future GM losses.
It's unrealistic to believe that "we the people," can afford to scrap billions of dollars of equipment used producing GM's best cars, simply to please politicians and a handful of special interest groups. With our unemployment rate already around 15% (and climbing), "we the taxpayers" don't have a dime left to waste on "retooling" profitable machinery to produce unprofitable "green" cars.
In the real world (where we actually live), people are going to continue buying the car that best suits their needs, regardless of any government mandate. What are large families, for example, supposed to do? Buy 2 "green" cars and drive separately every time they take the family out to dinner? Of course not, people instead will be forced to buy their sedans, trucks, and SUVs from foreign competitors.
And the taxpayers and auto workers lose yet again.
But, but ... people want to buy "green" cars, or so the theory goes ... But that theory is easy for anyone to test. Auto sales data for June 2009 was just released by Autodata Corp. What are "we the people" buying?
Ford F-series outsells Toyota Camry in June:
Even as many automakers make a gradual transition to smaller, greener vehicles, Ford's F-series trucks continue to outsell the top-selling car in the U.S., the Toyota Camry, according to Autodata Corp.
Ford sold 35,915 F-series trucks in June this year, 7.4 percent less than they did in 2008. Toyota sold 26,394 Camry's, down 36.5 percent in that same span.
The Chevrolet Silverado was the third-best selling vehicle in June, although sales fell 27.8 percent from 2008.
The L.A. Times, also recently reported, Hybrid car sales go from 60 to 0 at breakneck speed:
The Ford and Honda hybrids due out this month are among dozens planned for the coming years as automakers try to meet new fuel-efficiency standards and please politicians overseeing the industry's multibillion-dollar bailout.
Unfortunately for the automakers, hybrids are a tough sell these days.
Americans have cut back on buying vehicles of all types as the economy continues its slide. But the slowdown has been particularly brutal for hybrids, which use electricity and gasoline as power sources. They were the industry's darling just last summer, but sales have collapsed as consumers refuse to pay a premium for a fuel-efficient vehicle now that the average price of a gallon of gasoline nationally has slipped below $2.
Reality however, make "grand plans" too difficult for politicians that wish to control our lives, er, uh, I mean, help "save the environment." So instead of manufacturing profitable American vehicles that sell, they will spend your money importing (that's right, importing) tiny, little vehicles with lawnmower engines. Just like the fine Italian-auto pictured below!
I can't help but wonder though ... do you have to stick your feet through the floor and kick like the Flintstones?
July 9th, 2009 at 8:27 am
The thing about the Lib Zombies however, is that nobody is stopping them from buying, manufacturing, and selling “green” cars. Nobody’s stopping them from producing “green” energy or “green” products of any kind. Seriously, go for it! If they can produce a product (of any kind) with the same quality as we have now, yet saves me money via energy savings, I’ll be the first in line to buy it!
But they can’t, er, don’t, because they don’t want to. They’re not interested in creativity, innovation, or science. Instead, the Lib Zombies are only interested in power, control and force. They don’t want the “burden” of creativity and innovation place upon themselves. Lib Zombies prefer using force, so that “other people” will do the work for them.
The lazy and uncreative always prefer tyranny! It absolves them of all responsibility.
July 9th, 2009 at 1:03 am
It is rather sad that both sides have politicized the automobile. Lib Zombies say, “I must buy green, because Obama says so.” Tow the line Republicans say, “I must buy big ass SUV to drive to country club to impress yuppy-puppies and then piss off hippies.”
Harley Earl must be spinning in his grave.
July 6th, 2009 at 12:22 pm
When I was a kid, I dreamed a flying car like on the Jetsons. Little did I know the government would push us back to the stone age like the Flintstones.
July 6th, 2009 at 10:12 am
If the government gets their way, the Flintstone mobile will be the fastest, most powerful car on the road!
July 6th, 2009 at 6:51 am
Yeah, but which Auto is going to manufacture the Flintstone mobile? I’d buy that for a dollar!
–Nick
http://www.RightMichigan.com
July 4th, 2009 at 8:22 pm
You don’t want a 94 hp Fiat? Our Governor thinks these vehicles are technologically advanced, and Engineers in Michigan are not capable of developing.
Here are a couple of cool videos:
http://motorcitytimes.com/mct/jeep-srt8-285-kmh-177-mph/
http://motorcitytimes.com/mct/after-a-long-week/
Steve