Obama steers carmakers down wrong road

The Washington Post reported today that,

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President Obama yesterday announced plans to buy 17,600 American-made, fuel-efficient cars and hybrids for the government fleet, the White House’s latest gambit to steer aid to the nation’s beleaguered automakers.

A few thoughts:

• In 2007, U.S. car makers sold more than 16 million cars.
• In 2009, cars sales are project to be less than 9 million.
• Obama’s purchase of 17,600 cars is obviously a drop in the bucket compared to the kind of sales increase that is needed.
• Cars sales will pick up when the economy recovers, provided that carmakers are making cars that Americans want and that are profitable — that is, SUVs and light trucks.
• But Obama wants the Big Three to make and sell econoboxes that Americans don’t want.
• Not only are econoboxes small, dangerous and incapable of pulling/carrying large loads/groups of people, Obama plans to tax drivers by the mile they drive — thereby erasing any economic benefit from fuel efficiency.

Bottom line: Obama’s plan is a stick in the eyes of carmakers, workers or consumers.

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