Caught an item on Today this morning concerning the ailing fortunes of the US automobile giants who have their collective begging bowl out for further $$$billions from the US government. The BBC’s take focused around the fact that these companies would need to be making much “greener” and more “energy efficient” vehicles in the future if they were they to get such a cash bail out from the incoming Obama regime. There are several points about this I wanted to make.
1. The item before this talked about the dramatic fall in fuel prices. The irony seemed lost on the BBC.
2. The item entirely ignored the devastating impact that trade union practises have had on these manufacturers. The United Auto Workers Union, in particular, has financially crippled these manufacturers. The BBC ignores this inconvenient truth.
3. Is it not counter intuitive to suggest that these large manufacturers are deliberately ignoring a major profit opportunity in producing these “green” vehicles? Might it be that the demand the BBC and left-wing US politicians drone on about might not actually be that significant?
If you want to understand what is happening to the Detroit car manufacturers, don’t listen to the BBC spinners.
Good shot Dave. I’m getting ready to listen to the fair and balanced interview with Shimon Peres – nurse, quickly now..
Any comment on how Obama’s protectionist approach to US industry generally might negatively impact on the auto trade in the UK and Europe causing further instances of child poverty in already depressed areas.
That’s before you consider the massive impact of a further logjam in global free trade negotiations on the economies and prospects of developing countries (or is everyone going to roll over in the general hysteria and let him do what he wants?)
Was the point raised that plenty of perfectly liberally minded Brits had serious concerns over an Obama presidency on the basis of this aspect of his policy pledges, rather than because they were racist or because he knew some terrorists 30 years ago or because his church leader bloke was a bit eccentric or because he’s not a muslim but has a funny middle name that sounds a bit like that iraqi bloke with the ‘tache?
Thought not.
As long as green cars cost a lot more than “normal” cars, no one will buy them…especially not in todays climate (where money is in short supply).
Also, if the Government starts subsidising the production of these expensive green cars then this WILL impact the sale of European cars. This will lead to European car manufacturers demanding government subsidies to compete and could lead to quite a dirty little trade war.
BUT the truth of the matter is, if green cars could be produced cheaply then they would get sold. As long as green cars are expensive, they will remain a niche product.
Mailman
Not to mention that wankers Al Bore and Billy bob Clinton classified SUV’s as trucks not cars which made them exempt a lot of the US safety rules and emissions regulations.
Wherever there is pollution you will find the stickly paws of Clinton and Bore.
typical of 1/2 witted city myopics to legislate against cars that many country dwellers need. The average farmer/lumberjack/builder in the country needs a 4 wheel drive for work. Families with any more than 3 kids need them for child seat access. etc etc. 4 wheel drives are always called “Chelsea Tractors” by sneering BBC presenters– just try sneering at me + my 4 wheel drive
frankos 11:51
BBC presenters only ever travel by public transport and never by aeroplane, of course, so they can sneer at all car owners.
I thought Al Greenie Beeb would prefer a planet without cars anyway. Why do they even care about the US carmakers?
The BBC is typical of greens generally. It is affluent, behaves as it likes regarding energy use and preaches to everyone else about the need for frugality in energy use.
Prince Charles, Al Gore, the Guardian, Monbiot and the BBC. These are just a few of the energy greedy hypocritical greens we have to listen to.
No mention of the taxes that Detriot workers would have to pay ? Some of those taxes that the US government will spend on international bodies, events and problems that workers in many other countries (not UK)wont be taxed for ?
For example, how much tax does a USA Detriot worker put into the international system compared with a Pitesti Romanian worker ?
disillusioned_german | 18.11.08 – 1:08 pm
I thought Al Greenie Beeb would prefer a planet without cars anyway.
Are you kidding? Jeremy Clarkson is the beeb’s second biggest international money-spinner.
Anonymous 2:10
Are you suggesting that the BBC would compromise its political ideals for money ?
In the full energy analysis, a hybrid vehicle comes out very badly – something to do with the construction and eventual disposal of all those batteries. Save energy – buy a normal car.
The BBC seem to be taking it upon themselves to 2nd guess what the Obamination might do. They have no idea Im sure.
If banks can be bailed out, why not car makers.
The BBC seem to be taking it upon themselves to 2nd guess what the Obamination might do. They have no idea Im sure.
How could they? He doesn’t know himself. Translating ‘Hope!’ ‘Change!’ and ‘Yes we can!’ into actual policies is no mean feat.
Some info to back up what DV is saying can be found here:
Democrats still want an auto-bailout
Yes, it’s from the blog of a Libertarian talking head. That doesn’t negate the facts he’s presenting about union wages and costs. Ignore any perceived far right-wing lunacy, and check the links and make up your own minds. Especially important is the one at the bottom, which I’ll reproduce here for convenience:
Job banks programs – 12,000 paid not to work
This isn’t something unique to the UAW, of course. The musician’s union in New York does the same thing with the Broadway shows, although to a much lesser degree.
In any case, GM has long been expected to go bankrupt or break up anyway. They’re pretending that they’re only having trouble now because of the economy.
But it’s worse than that. One thing nobody talks about is the automakers’ situation with dealers. The dealers, who have their independence from automakers protected by state law (thanks, lobbyists), have their own self-inflicted problems, including bad service and ripping off customers. Further, they’re forced by their deals with the automakers to stock all the crap cars that don’t sell, simply because so much marketing cash has been spent on them. That’s the nature of retail, though, and not specifically a car thing. But they’re not allowed to sell them at cost in order to get rid of them.
Basically, the whole dealer system needs to be blown up and rebuilt anyway. They’re part of why cars are more expensive than they need to be, service is worse, and the industry hasn’t advanced to where it needs to be.
David Preisler 6:29
So not much different from the UK then !
Why am I not surprised that the BBC put a “global warming” slant on a report about the misfortunes of an industry which is failing due to the credit crunch and the accumulated medical welfare costs associated with recent large scale lay-offs, not the rush of US consumers into green products.
I still work in the automotive industry, and it is becoming more apparent to purchasers, the industry generally, and the US Environmental Protection Agency that some of the green credentials attached by the media to hybrids etc are not nearly as deserved as one would be led to believe.
EPA had to revise their label fuel economy test procedures in 2008 in response to complaints by drivers of these vehicles that the published fuel economy values were hopelessly optimistic compared to what might be achieved in real life.
In addition the BBC did not care to point out that the only major industrialised nation in the world which has reduced its carbon dioxide emissions by any significant amount in recent years is the USA, under George W. Bush.
At the same time, the Europeans, and Canadians, both fully signed up to Kyoto, have increased theirs.
It seems that facts hold no interest for the BBC, except where they support the ongoing propaganda effort in support of the green movement.
“The BBC’s take focused around the fact that these companies would need to be making much “greener” and more “energy efficient” vehicles in the future if they were they to get such a cash bail out from the incoming Obama regime. ”
Unlike the UK which has squandered billions of pounds in the last 10 years shoring our up union-infested railways and bus servies the yanks have actually putting their money where their collective mouth is
http://consumerguideauto.howstuffworks.com/2011-chevrolet-volt.htm
Whatever the Obamination decides – Im sure no-one knows what that will be – the case for bailing out the Big 3 is watertight now that the bank bailout has gone through. They are not even asking for anything like the same money.
Republicans are just hurting themselves by standing against such a thing. They waved through the bank bailout and we see a load of fat cats saving their jobs. But carmakers and their blue collar workers – nope, nothing for you grease monkeys.
No money for the carmakers, then no money for the banks, consistency counts for something.
difference is we all need bank accounts and businesses need financining —if we nationalise every business that collapses we’l go staight back to the 70s –big unions/low productivity/high taxation
geoffrey sturdy,
Given the cost of rail travel in this country I just wonder where the hell all of that money has gone!
Actually, Id go even further…railways and public transport must be NATIONALISED!
I know thats heresy BUT the simple fact is, when services people rely on for their livelyhoods and their lives are run for profit you can bet the winners arent going to be the service users!
Eh…sounds like I just described the NHS! 🙂
Mailman
They’re going to use more money to produce green vehicles, but they haven’t sold the cars they have now? Wow, is this the plan that the elitist illuminati wanted to approve?