LexFather

I've said for YEARS that the government should have promoted and encouraged American auto companies instead of watching them languish. They eliminated the hybrid tax credits initially. They saw no future and gave no help with the GM EV-1.

I don't think the govt can AFFORD any tax credits considering the economy.

What the government SHOULD DO is regulate fair auto trade abroad. If the trade is not fair, tax the living crap out of imports. We have had a damn trade deficit for ages now and we just allow it to happen.

A tax credit for an American car just makes it seem inferior. People still might not consider it.

Not a bad idea though.

-J-P-L-

The auto industry is just too complicated now for something like this to work.

How would they define "American"? Is it American branded, or American built?

If it's only American brand's (GM, Ford, Chrylser brands), then what about all the models built in Mexico, Canada, and elsewhere?

See, there would be no fair way of implementing a tax credit to "American cars".

Also, much like the bailout, government incentives to buy American would break the rules of the free market system and other countries would become furious and they may retaliate in some negative way.

FKL

Well consider that the banking industry has already been effectively nationalized. The only ones that will be retaliating are American consumers when they realize how far reaching the consequences of letting GM liquidate actually were. Massive, massive retalliation against import companies. I predict you'll see calls to raise tarrifs on all foreign imports on autos. There will be a movement (assuming Ford survives if GM collapsed) against these Japanese manufactures, who will share blame, however unfiar that is.

-J-P-L-

I don't think Americans would retaliate against imports if US automakers went bankrupt. A majority of Americans said they didn't want a bailout for these companies and we've already proven as a country which our purchases that we prefer imports (although a decent percentage still buy American). Plus, if there are no American cars being built, how do we retaliate against the only ones selling cars?

IS350jet

The object of bitkahunas idea is to sell more cars. The concept is simple. Sell more cars, and manufacturers and dealers both win.

CBG

I think if American companies want to compete with the imports they need to make better vehicles. One example Chrysler vehicles during the most recent round of crash tests NOT one of their vehicles had a passing grade for crash test safety. That is really bad when all your new vehicles failed the crash tests and they wonder why they are on the verge of failing. Americans don't want to drive "unsafe" cars.

Another example my last vehicle a 2003 ZR2 Chevy Blazer developed a oil leak before it even hit 50K miles. Now I expect a chevy to leak oil with like 100K-150K miles LOL but not before it hits 50K miles. Then what really made me start looking at a import was when I took my Blazer into the dealer to get the leak fixed they couldn't find the "the problem" even after I told them where it was coming from. I think because they would have had to fix it for free because it was still under warranty. Also the sun roof leaked from the day I drove the Blazer off the showroom floor, brand new, every time it rained hard and once again they couldn't find the "problem". And again before I traded my Blazer in it developed a leak on the driver side window everytime it rained hard. Water was dripping right onto the window and door lock controls and it was only a matter of time before the controls started to short out or not work properly and once again they couldn't find "the problem".

I got SO SICK of hearing they "couldn't find the problem" and I bet they would have found the problems after the warranty ran out and then I would have had a huge bill to fix those problems. I had always been a "buy american" guy for the past 20 years but got disscusted with the american products they put out and that is why I just bought my first Lexus and traded in my Blazer.

Just my opinion, Cliff.

J.P.

The problem is they need money now and in the next couple of months.

Dealers already took the cars off GM’s hands with their floor plans so buying cars right now only helps the dealers until the inventory goes down.

At that point the rebate incentives may spur more sales which would make GM build and sell more cars.

bitkahuna

iTrader: (20)

I've changed my mind. This is a terrible idea. We would just be rewarding the status quo which isn't going to work.

The execs who came to Washington weren't honest enough about the problems nor were they honest about what it's going to take to fix them.

The union still doesn't get it.

The govt getting involved will only make things worse.

Time to let them go ch. 11. It will be very ugly, but I think it's the best for the long run.

Unfortunately, I think a bailout, then another, then another, then another, will happen.

jwong77

Absolutely the worse idea I've heard thus far. Almost as ridiculous as the auto bailout itself. Why bail out companies that do not deserve to be bailed out? Let them take they're punishment for decades of incompetence. At least if they file for bankruptcy it'll help them with the bloodsucking unions.

jwong77

What? I don't think you understand how a free market system works. The imports will still have to compete with each other. Are you suggesting that they are going into collusion?

litesoarer

I'm suggesting that with less competition around. The imports will not have to compete as aggressively on price anymore.

mmarshall

You're putting the cart before the horse.

"Advancing" vehicle designs does not necessarily make them better. Some of the best Honda/Toyota products, for example, were built 10-15 years ago, back in the mid-1990s. Same with Lexus and Acura. AND...........as I've said so many times...........same with Saturn.

Newer often is NOT better.

skinny gs

instead of all of it going to bailout, give people a preloaded debit card with an expiration date, with the purchase of a car. They then can and must spend it.