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Auto Rescue Should Have Strings Attached

GM and Ford are pleading with the federal government for loans that would help them to stave off potential bankruptcy as the worsening economy is crushing Detroit and puts hundreds of thousands of jobs at risk. President-elect Obama seems very inclined to do so, but any loans should come with concessions from the auto industry.

First, Detroit's automakers should agree to end the continual lobbying against fuel efficiency standards. If they want taxpayer support, then they must agree to accelerate the time line for raising the MPGs of their fleets. If you want us to save your behind, then no more spending millions per year to oppose government rules. Loans should only go towards producing vehicles that are in our national interest to build.

Second, the federal government should end the SUV tax loophole without resistance. Let's acknowledge -- with the industry's consent -- that it is dead wrong to subsidize vehicles that are contrary to the need to address climate change and energy security.

Also, the government and Detroit should form a partnership to get plug-in hybrid vehicles on the road as quickly as possible. Any loan package should include job training for producing and maintaining plug-in hybrid vehicles. More money for battery research -- the costly component that must get more efficient -- is needed.

Finally, make sure that executive compensation and the loan guarantees are tied to performance. If plug-in vehicles and higher fuel economy cars don't make it to market as promised, then the management -- and not the workers -- should pay the price.

Comments By Readers

What I find interesting about this current economic crisis is how it brings different factions together. I, personally, do not believe that man is the leading cause of the current climate problem, however, I completely agree with a lot of what conservationists and eco-bloggers talk about. I want to see more energy efficient appliances and vehicles. I agree with hybrids and electric cars. So, while I am not pounding on the government to stop global warming, I would support any action that makes the auto makers stand up and take notice that they are working against the best interests of the consumers (even the climate change deniers).

Kevin Devine on November 10, 2008 at 08:25 AM

Why does this have to be the ONLY reliable socure? Oh well, gj!

Bobbie on November 11, 2011 at 08:20 PM

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