Bailouts are a wonderful thing. Why let the free market work?
The best example comes from Obama’s handling of the GM bailout.
Obama bailed out the UAW with his GM bailout and they are doing poorly. Plus they have not paid us back. He bailed out Chrysler and they were practically given away to Italy (with a small stake for Canada).
Obama takes credit for saving Ford but he had nothing to do with Ford’s survival. Ford survived without a bailout and they are doing well.
Part of Obama’s plan was to launch a government-owned car company to make his electric cars. The Chevy Volt, Obama’s favorite, is a heavily subsidized vehicle. It is priced at $39,995 but it actually costs about $89,000 to make and it has a $12,000 body. What a deal for taxpayers.
Besides having batteries which are not ready for market (they go on fire for no discernible reason). It was only last January when every Volt ever made was recalled because of their dangerous batteries.
The heater doesn’t heat because the power is needed for the engine in the cold weather. It takes 26.6 years to break even and every year GM has to suspend production for about a month because few people are buying them.
The coal-burning Volt is a hybrid really, not exactly an electric car, and it runs on premium gasoline:
This is the car that subsidies built. General Motors lobbied for a $7,500 tax refund for all buyers, under the shaky (if not false) promise that it was producing the first all-electric mass-production vehicle.
At least that’s what we were once told.
Sitting in a Volt that would not start at the 2010 Detroit Auto Show, a GM engineer swore to me that the internal combustion engine in the machine only served as a generator, kicking in when the overnight-charged lithium-ion batteries began to run down.
GM has continually revised downward its estimates of how far the machine would go before the gas engine fired, and now says 25 to 50 miles.
It turns out that the premium-fuel fired engine does drive the wheels — when the battery is very low or when the vehicle is at most freeway speeds. So the Volt really isn’t a pure electric car after all. I’m sure that the people who designed the car knew how it ran, and so did their managers. [The car from Atlas Shrugged Motors]
The Volt was Motor Trend’s Car of the Year in 2011 and one has to wonder if Motor Trend is even remotely reputable.
According to Reuters, the government (that would be the taxpayers) is losing $49,000 per car. What an investment! Wow! Isn’t it great?
To recap, Ford had no bailout and is doing well while GM has an ongoing bailout and can’t turn a profit. Maybe Obama should get out of the car business?
In this video, you can see how the subsidy is working: