AutoMakers Whine for Money

October 27th, 2008 by Eric Cope

Stephanie referred me to an article at CNN regarding automakers hoping to get some money because it turns out their core competencies aren’t making cars. Here are a few quotes I love:

  • “Congress approved a $25 billion loan program to help the automakers finance a switch in production from larger vehicles, such as pickups and full-size SUVs, to more fuel efficient vehicles.”
    This means invest in shortsighted business plans, the government will finance changes later.
  • “We have said publicly that we believe the federal government should consider all of the tools available to it – some recently enacted – to support industries that are in distress and that are essential to the U.S. economy.”
    There is nothing GM, Ford, and Chrysler can do for this economy, no matter how distressed, that Toyota, Honda, and Nissan can’t do. Remember, most Toyotas and Hondas roll off American manufacturing lines.

Taxing the masses to save the few is a terrible business plan unless you are the few. People buy American cars because they are cheap, not because they are good. That is reflected in the pricing policies of American manufacturers. If they can’t maintain a business with $25 billion donated to them, they need to have their heads examined. I hope they all fail!

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