So, now Pelosi is urging the bailout of the automakers, and Obama is sure to fall right in line. It is after all the union votes they need. But what about Circuit City? or others that will have to file bankruptcy because of mismanagement or downright stupidity. The Volt is the perfect example of GM's stupidity. The wall Street Journal reports on Obama's Car Puzzle.
You have in GM's Volt a perfect car of the Age of Obama -- or at least the Honeymoon of Obama, before the reality principle kicks in.
Even as GM teeters toward bankruptcy and wheedles for billions in public aid, its forthcoming plug-in hybrid continues to absorb a big chunk of the company's product development budget. This is a car that, by GM's own admission, won't make money. It's a car that can't possibly provide a buyer with value commensurate with the resources and labor needed to build it. It's a car that will be unsalable without multiple handouts from government.
APThe first subsidy has already been written into law, with a $7,500 tax handout for every buyer. Another subsidy is in the works, in the form of a mileage rating of 100 mpg -- allowing GM to make and sell that many more low-mileage SUVs under the cockamamie "fleet average" mileage rules continue reading Obama's Car Puzzle