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, 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

Green Cars will turn the world Brown too

Heil to the mighty Prius.. now featuring cute kitty exhaust!"

The so-called "Green Revolution" must affect people's brains in some odd way as to make them short-sighted and arrogant. The movement for conservation and preservation of nature is something I support, however, there are smart ways to save... and then there are ways that feel good but are just plain dumb. One of my greatest pet peeves is people's new attitudes towards the new generation of alternate energy cars, which fall into three categories: Electric Battery Hybrids (Toyota Prius), Plug-in Hybrids (Chevrolet Volt), and the Hydrogen Car (BMW Hydrogen 7). I will tackle each of these abominations in a separate post so stay tuned!

Day One: Electric Battery Hybrids

Wow, this seems like the perfect answer! Less emissions AND greater fuel economy... what more could you ask for?! It must work by magic, making the evil oilman go away and the ozone will be effected a lot less! Wow!

OK.. now seriously, if you just bought that happy go-lucky picturethen you haven't thought this idea out. The whole idea behind this car is how great it is for the environment but what about that little magical device that makes the car so 'wonderful', the BATTERY? Now someone remind me.. what are batteries filled with? what are they made out of? Right... plastic and acid. Plastic doesn't exactly evaporate into thin air when you're done using it.. it sits in a dump for a couple thousand years and breaks down very, very slowly. The acid could be neutralized if disposed of properly using more chemicals which also take a bunch of energy.. which has to come from somewhere.. right? Hmm...

Another thing, those batteries are worth about 8,000 buckaroos (or USD, for those not familiar with the term). The warranty on the car only covers the battery for four years.. during that period if you have a problem they just throw it out and replace it... doesn't seem as eco-friendly as simply getting your car fixed with a hammer and wrenches. After the warranty period if the battery goes out, you've totaled you car. You are up carbon-footprint creek without a paddle.

Finally, let's face it.. most people buying Priuses are not doing it for fuel economy, in fact only 37% said that was their motivation. According to a survey written up in the New York Times in 2007 (link below), the main reason people bought the Prius was for making a statement about themselves. Hmm... so do owners care about the environment or do they just want to put a smug smile and lambaste everyone about how they've done "part to save the rain forests and save the web-footed orange pigeon." If people are so into the carbon off-sets business ought to also pay-up for all the energy consumed just to make your fancy vehicle which includes the factory, the workers, their vehicles which got them to work, their homes - (they need to live somewhere, right?), their families, etc...

Toyota Prius Review

Look at me Factor.. B, personally I think it looks forgettable but folks go ga-ga over it for some reason
Interior.. D, for goodness sakes the glued on the vents and the interior is made of cheap plastic!

Overall.. F, A eco-friendly vehicle that's actually worse for the environment in the long run.. wonderful!

Links:

Maynard, Micheline; Nick Bunkley and Mary M. Chapman contributing. "Say 'Hybrid' and Many People will Hear 'Prius.'" The New York Times, via nytimes.com, 2007-07-04. Retrieved on 2007-08-13.