Bailout for U.S. Auto Makers?

Um... no. Not unless they can demonstrate that they actually deserve it. And won't fritter our money away. Again.

Because they want a bailout, and are lobbying Congress to give it to them. And but fast. Last month, Congress granted them $25 billion in guaranteed loans. U.S. automakers are now clamoring for $25 billion more. Already!

To follow is my case for why they maybe don't deserve it. Here's a blurb from an earlier posting of mine entitled Going Green To Make Some Green:

"Innovation is Capitalism's best friend. Which is why it boggles my mind that America, which invented the automobile, is now getting its ass kicked by Japan and South Korea in the production of those fuel-efficient cars every fashionable hipster (and responsible consumer) seems to want. What's up with that, Detroit?"

Well, here's what's up. Detroit has successfully lobbied Washington to keep their fuel economy standards ridiculously low. The standards in Europe and Japan are roughly 35 miles per gallon. Only in late 2007 did Congress finally move the U.S. fuel economy standard (currently 27.5) up to match that--but by 2020, twelve years from now. Even China (China!) has higher standards currently. Well. Why "innovate" when you can "lobby"... Right? It's certainly easier on the mind. (Although it explains why the world doesn't buy our cars--why would you buy a car you can't drive in your country?)

You know what else Detroit has done? They successfully lobbied Washington to label SUVs as "light trucks" so they'd only have to meet the standard of 20.7 m/p/g, rather than the 27.5 m/p/g required for cars. (Maybe we should stop calling them "Soccer Moms" and start calling them "Trucker Moms.") And their excuse for why they don't make more fuel-efficient cars? Here's General Motors' response: "We build what the market wants. If people want SUVs and Hummers, you have to give them what they want."

Really? Cuz that's not what I want! Personally, I like to walk... and have been very frustrated since moving out to L.A. County from NYC, where walking and an easily-accessible public transportation system are the norm. I'd really appreciate good public transpo out here in L.A., especially when I've been out-and-about, drinking and carousing, and I'm worried about the specter of drunk-driving. But in L.A., having a car is pretty much a necessity.

But it hasn't always been that way in L.A.--did you know that? Los Angeles once had a glorious cable-car system. But it was ripped out, thanks to those who favored (and I'm sure lobbied heavily for) cars-for-everyone and urban sprawl--you wouldn't believe the sprawl in L.A. And I've never seen so many strip malls in my life. I fled the suburbs of Chicago in large part to get away from the strip-malls. Oh the irony...

And see, our Addiction to Oil is very much related to our current woes--economic, military, environmental, political, and moral. (See my earlier posts if you need convincing). And the taxpayers hardly have $25 billion to waste on an industry that has very much contributed to our woes and seemingly refuses to innovate. Which is what Capitalism should be all about.

Here's the article that "fueled" this post: http://www.latimes.com/business/la-fi-autos28-2008oct28,0,1118586.story?page=2

And if it makes you as pissy/snippy as I'm currently feeling, start contacting your elected officials. Please.