Chevy Volt Gets Impressive MPG Rating

GM announced today that they hope to get a government mileage rating of 230 miles per gallon for the new Chevy Volt. If this comes to be, it will be a public relations bonanza for GM. That rating would blow away the competition and give GM the first triple digit MPG car in mass production.

Have *I* Got a Deal for You!

From Townhall.Com.

GM slouches toward bankruptcy, despite bailouts

When President Bush began the bailout of GM and Chrysler, it was with the idea of keeping them out of bankruptcy and savings the millions of jobs that these companies directly and indirectly create. President Obama continued this policy and has given out multiple extra bailouts to the companies in the meantime. He even managed to get GM's CEO fired in the process.

What it is the result of all of this expensive government intervention? Bankruptcy for GM as well as Chrysler. And, of course, Chrysler sold to Fiat, an Italian company who will likely ultimately move the jobs to Italy. We're right back where we started. GM is even talking about leaving Detroit entirely, despite the fact that one of the MAJOR reasons given for the bailout was to save the struggling region.

Are we finally ready to bite the bullet and admit the bailouts were a mistake?

A Car Company Pays DOWN Debt

A largely unreported fact amidst the madness of Chrysler and General Motors, is the many steps Ford has taken to stay out of government bailouts and to show their strength. Yesterday, Ford actually paid down its debt rather than looking for a bailout to accrue more of it.

Ford used $2.4 billion in cash and 468 million shares of its common stock to buy down $9.9 billion in debt, reducing its leverage by 38 percent.

"By substantially reducing our debt, Ford is taking another step toward creating an exciting, viable enterprise," Ford chief executive Alan Mulally said in a statement.

One can't help wondering if soon the "Big Three" automakers will be reduced to the "Big One." Hopefully, the president will do as much to reward Ford for doing the RIGHT things, as he has done to punish GM for doing the WRONG things.

Inspired by Banking Bailout, GM Says "Nationalize Us Too!"

Is there no one out there capable of thinking long-term anymore? It was bad enough that the Republican Party lead the charge to nationalize banking by buying equity stakes in the largest banks in the country. Now, GM and Chrysler are asking for the Federal government to buy a stake so that the two companies can successfully merge.

An injection of $3 billion in equity to support a GM acquisition of Chrysler would be roughly equivalent to the current, depressed value of the top U.S. automaker.

It would also give U.S. taxpayers a large stake in the turnaround of a struggling auto industry that employs over 350,000 American workers and is credited with supporting employment for another 4.5 million in related fields...

In addition to its equity stake, the U.S. government is also being asked to provide support for the GM-Chrysler merger by taking over some $3 billion in pension obligations under the terms of a proposal now before the government for review, the first source said.

How long will it be until we face the fact that some companies must be allowed to fail? It is one thing to attempt to stabilize the economic system by ensuring liquidity. It is another to prop up a manufacturing company with a proven history of incompetence. If we keep up these knee-jerk bailouts, we're going to suddenly find ourselves living in a socialist nation where the government sets the amount of our paychecks and decides who to hire and fire.