Yesterday, I blogged on how the city of Flint is providing millions in tax breaks to GM to help fund the Chevy Volt, and GM is also seeking millions from the state as well. Likewise, GM is also requesting part of $50 billion in low interest, government backed loans to help in the conversion to vehicles with better fuel economy, such as smaller vehicles and hybrid cars. And, when GM finally starts selling the Volt, it will probably need large tax incentives for consumers in order to make these vehicles affordable.
And, if Ford and Chrysler ever develop real plans to address fuel economy, they'll need just as much help.
Yet, the pain doesn't stop there. Automakers claim that CAFE will increase the price of all vehicles significantly. Thus, not only are tax payers committing billions in loans and tax breaks to Detroit, they're also going to have to pay more for the products their tax dollars are helping to fund.
Without doubt, US automakers provide great jobs for many Americans, but how did things get so screwed up? More important, can the US auto industry really be saved, or are we just delaying the inevitable?
And, if Ford and Chrysler ever develop real plans to address fuel economy, they'll need just as much help.
Yet, the pain doesn't stop there. Automakers claim that CAFE will increase the price of all vehicles significantly. Thus, not only are tax payers committing billions in loans and tax breaks to Detroit, they're also going to have to pay more for the products their tax dollars are helping to fund.
Without doubt, US automakers provide great jobs for many Americans, but how did things get so screwed up? More important, can the US auto industry really be saved, or are we just delaying the inevitable?
