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Will Obama make it easier for EV start-ups?
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Written on: 08 November 2008 [16:08]
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ecoadmin
Administrator
Topic creator
registered since: 20.07.2007
Posts: 585
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Hi everyone, As all of you in the US know, the auto industry in this country is dominated by the big three auto makers Daimler Chrysler, Ford and GM. Obama has announced today that he will offer support to the auto industry in order to stabilize the struggling economy. So far so good. Most if not all money will go to the mentioned companies above because thousands of jobs depend on them. I wonder if also companies in the EV industry can apply to receive financial support. There are of course a lot less jobs affected if a small company evaporates in thin air, but as recent history has shown with Tesla Motors, they are essential. The Volt is the answer for the Roadster and its good to see that small start-ups can make a big difference. If competition dissapears, so does often the effort to make greener cars. Another issue which I think needs to be looked at by the Obama administration is the current legal practice when new cars are certified and approved. As far as I know every state has different legislations. This makes a certification process extremely costly and it is for many start-ups a huge hurdle. In Europe things are a bit more relaxed and once a car has gone through all the testing, it can be sold in any European country. What would have to be done to initiate such a change? Who has an interest to keep it as it is? Twike 890
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Written on: 20 November 2008 [20:19]
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ecoadmin
Administrator
Topic creator
registered since: 20.07.2007
Posts: 585
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I am a bit surprised that this thread remains unanswered...but must admit its very difficult to predict car legislations. Another question: Would it not be better to invest the money elesewhere and start from scratch, i.e. let the big three collapse? Or Should they get the $$ so that people keep their jobs but with the risks that business goes on as usual? Am curious about your opinion. Twike 890
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Written on: 21 November 2008 [04:30]
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Lensman
 registered since: 31.05.2008
Posts: 75
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Well, there is a lot of debate right now in the USA over this very question. No one in the USA wants to see the Big Three (GM, Ford, Chrysler) collapse and put so many people out of work, not just the people who work for the auto makers, but those who work for the suppliers. On the other hand, the Big Three have been steadily losing market share over the past few decades to Japanese and other auto makers, because they don't make quality merchandise, and because their prices aren't competitive, partly because of the high salaries, retirement benefits and other perks their overpaid union employees get. Foreign car makers have been able to set up factories in the USA, and by avoiding mismanagement and avoiding overpriced union labor, they've been able to remain competitive. Many are advocating letting the Big Three go into bankruptcy, because this will allow them to renegotiate union contracts, and perhaps it will pressure stockholders to take away some of the bloated executive benefits... like the private jets which all three of the CEOs flew to Washington to beg for a government handout! The feeling of many is that giving them a loan is just a way of supporting their bad business decisions. I would really like to see the companies go into receivership, so an outside manager could come in and fire the executives which have been vastly overpaid for poor business decisions, jettison most of the executive perks, reduce executive salaries to something reasonable; and to allow the companies to restructure; and to *force* them to concentrate on making greener cars. Will that happen? I don't know. I can always hope! One thing is certain; if the gov't just gives them a loan with no requirements, they'll be back in less than a year looking for another handout. I hope that if the gov't *does* loan them money-- and it should be a loan, not a handout-- that they'll loan them the money only on the condition that they radically change the way they're doing business. Otherwise... well, more power to Toyota, Honda, Nissan and other companies that actually make *good* cars. Hopefully they'll set up more factories in the USA to give some or all of those unemployed Big Three workers a job again. That is, if they are willing to work for a fair semi-skilled wage, instead of getting the pay and benefits of a fully skilled worker when all they do is work on an assembly line. [This article was edited 2 times, at last 21.11.2008 at 04:38.] |
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Written on: 23 November 2008 [15:27]
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alfreddj
registered since: 19.11.2008
Posts: 1
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Currently a German Solar compagny wants to buy out Opel from GM. So I would not urge the US government to make quick decisions. There is enough money in the world to allow these factories to work and make usefull products in stead of 'products that the market demands' but is reality are useless (Hummers, Jeeps etc.) in most urban areas. I think the main issue is to get rid of the irresponsible management of these companies first. If those guys are really so concerned about jobs they would leave the honour to themselves and leave space for young people. So Rick and frieds, please leave. Too late too little. |
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Written on: 25 November 2008 [23:37]
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childress
Administrator
registered since: 14.08.2007
Posts: 140
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GM needs to go. Ford needs to go. They are old companies that live by the motto "we will build it YOU will buy" -- the "Buy American" crap is the perfect example of this. You cannot have a free-market capitalist system when you decide to bailout companies that have continued to make historically bad market choices -- you give them money, they continue to make bad choices (GM has a proven track record of this), and the system doesn't work anymore. Further, when you bail them out, you deny opportunities for smaller more agile and inventive companies to startup (anyone remember Tucker?) As we say in the computer industry, time to BURNANATE! Call in Trogdor! It was NOT the high union labor costs -- it was their inattention to market demands and lack of focus on quality products. I'll pay more for a quality product made locally. I won't pay for crap regardless of who makes it. Commute suck? Twike it; You'll like it!
http://www.uiuc.edu/goto/twike |
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Written on: 04 February 2009 [01:41]
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lgreen
registered since: 04.02.2009
Posts: 1
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hello all, Yes, I am unsure why this has no answer too. But, then one can not really say what the government is going to do since they only just put out the budget for amendment and all that. Do they still need to vote on the whole thing? I know here in Canada---our budget just came out too. drive safe with....auto insurance |
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Written on: 18 February 2009 [13:37]
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convert2hybrid
registered since: 18.02.2009
Posts: 1
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Well, There are so many businesses suffering in the economy right now. I think the last thing on their list is EV industry. They can apply but remember, going eco means losses in oil companies. The saying "Whoever controls the oil, controls the world" would be out the door. I think eco friendly businesses will suffer for a very long time and has some obstacles to jump before we get any support. I feel conversion is the next option for everyone: Hybrid Conversion |
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Written on: 19 February 2009 [22:03]
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ecoadmin
Administrator
Topic creator
registered since: 20.07.2007
Posts: 585
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Guys...welcome to our forum! May I ask you to place your website links into your forum profile? Any visitor interested in your site can easily click on the WWW-button on the bottom of the posting. This way we can still offer our members to place a link to their website/business without cluttering up the postings/forums with links. Thanks for your cooperation. Twike 890
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