

Tesla Motors on Detroit Bailout - sh1mmer
http://www.teslamotors.com/blog2/?p=66

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jonas_b
From Peter Klein (via 37s)

"The proposed bailout of GM, Ford, and Chrysler overlooks an important fact.
The US has one of the most vibrant, dynamic, and efficient automobile
industries in the world. It produces several million cars, trucks, and SUVs
per year, employing (in 2006) 402,800 Americans at an average salary of
$63,358. That’s vehicle assembly alone; the rest of the supply chain employs
even more people and generates more income. It’s an industry to be proud of.
Its products are among the best in the world.

Their names are Toyota, Honda, Nissan, BMW, Mercedes, Hyundai, Mazda,
Mitsubishi, and Subaru."

I think that foreign automobile makers would fill the space rather quickly.
Some brands would disappear, but most would be continued one way or another.

It would also open up for innovation in the car space, something america hasnt
had for a long time.

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maximilian
I find myself enormously frustrated by this whole situation. I don't like many
cars produced in detroit and I would never buy one. I don't want to prop up
companies whose products I don't admire. At the same time, I don't want to see
so many people out of jobs because the big three go bankrupt. I've never been
to detroit, but I can imagine that if the big three went bankrupt the city
would be in dire straights.

The people that are pondering these problems are going to have some very tough
decisions ahead of them. Balancing what is better for the country as a whole
and what is good for "detroit" (all the companies, people, and suppliers that
are interwoven with the big three) is an enormously tough job.

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bprater
Agreed, it's a tough situation. An important question is this: are the big
three on life support anyway and close to death?

If so, giving them bags of cash may only extend their life a few more years
before they crash and burn. Then we (the people) are out bailout cash and the
people that might have lost jobs have now officially lost them.

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maximilian
This is what I worry about. The whole SUV debacle is interesting because it
showed the US automakers making a comeback, but then gas prices soared and
nobody wanted a big car like that anymore. It shows poor leadership to me that
they weren't diversified into cars that would be feasible after a gas hike.
Even if those cars weren't best sellers, they would enable a faster retooling
into cars like those now.

I drive a '96 subaru outback. There is _nothing_ like it from american
automakers. I used to live where it snows a lot, and I would only consider
buying a subaru.

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vaksel
Ford Taurus X is pretty much the equivalent of the outback or Dodge Caliber
AWD

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brandnewlow
I'm no expert on Detroit's economic situation, but the detail I will never
forget is how much it cost to park in a lot downtown for the day last time I
was there. $5.

It's an easy $27-40 to park in downtown Chicago for the day.

I actually got chills when I saw how cheap it was.

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petercooper
You _can_ park for free in downtown LA, or even for paid parking.. $8 for the
day in Pershing Square, and similar $5-$10 amounts all over the place.

I know this is a somewhat unfair comparison, but if the parking prices in
Detroit had crashed I'd say there's something in it, but not in comparing to
another city with different dynamics.

