BIM: Why “bail” the Detroit Three?
Bill at Billll’s Idle Mind writes that we would be wasting money trying to bail out the Detroit Three automakers.
This is an exercise in futility, and the biggest beneficiary will be the UAW, … If the Big 2-1/2 get 25Bn, or about 4 times what they’re worth on the open market, they will keep producing unprofitable cars for a while longer.
.. Obama, however, claims to want to make carbon dioxide a “dangerous pollutant”, and make most of our transport run on alternative energy sources ASAP, which should put the big 2-1/2 out of business in a year or two anyway.
Why waste the money. Congress could just give itself 10% of the bailout money, and save the taxpayers the expense of the other 90%. At the end of the day, the effect is the same.
The UAW has historically contributed heavily to the Democratic party. So I can understand why the unions want a Democratic-led Congress helping the Detroit Three (GM, Chrysler, Ford) and ignore other world leading auto manufacturers that make cars in the US – Toyota, Subaru, Honda, etc. But I want my tax dollars (Congress’ attention) to address the entire auto industry. Not just the companies that the unions suck political contributions from.
I watched my “Bourne Identity” DVD again the other night. Right in the middle of driving away from the police chasing him with his little red, repaired sub-compact, you get a quick view of the steering wheel – with it’s Ford “Mini” logo. I want a car that is nimble in traffic. That I can drive down a flight of stairs (I promise I wouldn’t drive down stairs). That I can park in the average parking space with lots of room on each side. But Ford makes cars in Europe that they won’t make here in the US. Like the Mini.
The Detroit Three *choose* to make vehicles with high profit margins. They thrive when Americans buy heavier cars than they need.
What I would do?
Call the non-Detroit-Three automakers to tell Congress how to reduce the cost of making cars in the US. Maybe suggest capping union dues. Or simplify EPA and other federal reporting requirements, to collect all needed data in a simplified format and reporting schedule. And let *all* makers of cars in the US abide by the same rules.
Oh, and I would require prominent “Made in ” *wherever* for every single vehicle assembled outside the US, or containing so many foreign parts that the vehicle isn’t reported to the EPA for “fleet mileage” purposes. And impose a stiff excise tariff on Detroit Three vehicles that aren’t “American Made”. Let’s all sit back and watch the UAW promote “Buy American” for trucks built in Mexico.
I would sure-as-shootin’ disallow any tax writeoff’s for vehicles sold below cost or suggested retail price at the end of the model year. That tax dodge *has* to be closed down.
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