Jericho: Bailout GM? Sure. But ... !
General Motors is asking for a huge government bailout, much like the banking and insurance industries are currently pursuing.
They are giving many of the same reasons for this bailout; a slow down in the economy and a banking crisis. However, they seem to miss a key factor. When fuel prices skyrocket, people don't drive as much. They also don't buy brand new, huge, SUVs and other gas guzzlers. Matter of fact, there has been a huge trend of people buying tiny, used, fuel efficient vehicles. That trend can only negatively impact GM's bottom line.
So, in this time of financial crisis, should we bailout GM? Sure. There are hundreds of thousands of manufacturing jobs that are wrapped up in the American auto industry. A bailout at GM is good for the American economy and the American working class.
However, unlike the bailout of AIG, which they seem insistent on wasting, the bailout of GM should have oversight and a few caveats.
First, no meetings at resorts or by the pool side. Sorry, GM - AIG spoiled everything.
However, more importantly, this is a chance to change the auto industry. In a time of global warming and just coming down from nearly $5 a gallon for gas (don't get comfortable out there, gas prices will surely rise again) this is an opportunity to affect how the auto industry works. And why shouldn't we? Our money means our rules!
First, kill the golden parachutes and the huge executive pay. I'll bet the the big checks in the auto industry pale in comparison to the checks in the banking world, but, who needs another billionaire? (Still looking at you, AIG!)
Next, this is our opportunity to nudge the auto industry into the 21st century. Why not require GM to produce only certain vehicles? I think starting with 50% hybrid. 25% gas powered and 25% full electric is a step in the right direction. I think we should require them to push to 50% electric and 50% hybrid in the next five years. Then, for the 10 year requirement, judge the state of the market. Five years from now in an economy inspired by the quest for alternative fuels could see hydrogen or some other solution rise. However, I think a requirement that GM not produce another petrochemical only vehicle after 2015 is not too much to ask.
Our Money. Our Environment. Our Rules!
They are giving many of the same reasons for this bailout; a slow down in the economy and a banking crisis. However, they seem to miss a key factor. When fuel prices skyrocket, people don't drive as much. They also don't buy brand new, huge, SUVs and other gas guzzlers. Matter of fact, there has been a huge trend of people buying tiny, used, fuel efficient vehicles. That trend can only negatively impact GM's bottom line.
So, in this time of financial crisis, should we bailout GM? Sure. There are hundreds of thousands of manufacturing jobs that are wrapped up in the American auto industry. A bailout at GM is good for the American economy and the American working class.
However, unlike the bailout of AIG, which they seem insistent on wasting, the bailout of GM should have oversight and a few caveats.
First, no meetings at resorts or by the pool side. Sorry, GM - AIG spoiled everything.
However, more importantly, this is a chance to change the auto industry. In a time of global warming and just coming down from nearly $5 a gallon for gas (don't get comfortable out there, gas prices will surely rise again) this is an opportunity to affect how the auto industry works. And why shouldn't we? Our money means our rules!
First, kill the golden parachutes and the huge executive pay. I'll bet the the big checks in the auto industry pale in comparison to the checks in the banking world, but, who needs another billionaire? (Still looking at you, AIG!)
Next, this is our opportunity to nudge the auto industry into the 21st century. Why not require GM to produce only certain vehicles? I think starting with 50% hybrid. 25% gas powered and 25% full electric is a step in the right direction. I think we should require them to push to 50% electric and 50% hybrid in the next five years. Then, for the 10 year requirement, judge the state of the market. Five years from now in an economy inspired by the quest for alternative fuels could see hydrogen or some other solution rise. However, I think a requirement that GM not produce another petrochemical only vehicle after 2015 is not too much to ask.
Our Money. Our Environment. Our Rules!
posted by Jericho Brown at 11/13/2008 09:38:00 AM
1 Comments:
We also need to look and see what parts of the auto industry and their suppliers can be retooled and put to work building coast to coast high speed rail and insuring every metropolitan area has decent public transportation.
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