How Obama Will Bankrupt the Auto Industry (and Taxpayers)

On this lovely, but exceedingly hot, Sunday afternoon, with computer-in-lap, I am enjoying the benefits of wireless Internet technology as I sit in the passenger’s seat of my five-year old SUV purchased from CarMax. My husband and I enjoy road trips just about as much as we enjoy the steamy-hot cups of java that we sip along the way. For the majority of the Bush 43 years, a cup of Starbucks cost more than a gallon of gas, but now both are essentially the same, meaning this road trip will more than likely be the last we can afford to take – until America puts a Republican president back in the Oval Office.

Proponents of President Obama’s new vehicle cafe standards might argue that his policy makes it affordable to get back out on the road in this day of almost $4.00 per gallon of gasoline. While vehicles that sip gasoline like we sip our coffee on road trips sounds enticing, do not be fooled; this sipping will come at a cost quite unaffordable to most Americans.

Consider the $40,000 Chevy Volt that was declared the Motor Trend 2011 Car of the Year for its advanced engineering that allows the car to run as a series hybrid, parallel hybrid, or as an electric vehicle. Sounds nice – until you realize the car’s price tag is higher than the average per capita income of $39,000, and the cost of electricity is on the rise.

General Motors may indeed deserve credit for Volt’s technology, but GM’s partnership with Motor Trend’s publisher, Source Interlink, calls into question if the Volt received the award standing on its own four wheels, or “Government Motors” had a little help from its Uncle Sam – and now must convince taxpayers that our “investment” was worthwhile, as well as set the stage for the next phase of this administration’s back door approach to “Cap and Trade.”

The administration assumes its new cafe standards of 54.4 miles per gallon by 2025 will somehow spur economic growth when auto makers begin to crank up the assembly lines to make automobiles most of us cannot afford. In the first two months of this year, out of 268,308 Chevrolets sold, the Volt accounted for one-fifth of 1 percent, or 602 — indicating that most American’s are not interested in the 4 cylinder sardine can on wheels — even if it is the “car of the future” as described by Obama.

Read More at Floyd Reports  By Susan Stamper Brown, Floyd Reports

  • al

    I understand the nissan is the vehicle to purchase…250 volts sold? Has osama or harry reid or poleski or chuck e shumer or John Kerry who served in viet nam, bought this vehicle?

  • Texican

    The goverment is selling its GM stock at a loss – – wonder why?!
    The cash infusion of the bailout went to take care of the unions not to develop new techology. GM is showing a profit by building inventory and pushing vehiches out to dealers (also inventory). Look at cash flow – – it is only a matter of time until GM goes belly up again. Last in quality and supplier satisfaction.

  • TZ

    J.M.R.– Liberals/Marxists/Socialists have not thought that far ahead. This entire story line has already been written about in “Atlas Shrugged” by Ayn Rand. The author escaped communist Russia after watching her father’s business ruined, people starving, bureaucrats collapsing private businesses, no food or other goods available, brutality in the streets . . . this is communism–state control. It’s the same everywhere. East Berlin, Russia, North Korea, China, and many more countries had “useful idiots” who envisioned power when the communists took over. How did it happen in America? Here’s how. Antonio Gramsci, a smart communist in Italy, devised a devious plan while in an Italian prison to take over the U.S. using a clever new plan: to take over the U.S. institutions slowly so that it was very gradual. Research Antonio Gramsci yourself. Then you will realize that it’s not “Political Correctness,” but “Cultural Marxism” you see, hear and feel in the U.S. You are right wondering “where will all the free loaders get their money.” They don’t worry about reality, you see. Communists live in a fantasy world. They are “idealogues,” not realists. That is the problem.

  • Barbara Haney

    Of course, buying a car assumes that you have a job or some other income stream sufficient to make payments; it further assumes that banks have the money to lend. With so many Americans out of work and with ruined credit, and with so all the loanable funds absorbed by government borrowing, I can’t imagine how anyone can buy one in the near future at current prices. If I am going to spend $50,000+ on a vehicle, it will be something with a bit more versatility for Alaska’s terrain.