Autoblog

After nearly eight years of getting little or no attention from the White House, it seems as though Detroit's automakers will be a major focus the 2008 Election. With the economy looking worse by the day, lawmakers in Washington have been kicking around the idea of a second economic stimulus package to get people shopping again, and Mowtown's lawmakers want in on the money. Michigan's two Democratic senators are attempting to use the prospect of such a bill to include federally-backed loans to help automakers and suppliers build new factories and engineer new models. The $4B would be used to offset the costs associated with the Treasury Department giving automakers $25B in loans at a discounted rate. Automakers have been against such a loan in the past, but with worsening conditions and tighter lending practices the idea is likely to sound much more exciting this time around.

Presumed Democratic Presidential candidate Barack Obama told the UAW in a letter that he supports the $4B in federal aid, stating that he would "provide real solutions necessary to help this industry compete and win in the global economy." Obama also promised tax breaks for consumers that purchase ultra fuel efficient vehicles and tax credits for automakers as well. Presumed Republican nominee John McCain opposes the idea of federally backed loans, but he does support tax breaks to those that purchase fuel efficient vehicles and a $300M in prize money for electric battery powered vehicles

[Source: Detroit Free Press, Image: Bill Pugliano/Getty]

In the wake of GM's Tuesday press conference detailing its plans to have enough cash on hand through 2009, politicians have been eager to voice their thoughts regarding the possibility of a government bailout. President Bush gave the possibility a strong no, but the two guys in line for his job have taken a different route.

Senator Obama has said that he supports automaker's attempts to restructure without outside help, but says he's willing to work with the companies on fuel saving tech. Republican Senator John McCain took an even stronger pro-automaker stance, saying "if it looks like it is approaching that, everyone has to consider every option." The Arizona Senator and presumed Republican nominee has stated in the past that he wouldn't support a buyout, but would instead provide tax breaks and infrastructure support to create more fuel efficient vehicles. McCain's "every option" comment may not sit well with his party, but it could sound good to Detroit automakers. McCain is visiting the GM tech center today. Both presidential candidates are working hard to woo Michigan voters, which will be a key state to win in the November election. Even though GM has stated it isn't looking for a handout, Michigan residents would love to know that the automaker would get one if it really needed it.

[Source: CNN Money, Image: Getty/Bill Pugliano]

A quick glance at today's announcements from America's largest automaker is an easy indicator that the U.S. auto market, at the very least, is under as strong as recession as could be imagined. According to Presidential hopeful Barack Obama, the entire industry as a whole is facing a "perfect storm" of "record gas prices, rising steel prices, a credit market contraction that has made it more difficult for consumers to purchase autos, and a weakening economy that has shed jobs for six straight months."

As the auto industry goes, so go the livelihoods of countless workers -- both directly employed by the Detroit 3 and indirectly supported by suppliers, dealers and the like -- making today's announcements from GM a "sobering reminder" of the current state of the U.S. economy. Still, Obama holds out hope that the right Federal policies could dig the industry out of the hole it currently finds itself in. What it likely doesn't mean, though, is a bailout, according to Obama's likely opponent, John McCain, and U.S. Secretary of Commerce Carlos Gutierrez.

[Sources: The Detroit Free Press, The Detroit News]

Barack Obama has been less than friendly with Detroit automakers in the past, but he's promised to meet with them both during his campaign and afterwards if he makes it into the Oval Office. The presumed Democratic nominee told a crowd in Flint, MI that he would meet with executives to discuss how "we're going to build the cars of the future right here in Michigan." Obama also criticized President Bush not meeting with automakers until his sixth year in office, which actually isn't true. President Bush met with automakers in 2003, though his second meeting with industry execs was delayed several times in 2006.

Obama has also promised to deliver $150 billion in funding over 10 years and 5 million jobs in the "green sector." Some of the money is being promised to automakers to retool older plants for plug-in electric vehicle production, which would be welcome news to the financially struggling automakers. It's typical of politicians to promise the moon and stars while on the stump, so we're sure automakers are listening with a skeptical ear and taking notes. Time will tell if actions will take the place of words.

[Source: The Detroit News, Photo by Mark Wilson/Getty]

There can be absolutely no doubt that Detroit automakers created some horrendous products over the years. The '70s was a particularly low point, as the Big 3 struggled to cope with new safety, emissions and fuel economy standards. This past weekend, U.S. Senator and Democratic presidential hopeful Barack Obama was pontificating as politicians are wont to do, and he declared to an Indianappolis radio station that the car in which he learned to drive, a Ford Granada, was the worst car ever to emerge from Motown. The 1975-82 Ford Granada was an absolutely awful car from its baroque styling to its awful build quality. As I entered college in the mid-'80s, I was looking for a used car and a friend's dad had a '79 Granada for sale. I took it for a test drive and after the high beam switch went through the rust hole in the floor, I determined that even $750 was way too much for this hunk. As bad as the Granada was, in an era of Pacers, Cordobas, Vegas and Ford's own Mustang II, can we truly call the Granada the worst of all? You tell us in the comments.

[Source: Detroit News]

Senator Barack Obama has tossed aside the keys to his Chrysler 300C in favor of a new Ford Escape Hybrid. According to the Detroit Free Press, the senator from Illinois was lambasted for driving the a V8 300C after chastising Detroit in a May 7 speech for failing to anticipate rising oil prices that have changed consumers' buying habits.

We for one wish Obama would've kept his 300, not because we hate the environment or think his lecture to Detroit wasn't a wee bit hypocritical, but because hybrids have become nothing more than a decorative accessory for politicians on both sides of the aisle. The Freep reports that John Edwards, Chris Dodd, Hilary Clinton, Mitt Romney and Bill Richardson all have Escape Hybrids in their fleets.

What does it all mean? Nothing really, as hybrids are now politicized to the point where politicians believe owning one gives them a free pass to guilt trip the auto industry in every speech. Less pandering, more substance, please.

[Source: The Detroit Free Press]