Dec 18 2008

The Worst Car Crash of All Time

Published by Steve N. Lee at 7:39 pm under accountability, environment, global warming

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Panic. Lives ruined. Wreckage everywhere. And no insurance to cover the cost… The US automobile industry is a car crash of global proportions. But who, or what, is going to be the ultimate loser?

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I’ve read two interesting articles recently:

  • One said the US government is going to give General Motors, Chrysler, and possibly Ford $14 billion in a rescue deal to save the ailing US car industry. 
  • The other story said General Motors, Chrysler, and Ford have all stated they don’t want to build eco-friendly cars because there’s no US market for them.

Now, it’s common knowledge that the car makers are begging for billions. But how about them not wanting to build and sell eco-friendly cars in the US? Have they really said that?

They’ve not only said it, they’re actively doing it! Ford’s new Fiesta ECOnetic gets a gigantic 65 miles to the gallon. With gas prices rocketing, US customers must be queuing around the block for those little miracles.

But where’s it on sale?

Europe!

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Now, apart from the obvious - more billions of the taxpayers money wasted to bailout incompetent management - is there a simple answer to the car industry’s problem?

Yes.

For us to say,

To hell with you, General Motors!
To hell with you, Chrysler!
To hell with you, Ford!
You’ve landed yourselves in trouble by stubbornly building cars that don’t compete in the global market. Now you want the taxpayer to bail you out and, in return, you promise to go on producing the same old crap that got you into trouble in the first place?! How dumb d’you think we are?”

But why are car makers so adamant about not producing eco-friendly, fuel efficient cars?

After gas prices hit $5 a gallon this year, do GM, Chrysler, Ford, honestly believe only a handful of die-hard environmentalists would buy eco-cars in the vain hope of saving the planet? That ordinary people love their cars rotting where they stand because people can’t afford to run them?

Or could the real reason for not producing eco-cars be…?

They can’t build them and don’t want to have to learn how.

After decades of producing nothing but antiquated, gas-guzzling, fume-belching behemoths, imagine:

  • how much it would cost to re-train/re-educate their engineers 
  • how much it would cost to re-design all their vehicles 
  • how much it would cost to re-tool their plants

But why should they waste their precious money producing what we want instead of what they want to build? They’ve seen how the incompetent bankers wangled a gigantic handout yet are still shafting us, so why shouldn’t they grab what they ‘deserve’?

The main reason this $14 billion bailout could go ahead is that the bankers have already crippled the economy so the collapse of the auto industry could just finish it off all together. It could take decades to recover.

In any other economic climate, this bailout wouldn’t even be considered, let alone implemented.

  • White House spokeswoman Dana Perino - “Under normal economic conditions, we would prefer that markets determine the ultimate fate of private firms.”

These corporations have had decades to invest in ‘future-proof’ vehicles but instead chose to go on churning out planet-killing monsters. Why should the taxpayer foot the bill for yet more managerial incompetence? The car makers simply don’t deserve it.

There is one thing they ‘deserve’, same as the bankers - a good slap for being petulant, spoilt brats.

Other than that, they should be forced to evolve with the times or become extinct like the decrepit dinosaurs they are. And if they get a single penny handout, none of this loop-hole-ridden contract crap the bankers got away with!

Of course the auto industry doesn’t see it that way.

In fact, its execs have such a distorted, self-absorbed worldview, they don’t see problems at all.

Want an example?

Recently, a climate summit was held in Poznan, Poland where the world’s leaders planned their assault on global warming. At the same time, the top execs of the auto industry dashed to Washington to put their desperate plight before the powers that be and plead for help.

But just how exactly did these geniuses dash to Washington?

  • Car share perhaps? 
  • Greyhound bus? 
  • Amtrak?
  • Economy class on a scheduled flight?
  • Business class?

In their infinite wisdom, to show they truly do have their fingers on the pulse of what Americans really care about, they took what they obviously believed to be the appropriate steps to prove:

  1. They are environmentally aware. 
  2. They are truly poverty-stricken. 
  3. They would invest any bailout money wisely.

How did they dash to Washington? They each flew via private jet.

General Motors, Chrysler, Ford… Bear Stearns, Goldman Sachs, Lehman Brothers…

Imagine what the world will be like if they have their way!

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These people live in fantasyland. So, let them go to their fantasy bank, borrow some fantasy money, play with their fantasy businesses, then sell their fantasy products to all their fantasy customers, and live a happy-ever-after fantasy life.

Now, what to do with that $14 billion now it’s lounging about doing nothing…

Want to help the economy in the real world?

Invest it in green initiatives: solar, wind, hydro. Create a green infrastructure, create green jobs, and thus create a green, sustainable economy.

And get this…

By making economically AND environmentally sound investments, people will be more secure and the country less likely to be held to ransom by foreign oil tyrants, meaning America could once more proudly call itself ‘the land of the free’!

So go. See. Feel. Live.
Steve

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When a mysterious stranger fights to end world poverty, his seeming ability to heal with just a touch catapults him to fame but thrusts him into a deadly struggle with corporate America and the White House that like the world just the way it is: under their control - poverty, disease, wars and all.

But can the stranger heal? Or is he the biggest villain of all, perpetrating the most elaborate scam of all time?

Is it any good?

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23 Responses to “The Worst Car Crash of All Time”

  1. PamylleNo Gravataron 18 Dec 2008 at 9:00 pm

    Let the companies fall and use the money to re-train and assist the workers in a new Green Economy. That’s my wish.

  2. Steve N. LeeNo Gravataron 18 Dec 2008 at 9:39 pm

    That’s where the future lies, isn’t it, Pamylle? You can only stick your head in the sand for so long - our resources will run out. If we don’t act soon, we really will be pulling our cars with cows!

    Thanks for commenting, Pamylle.
    Steve

  3. Louise BristowNo Gravataron 18 Dec 2008 at 9:41 pm

    How Great-autos & climate!

  4. Louise BristowNo Gravataron 18 Dec 2008 at 9:47 pm

    The future needs our guidance!

  5. Pommawolf Wolfweep'sNo Gravataron 18 Dec 2008 at 10:13 pm

    Well, let them cry and whine until the cows come home. We stopped buying newer cars years ago when you got such a sorry investment for the future..literally a piece of crap you have pay somebody else to fix. Money out the window for parts. High priced, environmentally destructive fuel. And always the corporate greed machine with no conscience for the future generations or the planet. Waa..waa…waaa. Cry me a river for the overpaid auto workers who are overpaid, and not overly worked, and believe they deserve to gouge their fellow Americans for the almighty dollar alongside their employer. Nope. They get exactly as they deserve. Living for the moment and not for the future. It’s called you reap what you sow. They have left a nasty path in their wake, so sympathy is not coming from many of us Americans. Corporate and auto worker alike slept together in this mess….let them whimper together as they get their just desserts.

  6. Margi L.No Gravataron 18 Dec 2008 at 11:58 pm

    Not only do they not want to build eco cars, they have used their big business clout to buy out, rip-off or otherwise repress the efforts of others. The real issue with the crisis in the US stems from entrenched big business power refusing to change with the times. The status quo cannot be maintained, change is required. Those that cannot adapt and change will face extinction.

  7. Wai MinNo Gravataron 19 Dec 2008 at 3:36 am

    Hey Steve,

    I haven’t been commenting on your previous posts. Though, I think your previous posts were really good. Anyways, I just wanna leave a reply wishing you, “Merry Christmas!”

    Have a blessed Christmas!

    Sincerely,
    Wai Min

  8. GolbarNo Gravataron 19 Dec 2008 at 4:52 am

    I can’t believe there’re are people who want auto manufacturers to make environment friendly cars. If you need a car to move from places to places in your daily routine, then you must be living in a very badly designed city. Such a city can only result in an urban sprawl: an environmental disaster.

    The worst part isn’t just the environmental damage this transportation system cause. It’s also utterly bad economic and moral choices. The part of the GDP related to transportation in the US in 2006 was about 18%. 18% of limited resources that couldn’t be used elsewhere. 18% of 13 trillion dollars.

    Roads and cars are such parts of our lives that we can’t think of the problem from other perspectives. All we can think about it’s other kind of cars. Which is lame btw.

    It would be about time to think about better transportation systems integrated to better infrastructures. High population density infrastructures, in which there could be automated distribution of goods, for example, and where walking would be enough to go wherever you want.

    When I see the very high technological tools that are our cars stuck on the road, or people dieing car accidents just because they wanted to go somewhere, I can’t do anything but think that we use very efficient technologies in very inefficient ways.

  9. PommawolfNo Gravataron 19 Dec 2008 at 6:07 am

    Golbar,
    I don’t know where you are from, but United States is all about urban sprawl. Routes that get you where you need to go? Roads and highways were built generations ago, and as self focused as our government is no change has ever been in mind over road restructure…and why should they? So we the people could be more sufficient or preserveration for the future? Surey not! What were our politicians thinking?!
    Since the first Bush the elder was in office their foresight has been war..war..war…if we could get all our taxpayers money back for the cost of 2 wars…and the return of soldiers senseless loss of life it wouldn’t begin to repair the damage left by the 2 Bush presidents. Corporate has thrived off of the Bush duo and their cronies….nah..People will just have to learn to get along with or without their new gas eatting cars.

  10. Steve N. LeeNo Gravataron 19 Dec 2008 at 10:20 am

    The future certainly does, Louise. Or, to put another way, it needs no interference and for nature to take its course the way it has for millennia. One of the two. We certainly can’t go on the way we are.

    Thanks for dropping in.

    It’s good to see you’ve strong opinions on the subject, Pommawolf - too many people sit on the fence and that’s why the world is in such a mess, isn’t it? Yes, they haven’t cared about what their businesses have done to the planet and now want those suffering the ill effects to pay for them to be able to continue their destruction. Where’s the sense in that?

    Thanks for commenting.

    You’re right, Margi. Thanks for making an excellent point. I’ve discussed corporate greed on many an occasion - how those with the money and power manipulate and lie to those without either to get what they want by any means necessary, and, of course, without a care for the longterm consequences.

    Thanks for sharing your thoughts.

    Merry Christmas, all of you,
    Steve

  11. Steve N. LeeNo Gravataron 19 Dec 2008 at 10:22 am

    Don’t worry about not commenting regularly, Wai Min - we all lead such busy lives!
    And a Merry Christmas to you, my friend.
    Steve

    You make an wonderful point at the end of your comment, Golbar: “we use very efficient technologies in very inefficient ways”. Spot on. Now, if we could just redress the balance, we really could create a world of plenty for all.

    I don’t know if we could ever build cities where everything was within walking distance, though. The population is set to reach nine billion in a few years so cities are going to get bigger and bigger. Without demolishing everything and starting over, plus changing our whole culture in many ways, I doubt it’s possible to position people close to work, school, amenities, etc so no transportation is needed. An easier option may be to build reliable and easily affordable public transportation systems - something Britain is in dire need of!

    Yes, you’re right - moral choice comes into it. Sadly, few people even see that, let alone acknowledge it!

    Thanks for sharing your thoughts.

    Great point, Pommawolf. The infrastructure was set in place to cope with a different time and has never been updated to fit the needs of today, let alone of tomorrow!

    As for Bush, the wars, and the financial, social and life costs… I could talk at length, but I think one word will suffice: obscene. (Okay, so maybe just one more word: criminal.)

    Thanks for furthering the discussion.

    Merry Christmas, everyone,
    Steve

  12. Kathy ThompsonNo Gravataron 19 Dec 2008 at 8:49 pm

    Steve, in 1979 I bought a 1974 Toyota. Well actually the Dodge dealer was “kind” enough to trade me straight across for my 1979 Dodge that ultimately turned out to have come out of the factory without all its clutch parts (strangest thing, no wonder I couldn’t shift it). Because I bought it from another dealer, the local dealer refused to service it. I finally told them that if they couldn’t fix it, I wanted them to trade me for something that wouldn’t increase my payments and if they wouldn’t do that, I would drive the Dodge through their showroom window and walk away! They were pretty sure I meant business so they found me the Toyota. I fell instantly in love. It was the most dependable vehicle I ever owned–40mpg, would start with a nearly dead battery, and I could work on it myself (as long as I could find a book that covered what I needed to do). My friends and neighbors thought I was terrible for owning a foreign vehicle, my own brother said anyone who would buy a foreign vehicle should be hung for high treason, but I didn’t care. I minus 40 degree weather I stopped at every house on my way to town and jumped everyone’s cars that didn’t start, bought food for my kids instead of gas. The Toyota just kept on going, had well over 500,000 miles on it and could have done more except that a friend of my son rolled it, turned it into a pancake. If Toyota could do all that 40 years ago there is something badly wrong with “The Big Three”. I say let them just die. I would trade my 2000 Chevy S-10 for a 1974 Toyota in a heartbeat today!

  13. Steve N. LeeNo Gravataron 19 Dec 2008 at 9:32 pm

    Kathy, I’m sorry to hear such a brilliant little car got totaled! But that does illustrate a wonderful point - if Toyota could produce such mpg and reliability so many decades ago what indeed have Ford, Chrysler, and GM been playing at? Talk about resting on your laurels! (But that assumes they had laurels to start with!)

    I’ve never really understood the ‘buy British’, or in your case US, as I always try to get the best bang for my buck. Anyone who doesn’t is simply throwing their money away.

    I wonder how all your neighbours felt - their precious little US cars being rescued by a ‘piece of foreign crap’? Yeah, I bet that made them feel so good. I wonder how many went out and bought US again, regardless of the problems they’d had previously?

    Thanks for such a great illustration of exactly what I’m talking about, Kathy. Merry Christmas,
    Steve

  14. Nikolas KarmanNo Gravataron 21 Dec 2008 at 10:03 am

    Hi Steve a great article and well on the mark. Sadly people belive their bull sxxt and forget that all business including governments exist for only one reason, Customers , remove them and there is no reason for the business to exist. Thanks to TV we have a very high percentage of customers who cannot think for themselves and realise the bankers and these corporations could not give a damm about people.
    People are starting to wake up around the world.
    Americans are a bit behind the eight ball as they think they are the only one on this planet lol.

  15. Steve N. LeeNo Gravataron 22 Dec 2008 at 10:33 am

    Glad you liked it, Nikolas.
    Yes, businesses do forget that they are there to supply the answer to their customers’ needs. Sadly, these days it’s all backwards - they prefer to create a product and then convince their customers they need it. If customers would wake up to this simple fact alone it would save a tremendous amount of the world’s resources from being wasted. And it would save them money!

    TV is partly to blame, you’re right. But it’s a lot deeper than that. It’s become part of our culture so it’s something we have to un-learn. All that crap about ‘keeping up with the Joneses’, etc.

    Thanks for commenting. Have a great Christmas,
    Steve

  16. Joycey BerryNo Gravataron 23 Dec 2008 at 4:04 am

    Thanks for this informative post Steve. Great job.

  17. Don't Tell The IlluminatiNo Gravataron 23 Dec 2008 at 5:12 pm

    THE ONLY WAY WE WILL EVER HAVE A SUSTAINABLE ECONOMY IS TO HAVE A SUSTAINABLE MONEY SUPPLY. IF OUR MONEY SUPPLY IS CONTINUALLY SUBJECT TO INFLATIONARY TAXES, THEN WE WILL CONSTANTLY RETURN TO THE TRUE SOURCE OF VALUE, THE EARTH, AND RAPE IT.

    ONLY WHEN WE HAVE A CURRENCY THAT IS REPRESENTATIVE OF NATURE, AND LOANS THAT ARE PAYED BACK TO THE EARTH, WILL WE HAVE A SUSTAINABLE ECONOMY.

    SUCH A SYSTEM WILL NEVER COME VIA A VOTE. THE PEOPLE WHO CONTROL THE MONEY SYSTEM WILL NEVER GIVE UP THEIR POWER WILLINGLY.

  18. Kent ButlerNo Gravataron 23 Dec 2008 at 9:43 pm

    You’re right on the money, Steve. But, I’m not at all sure it matters what happens to the so-called “Big Three” (referring to egos, I assume). As of yesterday, Toyota announced a $Billion+ loss and that they are reducing production of some vehicles.

    The massive financial screwing the Feds and their Wall Street pals gave us is one from which we will never recover. Our great-great-grandchildren will barely make a dent in what is still owed - if we last anywhere near that long. Even another World War (like the one that pulled us out of the “Great Depression” - what was so damned great about it?) wouldn’t fire up our economy enough to save it. And, we couldn’t fight such a war anyway - our troops are spread too thin as it is.

    I do find it interesting that the Wall Street slime was handed all the money they wanted and Congress never even shook a (grasping) finger at them. But, the lousy managers of the Big 3 are slapped around, insulted (rightfully) and threatened - but will still get the our money.

    And the UAW “leadership”? Same as the Big 3 management: self-serving ego monsters.

    Can you tell I’m outraged? I think I’ve spread enough sunshine for now…

  19. Steve N. LeeNo Gravataron 24 Dec 2008 at 10:48 am

    You can never spread too much sunshine when it comes to injustices such as the ones we’re talking about, Kent!

    Yes, it’s possible the world will never recover economically. We don’t have the resources to waste on the commercialism and extravagance that we fell in love with in recent decades, so a booming economy may well be a thing of the past. Oh, things will get better, but I doubt they’ll ever reach the dizzying heights of the past 20+ years.

    Wall Street and the bankers? I can’t believe they’ve been handed so much and now can’t account of where most of it has gone!

    Keep spreading that sunshine, Kent. Thanks for adding to the conversation.

    Glad you enjoyed the post, Joycey. Thanks for dropping in.

    ‘Give up their power willingly?’ Yeah, fat chance. But then there’s never going to be a revolt either, so where do we go from here? We’ve painted ourselves into a right corner, haven’t we. If we could just stop seeing EVERYTHING as disposable, which wouldn’t need a drastic change in how we’re governed, that would make a tremendous impact on our ‘raping of the earth’. Of course, that goes back to our old friends profit and greed. It’ll be a long time in coming, but we will have to address this issue or face extinction. There’s no other way out.

    Thanks for sharing your thoughts, Don’t Tell the Illuminati.

    Have a terrific Christmas, everyone.
    Steve

  20. Elainna CNo Gravataron 28 Dec 2008 at 2:17 pm

    Steve, I understand the reason Ford doesn’t want to sell its Fiesta ECOnetic car in the states is because it runs on diesel and apparently Americans don’t like diesel.

    The one problem with that excuse is that my long departed father drove a Mercedes-Benz diesel car in the States for many, many years.

    Currently, Mercedes is introducing a new diesel model which actually meets the specifications of California’s emission laws. I wonder if Ford might change its mind?

    As far as I am concerned I don’t worry that much about the big three whiners. You see I don’t drive a car and I wish the darn things would go away and stop poisoning my air!

  21. Heidi M.No Gravataron 28 Dec 2008 at 7:54 pm

    Great post as always, Steve. I was against the Wall St. bailout and am against the auto industry bailout as well. Honestly, I’m sick of paying for everyone else on my teeny-weeny paycheck. Let the auto workers whose fabulous unions got them $30 - $40 per hour pay for the bailout of the auto industry. They wanted huge paychecks that drove the cost of living sky high - they can pay MY rent and bills for a while. And all this whining in Washington about it!! The auto industry is the backbone of American???? I don’t see the government doing anything to save the real backbone of America - the family farmer.

    I was reading about the new electric car the Volt. Sounds great, but carries a price tag of over $40k. Someone like me will NEVER be able to afford that car. We need clean, reliable public transportation everywhere. NOW. Where I live there is NONE. So, during the oil “crisis”, oil companies could charge anything they wanted for gasoline here in the south because people had no alternative. They HAD to pay whatever was being charged. In the north - specifically New England - people just stopped driving and took the bus. Gas prices didn’t go nearly as high as everyone predicted, even though they have a much higher overall cost of living. Why? Because people had an alternative.

    You know, an old auntie of mine, who was in her 20’s during the Great Depression, always said that a real Depression was just what this country needed to experience again to stop the greed and bring people back to reality and to what is really important in life. I think I’m beginning to agree with her.

  22. RichienNo Gravataron 06 Jan 2009 at 2:23 am

    My fear is that any time that the government gets involved in business, they mess it up. That, I know, is a pretty broad statement.

    I challenge any reader to give me one example of a government run enterprise that would not be better if it were run by private enterprise.

    We should let the bankruptcy courts handle this problem. They have been doing it for hundreds of years. There is a procedure that must be followed and it can be done relatively quickly.

    Then, the companies can emerge from the ashes without the heavy costs of previous mistakes.

  23. Steve N. LeeNo Gravataron 07 Jan 2009 at 3:09 pm

    Elainna, that’s one of Ford’s main gripes, yes - poor things! Imagine having to pitch their customers on a vehicle that can double their fuel economy. What a nightmare sell that would be!

    We embrace diesel over here in Europe purely because it delivers on gas mileage. So it’s a little more pongy than ‘normal’ fuel, who cares if it’s better for the environment and your bank account!

    Thanks for commenting.

    While it’s harsh way to learn, maybe your auntie made a good point, Heidi. A good reality slap would cure a lot of the world’s ills.

    I know what you mean about the Volt and believe I commented to that effect on someone else’s blog.

    As for a backbone? It’s no good supporting one that’s riddled with disease and can’t do the support job it’s supposed to if there are alternatives. A green infrastructure WILL come about in time so why not start now instead of injecting money into a business that won’t deliver the goods we need?

    As for oil companies raking in the profits whenever possible… Well, I’ve posted about that before. http://www.lionsledbysheep.com/2008/09/11/oil/

    Thanks for furthering the discussion, Heidi.

    I know what you’re getting at, Richien, but it’s business that’s begging for government involvement - bailouts left, right and centre! Maybe if the gov had been more involved then the banks wouldn’t have got us into this awful mess in the first place.

    I don’t know where you live but in England we have a state run national health service that would be a disaster if it was in private hands. Our water, gas, and electricity all used to be state owned too, but were sold off - prices rocketed!

    But yes, I agree that supply and demand, and bankrupcty courts are ideal mechanisms for businesses world. That said, without some government involvement businesses run out of control, as is the case with banking and the auto industry not producing the right product for the market. The problem is getting the amount of involvement right and ensuring it drives the business in the right direction without needless bureaucracy.

    Thanks for sharing your thoughts, Richien.

    Thanks everyone. Happy New Year,
    Steve

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