536,000 Cars
December 9, 2008 by Orlando
Filed under News and Opinion
I’ve been doing my math. The auto makers want billions for a bailout, right? Congress is willing to allocate $15 billion to GM, Chrysler, and Ford. With the average car in the U.S. being approximately $28,000, Congress could just purchase 536,000 cars instead.
Think about it. Ford, GM, and Chrysler want to sell cars. Buying 536,000 vehicles will boost the bottom line, keep Wall Street happy, keep people employed, and actually accomplish something. Why give away the money in some vague, uncertain bailout scheme when they can obtain something tangible?
There is one small problem. Congress wouldn’t have a clue about dealing with 536,000 cars. I’m sure they could come up with some “Car for Causes” welfare program to give them away. Hey, I’m even willing to take a car off their hands. I nice SUV would be fine with me. I’m paying for it anyway.
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I don’t know, Orlando – the cars would most likely end up rotting in abandoned lots like all fo those mobile homes the government purchased at our expense to “help” the Hurricane Katrina victims.
Maybe they should buy us all some gasoline, instead.
This actually makes quite a bit of cents (pun intended). The automakers were given $25 billion to produce fuel efficient cars. The government uses lots and lots of cars. Let the government buy their fuel efficient cars and they will be working and making money.
Will the cars be overpriced and inefficient – probably. But I am willing to consider that an investment in the development of new technology. Remember, I have more computing capability in my laptop than NASA had at the first space launch.
Since the government already budgets money for the purchase of new vehicles there will be no additional cost to the government. since the automakers already have a failed situation they will be going to the bankruptcy court to reorganize anyway.
Face it, unless they get protection to reorganize they will never be able to restructure their dealer network, their leases, their union contracts, etc. All the money in the world cannot save their current business model. Once they enter Chapter 11 they will be able to do what is necessary. Do you think Gettlefinger has any need to renegotiate contracts as long as Ms. Pelosi and Mr. Dodd are there to buy their members’ votes?
Interesting idea. FYI, Ford is not taking any of the $15 billion that’s up for grabs in the bill.
And also, the Ford Motor Company Fund, our philanthropic arm, has been supporting the Disabled American Veterans for 87 years. And this year, we gave them $25,000 and 7 Ford vehicles to use to transport disabled veterans to their medical appointments in communities around the country.
If you’d like to see the progress we’re making and what our plan is – one that we had in place before we headed to Congress – I’d invite you to visit http://thefordstory.com
Scott Monty
Global Digital Communications
Ford Motor Company