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Author: Subject: US government further harms the US auto industry
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[*] Post 406748 posted on 4-4-2010 at 21:11 Reply With Quote
US government further harms the US auto industry



Two U.S. auto companies were forced to the brink of bankruptcy, largely because of government interference and incompetence. Average fleet mileage economy standards were forced on the car manufacturers, with the result that they had to sell enough tiny cars (even at a loss) with better fuel economy, to allow them to sell profitable larger cars (which people actually wanted to buy). With the relatively high cost of labor in the US, compared to foreign-based companies, this extra cost was too much--Chrysler and GM toppled, with the government bailing them out with treasury money. Thousands of workers lost their jobs, and hundreds of dealerships closed.

Never let it be said that our present political leadership is smart enough not to repeat the same mistakes. New, stricter fuel efficiency rules have just been signed, to go into effect for cars made from 2012 to 2016, requiring an average mileage increase of just under ten gallons, to 35.5 mpg average. This will make the cars more expensive, which will prove a hardship for those who are less wealthy. Fewer cars large enough for large families and large cargo capacity will be sold, because they ruin the fuel average. More auto workers will be laid off.

Ye cannae change th' laws o' physics. The auto industry has been working at getting greater mileage for a quarter century, and there is not much more that can be done with conventional gasoline piston engines, unless we all lie down and tuck in like bobsled racers.

Remember, Obama is the man who said that drilling for more oil would not do anything toward bringing down gasoline prices, and that a better solution was to tune up your car to save gasoline. He doesn't seem to know that electronic ignitions do not need tuning, as the old points systems did.:(

I predict that Obama's privileged ruling class will continue to be driven around in large cars, even if they must be imported.
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[*] Post 406755 posted on 5-4-2010 at 01:19 Reply With Quote


If everything in America is as bad as you seem to report, it makes me wonder, why everyone is not trying to migrate to Mexico! Perhaps they are, and the "border patrol" programs that I see are just propaganda showing Mexicans trying to get in are Mexicans really trying to get home!
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[*] Post 406759 posted on 5-4-2010 at 02:54 Reply With Quote


Quote:
Originally posted by LSemmens
If everything in America is as bad as you seem to report,
I do not report that everything is bad.

Those things which come from personal initiative, from faith, or from personal generosity are wonderful. Free people do great things.
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