Obama steers carmakers down wrong road

The Washington Post reported today that,

President Obama yesterday announced plans to buy 17,600 American-made, fuel-efficient cars and hybrids for the government fleet, the White House’s latest gambit to steer aid to the nation’s beleaguered automakers.

A few thoughts:

  • In 2007, U.S. car makers sold more than 16 million cars.
  • In 2009, cars sales are project to be less than 9 million.
  • Obama’s purchase of 17,600 cars is obviously a drop in the bucket compared to the kind of sales increase that is needed.
  • Cars sales will pick up when the economy recovers, provided that carmakers are making cars that Americans want and that are profitable — that is, SUVs and light trucks.
  • But Obama wants the Big Three to make and sell econoboxes that Americans don’t want.
  • Not only are econoboxes small, dangerous and incapable of pulling/carrying large loads/groups of people, Obama plans to tax drivers by the mile they drive — thereby erasing any economic benefit from fuel efficiency.

Bottom line: Obama’s plan is a stick in the eyes of carmakers, workers or consumers.

3 thoughts on “Obama steers carmakers down wrong road”

  1. The president is going to have a rude awakening at some point down the road. He’ll find the US consumer a harder nut to crack than he thinks. If I had stuck my foot in my mouth as many times as he has in the short time since January 20th, I would not dare try to manage Detroit at all. I’d be too embarrassed to speak out in public about anything. But not this guy!

  2. I’d be much more impressed by this if GSA were to purchase 17,600 GM Volts (or those assinine PUMAs.)

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