When the Treasury Department off-loaded its remaining stock in General Motors late last year, the president used the occasion to take a bow stating, “When I took office, the American auto industry – the heartbeat of American manufacturing – was on the verge of collapse. Two of the Big Three – GM and Chrysler – were on the brink of failure … as president, I refused to let that happen.”
GM CEO Mary Barra and Vice President Joe Biden (GM photo)
“We bet on American ingenuity, we bet on you and we won,” Vice President Joe Biden said during last month’s Detroit auto show.
Of course there was no mention that taxpayers lost $10.5 billion on the GM bailout and, thanks to a deal with the Energy and Treasury Departments, Fiat of Italy was able to acquire majority control of Chrysler.
Three years ago, a report from the White House touting, The Resurgence of the American Automobile Industry, stated, “Chrysler’s nascent turnaround is indicative of a broader resurgence of the American auto industry. For the first time in more than a decade, all three American automakers are profitable’ expanding production and jobs; and gaining market share against their competitors.”
Today there’s more bad news for the American auto makers. No automobile built by GM, Ford or Chrysler made Consumer Report’s latest “Top Picks” list. CR tests and evaluates cars for how well they drive, interior finish quality, safety and reliability. Will anyone in the White House dare break the news to the president and vice president?
I’m sure the president will be happy to know, however, that the battery-powered Tesla Model S ranked “best overall.” But as I have often written, big government’s interference in auto manufacturing through Café standards has resulted in higher-priced cars. Are you ready for this? The list price on the Tesla Model S tested by CR was $89,650.
When the U.S. Energy Department gave Tesla Motors a $465 million low-interest loan to build the car in 2009, the anticipated price was to be $49,000 after a $7,500 federal tax credit. Sounds like the ObamaCare premium promises.
Other cars praised by CR were, the Audi A6 (luxury); BMW 32Bi (sports sedan); Honda Accord (midsized sedan); Toyota Prius (green car); Subaru Impreza (compact); Subaru Forester (small SUV); Hyundai Santa Fe (midsized SUV); and Honda Odyssey (minivan).
And, to add insult to injury, the GM Cadillac fared worse than any other luxury brand.
