Comments on: Is General Motors too big to fail? http://www.crikey.com.au/2008/11/10/is-general-motors-too-big-to-fail/ now with extra source Sat, 11 Feb 2012 23:34:35 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Diana http://www.crikey.com.au/2008/11/10/is-general-motors-too-big-to-fail/#comment-71 Diana Thu, 01 Jan 1970 10:00:00 +0000 #comment-71 When Walmart overtook GM as the largest business entity in the USA it was obvious that the wheel was spinning but the hampster was dead. When Walmart overtook GM as the largest business entity in the USA it was obvious that the wheel was spinning but the hampster was dead.

]]> By: Guy Incognito http://www.crikey.com.au/2008/11/10/is-general-motors-too-big-to-fail/#comment-72 Guy Incognito Thu, 01 Jan 1970 10:00:00 +0000 #comment-72 No. No.

]]> By: Brian Taylor http://www.crikey.com.au/2008/11/10/is-general-motors-too-big-to-fail/#comment-73 Brian Taylor Thu, 01 Jan 1970 10:00:00 +0000 #comment-73 The vehicle industry has brought about its own demise by opposing alternative energy vehicles, CAFE fuel consumption standards, small cars, seat belts, catalytic converters, the list goes on and on. Vehicle fuel consumption is today the same as for the Ford model T. If capitalism is real, the industry must be allowed to sink or swim based on its own actions. The makers of buggies, wooden wheels, leather harnesses, all went to the wall without massive handouts.<br /><br />My real gripe however is that subsidies and handouts are a significant barrier to new entrants from outside the established auto industry. Have a look at www.teslamotors.com Here is an all electric vehicle, built by private enterprise without handouts or subsidies. Faster than the fastest Porsche, 400 kms on a charge, runs for pennies per kilometre, costs $109,000 USD and still the vehicle has a two year waiting list. These guys have got it right and they have no connections with the established auto industry. Their transition to more affordable mass market vehicles will now be doubly difficult and hampered by massive subsidies to today's equivalent of the horse drawn buggy makers.<br /><br />Subsidies should not go to the guys that fought every government initiative to increase fuel economy and pollution reduction standards but instead should go to innovation and truly green vehicles that almost invariably will not come from within the ranks of the Hummer's creators. The vehicle industry has brought about its own demise by opposing alternative energy vehicles, CAFE fuel consumption standards, small cars, seat belts, catalytic converters, the list goes on and on. Vehicle fuel consumption is today the same as for the Ford model T. If capitalism is real, the industry must be allowed to sink or swim based on its own actions. The makers of buggies, wooden wheels, leather harnesses, all went to the wall without massive handouts.

My real gripe however is that subsidies and handouts are a significant barrier to new entrants from outside the established auto industry. Have a look at http://www.teslamotors.com Here is an all electric vehicle, built by private enterprise without handouts or subsidies. Faster than the fastest Porsche, 400 kms on a charge, runs for pennies per kilometre, costs $109,000 USD and still the vehicle has a two year waiting list. These guys have got it right and they have no connections with the established auto industry. Their transition to more affordable mass market vehicles will now be doubly difficult and hampered by massive subsidies to today’s equivalent of the horse drawn buggy makers.

Subsidies should not go to the guys that fought every government initiative to increase fuel economy and pollution reduction standards but instead should go to innovation and truly green vehicles that almost invariably will not come from within the ranks of the Hummer’s creators.

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