Wednesday, March 18, 2009

American Auto Industry is doomed.

Ladies and Gentlemen, I make that announcement convinced of it being absolutely right.

The American Auto Industry has announced that they need $4 a gallon gasoline as the average minimum price across the nation in order to sell the mandated automobiles from Washington. Yes, you read that right. If the minimum Gasoline Price is not at least $4 a gallon, people don't want those Hybrid cars that Washington Politicians legislated onto the company. If people don't want the cars, then Ford can't build more, because they have thousands of cars they can't sell now. Why build more that you can't sell?

Obviously, you can't sell them, so you have no reason to build them. While Washington may think it's a good idea to mandate such cars, apparently the consumer, that would be you and I think that the hybrids are too expensive and not worth the trouble. Despite the promises to the contrary about how simple and easy they are, we the average people with common sense know that when you combine two technologies like this, you merely double the probability of something going wrong, and double the number of things that will eventually break. 

Michael J. Jackson, chief executive of AutoNation Inc., said on Thursday that the surest way to reduce fuel consumption and wean the country off foreign oil is to make consumers pay more at the pump.

If the government increased gas taxes to push prices higher, drivers would opt for smaller, more-fuel efficient cars and drive less, he said at the Wall Street Journal’s ECO:nonics conference here.

“We need more expensive gasoline to change consumer behavior,” Mr. Jackson said. Otherwise, Americans will continue to favor big vehicles, not matter what kind of fuel-economy standards the government imposes on auto makers. Four dollars a gallon, he added, “is a good start.”

Mr. Jackson’s stand – in the past he’s called for increasing gasoline taxes 10 cents a year for 10 years – elicited some support at the conference, which examines issues affecting business and the environment.

Mr. Jackson, the problem isn't that the gasoline is too cheap, the problem is that Political interference in the operation of a business is making it impossible to be in business.

It's time for the business's to start closing, so that the Politicians are faced with angry mobs of voters who demand that we repeal the legislation making it impossible for companies to manufacture products that the people want. 

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