Alright, I have lots of issues with this program. I'll try and be brief.
This is not a stimulus. It is merely getting people to buy the car NOW they would've bought in a few months or a year. This is not "rejuvenating" the industry, it is spiking sales which will then slump back to "meh."
Jobs aren't really being created by this as car manufacturers are not going to ramp up production to meet demand as they understand demand is spiking, not actually going up.
This is also a tax on the poor. Sure, 4500 for your junker is nice, but if you have no credit or can still only afford a car that costs 6000, how does this help you? Oh, and it'll drive up the price of used cars and quite possibly the prices on keeping old cars running, especially if they blow an engine. So, the poor are not benefiting from this at all.
Also, the environmental impact is negligible at best. Sure, you're taking fuel inefficient cars off the road. And moving them to junk yards. Yes, many parts of them will be recycled, but there will still be rusting blocks of iron. AND, its replacing them on the road with cars that still pollute.
Yes, they pollute yes, which is good. But, its not like there will be less cars on the road, because THAT is truly a zero emission car. The one that isn't there.
I guess I'm just frustrated by the waste and the bait and switch that seems to be going on.
Showing posts with label cars. Show all posts
Showing posts with label cars. Show all posts
Saturday, August 8, 2009
Saturday, December 20, 2008
The Party of Executive Greed?
The antipathy of certain southern Republican's to any sort of aid/bailout/help to the US auto industry is a bit bizarre to me. They seem to have no grasp on reality or simple economics.
Let me lay this out. The car companies have made stupid choices over the years. GM is still too big, has too many lines, and too many dealerships. Chrysler is still struggling from numerous poor decisions made during the time they were owned by Daimler and having too many dealerships.
Yes, labor costs, and most importantly ex-employee benefits/health care cost them tons of money each year.
However, the southern Republican's appear, and I can only say appear, because I don't understand their stance, to think that all the problems with the companies are because of the unions and that they don't have enough fuel efficient vehicles in their lineup.
GM has the most cars that get 30+ mpgs of any manufacturer. Granted, it could be the same car in 2 or 3 different lines but they still have options. Chrysler is in a stickier position due mostly to questionable decisions made during the Daimler tenure, however they have a multitude of hybrid/plugin electrics coming down the line for 2010.
Two things seem to be lacking from the view of those opposing this loan. First, consumers are idiots. They whine about the gas mileage they get, but as soon as gas prices dropped the vehicles that showed the biggest gain were all medium to full size SUVs. There is also the difficulty of turning a profit on small cars compared to trucks and SUVs. Forcing companies to produce more vehicles consumers do not want yet (raise the gas tax another $1 a gallon) and that they can't turn a profit on is not a path to profitability.
Second, yes, union labor costs more. So does executive pay. For a $5 million bonus to one executive (which they seem to get no matter how the company is doing) you could pay a whole heck of a lot of workers a living wage. I'm not saying workers need to be getting $35/hour to put widget A on widget B plus benefits. But I am saying that making $15-20/hour plus benefits and the big guys up top getting bonuses of $250k to $500k sounds fair to me.
The Republicans might wonder why they are losing votes like crazy. Things like this are why. The average person is a worker, not an executive. So when all the laws you make, decisions you push, seem to benefit the top 1% the other 99% aren't going to be thrilled with you.
Let me lay this out. The car companies have made stupid choices over the years. GM is still too big, has too many lines, and too many dealerships. Chrysler is still struggling from numerous poor decisions made during the time they were owned by Daimler and having too many dealerships.
Yes, labor costs, and most importantly ex-employee benefits/health care cost them tons of money each year.
However, the southern Republican's appear, and I can only say appear, because I don't understand their stance, to think that all the problems with the companies are because of the unions and that they don't have enough fuel efficient vehicles in their lineup.
GM has the most cars that get 30+ mpgs of any manufacturer. Granted, it could be the same car in 2 or 3 different lines but they still have options. Chrysler is in a stickier position due mostly to questionable decisions made during the Daimler tenure, however they have a multitude of hybrid/plugin electrics coming down the line for 2010.
Two things seem to be lacking from the view of those opposing this loan. First, consumers are idiots. They whine about the gas mileage they get, but as soon as gas prices dropped the vehicles that showed the biggest gain were all medium to full size SUVs. There is also the difficulty of turning a profit on small cars compared to trucks and SUVs. Forcing companies to produce more vehicles consumers do not want yet (raise the gas tax another $1 a gallon) and that they can't turn a profit on is not a path to profitability.
Second, yes, union labor costs more. So does executive pay. For a $5 million bonus to one executive (which they seem to get no matter how the company is doing) you could pay a whole heck of a lot of workers a living wage. I'm not saying workers need to be getting $35/hour to put widget A on widget B plus benefits. But I am saying that making $15-20/hour plus benefits and the big guys up top getting bonuses of $250k to $500k sounds fair to me.
The Republicans might wonder why they are losing votes like crazy. Things like this are why. The average person is a worker, not an executive. So when all the laws you make, decisions you push, seem to benefit the top 1% the other 99% aren't going to be thrilled with you.
Tuesday, July 17, 2007
More thoughts on the state of things.
Continuing on from yesterday's ramblings, its just frustrating. Partially, I'm frustrated with Daimler's handling of its Chrysler division. We have some great vehicles on the road. The 300/Charger/Magnum is a solid vehicle. Our minivans are pretty good. The new Caliber and Sebring are fine as well. The Jeep line is, well for people who want a Jeep. You know who you are.
But, even though its been obvious for a number of years now that the price of gas is only going to go higher, they along with other manufacturers, have been slow to realize this. Part of the problem is what I addressed yesterday. People want things that are almost mutually exclusive with today's technology. Also, people don't realize how much their own driving habits effect their gas mileage. But, while this has been going on we've introduced only 2 smaller cars. The Caliber and the Sebring. The Compass by Jeep technically fits into this area as well.
The problem Chrysler now has to overcome, even though they now offer a number of vehicles that get good gas mileage, especially with our "shiftless" CVT transmissions, is of the lumbering truck and SUV builder. This image will be tough to shed. Toyota, which makes a number of large trucks and SUVs that get atrocious gas mileage, is viewed as being a more fuel efficient manufacturer. This is true in that the Corolla, Yaris, Prius, and other cars and small SUVs get great MPG. However, as a whole, their lineup isn't that far ahead of Chrysler's in overall MPG. Part of Chrysler's problem would be the drag down from vehicles in multiple lines. (ie. the Durango/Aspen, the Nitro/Liberty, etc.)
Chrysler, while continuing to look to the future (and hopefully get a hybrid out on the road as well as some clean diesels out there), needs desparately to change their overall image.
This leads me into their global position however. Daimler has done some great things for Chrysler's quality. Our transmissions aren't junk anymore being a big point. But, since their labor costs in the US are so high, many parts are built all over the world, usually by the lowest bidder I would assume. (Or the cheapest labor spots.) This has lead to some quality issues that should have been easily avoided. Sensors have been an issue, often built in Mexico or Eastern Europe. They are not huge problems. But little annoyances are what make people not buy a brand again. I understand globalization, don't get me wrong. BUT, quality has to take precedence over price at some point.
Parts will fail, that is assured. There is no such thing as reaching 100% quality. But even if most of the parts fail under warranty, its still annoying to the customer. They want to drive their car, not sit at the dealership.
This is why I'm so concerned about Chrysler's partnering with a Chinese car company. I'm concerned that in pursuit of profits they will end up shooting themselves in the foot. America can't compete with Chinese labor costs. And, so far, Chinese quality is not that good. That and the fact they are a repressive communist regime with an atrocious human rights record at home and abroad. (Think Darfur...) This is getting long and really rambling. I apologize. But we all need to wake up. Americans need to wake up. DaimlerChrysler needs to wake up. The world is constantly changing I understand. American doesn't provide for itself anymore. We trade with other countries. We do need to remember though, we must produce SOMETHING in order to survive as the nation we are. Everyone can't have a service job. I guess we'll see.
But, even though its been obvious for a number of years now that the price of gas is only going to go higher, they along with other manufacturers, have been slow to realize this. Part of the problem is what I addressed yesterday. People want things that are almost mutually exclusive with today's technology. Also, people don't realize how much their own driving habits effect their gas mileage. But, while this has been going on we've introduced only 2 smaller cars. The Caliber and the Sebring. The Compass by Jeep technically fits into this area as well.
The problem Chrysler now has to overcome, even though they now offer a number of vehicles that get good gas mileage, especially with our "shiftless" CVT transmissions, is of the lumbering truck and SUV builder. This image will be tough to shed. Toyota, which makes a number of large trucks and SUVs that get atrocious gas mileage, is viewed as being a more fuel efficient manufacturer. This is true in that the Corolla, Yaris, Prius, and other cars and small SUVs get great MPG. However, as a whole, their lineup isn't that far ahead of Chrysler's in overall MPG. Part of Chrysler's problem would be the drag down from vehicles in multiple lines. (ie. the Durango/Aspen, the Nitro/Liberty, etc.)
Chrysler, while continuing to look to the future (and hopefully get a hybrid out on the road as well as some clean diesels out there), needs desparately to change their overall image.
This leads me into their global position however. Daimler has done some great things for Chrysler's quality. Our transmissions aren't junk anymore being a big point. But, since their labor costs in the US are so high, many parts are built all over the world, usually by the lowest bidder I would assume. (Or the cheapest labor spots.) This has lead to some quality issues that should have been easily avoided. Sensors have been an issue, often built in Mexico or Eastern Europe. They are not huge problems. But little annoyances are what make people not buy a brand again. I understand globalization, don't get me wrong. BUT, quality has to take precedence over price at some point.
Parts will fail, that is assured. There is no such thing as reaching 100% quality. But even if most of the parts fail under warranty, its still annoying to the customer. They want to drive their car, not sit at the dealership.
This is why I'm so concerned about Chrysler's partnering with a Chinese car company. I'm concerned that in pursuit of profits they will end up shooting themselves in the foot. America can't compete with Chinese labor costs. And, so far, Chinese quality is not that good. That and the fact they are a repressive communist regime with an atrocious human rights record at home and abroad. (Think Darfur...) This is getting long and really rambling. I apologize. But we all need to wake up. Americans need to wake up. DaimlerChrysler needs to wake up. The world is constantly changing I understand. American doesn't provide for itself anymore. We trade with other countries. We do need to remember though, we must produce SOMETHING in order to survive as the nation we are. Everyone can't have a service job. I guess we'll see.
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