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August 16, 2011 Obama to carmakers: Stop making so many products that people want! Rick Moran
I don't truck with those who call Obama a commie, but by saying completely off the wall, totally ignorant stuff like this, he reminds me of factory managers in the old Soviet Union who would deliberately slow production on products that were popular because it created too much paperwork for them.
The Hill:
The country's automakers should ditch their focus on SUVs and trucks in favor of smaller, more fuel-efficient vehicles, President Obama said Monday.
"You can't just make money on SUVs and trucks," Obama said during a town hall forum in Cannon Falls, Minn. "There is a place for SUVs and trucks, but as gas prices keep on going up, you have got to understand the market. People are going to try to save money."
Obama has positioned the revival and reshaping of the auto industry as a major part of his administration's push to improve the economy and create jobs.
A man with zero business experience is telling carmakers that they've got to "understand the market?" The closest Obama ever got to a business was when he was picketing them back in his community organizing days.
"Understanding the market" means making products that people want to buy. People want to buy SUV's and nice, big, shiny, awesome American trucks - at least as long as they can afford to fill them up.
And guess what? If gas prices get to high, Americans will then start buying smaller cars that use fuel more economically. That the president doesn't "understand the market" is a given. Why he is lecturing auto makers about how to make money is the real mystery.
> "You can't just make money on SUVs and trucks," Obama said during a town hall forum in Cannon Falls, Minn. "There is a place for SUVs and trucks, but as gas prices keep on going up, you have got to understand the market. People are going to try to save money."
Carmakers got a bailout. The government IS a shareholder in those companies. Carmakers insist in making large vehicles. That is fine. However, crude oil is at $80-$100 per barrel with the economy in tatters. What will happen to the price of oil when the economy recovers? We will see $200 crude, and $8 per gallon of gasoline. In the meantime, the car industry insists on building big cars as if nothing is going to happen. That only means that YOUR tax dollars will be peed down the drain because carmakers will be unable to compete with cheaper, smaller and more economical Korean and Japanese cars. The sooner carmakers make the change, the better prepared they will be to pay back the tax dollars they received in the bailout.
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