Automotive Bailout: A Poor Solution

GM crushes their fleet of electric vehicles (EV1) and destroys all information. They continue to rely on the sale of gas-guzzlers.

In today's news, I read that president-elect Barack Obama is supporting additional bailout funding to large automative companies. GM, Ford, and Chrystler are jumping on the bailout wagon asking for $25 billion just to weather the ecomonic crisis. This is in addition to an already alotted $25 billion for fuel efficient technology. Correct me if I am wrong but I thought that Obama wanted to focus his efforts on Main Street rather than handing more money to the companies that mismanaged their business in the first place.

Up untill the economic downturn and high gas prices, GM's business strategy continued to rely on high-profit SUVs. This is the same company that literally destroyed all evidence of their electric car technology nearly 20 years ago. If we throw money directly at GM, we are paving the path for the same old stupid mistakes they continue to make. GM caters to big oil and Wall Street, not Main Street. Consumers shouldn't be force-fed outdated Suburbans and Silverados. Instead, they should be given the opportunity to support fuel-efficient vehicles.

Why not use that $25 billion for a consumer incentive program that offers a large rebate for those who purchase a fuel-efficient vehicle. Eventually the money would go back to the auto industry but they would have to earn it by restructuring their business strategies. This seems like a win-win situation to me. Oh, wait.... big oil wouldn't be so happy. Darn.