The big news over the past week has been the still not completely settled $700 billion bailout of the banking industry. But also noteworthy: the $25 million bailout of the auto industry. It’s not really intended to have any kind of green effect on anything, but it looks like it actually might.
Because it just happens that right now is the moment that GM and Chrysler are in a PR/marketing duel over whose electric car is the Next Prius. Both are coming out with new models in 2010, the Chevy Volt for GM, which is promised to get 100 mpg, and three or four different models from Chrysler (depending on what you count as an electric car), like the Dodge EV, which is supposed to get 150 miles from an electric charge.
Since this is the single greatest area of competition between two of our top three auto makers at the moment, a lot of those 25 billion federal dollars will probably go, indirectly, to the intensive marketing of electric vehicles. The closest thing to a propaganda campaign our government is allowed, in our free-market society, that isn’t an anti-smoking effort.
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The $25 billion – not million – loan to the U.S. auto industry will have a green effect outside of the marketing of hybrid electric vehicles.
The Detroit Big Three – Ford, Chrysler and GM – are largely seeking the money so that they can retool their manufacturing plants to more efficiently and effectively build and design hybrid cars and trucks. Gas-electric and plug-in hybrid electric vehicles burn less gasoline, thus reducing the amount of carbon that is released into the atmosphere and is believed to contribute to climate change.
So the loan from the government will not only help three major U.S. employers and the many companies with whom they work to stay in business, it will also have a positive effect on the environment.
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What’s amazing to me is that these same companies are getting bailout money to resurrect technology they intentionally buried in the past.
Didn’t Detroit try their best to bury the electric car? It seems now they have bailout money to help them resurrect what they intentionally buried.
It is no surprise that stock prices have been all over the place. Even so when Ford traded under $2 a share last November it was too good a buy to pass up.
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