Saturday, May 23, 2009

Thinking different on saving the auto industry

Rather than give the car makers money for ownership that does not keep auto workers working, suppliers working and dealers in business. How about the GSA buying cars they want the automakers to build. Example. The GSA gives GM billions of dollars to prepay for millions of cars getting 30 mpg or better, the government never takes delivery but has the dealers sell them...for what they can get returning all or part of the government prepayment. If the market can't absorb the 30 mpg cars, they have to take a loss...so the government has to order cars Americans will buy or take a bigger loss or subsidize the higher mpg cars by selling them at low prices, encouraging energy conservation.