Tie auto bail out with flex fuel

Check out the Des Moines Register story about calls that any bail out of Detroit automakers should be tied to higher proportions of flex fuel vehicles in their ranges.

That is fine, but I think that it would be much better to tie a bail out with a marked increase in fuel efficiciency across the whole of the companies’ ranges: cars and trucks.  

, , , , , , , , ,

4 Responses to Tie auto bail out with flex fuel

  1. Pradeep 21 November, 2008 at 3:05 pm #

    I agree. I also think that it is not sustainable for the Big Three to be competitive, given their current cost models. They have to aggressively cut costs (labor, production) because in this recession, people are going to buy lesser number of cars and will not easy credit to buy them.

  2. DTownie 22 November, 2008 at 1:07 pm #

    I don’t know if this is the right time for pork. We should be thinking about what’s good for the economy as well as what would allow these companies to stay viable. They’ve been restructuring due to add regulations for years and this is part of the reason they were so weak at the time of the financial crisis.

  3. DTownie 23 November, 2008 at 10:27 am #

    I don’t know if this is the right time for pork. We should be thinking about what’s good for the economy as well as what would allow these companies to stay viable. They’ve been restructuring due to added regulations for years and this is part of the reason they were so weak at the time of the financial crisis.

  4. larry hagedon 23 November, 2008 at 4:49 pm #

    Nothing wrong with demanding lots of flex fuel vehuicles, except that the automakers are already committed to doing that.

    The bigger problem is the legacy costs of many years of labor unions demanding and getting fat pension and medical insurance benefits, benefits that are largely unfunded but have to be paid out from current revenues.

    That is in essence a Ponzi scheme and it just collapsed as do all Ponzi schemes.

    When you factor in the pension liabilities, I do not see any way other than thru taking bankruptcy and moving all production off shore that any of the Big Three can ever again turn a profit, no matter how much money we give them.

    I have no idea how the retired union members will ever collect their pension checks.

    larry

Leave a Reply