Detroit Shows Up For A Handout

So Detroit showed up in Washington today with their hands out and their private jets waiting on the runways. OK, so that is a slightly unfair thing to say, but it was a bad image to give for their poor-house story.

Detroit is suffering from lots of problems, most of which are a lack of imagination and poor management. Granted there are expenses for wages, pensions and health care, but the biggest problem is that they don’t make cars people want. The big 3 have continued to make big gas guzzlers when America wants small efficient cars like the Toyota Prius. Detroit makes small cars, but in general they suck. They feel cheap and drive crummy and look worse.

There is a lot of hope and fortune tied up in the Chevy Volt, but if it premiers at $40,000 it won’t go anywhere. A luxury price for an electric car is silly. For the rich who want an electric car, there already is the Tesla. For the common man, a reasonably priced electric is the answer. Why Detroit can’t figure out how to do that is a mystery. Fewer moving parts, less assembly, what’s the problem?

Well, electric cars have been around for a while. The EV1 was a hit with consumers but failed for the company since dealers hated it. Not enough service money. Besides it was done at gunpoint for California only. Why couldn’t they just roll out a larger production version? It could be on the market right now!

My hope is the automakers return to Washington with a real plan to save the industry. I feel sure the Senate and House will support them if they come with more than their hands out.