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September 10, 2012

Comments

Sorry but Romney never said to let them go under. His statement was that they should go through the bankruptcy process which they did with a lose of tax payers and employees money. If the government had stayed out of it the lose would have been to the employees and not included the tax payers.

Blogger Brian wrote: "When our three-year lease is up in June 2015 we're looking forward to getting a second generation "Volt,"

--Wouldn't it be more environmental to keep the old one rather than causing another to be built and the resulting contribution to carbon emissions, a diseased planet and coastal flooding?

My friend finally put his '73 Suburban up on blocks. He has steadfastly refused to get sucked into the 'buy a new car every few years merry-go-round'. But now he can't afford the gas. His new "car"? A 1978 50cc Honda scooter...up to 150 mpg.

tucson, you make a reasonable point. I guess the way we see it, someone else who wants a Volt, and is happy with a lower cost used Volt, will take our car. So it isn't as if our current Volt will be thrown on the trash heap and wasted. It will continue to be used, just as your friend's '73 Suburban was for a long time.

Dane M, do some more research on the state of the auto industry after the Bush-caused financial meltdown. Here's a place to start, an article by the lead adviser to the task force that saved the American auto industry:
http://www.nytimes.com/2012/02/24/opinion/delusions-about-the-detroit-bailout.html

He knows what would have happened if Romney had gotten his way and GM plus Chrysler went bankrupt. The auto industry would have died. So I stand by my statement. Romney wanted the auto industry to die, because that's what would have happened if his approach had been implemented.

Here's an excerpt:
---------------------
As a presidential aspirant, Mr. Romney evidently hasn’t felt a need to be consistent or specific as to what should have been done to address the collapse of the auto industry starting in late 2008. But the gist is that the government should have stayed on the sidelines and allowed the companies to go through what he calls “managed bankruptcies,” financed by private capital.

That sounds like a wonderfully sensible approach — except that it’s utter fantasy. In late 2008 and early 2009, when G.M. and Chrysler had exhausted their liquidity, every scrap of private capital had fled to the sidelines.

I know this because the administration’s auto task force, for which I was the lead adviser, spoke diligently to all conceivable providers of funds, and not one had the slightest interest in financing those companies on any terms. If Mr. Romney disagrees, he should come forward with specific names of willing investors in place of empty rhetoric. I predict that he won’t be able to, because there aren’t any.

Without government financing — initiated by President George W. Bush in December 2008 — the two companies would not have been able to pursue Chapter 11 reorganization. Instead they would have been forced to cease production, close their doors and lay off virtually all workers once their coffers ran dry.

Those shutdowns would have reverberated through the entire auto sector, causing innumerable suppliers almost immediately to stop operating too.

Despite the relative health of its balance sheet, even Ford would have been forced to close temporarily, because critical parts would have become unavailable. And service providers — trucking companies, restaurants and more — would have been severely affected.

More than a million jobs would have been lost, at least for a time. Michigan and the entire industrial Midwest would have been devastated.

Brian,
By purchasing a new Volt you are increasing demand and this results in more cars being built. The byproducts of such manufacture cause a "diseased planet and coastal flooding". You are making Romney and Republicans very happy by buying all these cars!!

Brian,
You stated: "Romney wanted the auto industry to die, because that's what would have happened if his approach had been implemented."

--Why would Romney want the auto industry to die? Doesn't it contribute to a "diseased planet and coastal flooding".

These Republicans are a bad lot. Gotta get rid of 'em. I mean wanting the auto industry to die AND a "diseased planet and coastal flooding"? That's worse than Stalin, Hitler, Idi Amin, Ghengis Khan, George Bush, and Kim Jong Mentally Il all rolled into one.

The rhetoric in this campaign is sick. It comes down to this:

Do we want, (A) a government centered heavy entitlement society or, (B) a market centered society that relies on initiative, opportunity and free enterprise to address the problems and issues of our time.

The Prius saw a lot of the same type of bogus cost arguments 15 years ago. It took 4 years for it to become profitable and begin to recoup the development costs. Now 15 years later they've sold 4M units.

But this is 15 years later and the electric/hybrid landscape has changed. Where in the past the decision to purchase an electric/hybrid was as much a social/political statement as anything, it is increasingly becoming a practical economic decision. In that light and given the price point and configuration of the Volt, its hard to see how its going to be much of a success. That doesn't mean it will be a huge loser, but they'll have to do 100,000 units to get back to even. And in the meantime its going to have to compete with a lot of cheaper more practical options including GM's own light hybrid e-assist models. The payback period for the Volt is just not going to make practical sense for most consumers. A regular hybrid will be much more attractive.

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