An American Problem

At the time of the auto industry bailout, it sure sounded encouraging when President Obama announced that we were ushering in an era of "creating new jobs, unleashing new prosperity and manufacturing the fuel-efficient cars and trucks that will carry us toward an energy-independent future.”

So, how's that working out, Mr. President?

Oh, of course.

But at least something is being sold, right?

In particular, what Mr. Obama called his “one goal” — having Detroit “lead the world in building the next generation of clean cars” — is nowhere near being achieved. While the idea of improving G.M.’s and Chrysler’s fuel efficiency was doubtless a politically popular justification for the bailout, American consumers have not embraced the goal with equal fervor. Sales of fuel-sipping compact and subcompact cars have actually dropped this year, while pickup and sport utility vehicle sales grew by double-digit percentages.

Woooo hoooo! It may not be green, and it may not be next-generation as promised, but at least sales are up! That has to be a good omen. But... who is buying?

Another troubling trend is an increase in fleet sales — the delivery of huge numbers of units to corporations and government agencies. While fleet sales improve short-term volume, the profit margins are slim and the practice can hurt long-term sales as consumers come to view the models as unsexy “fleet queens.” And Detroit has gorged on such sales in 2010, with some 32 percent of all vehicles from the Big Three sold through October going to fleet operators. Furthermore, a quarter of all the hybrids built by Detroit since President Obama took office have been bought by federal agencies, showing that enthusiasm for Detroit’s hybrids is limited somewhat to government fleet buyers.

In addition, even when it comes to the trucks and S.U.V.’s that Americans actually do want to buy, the bailed-out automakers are building vehicles faster than they can be bought. Inventory levels at both companies have ballooned this year, to the point where G.M. now has nearly three months’ worth of sales sitting on its lots...

Feeling better yet about the success of these bailouts?

Allowing new cars to pile up on lots may well be the most deadly of Detroit’s new-old bad habits, as the practice not only artificially inflates sales numbers (which, ridiculously, are booked upon production, not when a vehicle is driven off the lot), but also lead to yet more incentives, fleet sales, subsidized leases and subprime lending.

Sigh. I keep looking for a silver lining in this piece, but I'm not seeing it.

I know, I know, we can't expect a 180° turnaround in two years after decades of behavior, but overall this does not look at all like any lessons have been learned. In fact, it reminds me of the state we're in politically: a lot of promises about change, efficiency, and a brighter future while bending over backwards to maintain the status quo.

My "What the Fuck" Morning

As relieved as I am that George W. Bush has been discharged from the White House, I'm starting to realize how there is always plenty of room for improvement. I suspect in the next few weeks we'll start too see Obama's approval ratings drop sharply if he follows through with this.

The Obama administration is signaling to Congress that the president could support taxing some employee health benefits, as several influential lawmakers and many economists favor, to help pay for overhauling the health care system.

The proposal is politically problematic for President Obama, however, since it is similar to one he denounced in the presidential campaign as “the largest middle-class tax increase in history.” Most Americans with insurance get it from their employers, and taxing workers for the benefit is opposed by union leaders and some businesses.

What the fuck? Why not tax things which don't actually improve one's health, things which people can still choose to purchase? We already do that with cigarettes. For some reason lawmakers can't seem to take it another step, like taxing soft drinks. Raise taxes on distilled spirits. Slap a federal tax on fast food. Although it's not unhealthy, maybe we should tax bottled water. Tax any beverage sold in a plastic bottle. Tax plastic grocery bags. But leave our health benefits alone! Those of us lucky enough to have them don't need the government giving us an excuse to decline them.

Maybe we should stop bailing out corporations and use that money to overhaul the health care industry, instead of having it squandered. Seriously, this is making me livid!

The American International Group, which has received more than $170 billion in taxpayer bailout money from the Treasury and Federal Reserve, plans to pay about $165 million in bonuses by Sunday to executives in the same business unit that brought the company to the brink of collapse last year.

What the fuck???

I was already not on board with the idea that any corporation is just too big or too important to allow it to fail. And this AIG situation is just driving me to not give a crap whether they live or die.

This reminds me of a game of solitaire in which I keep replaying in order to succeed and I keep getting the same frustrating result. Eventually it makes more sense to simply shut it down and deal a new hand.

A Post-Bailout Revamped GM

Yesterday I got a credit card statement with a few extra fliers in it, one of which was this little piece from GM promoting their all new fuel-efficient green technological marvel .... Hummer!

I mean, seriously, what the flying fuck? I don't know how else to respond.

Because the vast majority of Americans need this vehicle since we are constantly like, you know, driving in the woods and over huge boulders and shit.

Fine, Let Toyota & Honda Conquer the World

Jeeez!

Right now, carmakers say they would be able to sell only their smallest, most fuel-efficient cars — models like the Toyota Prius, a hybrid whose sales have fallen sharply since gas prices began dropping last fall — because once-popular vehicles like pickup trucks made by Ford and G.M. are not efficient enough.

“I want clean air and clean water just like the next guy,” said Erich Merkle, an independent automotive analyst in Grand Rapids, Mich. “But in the real world, there would be consumer outrage with the fact that they’re limited to maybe two vehicles and there’s nothing there that would meet their family’s needs.”

You want to see "consumer outrage?" I'm outraged that these asswipes are getting billions in bailout money and don't seem to be willing to stretch an inch. These low fuel prices aren't going to hang around indefinitely. Eventually we'll be right back where we were in the summer of 2008. But whatever. I've completely lost my sympathy.

Just yesterday, another 75,000 people probably aren't going to buy a Tahoe, Suburban, Escalade, or Prius. So, chew on that, Detroit.

Message to GM: File For Bankruptcy. I Dare Ya.

It's funny how the last two election cycles have been all about the gains of Democrats and yet Republicans still seem to have control. The auto industry bailout may be dead.

The prospects of a $14 billion government rescue of the American auto industry seemed to vaporize Thursday morning as the Senate Republican leader, Mitch McConnell of Kentucky, spoke out forcefully against the bill, effectively dooming its chances despite the urgings of the White House.

Gee, only $14 billion? That's only $5 billion more than what we'd spend to continue production of those unnecessary F-22s I caught hell for trying to kill off yesterday.

I have differing degrees of disgust with bailouts, even when they might be necessary, or worth the risk. The banking industry? That pissed me off. The auto industry? I'm wishy-washy. I'd be strongly in support if there were an ironclad guarantee the bailout money would be used to completely restructure the industry, and not just maintain the status quo for another year. Still not thrilled with bailouts, but if the doom & gloom predictions by some are correct, this could get ugly and we'd find out pretty quick. And maybe the Republicans have taken us a step closer to finding out for sure.

“A lot of struggling Americans are wondering where their bailout is,” Mr. McConnell declared.

Yeah, Mr. McConnell, where is it?

If I wasn't just taking a quick break from work to post this, I'd do some research and find out how many times Mr. McConnell has voted against increases in the minimum wage, and other support for those struggling.

If any readers have data, drop it in the comments. (Kelly might be able to pull that number off the top of her head.)