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2008-12-11 Home Front Economy

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Posted by tipper 2008-12-11 02:18|| || Front Page|| [4 views ] Top

#1 From the cited article: "I don't know if this alternative to gasoline-powered cars will work, but I do know that it can be done" Bit of dissonance there. If it won't work, it isn't really done but only an attempt at doing. Any prediction of what can or can't be done is imaginary. I imagine there is no real substitute for indefinite continuation of the present automobile economy in the US & would put my money elsewhere. Friedman's hopes for electric cars are limited by lack of battery, generating & delivery capacity, especially considering the number of people dependent on automobile transport in the US and the size of this country.
"Remember, in 1908, the Ford Model-T got better mileage - 25 miles per gallon - than many Ford, GM and Chrysler models made in 2008" Ouch, that smarts! However, my great-grandmother preferred to walk 6 miles round trip than ride the same distance in a Model T.

Posted by Anguper Hupomosing9418 2008-12-11 07:11|| 2008-12-11 07:11|| Front Page Top

#2 Remember, in 1908, the Ford Model-T got better mileage - 25 miles per gallon - than many Ford, GM and Chrysler models made in 2008.

Oooh, nice factoid, Mr. Friedman! A bit of an apples to oranges comparision, though, given that a Model T weighed 1,200 lbs. Note also the clever use of 'better than many models'. GM's Saturn gets somewhere around 30 mpg with a curb weight of around 3,000 lbs.

Posted by SteveS 2008-12-11 09:22|| 2008-12-11 09:22|| Front Page Top

#3 The product is not the problem. The problem is the UAW.

Period.

Posted by Parabellum 2008-12-11 10:02|| 2008-12-11 10:02|| Front Page Top

#4 The product is the problem, to an extent. Detroit built some truly craptacular iron in the 1970s and 1980s (e.g. Vega, Pinto, Volare, Citation, Granada, Oldsmobile 5.7L diesel . . . need I go on?) and turned off a whole generation of customers. They're building more competent vehicles now, but the damage to brand equity is hard to overcome. (My '78 Monza put me off GM for three decades.)

As for why the product was so bad, the UAW certainly had something to do with that.

Posted by Mike 2008-12-11 10:38|| 2008-12-11 10:38|| Front Page Top

#5 I like my U.S. made vehicle. It's roomy, gets 22 mpg, and can snap your neck to get around a cattle truck. I have 3 years interest free to pay for it, and all my major service costs are paid for.

Posted by bman 2008-12-11 10:56|| 2008-12-11 10:56|| Front Page Top

#6 Friedman is an idiot. He is so deluded to the point of fancy fashion exercises with billions of dollars.

Posted by Uleck Ghibelline9225 2008-12-11 11:05|| 2008-12-11 11:05|| Front Page Top

#7 There's lots of problems besides the UAW. The current Chrysler mini-van is not attractive. But it is still the best designed mini-van around. But the dealer service is so bad the spousal unit and I bought a Honda instead. I hate it, but she doesn't get treated like an idiot by the staff at a metal recycling yard.

Then there's the management that keeps caving into the UAW. And the government that keeps fiddling with CAFE so the manufacturers have to build cars people don't want that aren't profitable.

Lots of problems.

One solution.

BK

Posted by Nimble Spemble 2008-12-11 11:07|| 2008-12-11 11:07|| Front Page Top

#8 Those of us who lived long enough remember the 70s Oil Crisis(tm) brought on by the Arab Oil Embargo. Detroit, which before Senate hearings, had said the American public didn't want small gas efficient cars was caught naked when American drove up Japanese car sales to the upper twenties in less than a year or so. Detroit [auto manufacturers and the UAW] scrambled hard and fast pressuring Congress to established trade quotas. The Japanese made a voluntary agreement to limit the 'imports', but simply shifted what they imported up a notch in grade and expense. The Japanese also made long term plans to get around future threats by building in America. However, when gas eased and Americans forgot the consequence of short oil, many of them did not forget that when they got those Japanese cars they got a quality piece of merchandise that worked great and when they went to purchase it, they got nearly everything standard in the price without a long list of 'extras' on the sticker. Consequently the Japanese held on to that big chunk they picked up and have methodically been absorbing more of the market because of their practices.

Twenty-five years later Detroit was still largely operating like it was 1975. For twenty-five years they refused to face the reality that in the 70s their asteroid hit and they've been sleep walking. For twenty-five years they kept to the old way of doing business. And today that includes throwing politicians at their problem instead of fixing the problem. Their final act is to institute formally the concept that every taxpaying citizen exists to serve those who own and operate the state - to reintroduce serfdom.

Posted by Procopius2k 2008-12-11 11:45|| 2008-12-11 11:45|| Front Page Top

#9 I've seen, several times, a reference to gov't regulations that help screw up the distribution network (aka dealers).

Does anyone know what these would be? And, do they effect foreigners too?

(I fully believe that regulations could screw up anything, I just don't know in this case, what they would be.)
Thanks

Posted by AlanC 2008-12-11 13:05|| 2008-12-11 13:05|| Front Page Top

#10 bman, i also like my US-made car. it get 27-29 mpg, seats 5, has had no unscheduled downtime, 317k + on the clock. liked the first one so much i bought this one and then another (daughter totaled the first at 330k).

says Honda on the Grill.

Posted by USN, Ret. 2008-12-11 15:14|| 2008-12-11 15:14|| Front Page Top

#11 I love my Dodge Grand Caravan. It's roomy, comfortable (it doesn't RIDE like a truck, even when it's working like one), and I can get in and out of it without my bad back reminding me of my problems. It has a crappy transmission that gives out around 165,000 miles. That problem has existed since the very first model, yet it hasn't been corrected in the 25+ years Caravans have been on the market. I've had my latest for eight years, and put 80,000 miles on it. It's been paid for since 2005. I'll probably trade it in next year on a newer model, but I expect the same problems exist on it that my current van has. If Honda, Nissan, or Toyota had a comperable vehicle (comperable in gas mileage, acceleration, comfort, and visibility), I'd probably buy it. The ONLY "new" vehicle I've ever purchased was a Nissan Stanza. In the meantime, I continue to buy Detroit defects, hoping I'll only get a "mild" lemon.

Posted by Old Patriot">Old Patriot 2008-12-11 15:25|| http://oldpatriot.blogspot.com/]">[http://oldpatriot.blogspot.com/] 2008-12-11 15:25|| Front Page Top

#12 The Big 3 will do anything to avoid the obvious, restructure. File bankruptcy, renegotiate with the UAW or toss them altogether, redo the business model and trim a LOT of fat from the corporate herd. Sell those private jets, freeze or reduce executive pay, no bonuses until they make a profit.
A new MBA grad could do this, but for some reason the entire congress and industry is fighting like hell to prevent the inescapable.

Posted by bigjim-ky 2008-12-11 16:04|| 2008-12-11 16:04|| Front Page Top

#13 Senate Santa [Kathryn Jean Lopez]

Barbara Boxer, a few minutes ago on the Senate floor: "...this is the Christmas season. My goodness, let's take a chance on this. Let's take a chance on this."

Posted by Beavis 2008-12-11 16:18|| 2008-12-11 16:18|| Front Page Top

#14 Abba was more 80's tho... amIrite?

Posted by .5MT 2008-12-11 18:03|| www.cybernations.net]">[www.cybernations.net] 2008-12-11 18:03|| Front Page Top

#15 Song > VOLARE-E-E, OHOHOHOHOHOHOH,........

Posted by JosephMendiola 2008-12-11 23:07|| 2008-12-11 23:07|| Front Page Top

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