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Car Industry - welcome to centralized planning
Posted by: McQ on Tuesday, December 09, 2008

As Dale mentioned yesterday, there couldn't be a worse idea than a federal "car czar". And all you need to know to validate that point is to understand Nancy Pelosi likes the idea.
House Speaker Nancy Pelosi said she supports the concept of a federal overseer of any rescue plan, saying she lacked confidence the heads of the car companies could solve the problem if "left to their own devices."
I've been saying the same thing about Congress for years.

So what would a "car czar" do? Well, just about whatever he or she wants, one assumes, as long as it conforms to the Democrat agenda for the car industry.
The proposal gives the car czar say-so over any major business decisions by the automakers while they're taking advantage of federal aid. The companies would have to open their books to the government, including informing the overseer of any transaction of $25 million or more.
Obviously one area to which a "car czar" be very attuned is to the welfare of the unions.

More importantly though, a "car czar" will most likely be implementing a government agenda, not a market agenda. He or she will have the obligation to do what Congress and the Obama administration want done rather than consumers. So we'll most likely get those not ready for prime-time "alternate" fuel cars which meet the new high CAFE standards at some point.

In the meantime, most of the public, fed up with Detroit offering cars they don't really want, will flock to Toyota, Nissan and Honda.

And the result? Congress and the administration will again prove that central planning driven by a political agenda will fail every time when a substitute choice or alternative is offered in a market.
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Previous Comments to this Post 

In the meantime, most of the public, fed up with Detroit offering cars they don’t really want, will flock to Toyota, Nissan and Honda.
This is the Democrat’s cliche to say that GM wasn’t making two-seater hybrid micro-cars with solar panels on the roof. They were making SUVs and using predatory advertising to bully people into buying them. Eventhough with the SUV market crashed, in the last months of $4 gas GM was selling more SUVs than all Hybrid sales for Everyone combined.

In reality their marketshare is more than adequate to support an autocompany. GM is still the biggest seller in the US. Its a cost/price issue. A bigger marketshare would have just proportionately upscaled the losses they face right now.

Their quality of the last decade is far beyond the regulatory induced mess of the 70s & 80s. Its not uncommon to top quality lists and on average has be nipping at Toyota’s heels.

I won’t argue styling, though.
Written By: jpm100
URL: http://
she lacked confidence the heads of the car companies could solve the problem if "left to their own devices."
I’m sorry. I just couldn’t get past the above statement by Pelosi. I almost burst a blood vessel I was laughing so hard. And Congress is going to do better!?!?! This auto bailout farce just keeps getting whackier.
Written By: jjmurphy
You forgot to bold while they’re taking advantage of federal aid. Hey it’s not our fault that your capitalism failed horribly.
Written By: TomD
URL: http://
Congress can use their leverage to force Detroit to build green cars, but short of issuing them to us, how are they going to make the public buy them? The consumer still has the right to buy cars they want.
Written By: arch
URL: http://
I love that the open use of the word "czar" gives no one pause. Why not call him the "car king" or the "car despot" or the "car dictator-for-life"? It means the same thing. Since when does a democracy think a "czar", any kind of "czar", is a good thing?
Written By: Linus
URL: http://
...Hey! I’ve been angling my whole adult life toward being anointed the US micro-brew and cannabis Czar.
...and when that day comes, just wait and see the stimulus package I unleash on this country...!
Written By: BWIII
URL: http://
C’mon people
Congressional oversight is NOT about forcing manufacturers to make "green" cars... that’s a distraction.
Congressional oversight is all about working in the unions’ interests to keep them a solidly Democratic voting bloc.
Written By: DAve
URL: http://

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