http://thehill.com/blogs/e2-wire/677-e2-...and-trucks


Obama to automakers: ‘You can’t just make money on SUVs and trucks’

By Andrew Restuccia - 08/15/11 02:37 PM ET

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.

“When I came into office they were talking about the liquidation of GM and Chrysler, and a lot of folks said you can’t help them, and it’s a waste of the government’s money to try and help them,” Obama said Monday. “But what I said was, we can’t afford to lose up to a million jobs in this country, particularly in the Midwest.”

Obama was speaking at the start of a three-day bus tour of the Midwest. He will visit Decorah, Iowa, later in the day.

The president said his administration “turned around” the U.S. auto industry and is calling on automakers to change the way they do business.

“They are gaining market share for the first time in years, but what we said was, ‘If we are going to help you, then you have also got to change your ways,’ ” he said.

The White House unveiled first-ever fuel efficiency rules for heavy-duty trucks last week. The standards come after the administration ratcheted up fuel economy standards for cars and light-duty trucks.

The administration negotiated the standards in a series of high-stakes closed-door meetings with industry. In the end, the White House won the endorsement of major automakers and truck companies.

Obama has touted the new standards as “the single most important step we’ve ever taken as a nation to reduce our dependence on foreign oil.”

Later Monday, Obama touted the administration’s efforts to boost electric vehicles and advanced battery technology.

“That is the kind of approach that we have to take: Using the private sector, understanding that ultimately the private sector is going to be creating jobs, but also understanding that government can be an effective partner in that process, and nowhere is that more true than in rural America.”

Talk about always being the smartest guy in the room. They should fire all the people they have working full time as market analysts and forecasters.

Obama is a one man full service consulting firm.

"turned around" the US Auto Industry? More like took over. And similar to the economy and stock market, Goverment Motors stock has declined rapidly.

This government can't do anything right. But they act like they've done nothing wrong. Typical Obamanijead.

Screw the shareholders again man, make cars that you lose money on. Great idea.

No doubt - he is the dumbest guy in the room -- maybe on the planet.

I think someone needs to let him know we make excellent trucks, large SUVs and muscle cars.

If I am in the market for any of the above the chances are 100% I am starting my research and test drives with American made vehicles.

If I am looking for a small SUV or small or midsize car, I am starting with the Japanese brands. They have simply been "nailing it" in that category for decades now.

I think he also missed the fact that - Trucks and larger SUVs (I don't know the profit margin data on muscle cars) also are really the two categories that have the highest profit margins for the American car companies.

He is essentially telling them to turn away from the products they do best, consumers are most attracted to and earn the most profit per vehicle sold.

This is from the guy who championed and gave millions in stimulus fund to Evergreen Solar. You can find them filed under both Obama's "new green jobs that are going to save the country" and August 2011 bankruptcy filings.

Eastside, if your looking for a small SUV, check out the Chevy Equinox.

Quote:I think someone needs to let him know we make excellent trucks, large SUVs and muscle cars.

I don't think he said they didn't. but those things run 50k and up. with the economy the way it is, who can buy them? Particularly those of you who are championing dropping min wage to 4 bucks.

Quote:If I am looking for a small SUV or small or midsize car, I am starting with the Japanese brands. They have simply been "nailing it" in that category for decades now.

there you go. and those who can't buy those expensive US trucks go foreign.

Quote:I think he also missed the fact that - Trucks and larger SUVs (I don't know the profit margin data on muscle cars) also are really the two categories that have the highest profit margins for the American car companies.

sometimes when your profit margin is too high, you run yourself out of business. when suv's become popular thats when the bottom fell out on gm.

Quote:He is essentially telling them to turn away from the products they do best, consumers are most attracted to and earn the most profit per vehicle sold.

I think he's telling them to add some variety and stop half as$ing it on the cars. and he's right.

It isn't the government's business to meddle. The consumer will buy what they want.

This guy must seriously be retarded. Why doesn't he just keep his mouth shut for once. He has no ******* idea what the hell he is talking about.

I cannot believe this colossal dips**t is our president.

Funny it seems like he thinks that American auto makers don't do a very good job of running a business, but he had no problem handing them x billions of $$$$$ to bail their a$$e$ out. Maybe if you would have let them die out the way they should have, another American auto maker would have risen up and had a much better business model.

(08-16-2011 04:26 PM)SuperFlyBCat Wrote:  It isn't the government's business to meddle. The consumer will buy what they want.

Central economic planning that Chairman Mao would be proud of.

He'll start taxing the product lines he doesn't like...wait for it in about 4 nanoseconds...

(08-16-2011 04:26 PM)SuperFlyBCat Wrote:  It isn't the government's business to meddle. The consumer will buy what they want.

Lets see,

first you b!tch because of the poor economy and lack of jobs. When he makes a suggestion that may stimulate the economy, you say he should stay out of it.

pick a side already.

(08-17-2011 09:55 AM)b Wrote:  

(08-16-2011 04:26 PM)SuperFlyBCat Wrote:  It isn't the government's business to meddle. The consumer will buy what they want.

Lets see,

first you b!tch because of the poor economy and lack of jobs. When he makes a suggestion that may stimulate the economy, you say he should stay out of it.

pick a side already.

b,
He is selling his new fuel efficiency standards. He is also selling the MASSIVE amount of taxpayer money that has been sunk into better battery cells for the VOLT.

The VOLT money was supposed to be a huge growth stimulus project. Because rising gas prices meant Americans would want smaller fuel efficient cars. The Volt has been a massive money losing flop.

Here is the point Obama has never worked in the Auto industry. He has never worked in the oil and gas business. And yet he not only has deemed himself autocrat over the billions of our dollars he WASTED on projects he thought would benefit us in industries he knows basically nothing about.

Same with Windmills.

Same with Solar Energy. We GAVE 58 million to Evergreen Solar. It was a centerpiece of Obama's green energy job explosion. Not only did Evergreen file for Bankruptcy this month. They are 485 million in debt and owe 4 million to massachusetts. 58 million in free money and their business plan is so bad that they tank in two years 485 million in the hole. Nice. Great.

Same with "Shovel ready jobs" - which he finally admitted was basically an outright lie

Think about it, the stimulus money = 821 billion dollars which comes out to $228,000 per job created and that is MINIMUM estimate cited by the CBO.

Is there any clearer indication that these are fools engaging in areas where they have no experience, no expertise (not to mention no constitutional reason to be meddling?

1) No more effing stimulus.
2) Bureaucrats are sh*tty at achieving even the smallest positive gains when they try to manipulate businesses and markets (no matter how much money they spend to accomplish it) .
3) You can't save everything and shouldn't try. Most things that fail, fail for a reason and will continue to fail even if you throw big money at them and want them to succeed really really badly-- See Evergreen Solar, Chevy Volt etc etc etc.

BTW, Chevy did NOT want to bring the Volt to market. Their own internal marketing analysis showed that it would be a massive money loser. They had no choice. Washington ordered them to build it.

(08-17-2011 09:55 AM)b Wrote:  Lets see,

first you b!tch because of the poor economy and lack of jobs. When he makes a suggestion that may stimulate the economy, you say he should stay out of it.

pick a side already.

Show me where a command and control economy has produced widespread prosperity in the course of human history.

(08-17-2011 12:13 PM)QSECOFR Wrote:  BTW, Chevy did NOT want to bring the Volt to market. Their own internal marketing analysis showed that it would be a massive money loser. They had no choice. Washington ordered them to build it.

I did not know that - but frankly it now makes even more sense.

BTW - thanks for the tip on the Equinox. I have seen them around and they do look very sharp, good to hear they are top quality also.

(08-16-2011 04:41 PM)BeerCat Wrote:  This guy must seriously be retarded. Why doesn't he just keep his mouth shut for once. He has no ******* idea what the hell he is talking about.

I cannot believe this colossal dips**t is our president.

Haha this is basically my feeling on Bush too.

(08-17-2011 01:44 PM)Bearcat_Bounce Wrote:  

(08-16-2011 04:41 PM)BeerCat Wrote:  This guy must seriously be retarded. Why doesn't he just keep his mouth shut for once. He has no ******* idea what the hell he is talking about.

I cannot believe this colossal dips**t is our president.

Haha this is basically my feeling on Bush too.

Jeez its like Beck Jr.

What is the statute of limitations on using "but Bush" and "Bush too" in every situation? Just curious.

Maybe a graph would be helpful to show how the usefulness and effectiveness of the phrases diminishes with time and passes over into negative territory.

(08-17-2011 01:44 PM)Bearcat_Bounce Wrote:  

(08-16-2011 04:41 PM)BeerCat Wrote:  This guy must seriously be retarded. Why doesn't he just keep his mouth shut for once. He has no ******* idea what the hell he is talking about.

I cannot believe this colossal dips**t is our president.

Haha this is basically my feeling on Bush too.

I think he was pretty damn dumb also. It is pretty funny to me though that you automatically assume that because I hate Obama, then I must be a raging Republican. To be completely honest yeah I do align, Ideologically more with the right. But really I think that there are as many Republicans that undeserving of their office as there are Dems. If there was just a party out there that governed with.....COMMON SENSE and also paid attention to the Constitution, I would support them with all the vigor I could muster.

It's pretty pathetic that political discussions in this country have been reduced to who has been less terrible lately.