Jericho: Auto Industry Failure Silver Lining?
No one wants our current financial crisis. But, low gas prices are not hurting anyone's feelings, are they? Could there be other benefits?
Maybe. But, you have to have a long range point of view.
There are a reported three million auto industry related jobs hanging in the balance. The Republicans are balking at a bailout ... that is, all Republicans except Chimpy. The President plans to use some of the $700 billion set to bailout the banking industry to save the auto industry. Now ... why would the worst President ever give a care about three million lost jobs? The simple answer is that he, like the rest of the Republicans, doesn't care about the workers. However, Shrub is an oil man. If the American auto industry goes away, does that destabilize oil sales? If Shrub is going against his own party, giving money destined for white collar workers to blue collar workers, I think we can see that the oil industry is running scared.
Why? Why are they scared? I think I have an answer. It's the same thing that's scaring the Japanese.
The Japanese auto makers want the US Auto Industry to get bailed out. In short, the Japanese don't want suppliers to go out of business, suppliers they also depend on. But, more than that, they are afraid of competition.
Now, I hear you out there, scratching your heads, going "Huh? WTF? They want to save their competition to avoid competition?" Yup. They would rather see GM and the rest continue to go exactly the way they have been going. They want GM & Ford to keep making huge SUVs so that they can look like heroes for making hybrid cars. They also know that there are smaller companies like Hyundai and KIA nipping at their heels. If GM and Ford and Chrysler went away, KIA and Hyundai could broaden their own market.
But, why would the oil industry be afraid of Hyundai or KIA?
They aren't.
They fear Tata. So does Japan.
Are you asking yourself "Who the hell is Tata?" You won't be asking that question for too long. While Detroit is making environmental destroying SUVs, while Japan is making half-assed hybrids and looking like environmentalists, Tata out of India has been producing the G-Wiz for sales in the UK, specifically London.
The G-Wiz is a fully electric vehicle. It's perfect for commuting in dense urban environments. Is it good for a cross country trip? No, probably wouldn't get you to the state line, but how many daily cross country trips do any of us make?
Now, how many days a week do you drive to work? How would you feel if every time you drove to work, you knew you were part of the environmental solution instead of adding to the problem? I bet you'd feel pretty good. I know I would.
Is the G-Wiz ready for prime time in the States? Not really, we do like our cars a little bigger. Tata is even making bigger electric cars for the European market. But, the idea is catching on here. Tata wants to expand into the States, Smart cars are already becoming popular commuter choices, so there is a market for the small commuter car. Further, the G-Wiz doesn't cost an arm and both legs - looking at you GM! How much is the Chevy Volt? We're hearing estimates of $40,000! Are you kidding? The G-Wiz is less than half that new. The average SUV buyer could buy their gas guzzler and a G-Wiz for everyday driving or buy two G-Wizes and give up destroying the planet altogether for the sake of additional cup holders!
So, here is the scenario that Japan and Big Oil fears but maybe you and I should be excited about: the Big Three die or get severely hurt. Tata buys up some production facilities here in the States at a rock bottom price. They employ UAW workers because it's still cheaper than making the cars in India and shipping them here. (Suck on that, Republicans!) They go to work on an American G-Wiz; an all electric car about the size of a VW Beetle that costs $30,000. This vehicle becomes popular - and why wouldn't it? You wouldn't have to go to the gas station. You recharge it every night for about $.02 cents a mile - that's cheaper than riding the bus! People use less gas, hurting Big Oil's bottom line. People stop buying over priced SUVs and hybrids because they don't do what needs to be done, thus hurting Japan's bottom line. We all lower our carbon foot print and slowly the planet recovers and all the while most of those three million jobs related to the auto industry are saved.
I don't think this is a far fetched vision. In fact, I think it might be preferable to saving the Big Three. I'm ready for the all electric vehicle revolution - anyone else?
Maybe. But, you have to have a long range point of view.
There are a reported three million auto industry related jobs hanging in the balance. The Republicans are balking at a bailout ... that is, all Republicans except Chimpy. The President plans to use some of the $700 billion set to bailout the banking industry to save the auto industry. Now ... why would the worst President ever give a care about three million lost jobs? The simple answer is that he, like the rest of the Republicans, doesn't care about the workers. However, Shrub is an oil man. If the American auto industry goes away, does that destabilize oil sales? If Shrub is going against his own party, giving money destined for white collar workers to blue collar workers, I think we can see that the oil industry is running scared.
Why? Why are they scared? I think I have an answer. It's the same thing that's scaring the Japanese.
The Japanese auto makers want the US Auto Industry to get bailed out. In short, the Japanese don't want suppliers to go out of business, suppliers they also depend on. But, more than that, they are afraid of competition.
Now, I hear you out there, scratching your heads, going "Huh? WTF? They want to save their competition to avoid competition?" Yup. They would rather see GM and the rest continue to go exactly the way they have been going. They want GM & Ford to keep making huge SUVs so that they can look like heroes for making hybrid cars. They also know that there are smaller companies like Hyundai and KIA nipping at their heels. If GM and Ford and Chrysler went away, KIA and Hyundai could broaden their own market.
But, why would the oil industry be afraid of Hyundai or KIA?
They aren't.
They fear Tata. So does Japan.
Are you asking yourself "Who the hell is Tata?" You won't be asking that question for too long. While Detroit is making environmental destroying SUVs, while Japan is making half-assed hybrids and looking like environmentalists, Tata out of India has been producing the G-Wiz for sales in the UK, specifically London.
The G-Wiz is a fully electric vehicle. It's perfect for commuting in dense urban environments. Is it good for a cross country trip? No, probably wouldn't get you to the state line, but how many daily cross country trips do any of us make?
Now, how many days a week do you drive to work? How would you feel if every time you drove to work, you knew you were part of the environmental solution instead of adding to the problem? I bet you'd feel pretty good. I know I would.
Is the G-Wiz ready for prime time in the States? Not really, we do like our cars a little bigger. Tata is even making bigger electric cars for the European market. But, the idea is catching on here. Tata wants to expand into the States, Smart cars are already becoming popular commuter choices, so there is a market for the small commuter car. Further, the G-Wiz doesn't cost an arm and both legs - looking at you GM! How much is the Chevy Volt? We're hearing estimates of $40,000! Are you kidding? The G-Wiz is less than half that new. The average SUV buyer could buy their gas guzzler and a G-Wiz for everyday driving or buy two G-Wizes and give up destroying the planet altogether for the sake of additional cup holders!
So, here is the scenario that Japan and Big Oil fears but maybe you and I should be excited about: the Big Three die or get severely hurt. Tata buys up some production facilities here in the States at a rock bottom price. They employ UAW workers because it's still cheaper than making the cars in India and shipping them here. (Suck on that, Republicans!) They go to work on an American G-Wiz; an all electric car about the size of a VW Beetle that costs $30,000. This vehicle becomes popular - and why wouldn't it? You wouldn't have to go to the gas station. You recharge it every night for about $.02 cents a mile - that's cheaper than riding the bus! People use less gas, hurting Big Oil's bottom line. People stop buying over priced SUVs and hybrids because they don't do what needs to be done, thus hurting Japan's bottom line. We all lower our carbon foot print and slowly the planet recovers and all the while most of those three million jobs related to the auto industry are saved.
I don't think this is a far fetched vision. In fact, I think it might be preferable to saving the Big Three. I'm ready for the all electric vehicle revolution - anyone else?
posted by Jericho Brown at 12/16/2008 11:26:00 AM
6 Comments:
How about just forcing the big 3 to focus on making hybrids and full electric vehicles as a condition of the bailout?
Wait. Are you suggesting over sight? You un-American, communist hose bag!
This is the Good Ol' USA, Mister! We give out huge amounts of money we borrow from other countries to over-paid executives without any rules, follow up or stipulations!
To demand a plan or proof that our billions of dollars will actually do what we intend them to do is not the American way! We believe in free markets and free money for people that don't need it!
Asking for plans or proof or putting any kind of over sight over white collar criminals that have raped and pillaged our economy for their own gain is socialism! Just sit down, pay your taxes, eat your government cheese, buy your gas and trust in the wisdom of your superiors!
Nanny nanny boo boo!
I keep telling everyone that things would go so much better if they just made me King.
Oh, I'm so on board with that!
Do I get to be Sex Industry Czar????
You're MY king. :)
I think Tata will do better in the US if they weren't called a nick name for "boobies".
I am not so sure that is a drawback. Remember the mentality of most of the guys in the US. If they have to settle for a small "wimpy" car, at least it will have a name that makes a guy smile when he says it.
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