A pretty scaring thing is going on with the tax money of the American people.
The Bush administration doesn’t want to bail out the bankrupt auto industry.
White House spokeswoman Dana Perino said yesterday that the auto companies had made business decisions "over the years that have led to this situation, but we have gone as far as we can with the authority Congress has given in order to help industries."
Hence, the Bush administration doesn’t want to do more.
But the Democrats have a different opinion.
"In order to prevent the failure of one or more of the major American automobile manufacturers ... Congress and the Bush administration must take immediate action," House Speaker Nancy Pelosi said.
Will that be throwing good money at bad money?
We may think so because the American auto industry is a failure in many ways.
Let’s take General Motors, running out of money and going bankrupt next year without Government help.
General Motors has a brand called Chevrolet.
The most simple, smallest and cheapest Chevrolet for the year 2009 is called the Aveo.
This car is equipped with a 1.600 cc gasoline engine and makes 25 miles to the gallon.
A similar car is build by the French company Renault.
The Renault Grand Modus.
This French car is equipped with a 1.500 cc diesel engine and makes 52 miles to the gallon.
That is pretty stunning.
One gallon delivering in one case 25 miles and in the other case 52 miles.
The French car is more than twice as economic as the American vehicle.
Both cars are equipped with the most modern technology and the best the engineers of the two companies have to offer.
This example, based on naked facts, shows how outdated and behind Chevrolet is.
A company that is still building and selling a car called the Corvette doing 15 miles to the gallon…
There are two reasons why it is important a car has an engine using as little fuel as possible.
The least reason is economic: we are spending less money on fuel and on importing oil.
The major reason is the environment: the more fuel we use, the more we destroy this planet.
This concept of thinking lives actively for many years with the European and Japanese carmakers.
This is why they are the ones who have now the fuel-efficient cars to offer.
Chevrolet/GM, Ford and Chrysler have missed that boat completely.
It makes therefore no sense to carry billions of tax Dollars now to the US automakers.
It will only be to keep the workers in their jobs.
Who are making outdated cars extremely harmful to the environment and expensive to drive.
One reason for this mess the American auto industry is in comes from the fact that the Renault Grand Modus is not for sale in the USA.
Renault cars and other European sophisticated cars, as are made by Peugeot, Fiat and Citroen, are not allowed to be imported into the USA.
The American Government preaching to other countries the edict of free trade and opening the borders for the USA to export their products, closes their own border to protect their own auto industry.
This has been devastating because competition was eliminated.
The Big Three had no motivation and incentive to do their best.
What is the solution?
It is unavoidable that large sections of the American auto industry need to be closed down.
It is unavoidable that most of the management of those companies have to be fired and replaced by progressive and innovative thinking persons.
It is unavoidable, to have a quick solution, to start building in license European cars in the USA.
Meanwhile, too many Americans are stuck with a car polluting heavily and using large amounts of gasoline.
Those Americans will not be able to change that situation soon.
Their current cars have no trade in value and they can’t get or afford credit to buy a more environmentally and economic vehicle.
This is a fabulous opportunity for innovative Americans to come up with a solution that makes the engines in the American cars now around more clean and economic.
Imagine that for $ 200 a person can bring his Chevrolet Impala, the 2009 model doing a poor 19 miles to the gallon, to a place where they install something in the engine so that the MPG goes up to 52 like the Renault Grand Modus?
Everything seems to be impossible until later it turns out to be an innovation.
Hence, it MUST be impossible for something to become progress.
The fact it is impossible is exactly the positive aspect.
How else to do the impossible?
The current state of the American auto industry has a lot of impossibilities.
Too many to justify showering billions of Dollars on it.
But it is a golden opportunity to demonstrate how brilliant and innovative Americans still can be.