But for handing over gobs of cash with no strings attached, it would be harder to imagine a more sweetheart deal for the auto industry: According to the Wall Street Journal, Congress is considering a proposal to pay consumers to buy new cars. It could wind up as part of the stimulus package now pending in the Senate. The program, dubbed “cash for clunkers,” would provide tax credits of up to $4,500 for trade-ins–especially those with poor fuel efficiency. With barely-running clunkers available in many areas for as little as …
The crisis in Russia is revealing new features proving it is quite unlike the global downturn. Last week saw numerous actions protesting a hike in import duties on foreign cars that were staged in an array of Russian provinces. The government had passed a decision to the effect to protect domestic carmakers. This dealt a massive blow to many provinces. The truth is that auto making is localized in Russia’s European area, and shipping cars to Siberia and the Far East racks up their sales price, especially at the backdrop …
“A Conservative,” that anonymous scribe within Heritage, surfaces again for the second time in three days with a cautionary tale for the Big Three about Henry Ford, FDR and Big Government strings. This latest edition of New Common Sense, titled “Ford Faced Down FDR’s Blue Eagle,” reads as follows: Out of the rubble of the proposed bailout of the Big Three automakers, a phoenix may rise — or is it a blue eagle? President Bush and Treasury Secretary Henry Paulson just might speed $10 billion or more to Detroit regardless …
Even as the Detroit automakers are asking Congress for a taxpayer bailout, the Detroit News reports that Ford Motor Co. is operating highly automated, highly integrated, and highly profitable auto plants — in Brazil. They employ state of the art technology and techniques to produce high-quality vehicles: This state-of-the-art manufacturing complex in the northeastern Brazilian state of Bahia is not only the centerpiece of Ford’s Brazilian turnaround plan, it is also one of the most advanced automobile plants in the world. It is more automated than many of Ford’s U.S. …
Senate conservatives last week waged a hard-fought and principled battle to protect both U.S. taxpayers and the integrity of the free market against the Washington establishment that favored a government bailout of General Motors and Chrysler. By late Thursday it appeared they had won. But within hours of the end of negotiations in the Senate, the White House undercut conservatives by announcing it would consider using taxpayer money from the Troubled Assets Relief Program (TARP) to bailout the Detroit automakers. Sadly, this wasn’t the first time the White House felt …
Last week the House approved a $25 billion loan for Detroit’s Big Three that, if signed into law, would cost taxpayers $7.5 billion. General Motors, Ford and Chrysler claim they need assistance to make the switch from gas-guzzling vehicles to more cars with better fuel-efficiency. We’ve broken down a few of the reasons why Detroit’s business model has been failing. One reason is simply their choice to remain committed to building minivans and SUVs. As gas prices rose and consumer demand slowly shifted to more miles per gallon, Detroit’s Big …
