Obama steers carmakers down wrong road

April 10, 2009

The Washington Post reported today that,

President Obama yesterday announced plans to buy 17,600 American-made, fuel-efficient cars and hybrids for the government fleet, the White House’s latest gambit to steer aid to the nation’s beleaguered automakers.

A few thoughts:

  • In 2007, U.S. car makers sold more than 16 million cars.
  • In 2009, cars sales are project to be less than 9 million.
  • Obama’s purchase of 17,600 cars is obviously a drop in the bucket compared to the kind of sales increase that is needed.
  • Cars sales will pick up when the economy recovers, provided that carmakers are making cars that Americans want and that are profitable — that is, SUVs and light trucks.
  • But Obama wants the Big Three to make and sell econoboxes that Americans don’t want.
  • Not only are econoboxes small, dangerous and incapable of pulling/carrying large loads/groups of people, Obama plans to tax drivers by the mile they drive — thereby erasing any economic benefit from fuel efficiency.

Bottom line: Obama’s plan is a stick in the eyes of carmakers, workers or consumers.

3 Responses to “Obama steers carmakers down wrong road”

  1. roywh Says:

    The president is going to have a rude awakening at some point down the road. He’ll find the US consumer a harder nut to crack than he thinks. If I had stuck my foot in my mouth as many times as he has in the short time since January 20th, I would not dare try to manage Detroit at all. I’d be too embarrassed to speak out in public about anything. But not this guy!

  2. johnnylucid Says:

    I’d be much more impressed by this if GSA were to purchase 17,600 GM Volts (or those assinine PUMAs.)


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