Still Renting

Obama Just Pulled a 'Reagan' on the Automakers

He did not pull a Reagan.

From the article: "On August 5th 1981, President Reagan fired 11,345 air traffic controllers who were illegally on strike."

Key word: Illegally.

The president had power with the ATC's because they were under the government's jurisdiction and were ipso-facto- breaking the law.

We are supposed to be a nation of law. Obama can act when constitutional laws are violated, or he can give the automakers "strings attached" bailouts and then pull the strings, but that is about it.

It also is why so many banks were in a desperate race to give the money back.

Preview from Europe: Rejected Auto Bailout Tanks Markets

Simple and best solution, still, is chapter 11. And let's be frank here, you cannot be comptetitive with other manufacturers if you pay your people more than those other manufacturers. That is, unless you automate and lay everyone off.

Hey! How about the Brazil thing. They could tool that up with the bailout!

Auto Sales Dismal: GM and Chrysler Oddly Optimistic

The Chrysler thing is sad for me. I became a Chrysler man after reading IACOCA and still love the ability to get fault codes by simply turning the key on, off, on, off, on. I've fixed so many little problems on high mileage cars this way. And our 2001 300m is still a joy to drive even with 135k miles. And it has been completely trouble free. I even had it to 130 mph in eastern Montana a few times and it was really great!

But their small car (neon) was a textbook lemon, and we drove their convertible in Hawaii a couple of months ago. That thing is a pig. It makes our 300, which is bigger and more powerful, feel like it handles like a sports car, even with original shocks!

The new challenger is something I drool over but, ultimately, it is just a car. It was a good run and they made some great stuff and some absolute dogs. I mainly drive my Scion xBox to work and band gigs anyway so I won'd shed a tear over this, except for the workers...

Can Battery Technology Save GM?

A friend of mine in his fifties has been a car salesman his whole life. He has sold volkswagen, Audi, Mercedes, Jaguar and BMW and in the last year went over to Toyota.

Yesterday over a cigar he mentioned something about the Ford model that I had never thought of. And you are getting this second hand so I could be missing something.

He said that for a certain truck or SUV (I don't remember which) ford itself was making $10,000 profit while actually losing a few hundred on the Focus. I asked "Why sell Focuses then?" He said it was to keep their average fleet mileage up. Problem is, nobody is buying the afore mentioned SUV but they are all buying Focuses.

Anyone here can do the simple math.

"They're losing money but making up for it in volume." - Anonymous