Senator calls for 50-mpg mandate for Detroit to receive aid
#1
11-20-2008, 01:42 PM
Senator calls for 50-mpg mandate for Detroit to receive aid
http://www.autoblog.com/2008/11/17/s...o-receive-aid/
Senator calls for 50-mpg mandate for Detroit to receive aid
Posted Nov 17th 2008 7:29PM by Jonathon Ramsey
Filed under: Government/Legal, Chrysler, LLC., Ford, GM, Earnings/Financials
"Thick and fast." That's the phrase that describes the opinions, pleas, advice, denunciations, and WTF? going on around the U.S. auto industry right now. Enter Congress, which is trying to figure out how to give Detroit automakers the $25 billion they were promised a few months ago. Congressmen are sounding off almost daily on what kinds of stipulations they want to attach to the loan/bailout/whatever you want to call it -- and that's just the ones who would vote for it at all.
Next up is Senator Bill Nelson, a Florida democrat, who wants U.S. automakers to achieve a fleet average of 50 mpg by 2020. Right now, the CAFE target is 35 mpg by 2020 -- a goal agreed upon only after a huge amount of jockeying in and out of Congress. Nelson asked, "Why should we be pouring taxpayer money into an automobile industry that has continued to resist higher miles per gallon, which has led us in part to the problems we're in?"
While that might sound like a great idea to some, it would cost a terrific sum of money to achieve. The Detroit Three need the money they're asking for just to get to Q2 of 2009, not to create a range of cars that would represent magnificent advances -- based on where we are right now -- in 11 years. There's a good chance nothing will be decided until the president-elect takes office, and by then, who knows what other requests Congress will have.
[Source: Automotive News - Sub. Req.]
Posted Nov 17th 2008 7:29PM by Jonathon Ramsey
Filed under: Government/Legal, Chrysler, LLC., Ford, GM, Earnings/Financials
"Thick and fast." That's the phrase that describes the opinions, pleas, advice, denunciations, and WTF? going on around the U.S. auto industry right now. Enter Congress, which is trying to figure out how to give Detroit automakers the $25 billion they were promised a few months ago. Congressmen are sounding off almost daily on what kinds of stipulations they want to attach to the loan/bailout/whatever you want to call it -- and that's just the ones who would vote for it at all.
Next up is Senator Bill Nelson, a Florida democrat, who wants U.S. automakers to achieve a fleet average of 50 mpg by 2020. Right now, the CAFE target is 35 mpg by 2020 -- a goal agreed upon only after a huge amount of jockeying in and out of Congress. Nelson asked, "Why should we be pouring taxpayer money into an automobile industry that has continued to resist higher miles per gallon, which has led us in part to the problems we're in?"
While that might sound like a great idea to some, it would cost a terrific sum of money to achieve. The Detroit Three need the money they're asking for just to get to Q2 of 2009, not to create a range of cars that would represent magnificent advances -- based on where we are right now -- in 11 years. There's a good chance nothing will be decided until the president-elect takes office, and by then, who knows what other requests Congress will have.
[Source: Automotive News - Sub. Req.]
#2
11-20-2008, 06:30 PM
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I mentioned in another thread that government bailout money would have HUGE strings attached. They need to cut expenses and suck it up. Id tell the government to stick their bailout money up the ole wazoo. No one's gonna buy a 4 door electric egg with wheels, and thats what its gonna take to achieve 50 mpg.
#3
11-20-2008, 09:29 PM
I started laughing the minute I read the title....
Only way this happens is if you make everything the size of a Focus and make em all hybrids, and in reality, it simply wont work.
Having said that, the Big 3 have no one to blame but themselves, because the technology is there to increase MPG's, but they didnt want to. There is no reason to be building vehicles that get on average about 10-12mpg. I dont care about the demand for them, its just stupid.....and more to the point, you can do better.
Only way this happens is if you make everything the size of a Focus and make em all hybrids, and in reality, it simply wont work.
Having said that, the Big 3 have no one to blame but themselves, because the technology is there to increase MPG's, but they didnt want to. There is no reason to be building vehicles that get on average about 10-12mpg. I dont care about the demand for them, its just stupid.....and more to the point, you can do better.
#7
11-21-2008, 11:15 AM
Two important things happened yesterday, apparently.
Long time MI congressman John Dingell was kicked out of his chairmanship of the Energy & Commerce committee, despite his seniority, and replaced by super-green Congressman Waxman of California.
KY Senator Mitch McConnell (Minority Leader of all Republican Senators)
may be switching sides and might now support loans to GM and Chrysler, as long as they come back in 12 days with a workable budget to be able to survive 24 months with whatever loan they are eventually given. It may be that the loans will be MORE than the $25 billion. McConnell has two Ford plants in Louisville where he used to be mayor, the GM Corvette plant in Bowling Green, and a Toyota plant in Georgetown.
(Toyota is saying that GM/Chrysler/Ford shutdown and its effect on parts suppliers would hurt them too)
A quick comment about Senator Bill Nelson of Florida's staff:
When my father and mother were having trouble with Comcast's digital telephone service, no one helped them as much as Bill Nelson's staff, which were outstanding and really knew how to punch through the bureaucracy.
Long time MI congressman John Dingell was kicked out of his chairmanship of the Energy & Commerce committee, despite his seniority, and replaced by super-green Congressman Waxman of California.
KY Senator Mitch McConnell (Minority Leader of all Republican Senators)
may be switching sides and might now support loans to GM and Chrysler, as long as they come back in 12 days with a workable budget to be able to survive 24 months with whatever loan they are eventually given. It may be that the loans will be MORE than the $25 billion. McConnell has two Ford plants in Louisville where he used to be mayor, the GM Corvette plant in Bowling Green, and a Toyota plant in Georgetown.
(Toyota is saying that GM/Chrysler/Ford shutdown and its effect on parts suppliers would hurt them too)
A quick comment about Senator Bill Nelson of Florida's staff:
When my father and mother were having trouble with Comcast's digital telephone service, no one helped them as much as Bill Nelson's staff, which were outstanding and really knew how to punch through the bureaucracy.
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#8
11-21-2008, 02:02 PM
Mitch McConnell has two Ford plants here in town to worry about as well as all of the local suppliers. We currently make the Explorer/Sport-Trac in one plant that is being retooled to run a new small car by 2011. We also make of the SD trucks here. It is also being retolled to also run Expeditions and Navigators. There are alot of jobs relying on these plants to stay open!!!
We also have a Toyota Camry plant in Ky.
We also have a Toyota Camry plant in Ky.
#9
11-24-2008, 01:08 AM
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I started laughing the minute I read the title....
Only way this happens is if you make everything the size of a Focus and make em all hybrids, and in reality, it simply wont work.
Having said that, the Big 3 have no one to blame but themselves, because the technology is there to increase MPG's, but they didnt want to. There is no reason to be building vehicles that get on average about 10-12mpg. I dont care about the demand for them, its just stupid.....and more to the point, you can do better.
Only way this happens is if you make everything the size of a Focus and make em all hybrids, and in reality, it simply wont work.
Having said that, the Big 3 have no one to blame but themselves, because the technology is there to increase MPG's, but they didnt want to. There is no reason to be building vehicles that get on average about 10-12mpg. I dont care about the demand for them, its just stupid.....and more to the point, you can do better.
As to trucks, large SUVs, etch there is and always will be a level of demand for these vehicles. Theyre necessary for towing and hauling. Muscle cars and true 4x4s like Wranglers will never be as efficient as econoboxes. Thats because all of these vehicles are built around a purpose. It takes fuel to make lots of power. Unless you're running to Safeway for a loaf of bread or commuting to work, econo sedans are useless. Try moving cross country with one and see how far that gets you if you own more than you can put in a suitcase.
Most people here understand all of this. But like VW&Dodge said, the people who make the laws are nothing but a bunch of overpaid know-nothings and do-nothings who wouldnt know where their own hoodlatch is, let alone be able to set realistic goals for the auto industry. The big 3 should pool their resources and demand that the government back off. Without them, who's going to then support all their out of work employees? When the fleets of governement owned vehicles outlive the usefulness, what are you gonna do? Are the cops gonna chase criminals in a prius? Are the marines going to patrol Iraq in a honda CR-V?
