Cars! Cars! Cars!

Cold On The Shoulder

Eh, so we were wrong. No congressional bailout. What happens now? Well, if we were car shopping, we'd probably pick up a Fusion over a Malibu (even if we like the color schemes in the Malibu better). See how we didn't say, "We'll def. get the Sebring!" The world won't really miss Chrysler.

We like that the republicans are going after the UAW as if the union is solely responsible for this. Remember, when a scapegoat is needed, feel free to use Carter or any organized labor force. It's failsafe.

Now, don't get us wrong, we think all of the bailouts our government... "government" has been handing out are totally insane and this auto one is no different. We hate to see folks lose their jobs, but if there is money to be spent, spend it on the people, not failed companies.

So, what do we do now? Drink up to a little Merle:

If we make it through December
Everythings gonna be all right I know
It's the coldest time of winter
And I shivver when I see the fallin snow

I got laid off down at the factory
And there timings not the greatest in the world
Heaven knows I been workin' hard
I wanted Christmas to be right for daddy's girl

Referenced articles
NY Times: Senate Drops Automaker Bailout Bid
NY Times: Auto Suppliers Share in the Anxiety

Why The Lies?

The UAW did not cause the problem Detroit is facing. Look, unions (especially the UAW) can be as corrupt as any other big organization. And the UAW should not get a pass just because they are a union. But in this particular case, the blame shouldn't be on them.

Sure the workers who put these cars together are paid well. Good for them. They got together and negiotiated for better health care and more money. The issue we don't get is how upset folks get when the UAW tries to get themselves a bigger piece of that sweet American apple pie. You know, the same pie that gets sliced up nice and big for CEOs all the time.

Anyway, the big issue here isn't UAW costs. Or the costs of retirees. The issue, as we've said for years, is that most car shoppers don't want what Detroit is making. For years no one had a choice as to what to buy, Detroit was it. Then came competition. If Detroit was rolling out the rides people wanted, the costs of the workers wouldn't come up. Or only when it was time to renegotiate the contracts (in which case there'd be talk of communists in the ranks of the UAW).

We're guessing this week there'll be a bailout announced and everything will be saved. In particular, the jobs of the CEOs who make the cars fewer and fewer want.

The auto bailout: Eat it, taxpayer!

Referenced articles
NY Times: $73 an Hour: Adding It Up

Why The Bailout Is A Bad Idea

Because nothing will change. Check out the nuts... We mean Lutz:

Let me just get one thing straight here: There’s a lot of talk about well, General Motors doesn’t make the right kind of cars or General Motors built trucks too long. At $1.50 per gallon, the American public wants sport utilities and large pickup trucks.

Has no one decided that we don't want to be held hostage by those with all the oil? Has no one decided that the environment matters? Has no one decided that we want change?

If the bailout goes through and there is no significant change in management of the auto companies then there will be no change at all. A better solution is to offer moolah to new auto start ups and have real competition in the auto space.

Referenced articles
Think Progress: Lutz Off Message: 'The American Public Wants Sport Utilites And Large Pickup Trucks'

No Bailout

There should be no bailout for automakers. Before we get too far into this, our love affair is with cars*, not the makers. Their short-sighted motives for high-profit (and low fuel economy) vehicles have created a mess that they themselves are responsible for and we see no reason to foot the bill.

For years Detroit shrugged off suggestions that fuel economy rules were unfair and so they put no serious money into research and development of newer technologies that would help with fuel economy. This sounds so familiar... Oh, safety!

And understand this: It will not turn out to be a loan.

What should happen:

• The government should say no and tell them to get their loans elsewhere.

What will probably happen:

• Congress will pony up the loans
  
• CEOs will not be canned (they should be)
  
• Unions will take a larger portion of the blame than they should
  
• China will come in with big investments to one of the Detroit Three

It's funny that once this depression (it will be labeled a depression before long) subsides, unions will have been fully busted (as a relic of the past and as part of the problem) but folks will need them more than ever before.

No one could have predicted these horrible sales were going to happen.

Referenced articles
NY Times: Frank Sees ‘Disaster’ if Auto Industry Fails

McClatchy DC: No commitment on auto bailout despite union concessions

Huffington Post: Big Three Promise Green Future But Spent Almost $50 Million Since 2007 Lobbying Against It

*And Claire, Alison and Summer. Oh, Summer, have mercy our on catalytic converter!