Let’s say that Congress refuses to give some of that bailout money to Detroit—does that effectively kill off electric cars like the Chevy Volt? That depends on who you’re talking to.
It’s like this (yes, that phrase is a new crutch of mine): The big three auto makers are screwed. People have no money, nor can they borrow, to buy cars, and Detroit hasn’t been a decent car, much to the delight of the Japanese, since [insert your last favorite American-made car here—the Model T, maybe?]. They focused on making gas guzzling SUVs and trucks, what with their higher profit margins, because, at the time, gas was cheap. And while gas prices have dropped dramiatically in recent weeks, it’s seen as a temporary drop; if you think demand is going to drop in the years to come, especially with the emerging markets of China and India finally getting bitten by the car bug, you’re mistaken.
Combine the cars-ain’t-selling situation with the broader “we’ll all be on bread lines soon” economy and you can see what a perilous position Detroit is in. The question then becomes, do you bail them out or not? If you don’t you risk putting the millions of employees out on the street, and millions of angry, unemployed workers roaming around Michigan (and everywhere Detroit has a presence) doesn’t do anybody any good. If you do you’re seen as “rewarding” Detroit for its bad habits, that is, producing piece-of-garbage cars that nobody wants to buy.
Which brings us to the main topic, the fate of electric cars. By many accounts, Chevy has essentially gambled its future on the Volt being a success. But, if the company doesn’t get any of that sweet, sweet bailout money—it’s not like Detroit is asking for more money, but merely a percentage of the already set aside $700 billion—the Volt may have to go, or at the very least be delayed. Chevy (and co.) can’t continue to develop new automotive technologies if there’s no money to pay the bills.
Now, some “green” activists are suggesting that, sure, give them the money, but force them to do away with SUVs and other gas guzzlers and invest a good deal of that money into hybrids, batteries, electricity and other alternative energies. Make Detroit change its behavior, the behavior that got it into this mess in the first place.
If they went bankrupt someone would buy the plants, hire new workers and build the electric cars.
People are clamoring that there is not enough clean energy available. At nigh the cars can be charged, Yes the coal buring or gas burning plants will increase CO2 but then there will be a real reason to start nuclear plant construction.
I can imagine Detroit now after the American Auto industry collapses. I’m thinking something like one of the Resident Evil movies.
“…producing piece-of-garbage cars that nobody wants to buy.”
I have to disagree with that viewpoint. I think that Detroit has made some reasonably good vehicles in the last decade or so (albeit there have been some stinkers too). Now, I would have wholeheartedly agreed with that statement in the 70’s and 80’s but they did learn some things about quality after getting smoked by the Japanese, plus from some of the European companies they invested in.
Now that is aside from poor management decisions, and investing in product lines such as the SUV’s mentioned or the really big kicker is the pinch that all of the UAW concessions over the years has put them in.
Regardless, it’s not pretty…
Detroit has got a real chance to bring life back to the auto industry by producing affordable, reliable electric cars that people want to actually buy. Seriously, I would buy this car for $25G not over $100.
Add some tax incentives from the government and vehicle import tariffs and you have the makings of a real bailout for middle America. I really hope to see some progress after the 8 years of torture this economy has weathered.
You elect a socialist who wants to punish business owners and then are dumb enough to think that he will somehow be GOOD for the economy?
They want more money? The Detroit auto industry is a raging fire. Throwing more cash on the fire will only feed the flames. Deny a fire fuel and the fire will go.
If I go under financially, Ford is not going to write me a check and GM is not going to give me a “hardship” discount. I won’t be driving a new Chevy, I’ll be walking in old shoes.
I will learn from my mistakes and move on. Or I will starve. That is the way things work.
First of all, if you want to save the US auto industry, remove all of the asinine restrictions put on them. Stop mandating that their cars be “fuel efficient” and stop taxing them to death. Liberals just don’t understand the simple fact that taxing the hell out of business owners isn’t exactly conducive to a healthy economy.
Dear GM, Ford and Chrysler, why do you not trade in your corporate jets in for Hondas. You still do not get it do you? All you can think of is putting your garbage out in the street, then gathering up the money, money, money. As they used to say on Laugh in,: Sock it to me! Bye, Bye big (thieves) Three. Been nice to have known you. Maybe you can get a job prepping Hondas.
But what about the law of unintended consequences?
If I drive 40 miles a day and recharge at night how much will my electric bill go up? Since in California they charge sales tax on gasoline they will have to start charging sales tax on electricity. Likewise for the feds. They are going to need their highway taxes. So who can explain the cost benefit to going electric.
Today a service station owner might sell an average of 12 gallons of gas per transaction, if that drops to 5 gallons he will either have to charge a lot more for gas or go out of business. If he does you may need the 40 miles to find a service station to buy your 5 gallons of gas. So if the service station owner goes out of business he can get another business, recycling batteries maybe. I would bet that the auto makers will have a lock on that business. This also means that the generation it will take to turnover the domestic fleet the older cars will be paying through the nose for fuel. The greens will say “good, an incentive to buy an electric vehicle.” The poor will say “I can’t afford to buy one.”
In my opinion this will only work if electricity can be generated extremely cheaply, cleanly and quickly. The greens will say “Not so fast we need to study the environment for the next 10 years.”
I am sure that I am not the only person thinking about this but I have zero confidence in Washington. They never think beyond the next election.
Unless they fast track the building of alternative fuel power plants in parallel with electric car development it is doomed to failure.
Why wait? Why not build your own electric car! A lot of information on how to build an electric car, including cost cutting measures and design tips, can be found on Frank Didik’s website at: http://www.didik.com/didik_ev.htm. In particular, check out the section entitled “How to Build an Electric Car”, “Didik Turtle or How to build a two person electric vehicle in 14 hours” and “Critical and accurate assessment of electric vehicles”. He is the first to truly mention the pro’s and con’s of electric cars and an excellent history directory of electric cars, starting in the 1800’s. Many years ago, Didik was the found of the Electric Car Society.
Why wait for an electric car? Why not build your own?!! A lot of information on how to build an electric car, including cost cutting measures and design tips, can be found on Frank Didik’s website at: http://www.didik.com/didik_ev.htm. In particular, check out the section entitled “How to Build an Electric Car”, “Didik Turtle or How to build a two person electric vehicle in 14 hours” and “Critical and accurate assessment of electric vehicles”. He is the first to truly mention the pro’s and con’s of electric cars and an excellent history directory of electric cars, starting in the 1800’s. Many years ago, Didik was the found of the Electric Car Society.
If they give Detroit all the money the car companies should invest in diesel powered cars and/or diesel powered hybrids… Yes, diesel is a little more expensive BUT it get on average 35% better gas milage than a gas making diesel cheaper to run per mile. its not the mpg that counts its the mpd (miles per dollar) that does.