Pelosi Motors, Inc. II
Here we wait, with baited breath, as to whether the Detroit auto makers will be bailed out or will have to file chapter 11. If GM has any sense, it’ll take chapter 11. Because if it doesn’t, it will become a wholly owned subsidiary of the Democratic party.
As things stand now, GM (I use GM as shorthand for GM, and Chrysler) is a welfare agency funded by the manufacture of expensive luxury cars, large SUV’s and trucks. And, as a bone to be tossed to the environmentalists, also manufactures small cars at a loss. It provides lavish health care benefits and pensions for a retired workforce that outnumbers the number of UAW workers actually on the production line. Through the “job bank” it runs a de facto unemployment agency. Essentially, GM runs a social security agency, a medicare agency and unemployment agency. Car manufacturing is just a side line activity.
The whole shell game worked as long as there was cheap gas. But, the environmentalists over-reached, when their nirvana of four-plus dollar gasoline hit last summer. Then the whole game of selling large cars to subsidize small cars and a welfare agency fell apart when the environmental wing of the Democratic party decided, in the name of global warming, to declare a jihad on the internal combustion engine.
And, “bankruptcy is not an option” Pelosi is trying to have her cake and eat it. She wants to prop up GM Welfare, Inc. as payback to Big Labor. And, she wants to appease the green crowd with “fuel efficient” cars. What this bailout will do, especially with a “car czar” in Obama’s administration will result in is subsidization of UAW membership, working and retired, and diktats for econoboxes that you’re going to have to give away. The Trabant comes to America! Maybe each should have a bust of Nancy as a hood ornament. We could augment the Pelosi car lineup with the Lada and the Skoda. Back in 1992, I drove around in a Skoda in Iceland; it had a manual choke. Manual choke, like the one on your lawn mower. Never saw one in a car? I thought so.
And, all the assumptions that drive the green agenda are suspect to say the least. Global warming is in the process of being debunked. And, Dr. Chu, our new Energy Secretary, doesn’t impress even waving his gold bauble he got in Stockholm. Also, with economic growth, jobs and a recession, possibly a depression, this green agenda is going to be a real loser at the polls come 2010.
It’s not that GM makes bad cars. They make good trucks, SUV’s and large cars. These big cars are more comfortable, have greater utility and are safer. You’re going to make ten trips in a smart car if you’re going to get enough groceries home to feed your family; I’ll pass on that fuel economy. While you may use said car as a single passenger for a good deal of the time; there comes many a time when you indeed need the extra space for, say, the hockey team and their attendant massive duffles of equipment. And, yes, I know. Your not supposed to have a family because of each child’s massive carbon footprint. “Enlightened” Americans realize that abortion is so much more environmentally sensitive.
Big cars are safer, because mass is greater structural rigidity. You can put all the airbags in you want; add one hundred pounds of structural steel and it’s just safer.
And, given a choice most people prefer them to any tin bucket with pie-pan wheels. Start with Obama; he’s got an SUV for his family. His new presidential limo is based on a Chevy 2500 chassis. Also, watch, all of his Hollywood celebrity friends pulling up for the inauguration in their 10 mph limos (after arriving in their private jets). You’ll see the typical elitist conceit that all of this “sacrifice” and “save the earth claptrap” is for other, lesser people.
Over in Europe, manufactures such as BMW and Mercedes Benz make very substantial cars for rich customer who can afford and otherwise don’t care about $9 per gallon gas. Somehow, when given a choice, this claptrap of global warming, carbon footprints seem to go down the drain.
Any bankruptcy court will immediately see the value of GM and its American counterparts. All three of these American manufacturers make light trucks and SUV’s that are very much desired. Stripped of its money-losing domestic small car operations all three of these companies can make motor vehicles that will attract customers. Also, there will still be a vast market for spare parts and service.
If Pelosi has any smarts, she’d best dump her green crowd since $4 per gallon gas is going to lose more elections than win them. She’d also be well served to abolish CAFE standards and drill, drill, drill.