Saturday, November 8, 2008

NO Corporate Welfare for the US Auto Industry

No one wants the US Auto Industry to go under--especially to protect their work force. Even though one remembers when Chrysler got a bailout in the 1970's, ostensibly to protect their workers, and they dumped workers from their Poletown Plant when they automated. But no welfare for the US Auto Industry either--the industry that kept bringing us bigger and bigger cars in the hopes to turn a bigger profit per unit, and little crappy cars (Gremlin, Pinto, Vega) that were just throwaways.

How about a plan that will help the auto industry, consumers, auto workers and the planet. Government rebates to the auto makers and consumers for every fuel efficient car sold in America.

For every car made in America ( Toyota's from Tennessee count--re branded Mitsubishi's like the old Dodge Colt don't) that gets good gas mileage--the American consumer and auto company get cash from Uncle Sam. For example:

Car gets over 30 MPH--Government gives auto maker $2000 and consumer a $4000 rebate
Car gets over 40 MPH-Auto maker gets $4000 and consumer $6000 rebate
Car gets over 50 MPH-Auto Maker gets $6000 and consumer $8000 rebate

50,000 car rebate would cost around 500 million. Much less than the bailout asked for, and auto industry could cut their rebates back, to make more $$$ on each unit. Think the Hummer and the Escalade--the official car of Antioch subprime mortgage holders who took out a 2nd, would virtually disappear.

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