Byallmeans

As Gas Prices Fall, Fuel Economy Loses Importance to Auto Shoppers

I meant Unmitigated Disaster, CAFE is.

As Gas Prices Fall, Fuel Economy Loses Importance to Auto Shoppers

Item one on this list is exactly why CAFE is an unmitigated financially for automakers. Until there is Regulated fuel pricing in this country to replace CAFE their is no financial business model for a 40,000 thousand dollar 60 MPG vehicle period. They have to be deeply discounted to sell and anything less than 4.)) dollar a gallon fuel makes them a defunct business model. This is a direct looking view into how US government policy has not only contributed to losses at the domestic automakers but the foreign ones to. Ms Pelosi, When are you and the new Tree hugging Mr Waxman going to wake up and develop the political fortitude to scrap CAFE in favor of regulated fuel pricing. This is exactly why the automakers voth Domestic and Foreign alike have resisted CAFE. The Domestics have been railed for resisting CAFE but in the last round challenging California's new standard Honda, Toyota and Kia were front center and present in the fight.
Ms Pelosi you and your ilk in washington have done no better with E85 infrastructure. The manufacturers stepped up and built the vehicles and the only thing you accompolished was subsidising the farmers into making E85 fuels with no infrastructure plan. Where is your PLAN!!! Stop being hypocritical and admit you have been culpable.

Say No to the Auto Industry Beggars

By the way Mr West your a canadian as is apparent from your website. Now if you referring in your article to a canadian auto industry support loan thats your business but you should stipulate so. If your referring to the USA then STFU. You have no business interjecting yourself into a U.S. Matter. This is the problem with the web and comments on the web. You never know what the source is. I have a serious issue with foreign entities interjecting themselves into U.S matters outside of foreign affairs and its a rampant issue. American people, you need to always question the source of opinoins on the web concerning matters in your own country. Other countries have a vested intrest in damaging the U.S economy to advance their own means and country. China for one has a massive policy of trying to skew US pilicies and politics to advance their own intrests only to do so annoymously under the guise that your reading the opinion of a U.S. Citizen.

And by the way Mr West gold will take a serious hit in the evet of a US domestic automobile collapse from the gold used for module and harness connectors to the reduction in microprocessor volume and the gold used to plate the pins on them. Not to mention the massive decline that would occur in jewelry sales due to an exxessive fall in personal comsumer spending.

Say No to the Auto Industry Beggars

I think the plan the government plans to put forward to clean up the domestic auto industry. Specifically the financial burdens they have been trying to unwind for the last ten years in an orderly fashion but were unable to do so because of legal ramifications is the right thing to do not only for the industry but for the country as a whole. It will provide the least damage to the country economically while maintaining its manufacturing capability. James if you can't see that you are a certifiable Moron of the highest degree.

Say No to the Auto Industry Beggars

James
There is absolutly nothing natural about thios economic contraction you idiot. Unless letting the thugs of wall street act like like drunk gamblers in vegas natural economics. Note to self: Remind me to never subscribe to this individuals market finance newsletter. Given that statement he made I would be better off consulting Ronald Mcdonald.
Just how short the market are youat this time? Inquiring minds want to know.

Detroit's Big Three and the Democrats' Economic Illiteracy

Here you go. Honda is number 5 on the list of having the most abominal health and safety record.


users.rcn.com/jbarab/F...

Detroit's Big Three and the Democrats' Economic Illiteracy

lazaris
actually no. The transplants drop kick their workers for dubious offenses just before they are elgiable to retire and thereby negate their entitlements. Now there havent been many retirees from transplants but there have been enough side stories to indicate that what I have said is true. Just like Honda made the OSHA dirty dozen list for working their US workers to death (literally) Just go google it (OSHA dirty dozen)

Detroit's Big Three and the Democrats' Economic Illiteracy

Lets take Gm for example.
GM makes cars in china and Europe just to name 2 of 35 countries. GM is profitable in those countries. So at this point we can't blame the management. Apparently they can run a profitable auto venture.

The Foreign transplants can make cars here and make a profit using US workers so its not the U.S. workers per se.

So whats left. The UAW and legacy.

Automakers: Bailout Arguments, Pro and Con

Also if you say GM does not build cars people like just look right here.
All of GM's brands are above averagew while many touted foreign brands are well below. This is a new survey as of this month.

www.jdpower.com/corpor...

Automakers: Bailout Arguments, Pro and Con

JP
won't happen until the government gets its head out of its behind and fixes fuel prices at a minimum 3.50 to 4.00 That is the threshold where the public really gets behind buying a green or a smaller car. Without this its pointless as people wont buy. Lets get real here. The Toyota prius sold like crazy in the run up to 4.00 fuel. then it stalled or flatlined in sales voulume in july/august. And the total impact of the Prius nationwide was only 2% of the market. They had volume issues at first but they adjusted for it by early summer. The bottom line is that americans talk a good line about wanting hybrids but the reality is less than 2% of the cars sold in the USA last year were Prius hybrids. And thats at 4 dollars.

So wheres the disconnect? Are the green huggers screaming louder than everyone else on the web making it look like everyone just has to have one now. Or is everyone just chanting a good line but wouldn't be caught dead in one even at 4.00 fuel. Maybe it takes 5 or 6 or 7 or 9 like most of the EU for people stop talking a good line and get real about it. When the public's ready to get real the automakers will get real.

Automakers: Bailout Arguments, Pro and Con

Robert you'll be so busy picking up the dead carcases you won't have time to utter the words Moral Hazard.

Automakers: Bailout Arguments, Pro and Con

That means finished goods, not raw commodities in my previous post

Automakers: Bailout Arguments, Pro and Con

This is the real deal folks so you better batten down the hatches. If the 3 domestics stop buying alumunium from alcoa, steel from the major steel producers, glass and rubber from companies like goodyear the prices on commodities will skyrocket. They have to. The major 97 suppliers provide parts not just to the auto industry (but the auto industry is the major buyer) but to Boeing, All the Import transplants, The commercial food industry, etc etc. They will all topple into C11 also and the industry will not restart in any earnest fashion for several years if ever.
Be carefull what you wish for. So lets get it on.

Automakers: Bailout Arguments, Pro and Con

The government is culpable in this.
CAFE which the public clamors for and which our government has readily legislated and Safety Regs which is another government agency are not mutually exclusive.

All automakers both domestic and foreign alike have made great strides in the last few years with regards to engine effeciency only to be placated by the fact that every year the government legislates added vehicle mass due to increased safety regs.

Did you know that since the year 2000 that safety regs have added anywhere from 1000 to 2000 LBS of mass to our vehicles (add it up, 2 front air bags, seat or curtain bags, a multitude of structural crash beams, roof structure increases, bigger brakes and suspension parts to compensate for the weight.) All of this has produced an almost zero sum game on vehicle effeciencies made out of the latest engine technology. Take the mass out of a 2008 full size truck that was added by increased safety regs just since 2000 and the fuel mileage will increase 25%.

The government wants to regulate CAFE, "So be it" However it is not possible to build a long term strategy when you have a moving target. The only thing increases in cafe without fuel cost management will do is to force companies to produce expensive fuel effecient cars that they will have to sell at a loss because people won't buy them if fuel is 2 dollars. Hence a significant contribution to them going broke. Until the government increases the price of fuel to 4.00 and acts as a clearing house to the fuel stations. (ie the government buys the fuel for the market rate from the refiners and distributes it at a fixed cost to stations. The overage going directly to the states that purchased the fuel, to support infrastructure rebuilding. Can you say europe) These businesses cannot and will not be able to create a profitable business structure long term.

The government has also failed miserably at the rollout of alternative fuels. GM began producing E85 engine vehicles in earnest around the 2000 time frame as the government looked the other way. That development cost a pretty penny at the time. Only after Hurricane K did our government get an E85 Hard on so to speak and all the sudden subsidized corn farmers to produce ethanol. Once again the manufacturers especially the domestics ramped up E85 vehicles on the governments promise. The government once again failed miserably and never mandated that E85 be forced into the fuel stations (ie no infrastructure) to drive competiton and cost reduction as bio ethanol begins to come on line. The auto industry is sick and tired of the government passing legislation either in a vaccume or not following through. from CAFE to Safety to Bio Fuels.

While the auto makers have made mistakes and contributed to their demise our own Government through its bickering and backroom payoffs has had a significant in the domestic auto maker calamity.

The import companies are just as miffed. So why are they doing better? Their not trying to float 740 thousand retirees pension and healthcare. Which by default in any type of Chapter 11 defaults to the US government to the tune of a minimum of 97 million a month for the rest of their lives.( say 20 years at least, figure is based on the average retiree making 2500 per month and the PBGF paying out 50%, and those numbers are conservative and do not include 740 thousand flopping over to medicade instead of the company funded healthcare plan.) Thats just one little aspect.

When GM alone stopps paying the 5 to 7 billion a year tab in medical insurance how do you figure the insurance companies are going to pick that back up. And believe me they will, you guessed it their going to pass on higher premiums to you and me.

Now if a Chapter 11 makes everyone feel good and the fallout that will come with it by all means lets get it on.

Bust-Up, Not Bailout

You are right it takes 5 years to make an internal combustion car - but not to make and design an electric one. Try Telsa. Try 2.

Tesla has yet to deliver real cars in any significant amount Period!! They are also on the cusp of failing and its been 3 years. So whats the hold up its just batteries and an electric motor. Hell they don't even make the shell its a lotus with different body panels.