mahony

Obama Insists Cars Improve Fuel Efficiency by 40%

35 MPG? That's a fleet average. Detroit will come out with nothing new; they'll just roll out more cars at 36 MPG to offset the other crap that still gets 28 MPG (same strategy it has had since the 70's).

Sure they'll add a few hybrid SUV's to boost the numbers there from 17MPG to 19 MPG, but that is not real change. Where are the cars that get 45+ (you know the ones they already sell in Europe)?

Nationalizing Detroit

Newell:

Sounds like Ivory Tower stuff. Talk about the law of unintended consequences! Car welfare! Who would insure this crap! what constitues "able to afford"? This has so much potential for fraud it's amazing.

Auto Industry Rescue Delays the Inevitable

Thanks for writing about the true problem. GM's turnaorund plan is based on the Volt, which they are going to have to sell well below cost...How exactly will that make them profitable? The loan and business as usual will mean that GM will just sink long before they can ever make money on the Volt...even if gas is $5 a gallon.

I find it hard to believe that a company that sells 150,000 cars per month at $20k a pop cannot turn a profit. A monkey with a typewriter could run GM better than it currently is. The proof is right on Lutz's lips when he says "it's not the CEO's fault...he's done a good job and the mean economy did all of this bad stuff". The Captain of the ship is responsible for the ship. And GM has been sinking for years, not just this year. Reference the Seeking Alpha Article (I can't remember the author) who said that after analyzing the Big 3 many years ago that they were technically bankrupt and that you should run screaming from their bonds (never mind there stock). The fact that Lutz feels as he does is proof positive that GM management does not get it.

Nationalization and a car czar is a joke....who is the drug czar again? Ask Russians how those state built cars are working out. If car sales are falling, nationalizing the industry isn't going to get Americans to buy more cars....it just props up a weak business model at the taxpayer expense. I feel for people who lose jobs, but those jobs are going away whether GM goes into bankruptcy or not (actually bankruptcy at least has the chance to save more jobs if GM can emerge with good management).