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.