I was on Hartford, Connecticut radio Friday morning talking about the Detroit car industry with a host who was scratching his head about the Obama strategy towards GM. Why did the Obama administration take over GM in order to kill its best products? If this is how the White House treats industries it likes, then American business has a right to be worried.
In chasing the unicorn of an all-electric vehicle future, Green zealot Obama has not only forced GM (and Ford and Chrysler) to make more unprofitable vehicles like the Chevy Colt – but it is now forcing major costs on those companies’ truck redesigns. As Shikha Dalmia outlines, Ford and GM are being forced to make risky bets on their bread-and-butter trucks to satisfy government – not their customers.
You know the folly of federal investments in Solyndra and Evergreen. But the White House has also invested our money in GM (IPO’d at $40 a share – now languishing at $20 a share), then put in place an energy policy that hurts their bottom line. If the administration wanted its investment to succeed, it would be making every effort to create conditions for GM to make MORE of what they do best: trucks.
That means opening up more oil fields, reducing the cost of fuel, and reducing mpg limits. What has this president done? The exact opposite.