Wednesday, January 13, 2010

Throwin' it all away

So why exactly is the Federal Government giving away $187 million to companies to build vehicles that are more fuel-efficient? Haven't they learned that the companies under the gubmint thumb (GM) who are forced to build more fuel-efficient cars are floundering, while car companies like Ford who are free to build what the public wants (trucks and SUVs) enjoyed profits last year for the first time since the recession started.

And not only is the gubmint giving money to the big three, they gave money to Cummins to build a more fuel-efficient supertruck (read: tractor-trailer or semi or 18-wheeler). Let me tell you as someone who spent time in the private logistics industry, there is no greater Holy Grail for independent truck drivers or the corporate trucking companies than a more fuel-efficient truck. But those trucking companies aren't willing to pay the extra cost (for all that research and technology), so it's not high on their priority list. So they pass on every cent of fuel increases to the consumer. Every red cent. When prices rise, the independents have the biggest problems. They don't have the deeper pockets to hold them over until the prices decrease. So we lose out on valuable small businesses. If Cummins made a fuel-efficient semi, the trucking companies (both corporate and independent) would line up to buy it, because they would then pocket the difference. It's a wonderful capitalistic incentive.



But that's obviously not been very high on their agenda, so the truck manufacturers didn't bother spending much money on it. Well, now the gubmint wants it to happen. They want to force the manufacturer to make something that the consumer wants, but obviously doesn't want so much as to pay extra for it. And to make matters more pathetic, the gubmint isn't even holding the manufacturers (of the semis or of passenger cars) to any deliverable. These car companies are just supposed to "work" on a better engine. Nice. Throw more of my taxpayer dolalrs away on crap.

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