Automakers plan to urge Congress to support funding up to $50 billion in low-interest loans over three years to help them modernize their assembly plants and develop next-generation fuel-efficient vehicles.
Industry officials said the loans, which are twice the amount authorized in last year's energy bill, are a top priority when Congress returns next month because of the declining fortunes of Detroit's automakers and tightening credit markets.
"The amount of concern and urgency from the Detroit companies has increased in the last month and significantly ratcheted up what they're communicating what their funding needs are," said Alan Reuther, legislative director for the United Auto Workers union.
Congress authorized $25 billion in low-interest loans in last year's energy bill, but the auto industry's allies in Congress have been unable to get funding for the plan.The loans would provide low-interest credit for up to 30 percent of the cost of retooling facilities to build hybrids, plug-in hybrids, electric cars and other alternatives.
Ok, we all know that automakers in America, especially Ford and GM, have been struggling for years. However, what the hell happened to all the money they were making in the 90's??? To give you an example, when Ford brought out the Explorer in it's current SUV configuration, they were making upwards of $8-$10 thousand dollars PROFIT PER VEHICLE.
That's what drove other automakers to make SUV's. They were popular, and they were extremely profitable.
But, they didn't have a plan B when it came to rising fuel costs, so when gas went up significantly, they got slammed. The basically put all their eggs into one basket.
What's worse, is I remember an article on MSNBC's website, which I can't find of course, where they interviewed an engineer from Honda. He was telling about how from the CEO on down, they were pushing for better and better mileage out of their vehicles back in the 90's when he joined. The engineer spoke with the CEO and said "Why are we pushing for better mileage? Gas is inexpensive. No one cares what the cars get", to which the CEO replied "I know." and left it at that.
Now, GM is coming out with the VOLT simply because they have their back's to the wall. They are also pushing the idea that they "may" come out with a car that gets 40mpg.
40mpg? Big deal. They HAD a car that got 55mpg back in the early 90's. It was called a Metro. It was cheap, got great gas mileage, and didn't require any fancy hybrid technology.
You want to impress me with mileage figures? How about you build one of the most aerodynamic cars you can make, put in a small engine, or make it fully electric, and you'll get much higher numbers then 40mpg. Honda did it with the Insight, to which I bought one when gas was $1.25. I loved that little car. I got 55mpg when I really drove it hard and 125mpg when I drove it like it was running on fumes.
THAT'S how you make a car folks. And if GM was smart, which judging by their past and present behavior, they aren't, they'd push the bar as high as they could. Offer a car that got 75mpg AT LEAST, get it down to around $15,000, and it shouldn't need a hybrid drivetrain. Do that, and you'll sell them like hotcakes, and it'll bring the GM brand back to it's former glory.
Fail to do so, and you'll be filing for bankruptcy.
Travis
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