An Auto Bailout Alternative
7 followers
0 Likes
What if....
instead of giving billions directly to the auto companies and UAW, the Government gave every taxpaying citizen in the US a $10,000 voucher towards the purchase of a new Ford, GM or Chrysler vehicle, with a (qualified) guarantee of financing for the balance?
Would you buy? What would you buy, and why?
How might a program like this change the economic conditions of the Big 3, and the future of the Detroit business sector?
Any other "alternative" ideas to the Bailout proposal?
27 Replies
Displaying items 16-27 of 27 in total
Reply
Subgroup Membership is required to post Replies
Join Motor City Connect now
Suggested Posts
| Topic | Replies | Likes | Views | Participants | Last Reply |
|---|---|---|---|---|---|
| "Life Remodeled" Grand Opening | 0 | 0 | 594 | ||
| Giving Thanks - Holiday Party Networking Tips - Events | 0 | 0 | 801 | ||
| Edinburgh Short Film Festival Submissions Now Open:Animation Awards | 0 | 0 | 840 |
In the early 1900s, mass transit was talked about heavily but the Big 3 and others opposed it due to the fact that the auto industry was huge in MI. That's why if you compare Detroit to other metro cities we are so spread out.
Would the state of MI go for Mass Transit? I don't know and the reason I say that is because MI has the highest tax per gallon of gas in the US. (The last time I checked was 2 yrs. ago.) It's interesting that this hasn't been brought up much in the debate.
There really isn't a cut and dry solution to this problem which makes it all the more unique.
Problem solved!
Wondering what to get your favorite politician this Christmas? Chia Economy! The economy that grows! Cha Cha Cha Chia.
Are you taking Cha Cha orders, Charlie? Great idea for an MCC fundraiser!
Why not just have Congress buy 14 billion dollars in vehicles from GM, Ford, and Chrysler, and then they can sell them. Wouldn't be a "bailout" or a loan, it would be a government purchase!
I have my own thoughts on all this. www.detroitvoice.wordpress.com
I wonder how many members of Congress have Big 3 vehicles in their garages.
How many have Big 3 vehicles they decry as gas guzzlers and cars that shouldn't be made?
While I won't argue that GM, Ford haven't made mistakes, but the thing that the senate seems to have forgetten is that the vehicle product lines are market based. Ford's F-150 is still going to be the best selling vehicle in America in 2008. The Silverado outsold the Civic in 2007 by almost 2-to-1 and will again be the 2nd best selling vehicle in 2008 behind the F-150 (heck, the Ford Explorer still outsold the Civic and Corrolla as recently as 2004). An example could be the recent failure of GM's Pontiac Aztek which fell far short of sales targets and was dumped in 3.5 short years, why? Because the market demanded it. But all this has been lost in this senate debate.
Here's an interesting op-ed from NYTimes with another option for vehicles in America. I don't agree with his entire analysis, but its an interesting concept for revising transportation.
http://www.nytimes.com/2008/12/10/opinion/10friedman.html?_r=1
Linda I think that you are forgetting that right now, every American car that is sold, "the big 3" losses $2,000. That being said, if the government gave out $10,000 coupons for people to buy cars, that would only exacerbate the problem exponentially.
Hopefully he bailout money is to help the big 3 get their *^$* together. That is part of this Car Czar aspect. Then again the last Czar I remember was a communist. Communists make me nervous. My government hiring a Czar makes me even more nervous.
Anyone have an antacid?
Hmm, so Dems are for helping car companies? Why did three of the biggest Dem names not even vote on cloture, and Harry Reid voted against it!
www.detroitvoice.wordpress.com for details.
My understanding is that by voting "no" or not voting on cloture, it allows the senators to re-introduce the bill if it's voted down. If they had voted yes, he couldn't reintroduce it and would have to start the process over. It's a paralimentary move by Reid when he knew he didn't have the votes to pass the bill to reintroduce it after the new senate is sworn in.
I will remind everyone that even IF the Big 3 get fixed and start making cars again, most people will not be able to get credit to buy (or lease) one. The entire credit system is broken right now, on such a prolific scale, that I don't think ANY of us understand what we are up against just yet. Even IF there were companies around here that wanted to take a risk and buy a shuttered plant, there is not credit to finance them and their decision. The bailout money was supposed to be used to infuse capital into the credit system, and has not happened. The banks merely took that money and added it to their balance sheets to make their own businesses look healthy again. What a shame. I keep my head down and a smile on my face, but it's hard not to get disillusioned with what is going on. That chicken has lost his head, and we are witness to his headless prancing.
For some interesting (and perhaps eye-opening) facts on this topic, take a look at Rick Weaver's blog post
Congress’s failed traditional leadership model
http://www.getmaximpact.com/blog.html