Auto Bailout: Corporate We(a)l(th)fare

Seriously democrats? Seriously?! Democrats got a huge mandate to do what they will with the nation by capturing the Presidency and enlarged their margin in the House of Reps and Senate. What do they do? What will their first lame duck move be? Trying to get the Big Three Auto companies (Ford, GM, Chrysler) to either be allowed to received money from the 700 Billion dollar bailout already passed or to pass another bailout just for American Auto companies.

Here's a better idea: Let them suffer. The crisis these companies face can be divided into two main problem areas: Management and Unions.

Management

It would be hard to imagine a company losing Billions of dollars for many quarters in a row and two or three years after having consecutive negative quarters beginning to respond with changes to structure and product design. The Big Three have done just that.

What did Ford and GM focus on while gas prices where skyrocketing? They were producing and actually expanding SUV production. Now they claim that somehow it is the economic climate that is causing their losses and they claim it is foreign competition that is adding to their woes. That's like wondering why the sidewalk lemonade stand doesn't do so well in winter and then blaming the lack of lemonade sales on the fact that there is a Starbucks 10 feet away.

Of course gas prices affect Auto sales, even Toyota had some losses last quarter (in the US) and it is also obvious that competition makes it more difficult for a company to sell the same product and have the consumer buy it without thinking. The management at the Big Three always seem to have their eyes on Washington for a handout ever since they decided that American consumers wouldn't trust new Japanese cars that came flooding into the US in the 70's when gas prices were sky high and they couldn't stop making gas guzzling boat-cars. It is true that American consumers like buying products that are made in America and have brand-name allegiance but there is a limit. The companies had fair warning that quotas on foreign cars were going out the window and should have gotten the message when "foreign" vehicle plants started popping up in the South and now have 100% American labor. These big company executives just refuse to believe that their reality from 1965 has changed.

These management executives have to realize a few things. 1) American consumers are smart, they will buy the best vehicle for their needs no matter how many million dollars is spent on researching a trendy model name. 2) Making a bad product should not make you eligible for a handout. 3) Unlike banks, if you fail there are plenty of other companies that can pick up the slack, there is no Auto Tsunami in the making. 4) React to the economy, don't sit around and wait until it beats you to death. 5) Deal with the Unions (UAW), they are sucking your carcass dry.

Unions

Bargaining organizations are an important part of the advocacy of blue-collar workers. Unions also played an important part in the fight against oppressive businesses and the politicians that were in Big Business's pockets. There.. proof I do not hate unions.

Now, moving on to the UAW (United Auto Workers), the union dealing with the the Auto companies in question. The UAW is largely corrupt and has turned from an advocacy group to a group that seeks to feed itself by extortion. This union isn't working for the true interests of workers it is making moves and spreading misinformation amongst those who may not know as much as them in order to cause walkouts and strikes. The effect of this being the UAW is extremely powerful and of course.. that means they want more. The UAW keeps finding the weakest points of the Big Three and then making sure they pay dearly before their workers return to the line.

The sad part of this setup is that it is the workers that are being hurt. First they lose wages when they are not working then they go back to work feeling better but without receiving any substantial increase in meaningful work benefits or work conditions. Meanwhile the unions gain more clout and more memberships.. They ought to change their title to UAE - United for Auto Extortion.

Conclusion

Democrats, no doubt, have a debt of gratitude to pay to Unions who endorsed them and made sure their members turned out in large numbers for their candidates but it is time to stand up to corrupt unions and failing big businesses and say "Help doesn't mean handouts!"

Green Cars: Part Three

Yikes, last time I did this there were some pretty nasty email and a few unhappy comments but the show must go on. It is my responsibility, I feel, to rip off those rosy lenses off the collective eyes of the world and show what kind of improvement so-called "green" cars are really making.

Day Three: Hydrogen Vehicles

Hydrogen makes me think of things like.. the number one, the letter "H", wonderful days of High School and College Chemistry, and of course, the Hindenburg. As it turns out Aluminum had more to do with the Hindenburg accident than Hydrogen so we'll leave it off the list. So how exactly is Hydrogen going to be the next magical substance to make rainbows and make Al Gore smile?

The idea behind Hydrogen powered vehicles is that either 1) they use Hydrogen for combustion alongside gasoline (petrol, for those in the UK) or 2) Hydrogen be used in fuel cells, forced to react with Oxygen which would create a water byproduct and generate electricity to run an engine. [Forgive me if I've oversimplified the processes, these are just description for the Average Joe (or Jane)]


The first method, the gasoline/hydrogen combustion engine, is being used in the beautiful, new BMW Hydrogen 7 (pictured above). This seems to be a pretty good idea, creating a true hybrid vehicle however there are some issues in the realities of this method. First, a passable infrastructure for the mass manufacture and distribution of Hydrogen is about 15 to 20 years away. Second, the hydrogen tank is normally under pressure however, if the car is not used for 17 hours the tank begins to lose pressure and leak out the hydrogen - meaning that if you don't use your car for about 4 or 5 days in a row, your tank will be empty. Thirdly, the process to create and distribute Hydrogen to fueling stations is itself very inefficient. In fact, according to experts in the field it is about 1/4th as efficient as using battery technology and a little less efficient than the current hydrogen fuel cell technology. Overall, I like the idea but unless a major breakthrough happens in the storage and infrastructure of hydrogen fueling stations.. it will remain an Al Gore fantasy not reality.


The second method is using Hydrogen in a fuel cell, react it with Oxygen and water leaks out the tail pipe as electricity runs your motor. This is the more popular vein of hydrogen technology automakers are trying to adapt (such as the Honda FCX pictured above).

Again, most problems with Hydrogen fuel cells is that the technology just isn't caught up to reality. 1) The fuel cell technology is currently prohibitively expensive (they contain platinum and other rare metals) in exchange for comparative performance to most of today's autos. 2) The hydrogen fuel cells are very brittle and weak and cannot handle even the normal bumps and vibrations of an average road. 3) The fuel cells can't stand up to cold weather especially freezing conditions because that impedes their start-up process and the byproduct of the process is water.. which freezes causing some problems in exhaust. 4) The infrastructure is neither in place nor is there a comprehensive plan to implement to get hydrogen stations allover the country. 5) Other fuel cell technologies are far more efficient in a comparison done by MIT's Technology Review in 2007 of grid-to-motor efficiency electric hybrids were 86% efficient in comparison to 25% for the hydrogen fuel cell vehicles.

Ouch... There we go. More than a few reasons why "green" cars are not quite what they are portrayed as, instant band-aids to the world-wide crunch. What is the solution then? Well, until technology and innovation catch up with the dreams of the automobile industry there are a few steps that we can take to curb both pollution and the dependence on oil. You can: ride public transport, drive slower.. you get more MPGs, buy a vehicle that actually fits your lifestyle - no SUVs for Soccer moms and no enormous trucks for guys who will never haul anything, stay smart make less trips with your vehicle by combing them and planning them out. There are plenty more tips I'm sure floating around in the interwebs and if you care to scratch the surface.. you will be flooded.


Link: The Last Car You Would Ever Buy -- Literally - MIT's Technology Review

Green Cars, Black Earth Part Deux

Part Two of Three, an expose on alternate energy vehicles. Today's topic: Plug-in Electric/Hybrid Vehicles.

Day Two: Plug-in Electric/Hybrid Vehicles

Plug-in electric/hybrid cars seem like a pretty good idea, like most alternate energy vehicles, until you start looking at the details and the implications in the long run. Don't get me wrong, I love helping the environment and the look of the new Tesla Roadster (in fact the supposed Future Ferrari Front-Engine V8 looks eerily similar) however again, when something smells too sweet there must be something hiding.

First, the obvious. When you plug in a car into an outlet and then drive it around there is ZERO emissions, which is wonderful! Problem is.. where did all that energy come from? That's right, most likely big ol' power plant. If you are in the US there's a pretty high chance that you will be taking your energy from a coal power plant which is putting a huge hole in the ozone and spewing out harmful things like mercury and sulfur oxides. So, basically when you buy a plug-in hybrid you end up shifting the pollution, and although you feel like you are saving the world all you've most likely done is put the pollution somewhere you can't see it directly. If you happen to live next to a wind-farm, solar array, or nuclear power-plant.. more power to you, buy a plug-in hybrid as soon as they are released in mid to late 2009!

Another issue with these hybrids or fully electric vehicles again is their batteries.. they are heavy. Very, very heavy. With fuel-combustion vehicles, the more gas you burn the less of your cars energy is going towards pushing the weight of the gasoline however in an electric vehicle it must constantly propel all the weight of the battery (minus a few lost electrons). Car companies are promising new, lighter batteries but I'm not holding my breath.



The next installment will be on hydrogen-powered cars.. stay tuned