Auto Industry Retooling Should Synch With Stimulus

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Transportation | February 16, 2009 | by John Gartner

Auto Industry Retooling Should Synch With Stimulus

Desperate times call for desperate actions, and for GM, Ford, Chrysler, and the U.S. Economy, the times don't get much more desperate.

So instead of tinkering with the auto industry and providing loose oversight, it's time to mobilize the auto companies to tackle the overhaul of American transportation to be more sustainable.

President Obama is organizing his top advisers to oversee the auto companies' internal restructuring plans. But the benchmark for any"way forward" should be "how do they compare with the transportation goals as outlined in the stimulus package?"

The stimulus package has a powerful if imperfect set of transportation objectives, which will be addressed through billions in funding. So let's get GM to be part of the solution, instead of the problem.

The stimulus allocates money for transportation as follows, (thanks to the Alliance to Save Energy for the Breakdown):

$8 billion for capital assistance for high-speed rail corridors and Intercity Passenger Rail Service

$6.9 billion for transit capital assistance, of which $100 million is for public transit agencies for capital investments that will assist in reducing the energy consumption or greenhouse gas emissions of their public transportation systems

$1.5 billion in grants for state governments, local governments and transit agencies, for capital investments in surface transportation infrastructure, including New Starts and Small Starts projects and passenger and freight rail transportation projects, as well as highway and bridge projects

$300 million for assistance to state and local governments to acquire efficient alternative fuel vehicles. Authorized under Section 721 of the EPACT05.

$300 million for grants to state and local governments to reduce diesel emissions. Authorized under Title VII, Subtitle G of the EPACT05

$300 million for GSA’s Motor Vehicle Acquisition and Motor Vehicle Leasing program, in order to replace the Federal fleet with more efficient vehicles.

So per the administration we want: more regional rail, more busses, and more fuel efficient and alternative fuel vehicles. So rather than an almost blank check, like was more or less given to financial institutions who continued with their scurrilous ways, lets tie all loans and grants to these projects. I spoke a few days ago with transit enthusiast George Beard, who also teaches at Portland State University, and he suggested boldly realigning the auto industry with our national objectives. Why not put some of Chrysler and GM's engineers and skilled workers to work building hybrid buses and train engines, and expand the number of vehicles that get more than 30 mpg or run on biofuels to power government fleets?

GM used to build buses and trolley cars (before dismantling the transit lines), built airplanes during World War II, and sold off Allison Transmission just two years ago, so there is precedent.

The Obama administration has put its stake in the ground that many of us support: We want a different kind of transportation, with more public transit, and different types of personal transport. It only makes sense for GM, Ford and Chrysler to be included in these plans and not provide funding for activities outside the scope of this mission. If they (and the auto workers, who must make concessions) don't want to be part of it then we will pay the way for the companies that do.

The justifications -- climate change, national security, and revitalizing the American economy -- demand strategic action that will cause some short-term pain.