Rep. Michele Bachmann (R-Minn.) speaking on the House floor: Now we’ve moved into the realm of gangster government. We have gangster government when the Federal Government has set up a new cartel and private businesses now have to go begging with their hand out to their local hopefully well politically connected Congressman or their Senator so they can buy a peace offering for that local business. Is that the kind of country we are going to have in the future?
Tag: Auto Bailout
Ford Sales Strengthen, Automaker to Increase Production
So long, Government Motors!
Citing better-than-expected sales and traffic at dealerships, Ford Motor Co. said Monday it plans to increase third-quarter production by 25,000 units, marking the automaker’s second production hike in recent weeks.
Ford spokesman Mark Truby said that will bring total quarterly production to 485,000 units, a year-over-year increase of 16 percent or 67,000 units. Last month the company said it would raise third-quarter production by 42,000 units.
The boost affects all models of Ford, Lincoln, Mercury vehicles, with more emphasis being placed on Mustangs, pickup trucks and the Ford Focus compact car, Truby said.
“We had pretty well lowered production in recent quarters to meet demand,” Truby said. “Now as we’re seeing market share increases and showroom activity, we’re ramping up production to meet that demand.”
The increase comes as Ford’s top sales analyst, George Pipas, said the company’s June sales were “good” compared with the overall industry. The Dearborn, Mich.-based automaker could see a year-over-year decline of 10 to 20 percent, which could be the lowest among all major automakers, he said.
“This will be our lowest decline of this year,” Pipas added.
Automakers, which are due to report June U.S. sales on Wednesday, have seen sales fall 37 percent over the first five months of the year. Pipas said U.S. auto sales may have halted their month-to-month declines in June and could be down less than 30 percent for the first time since September of last year.
As bad as it sounds, a decline of less than 30 percent could be a welcome relief, as automakers and suppliers have trimmed production and other costs to adjust to lower consumer sales.
“The important takeaway is that we’re not going backward, we’re not slipping back,” said Pipas during a sales preview talk with reporters. “It suggests the worst is behind us, not just the economy, but we may have seen the low point for the year.”
Pipas said individual regions of the country are showing sales improvements compared with June 2008, another sign that the auto market has bottomed out and is recovering. While sales in the Great Lakes states are improving, they’re still slow in California and Florida, two areas hit hard by the decline in the housing market, Pipas said.
Pipas joined other industry analysts in predicting that June sales could surpass a 10 million seasonally-adjusted annual selling rate for the first time this year.
Last week J.D. Power and Associates predicted that automakers would sell 914,400 vehicles in June, 26 percent less than in June of last year and 1 percent lower than the 924,064 sold in May.
Pipas said May typically is a stronger sales month than June, but he was unsure if this June would surpass May figures.
He said federal “cash for clunkers” legislation recently signed into law could boost sales later in the year, and noted that consumer confidence is improving, suggesting that the worst is over with the economy and auto sales.
Shares for Ford rose 3 percent, or 17 cents, to close Monday at $5.78.
Emotional Car Dealer Tells Story of Losing His Business
Congressional leaders, including Rep. Joe Barton (R-Ennis/Arlington), heard on Friday from several car dealers who recently lost their franchises and then questioned the executives that made the decision to take them away. One dealer who made the trip to the Nations Capital was Ellis County’s Frank Tres Blankenbeckler. He runs Carlisle Chevrolet-Cadillac in Waxahachie, which started selling cars in almost 85 years ago, making it the oldest Chevy dealer in the state of Texas.
Dear Mr. President, Please Don’t Kill My Kids
No red (blood) for green!
On Dec. 12, 1974, my grandparents were driving home when a vehicle traveling 50 miles per hour hit them. On March 17, 2002, I was driving home when a vehicle driving traveling 50 miles per hour hit me.
My grandparents were killed instantly. I lived. My grandparents were driving an AMC Gremlin. I was driving a Dodge 3500 diesel dually pickup truck.
AMC is now out of business. Dodge Trucks are still selling well. The free market decided that we didn’t need AMC Gremlins.
I still drive a Dodge dually. We factor in safety versus miles per gallon on every automobile purchase that my wife and I make. Devo could not have said it better: “Freedom of Choice…It’s what you want!” Freedom to choose is a basic American right. Life, Liberty and the Pursuit of Happiness are guaranteed to me and 299,999,999 other Americans by the Constitution.
Mr. President, I did not give you nor the Federal Government permission to use my tax dollars to bailout Chrysler or GM. Neither did any of my friends. We did not have a choice in that matter.
We all knew that GM and Chrysler were headed for bankruptcy. So be it. It would be a hit to the American economy. Yep. Let’s take the hit and move on. I believe President Obama, that you knew that GM and Chrysler were headed to bankruptcy as well, but by giving them our money first, you were able to seize control of the American auto industry. In one fell swoop, you became the head of GM and Chrysler. You turned the United Auto Workers Union into GM and Chrysler owners. You nailed the coffin shut on Ford, the one manufacturer who turned down your money (…our money). How is Ford going to negotiate wages with a union that is now also their competitor?
Mr. President, you have created an army of Czars that are answerable only to you. Our Constitution says that only Congress has the power to create taxes and they are answerable to the people. Not only does our new car Czar not answer to Congress, he won’t even go on Neil Cavuto. Where is the transparency, Mr. President?
But I digress. Your administration has already strong-armed the auto industry into accepting mileage compliances for their new vehicles. Michael Moore is giddy with the fact that the US Government now owns 60% of GM. He wants you to end the auto industry as we know it. According to him, GM should only produce bullet trains, buses and hybrids. If the two of you have your way, Americans will no longer be able to purchase a GMC SUV or a big Dodge truck.
Our family car is a General Motors Hummer H2. I am sure you are familiar with the brand and model; you just sold them to China. China may not want our debt, but they will still take our SUVs.
It is fairly common for us to get cut off and then flipped the finger by eco-saints whenever we drive into the city. Several times we only narrowly avoided a serious freeway accident. Quite often, Mr. President, these cars have bumper stickers with your name on them. These self-righteous “Earth Savers” feel completely justified in their actions as they curse at my children and me because they are only offending and risking the lives of people who are riding in a “planet killer.” The fact that we heat our house with reclaimed wood, run almost 100% of our ranch on solar power, grow our own fruits and vegetables, and for the three weeks out of the year when our dirt road washes out, the only way in or out of our ranch is in a 4×4 Hummer or it’s equivalent, never enters into their sanctimonious consciousness.
I see this same kind of prejudice in your speeches and your actions Mr. President. I see this same arrogance as you steer our nation away from free enterprise and into the arms of the Central Planning Committee.
Last week, my wife was rear-ended by a driver who never even hit his brakes. His truck slammed into my wife at 50 miles per hour.
I thank God that the Germans put good steel in their vehicles and know a little something about engineering. If my wife had been driving an AMC Gremlin, she would probably be dead now.
Soon my children will be driving and buying cars of their own. Mr. President, will you allow them to have freedom of choice or will you doom them to take their chances in a 21st century AMC Gremlin?
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