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Gov’t Goes Into The Used Car Business

From Wall Street Journal:

Deal Struck on ‘Cash for Clunkers’

As Part of Climate Bill, Consumers Trading In Cars Would Get Up to $4,500


WASHINGTON — Consumers would get vouchers for as much as $4,500 from the government to trade in their gas-guzzling cars under a compromise plan that could help advance a broad measure to combat climate change.

The so-called cash-for-clunkers plan could be part of climate-change legislation being pieced together in the House. Rep. Edward Markey (D., Mass.), a co-sponsor of the climate bill, said the auto deal — forged by Democrats on the Energy and Commerce Committee and endorsed by President Barack Obama — "demonstrates how representatives from both coasts and the Rust Belt can reach agreement on difficult issues."

The cash-for-clunkers plan would run for one year, offering vouchers to people who trade in vehicles with average city/highway fuel economy of less than 18 miles a gallon to buy a more-efficient new car or light truck. The proposed program would offer the maximum $4,500 voucher for people to use to buy a car that gets at least 10 more mpg or a truck that is at least five mpg more efficient. The program is designed to spur some one million purchases of new cars or trucks to support the ailing auto industry

This will certainly boost the sale of clunkers – and probably the stealing of cars.

And of course the American taxpayers are only too glad to pay for all of this.

After all, it will prevent the climate from ever changing.

This article was posted by Steve on Tuesday, May 5th, 2009. Comments are currently closed.

10 Responses to “Gov’t Goes Into The Used Car Business”

  1. Reality Bytes says:

    I hope the SNL writers run with this one… Joe Biden in a plaid jacket sellin’ junkers. BEAUTIFUL!!!

  2. MinnesotaRush says:

    “Push it .. Pull it .. Tow it .. to your local o-blah-blah Motors dealer, and get your $4500 today .. and Everyday” (as often as you can, too.)

    At least ’till 2012.

  3. curvyred says:

    I can see this being very problematic, specifically for the reason Steve stated: people will purchase that used Cadillac for $500 and get a trade-in value of $4500.

  4. proreason says:

    Another form of reparations.

    Plua a great new scam for Obamy’s peeples.

    Why work when He delivers a new scam every month or so?

  5. BillK says:

    More importantly this will require new Government-sponsored car loan programs as it will totally destroy the stock of used cars that are affordable enough for middle-income and below taxpayers.

    So, once this happens and used car prices start at $20,000, the benevolent President Obama will address the “transportation crisis” by stepping in just the way he is doing with the student loan program.

    Mark my words.

  6. GetBackJack says:

    I really and truly hope the Big Three go bust in the biggest way possible. I mean of Biblical proportions … Detroit seared down to salted dust and an epic metaphor in the annals of History.

    Jonathan Goodwin of Kansas City is why. Along with the guys building the Karma and the guys at Tesla. And six dozen other innovative breakthrough companies.

    [snip] “The problem with Detroit isn’t the laws of physics, it’s the fact that a guy who never even went to high school can do things — with stock parts — that Detroit’s auto executives and their armies of engineers claim is impossible.” And what awesome feats of mechanical wizardry has Johnathan Goodwin achieved (excerpt) First up: inserting a diesel engine into a Hummer H2 and running it on grease from a Chinese restaurant. Next, bio-dieseling a ’65 Chevy Impala for MTV’s “Pimp My Ride,” increasing mileage to 25 mpg and bumping-up the shove from 250 horses to an entirely useful 800hp. With the acknowledged help of Kevin Kluemper, the lead calibration engineer for GM’s Allison transmission unit. But does that slow down the Kos’ anti-Detroit rhetoric? Hell no. “Remember — Detroit tells us it’s impossible to increase gas mileage without taking a hit on horsepower. Yet here’s Goodwin — with an eight-grade [sic] education — able to design motors that blow the doors off the conventional (and obviously bullshit) wisdom.” And then a look at Goodwin’s latest project: a bio-diesel hybrid H2 with a jet engine turbine powering super capacitor batteries, with a hydrogen injection system to cut emissions in half. “Think about it: a 5,000-pound vehicle that gets 60 miles to the gallon and does zero to 60 in five seconds!” So I guess it’s official: Detroit is either too stupid, lazy or arrogant to realize your can have your cake down at the CAFE, and eat it too.

    Then look at the Karma … by Fisker … http://karma.fiskerautomotive.com/ Good Lord, that is sex on four wheels!

    How about five cars Detroit says it can’t build “because the technology doesn’t exist”? Bwa-hahaha! That are faster than your fastest Porsche 911 – including a George Clooney econo-box, for Crying Out Loud.

    Hydrogen is just around the corner, really and truly …
    http://www.sciencedaily.com/releases/2009/04/090402143750.htm and you can MAKE your own damn hydrogen, bubba. http://www.scottsdaleaz.gov/greenbuilding/hydrogenhouse.asp

    So screw the Big Three royally, every day, in every way until they bleed out. They acted irresponsibly and catastrophically EVER making deals with ‘unions’. In pursuing Legislation and Lobbyists instead of innovative competitive-edge engineering. They then amplified these disastrously bad deals through just about every screw-the-pooch bad management you can imagine … and never once actually engaged in COMPETITIVE market advantage thinking against each other. It’s identical to Republicans and Democrats …. same cars, different dealers.

    Look, if Jonathan Goodwin can do it, Detroit could have done it … any of the Three could have done this and WALLOPED their competition like the sledgehammer that drops a steer at the slaughterhouse. But no. And that … ought to signal everything you need to know that SOMETHING has been distorting and manipulating Market Competition for decades in what the car companies will offer us.

    It ain’t Congress, though any mention of ‘Congress’ ought to make you cringe. It isn’t ‘Wall Street’. The street will buy stock in any company whipping their competitors like rented mules. It isn’t the Greenies or unions …. good lord, the hay you could make with actual innovation instead of DVD players mounted in the roof and gizmo technology lashed onto outdated designs like adding Map Finders in the dash. Good Sweet Babbling Buddha …. actual real innovation blasts your competitors like a tsunami into New Orleans … but none of the Three ever did. They just kept rolling out bland vanilla small changes to the exiting status quo … and now they’re as irrelevant as newspapers. The last great innovation out of Detroit was Plymouths mini-van. Which was just a workable and sellable version of VW’s Microbus.

    Well, eff them. Eff them a lot. Eff them until they drop like dessicated buffalo chips into the dust bins of History. You innovate or you die.

    Damn shame, too. A Mopar Hemi is a beautiful thing to wrench and more beautiful listen to, but if the parent is too dumb to take care of the child, then they’ve got to go. The Bowtie is a fantastic engine, but I can get it lots of places other than Detroit. The 359 Cleveland is epic, but lots of V8s are available where I don’t have to deal with the Big Three. Besides, today, with CAD and CAM, you wanna see what can be done?


    Now compare this to Harley Davidson’s ONE BILLION DOLLAR engineering and manufacturing debacle to build their new Cruiser. ONE BILLION DOLLARS. Let me say that again … ONE EFFING BILLION DOLLARS. For a billion you can have every car and motorcycle company listed above. Every one. That’s so crazy stupid I have to think Harley was building a program to launder money for the Democrats instead of building one variation of a motorcycle.

    But what an exciting time to be witnessing the next great Revolution in bikes and cars and trucks, baby.

  7. VMAN says:

    Yea what ever happened to the guys that designed the T-Bird, Corvette, Mustang and all the other muscle cars. I do have to say that Ford unveiled the new Shelby Cobra prototype and it is Cooool. What Detroit should have done was tell Washington to go pack sand. Take your CAFE standards, emission controls and all the other crap and shove it up your ____ we’re here to build cars people want.

  8. Barbie says:

    the gov’t in the business of used cars – a very appropriate theme for the Obama administration.

    • curvyred says:

      Yes, he kind of does have that “used car salesman” aura about him.

      Sorry no offense to any used car salesmen here.

  9. Liberals Demise says:

    As if the “Housing Crisis” wasn’t enough.

    Drive the Death Nail on America!!

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