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The 2010 Ford Fusion hybrid will get 39 miles per gallon.

The 2010 Ford Fusion hybrid will get 39 miles per gallon.

It is worth mentioning that auto CEO’s did give Congress assurance that they would not use this bailout money to sue states over their emission standards. It is a big about turn for the auto industry – almost everything they have been against now they have to be – for, one of the auto CEO’s did say that they thought electric cars were the way forward – as everyone has a plug – hybrid-electric is a good step, until battery life improves – at the moment we have car batteries that can go 240 miles without recharging – but they are heavy – and they weigh a tonne literally – though there is car battery technology being developed in Japan (always Japan) that is half the weight 450 lbs – their car companies quite sensibly work with the battery companies – the Japanese are also working on bringing down recharging times to about a half an hour.

Environmental groups are disappointed that money put aside to aid automakers to produce more fuel-efficient cars is now going to fund their operations.

Although the bill promises the money for retooling plants will be replenished in the future, environmentalists are skeptical. And they’re also upset the bailout doesn’t ban automakers from suing states that set tougher emissions limits than federal rules.

“We know they need help retooling their factories, and we feel very strongly that if those funds are going to be diverted and not replenished, Congress is walking away from their own commitment to fuel efficiency,” says Phyllis Cuttino, head of the U.S. Global Warming Campaign for the Pew Environmental Group.

The Energy Independence and Security Act of 2007 called for increasing fuel efficiency to 35 miles per gallon by 2020. In exchange for agreeing, automakers would get $25 billion in loans to help revamp their plants. They waited over a year for Congress to allocate the money. Now, some will go to the bailout.

“The funding Congress is considering now is just a Band-Aid, and it diverts funds originally intended to help the Big Three and other companies produce more fuel-efficient vehicles,” says Michelle Robinson, director of the Clean Vehicles Program for the Union of Concerned Scientists. “Those funds should be replenished when the new Congress convenes in January.”

INTERACTIVE GRAPHIC: A state-by-state look at auto industry jobs

What particularly irks environmentalists is that the automakers will continue on their quest to stop individual states from enacting their own emissions rules.

Roland Hwang, vehicle policy director for the Natural Resources Defense Council, said, “The White House has decided they want to hold up this entire bailout bill in order to remove this litigation provision. We’re very disappointed.”

Still, even though they aren’t getting money to increase fuel efficiency, high gas prices have forced the automakers to revamp their lineups in favor of more fuel-efficient cars. As Congress debated the bailout bill Wednesday, Ford showed off its 2010 Ford Fusion hybrid in Marina del Rey, Calif., and said that at 39 miles per gallon, it will be the highest-mileage midsize car.

“We’re going squarely after the imports with this,” says Frank Davis, executive director for North American product. The goal: “not only to compete but lead.” It’s exactly the pitch that Detroit needs to win the hearts of a skeptical Congress and American public, and the environmental lobby. Ford has not asked for loans now. General Motors and Chrysler say they need loans to stave off bankruptcy filings.

While it makes a play for environmentalists, the new hybrid will also be aimed at being a commercial success for Ford. Davis says it should add up to 25,000 sales of Fusions a year. While pricing isn’t set, the hybrid system is 30% less expensive than the last generation, like that in the Ford Escape hybrid SUV.

Ford plans to spend $14 billion in the U.S. on advanced technologies and products to improve fuel economy in the next seven years, it told Congress in the business plan it submitted as part of the bailout consideration. It plans a pure electric sedan by 2011.

Source: USA Today

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Obama MTP Interview: Obama Big Three automakers ‘strategic mistakes’

Car execs grilled by Congress on transport to hearing

See no exhaust pipe! 0-60 3.6 seconds! Cost $4 per 240 mile charge to run!

Tesla Roadster: See no exhaust pipe! 0-60 3.6 seconds! Cost $4 per 240 mile charge to run!

I think the whole aim of the car industry has been to keep us on oil – and so for years they have been suppressing any and all viable alternatives. While we advance in leaps and bounds in computers and technological industries — aside from the outer cover and some new electronics – cars have virtually stayed the same. In today’s technological world this is unacceptable.

Not surprisingly sympathy is thin on the ground for the Big Three automakers – and in order to survive they are going to have to decouple from the oil industry. This is where policy comes in – as the Bush administration has been all about oil – and how to get us all to spend more on it – he got his wish – but it was a bit like the king who touched his daughter and turned her into gold. Up until recently the whole aim was to make us believe – that we needed more and more of this oil – this coming directly from the addict-in-chief. The mindset is so bad – that at the RNC you had Republicans chanting Drill Baby Drill, because the thought of a technological way around the oil – is unthinkable to them. 50 years down the line they still see us using the same technology – needing roughly the same amount of oil. Palin – an oil addict and others like herself – first need to line up the belief that we need this oil and we can not do without it – for a long long time – then they place themselves in the position to be the providers of that oil. Even better than the measly cash that a guy would make as a lobbyist. This is like Beverly HillBillies’ cash – no wonder they are addicted.

But here is the trap for the car industry – The Big Three – Republicans are into little or no government intervention – their philosophy is bankruptcy would do them good – ironically the Drill Baby Drill – was for the hungry engines the Big Three were making – that they refused to modernize [in ways that inventors have done time and time agian in their garages] – more a Republican-conservative idea – oh the betrayal!

On the other hand the Democrats’ position – is that the Big Three have been too arrogant for too long – and they are actually holding up real progress – if you want us to bail you out – then we are going to have to see some electric cars, some hybrid/electrics and cars that are going to largely bypass the burning fossil fuels to run. The oil addicts should be getting really uncomfortable – but these are the same guys who are willing to let the car companies fail.

Alternatively, by letting the car industry collapse – the Obama administration can then divert more funds to the smaller car industry – which are willing to produce the cars of the future – like the Tesla.

Porsche (eRuf Model A) the first fully electric version of the car.

Porsche (eRuf Model A) the first fully electric version of the car.

This whole bailout/loan deal with the auto-industry will hinge on what kind of plan these automakers will come back with in two weeks – we can only hope that it will not be a plan to help the oil industry – but one with a view of the future – that will instead help themselves and the people who will be driving their cars. I’m all for the fully electric SUV. Who says we have to make them small – just energy efficient. Today the best car batteries can take us 200 miles/300 km on a single charge – tomorrow 400 miles/600 km on a single charge? We may end up having to charge our cars once a week – today it cost 2¢/mile to run – tomorrow it might 2¢/10 miles? If the present car industry isn’t willing to do it – perhaps we need an alternative car industry.   


Legacy of Destruction at Stake

Legacy of Destruction at Stake

Confounding the conventional wisdom that he is a lame duck president with no agenda as his days in office dwindle, President George W. Bush is redoubling his efforts to mutilate the country before his term expires, aides confirmed today.

“President Bush has spent the first seven years and ten months of his presidency doing everything in his power to leave the United States in smoldering ruins,” said White House spokesperson Dana Perino. “He certainly is not going to let the final days of his tenure go to waste.”

While Ms. Perino said that President Bush is proud to have led the U.S. into a “pointless and totally avoidable catastrophe in Iraq” and “the most terrifying financial cataclysm since the Great Depression,” he is “in no way prepared to rest on his laurels.”

Mr. Bush is “delighted,” Ms. Perino said, that the stock market has lost one trillion dollars of its value in the last three days, but “that’s just the tip of the iceberg in terms of the damage he hopes to wreak in his remaining time in office.”

Among the targets for destruction that the President is currently eyeing, Ms. Perino indicated that the demise of the Big Three automakers was at the top of his list.

“If the President could preside over the disappearance of the Big Three and the millions of jobs they represent, that would be the ultimate feather in his cap,” she said.

For his part, Mr. Bush took few questions from reporters today, saying that he had to return to the Oval Office to order random airstrikes over Belgium.

Source: BorowitzReport

Stiff Republican Resistance Could Force Democrats to Wait for Obama and Their Party’s Enlarged Majority to Take Office

WASHINGTON — Congressional Democrats are scaling back plans for an economic-stimulus package as partisan deadlock clouds chances for passage of either that measure or a proposed bailout of Detroit’s auto makers until the party’s enlarged majority convenes in January.

Former auto worker Willie Daniel leaves a United Auto Workers hall in Brook Park, Ohio, on Wednesday. Like many UAW members, he took a buyout amid fears that jobs could disappear as car sales continue their steep decline.

Former auto worker Willie Daniel leaves a United Auto Workers hall in Brook Park, Ohio, on Wednesday. Like many UAW members, he took a buyout amid fears that jobs could disappear as car sales continue their steep decline.

Democratic leaders want to move legislation that would give a jobs-producing jolt to the economy. They also support proposals to toss a $25 billion financial lifeline to Detroit. But it isn’t clear either of those steps can pass before January, when President-elect Barack Obama and a new, more heavily Democratic Congress take office.

The biggest problem is in the Senate, where Democrats have only a 51-49 edge until year’s end. The Bush administration is balking at the Democratic agenda, and Republicans in the House and Senate are growing more vocal about their concerns, especially concerning the auto package.

“The financial situation facing the Big Three [auto makers] is not a national problem, but their problem,” said Alabama Sen. Richard Shelby, the ranking Republican on the Senate Banking Committee.

In the House, Minority Leader John Boehner, the Ohio Republican, assailed the proposed aid to Detroit as “neither fair to taxpayers nor sound fiscal policy.”

Senate Banking Committee Chairman Christopher Dodd said Thursday that he knew of no Republicans who would support the $25 billion proposal by Democrats, and said he is disinclined to move a bill without bipartisan support.

“I’d want to be careful about bringing up a proposition that might fail,” given that a rescue plan would be more likely to pass under an Obama administration, the Connecticut Democrat told reporters on Capitol Hill. “There’s some political considerations that need to be made over the next few days.”

Senate Majority Leader Harry Reid of Nevada still plans to move forward next week. “Senator Reid still believes it is important to address this crisis plaguing our auto industry,” said Reid spokesman Jim Manley, adding that bipartisan cooperation will be needed. “We cannot do it without the support of Senate Republicans, who I hope will join us to pass a bill that saves the jobs and protects the livelihoods of millions of hard-working Americans.”

Mr. Dodd, meanwhile, wants to add foreclosure relief to an economic-stimulus package. He expressed frustration Thursday with efforts to help distressed homeowners by the private sector and the Bush administration, which was supposed to make foreclosure relief a top priority in the $700 billion rescue packaged enacted earlier this fall to stabilize financial markets.

“We want to see more progress,” Mr. Dodd said, adding he is prepared to legislate — “now, if possible” — to address the problem.

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This failing economy and troubled auto industry is the perfect storm for Obama and the Democrats, if the auto industry was strong — how could you get it to change direction? The writing was on the wall some eight years ago that the oil age was coming to an end – that to continue to pursue it would lead us into difficulty. And it was one of the hallmarks of Al Gore’s presidential campaign. Now we have seen the results of continuing down the same path. But with this disaster or more stripping of the sector – there is opportunity; the free market idea is to allow the auto industry to fail, or it can be bailed out under conservative socialism, or we can forget about the old titles and give the auto-industry the money it needs but with the strings attached – that it retools for the future car. Why can’t we have a hybrid/electric or an electric SUZ? And this merchandise can be exported – the market should be thrilled.

Bush is arguing – he’ll give Obama this – if in return Obama cedes with the Republican position on trade with Columbia. And it is a weak argument – because what Obama is saying – we will be happy to trade with you – but you are going to have to pull your act together when it comes to workers rights. This carrot and stick approach may do more to change conditions in Columbia – than all the diplomacy in the world. Doubtful if this is a chip that can be traded because it has a long term goal.

WASHINGTON — The struggling auto industry was thrust into the middle of a political standoff between the White House and Democrats on Monday as President-elect Barack Obama urged President Bush in a meeting at the White House to support immediate emergency aid.

Mr. Bush indicated at the meeting that he might support some aid and a broader economic stimulus package if Mr. Obama and Congressional Democrats dropped their opposition to a free-trade agreement with Colombia, a measure for which Mr. Bush has long fought, people familiar with the discussion said.

The Bush administration, which has presided over a major intervention in the financial industry, has balked at allowing the automakers to tap into the $700 billion bailout fund, despite warnings last week that General Motors might not survive the year.

Mr. Obama and Congressional Democratic leaders say the bailout law authorizes the administration to extend assistance.

Click to enlarge+

Click to enlarge+

Mr. Obama went into his post-election meeting with Mr. Bush on Monday primed to urge him to support emergency aid to the auto industry, advisers to Mr. Obama said. But Democrats also indicate that neither Mr. Obama nor Congressional leaders are inclined to concede the Colombia pact to Mr. Bush, and may decide to wait until Mr. Obama assumes power on Jan. 20. […]

As the auto industry reels, rarely has an issue so quickly illustrated the differences from one White House occupant to the next. How Mr. Obama responds to the industry’s dire straits will indicate how much government intervention in the private sector he is willing to tolerate. It will also offer hints of how he will approach his job under pressure, testing the limits of his conciliation toward the opposition party and his willingness to stand up to the interest groups in his own. [….]

Obama has called on the Bush administration to accelerate $25 billion in federal loans provided by a recent law specifically to help automakers retool. Late in his campaign, Mr. Obama proposed doubling that to $50 billion. But industry supporters say the automakers, squeezed both by the unavailability of credit and depressed sales, need unrestricted cash now, simply to meet payroll and other expenses.

On Friday, Mr. Obama said he would instruct his economic team, once he chooses it, to devise a long-range plan for helping the auto industry recover in a way that is part of an energy and environmental policy to reduce reliance on foreign oil and address climate change.

[….]

Democrats close to both Mr. Obama’s transition team and to Congressional leaders seemed willing to call Mr. Bush’s bluff, calculating that he would not want to gamble that G.M. — an iconic, century-old American corporation with business tentacles in every state — would fail on his watch and add to the negative notes of his legacy. Also, economists as conservative as Martin Feldstein, an adviser to a long line of Republican presidents and candidates, have called more broadly for stimulus spending of up to $300 billion.

The major automakers — G.M., Ford and Chrysler — are each using up their cash at unsustainable rates. The Center for Automotive Research, which is based in Michigan and supported by the industry, released on Election Day an economic analysis of the impact of one or all of them failing. If the Big Three were to collapse, it said, that would cost at least three million jobs, counting autoworkers, suppliers and other businesses dependent on the companies, down to the hot-dog vendors and bartenders next door to their plants.

[…]

Organized labor is not the only interest group with influence in the Democratic Party that is weighing in as Mr. Obama plans his transition. Environmentalists are adamant that any aid be conditioned on the auto industry’s dropping of its opposition to higher fuel-efficiency standards and investing more in new technology. That puts them at odds with unions, who oppose any strings, leaving it to Mr. Obama to mediate.

Both as a candidate and now as president-elect, Mr. Obama has been in contact with former Vice President Al Gore, who last year won the Nobel Peace Prize for his work on climate change. In a column published in Sunday’s New York Times, Mr. Gore wrote that “we should help America’s automobile industry (not only the Big Three but the innovative new start-up companies as well) to convert quickly to plug-in hybrids that can run on the renewable electricity that will be available.”

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