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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
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.
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.
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.
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.
If this was Fox News’ Sean Hannity – he would have long been fired – he drools in the form of Bush – and now Palin!
My sympathies go out to this reporter – who obviously tried to show her solidarity with the crowd at the Obama rally by wearing a t-shirt – but was shut down for it by her job. It’s not like very many Palin supporters were going to be there!
Detroit news radio station WWJ-AM (950) has fired radio personality Karen Dinkins after she wore a Barack Obama T-shirt while covering a presidential rally on Sunday.
Dinkins, contacted at her home today, said she is surprised about the reaction to her firing after Sunday’s rally at the Detroit Public Library. She said a number of news outlets contacted her after the station let her go on Monday. She said she had worked there for 13 years.
“I was really kind of surprised this is a news story,” she said, adding that she wouldn’t comment further. “I didn’t anticipate it.”
Jane Briggs-Bunting, director of the School of Journalism at Michigan State University, believes sending any type of political message — on air or off — is a no-no for journalists.
“Reporters, we’re on duty 24-7,” Briggs-Bunting said shortly before Obama took the stage this afternoon at MSU. She’s worked for Life and People magazines as well as the Free Press. “I can have an opinion, and my opinion will be heard in the privacy of a voting booth. You can’t publicize your political views on a T-shirt you wear, a button you wear, or a campaign sign in your front lawn. You represent your news organization 24-7.”
A call to WWJ-AM (950) management offices wasn’t immediately returned. But a woman who answered the phone in the newsroom said the station had received a number of calls from upset listeners.
Lorain Obomanu, Dinkins’ union representative at the American Federation of Television & Radio Artists’ Southfield office had no comment, a spokesman said today.
John McCain is pulling out of Michigan, according to two Republicans, a stunning move a month away from Election Day that indicates the difficulty Republicans are having in finding blue states to put in play.
McCain will go off TV in Michigan, stop dropping mail there and send most of his staff to more competitive states, including Wisconsin, Ohio and Florida. Wisconsin went for Kerry in 2004, Ohio and Florida for Bush.
McCain’s campaign didn’t immediately respond to a request for comment.
Republicans had been bullish on Michigan, hopeful that McCain’s past success in the state in the 2000 primary combined with voter dissatisfaction with Democratic Gov. Jennifer Granholm and skepticism among blue-collar voters about Barack Obama could make it competitive.
McCain and his running mate Sarah Palin spent the night after the GOP convention at a large rally in Macomb County, just outside Detroit. The two returned later last month for another sizable event in Grand Rapids.
But recent polls there have shown Obama extending what had been a small lead, with the economic crisis damaging an already sagging GOP brand in a state whose economy is in tatters.
A McCain event planned for next week in Plymouth, Michiigan, has been canceled.