As if the United States hadn’t already been forced, kicking and screaming, to see the first incarnation of “Cash for Clunkers” our good friend Kerry Picket informs us that the Obama administration and certain members of Congress are gearing up for a summer blockbuster squeal to the failed program. Government Motors
Writing at The Washington Times Water Cooler Blog Kerry explains how this production is currently being marketed around DC:
Ready for another cash for clunkers program? It looks like General Motors is attempting to replace it’s own consumer incentives with tax payer money. The car company, bailed out of bankruptcy in 2009 by the American tax payer, appears to be turning the government into an automatic rebate provider.
The Obama administration and their friends on Capitol Hill are floating around a proposal to change the $7500 tax credit for green vehicles. This change can be found not only in President Barack Obama’s budget but also a bill proposed by Senator Debbie Stabenow, Michigan Democrat.
Take a look at what Senator is pushing the funding for this “Cash for Clunkers” movie sequel:
According to Senator Stabenow’s website, her proposed legislation, known as the “Charging America Forward Act” (S.298), “will provide consumers with a rebate worth up to $7500 for plug-in electric vehicles at the time of purchase.”
Essentially, if one were to buy a $41,000 Chevy Volt, the buyer gets a $7,500 coupon, so the final price is $33,500. In the end, the auto dealer assumes the risk of the government giving them this tax credit.
It is pretty convenient that Ms. Stabenow, who represents a state where GM is headquartered is pushing a bill that is also supported by Edison Electric Institute, whose president was a loaned a Chevy Volt, Eaton Corp: the sole American producer of car recharge systems, and Battery Electric Vehicle Coalition, a lobbying group for the electric car industry.
In fact, Department of Energy’s David Sandalow told Bloomberg News in February the insta-credit would operate the “same way the 2009 ‘Cash for Clunkers’ program worked.”
Read the rest of Kerry Picket’s excellent article and remember how the first movie ended.
The first incarnation of the “Cash for Clunkers” program was a complete clusterfrak — remember the General Motors video “We all fall down”?
Well, it wasn’t so much that poor old GM just fell down… they had a little help from their big government friends:
Last year, according to the statistics, GM made $4.2B in profit. Then, there are the things these statistics just don’t take into account. GM was given, on very favorable terms, a loan of $49.5B from the US treasury. They’ve paid back $23B. Without the $49.5B in taxpayer dollars, this firm would have lost $22.3B.
Of course, the bailout only begins to scratch the surface of what the government did to boost its new Soviet-style manufacturing collective. Transportation Secretary, Ray LaHood used the regulatory power and goodwill of the US Government to deliberately sabotage GM’s principle competitor; Toyota Motors.
The US Department of Transportation launched an aggressive probe of unintended acceleration accidents involving Toyota vehicles. It did so in perfect synonymy with their efforts to revitalize GM under their directorship. The Department of Transportation Secretary LaHood’s Orwellian scare-mongering follows below.
LaHood’s warning came Wednesday in testimony before a House Appropriations subcommittee on transportation. LaHood says his advice to owners is to “stop driving it. Take it to a Toyota dealer because they believe they have a fix for it.”
- Ray LaHood (HT:USAToday)
…….and we all know that the The Coming General Motors Failure Will Be At Taxpayer’s Expense!!!