We were told all throughout the 2008 presidential campaign and on up into the debate over the stimulus that the way out of the current economic malaise is through growing a green economy. "NBC Nightly News" is still on message.
On the May 6 broadcast of "Nightly News," anchor Brian Williams explained that Ford Motor Company (NYSE:F) didn't accept federal bailout money, but all the while it has been producing green cars - as if the two were related.
"We have a report tonight on the car industry," Williams said. "The Ford Motor Company has its own challenges ahead, but they are rightfully proud of being the only one of the Detroit big three not to accept taxpayer bailout money. Ford announced today it's retooling a plant that made big gas guzzlers in order to produce smaller, greener cars. And this comes at a time that other automakers are cutting production and thousands of jobs."
However, Ford's success has little to do with the green cars, but instead its success with its restructuring plan, as a May 6 Reuters story pointed out.
"Ford Motor Co remains on track in its restructuring and has sufficient liquidity to fund the plan which includes conversion of plants and investment in future products, company executives said," Soyoung Kim and Chelsea Emery wrote for Reuters. "Ford, the only U.S. automaker not operating under bailout funds, also has continued to consolidate its dealer network, but sees no need for the type of aggressive culling rivals GM and Chrysler plan, Chief Executive Alan Mulally told reporters."
CNBC Detroit correspondent Phil LeBeau touted Ford's new plant which will build these beloved green cars.
"Working on the principle that less may be more, Ford is spending a half billion dollars retooling a plant that once made gas-guzzling SUVs, turning it into one that will churn out green, fuel-efficient cars," LeBeau said.
However, LeBeau saved the best for the end and noted this gamble on green was contingent on other factors, specifically the price of gas.
"But with the American demand for compact cars and the success of electric models, dependent on gas prices, analysts say Ford's bet on going green and small is not a sure one," LeBeau explained.
"Smaller cars have smaller price tags," auto analyst Efraim Levy said. "So therefore, you have less room to make the profits and if the car's not successful, the losses are even more painful."
Still, the new Ford plant was greeted as a welcome sign for workers in a beleaguered local economy, but just a drop in the bucket when the plant has only 3,200 workers while unemployment rates are over 12 percent in Michigan.
"In Michigan, an automaker retooling and keeping jobs is long overdue good news," LeBeau continued. "This decade, the state has lost 700,000 jobs, with unemployment spiking 5 percent in the last year to a national high of 12.6 percent. Facing those numbers, the 3,200 people who will work at Ford's rebuilt plant are relieved."
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This will only work
May 7, 2009 - 09:18 ET by motherbeltif they can get huge numbers of people to buy them.
Well sooner or later, CEO-bama will be forcing Ford to take bailout money, because that's what it's all about, isn't it?
Maybe they will "insist" on giving them money to re-tool even more plants....whatever it takes to get that government foot in the door.
They might say "Wow, that sucks!" But at least they'll say "Wow!" -Duff Goldman, the Ace of Cakes
Key being "if they can get huge numbers of people to buy them"
May 7, 2009 - 09:53 ET by PamKey being "if they can get huge numbers of people to buy them"
I have been wondering when someone would bring up the fact that Ford stands alone and should be praised for making good business decisions in order to avoid taking bailout money. Small cars must be sold in high volume in order to be profitable. From what I understand, the green cars on the market now (I am thinking Prius), are not getting the reviews that the manufacturers expected. The costs can not be justified at the end of a 4 year period. I have been following Ford, and I understood green to be part of their business, but in actuallity, they will be offering smaller, more fuel efficient cars, as well as some larger items.
Those of us in the snow belt, or Michigan as I am from, depend of the larger cars/trucks with AWD or 4WD, to get us through the snow and ice because our state is broke and can't afford to plow/salt.
Ford needs to put on a good "green" show...
May 7, 2009 - 09:23 ET by JohnMcGrew...because they know that after the dust settles on the GM/Chrysler mess where the eco-fascists of the government and the unions end up owning and running the competition, that it will only be a matter of time before legislation comes along that will be designed to put Ford at a disadvantage; effectively punishment for not rolling over and going along with the others in being taken over.
Here's a green machine for
May 7, 2009 - 09:30 ET by mattmHere's a green machine for the O-boy administration.
That's hilarious...
May 7, 2009 - 09:55 ET by ontheright...I have to dig out that DVD and re-watch this weekend (for the millioneth time, at least) - thanks mattm for the good morning laugh!
Frankly, I am sick of the
May 7, 2009 - 09:36 ET by motherbeltFrankly, I am sick of the propaganda line that "going green" and government-run health care are the things that are going to revive the economy and make us prosperous!
They might say "Wow, that sucks!" But at least they'll say "Wow!" -Duff Goldman, the Ace of Cakes
Green Cars...
May 7, 2009 - 09:48 ET by Red Jeep...will be a money pit for Ford and others.
Why is it that many green cars don't have room to bring the groceries home?
C'mon RJ...
May 7, 2009 - 09:58 ET by ontheright...that's because going "green" means you will be forced by the Obamanistas to grow your own food, of course! And then those already on the Govt. teet will then be eligible for further "subsidies"...easy to connect those dots...
Ah!
May 7, 2009 - 10:02 ET by Red JeepI see. Thank you. Maybe BO and the Obamas should just promote bicycle use. Save gas, get exercise...
You're right...
May 7, 2009 - 10:12 ET by ontheright...that could be coming next. Think about it.
The Administration could accelerate it's C02 emissions control framework (with help from the BO controlled EPA). The more we ride, the more C02 is emitted, the more taxes can be collected...wow, we just figured out how our new socialist govt. is planning to pay down the national debt...nah, just a pipe-dream ;-)
Ford is improving
May 7, 2009 - 10:36 ET by sevenFord is making profit on trucks.
Lower gas prices help truck sales. The green cars deal is a smoke screen. The hybrids don't sell and won't We have 9 months inventory in hybrids.
Chrysler is out of business. That narrows down choice also. The target is for chrysler to reorganize and go back into business in July. They will also have to spend millions retooling for a new model year.
Define Green
May 7, 2009 - 10:57 ET by PamWhen we talk about green cars, are we talking alternative fuel or higher mpg? For is going with smaller cars that get better mileage
Green in General
May 7, 2009 - 09:51 ET by beauxdogI lived in Baton Rouge, LA in the 90s. The government decided we needed to be "green" and legislated a recyling program. Prior to this program, our taxes covered garbage collection. With this program, we had to pay an additional $10 per month to pay for all the new beauracracy and trucks.
Several months after this plan was instituted, it was revealed that all of these "recycled" collections were just being sent to the dumps like all the other garbage. It seems there was no market for recycled materials.
The only reason there is a market today, is that it has been mandated by the Federal Government.
In the end, we ended up paying $10 per month for a nifty laundry bin and the liberals felt good about themselves... and the government had more control over us.
I once had a school teacher tell me we should enact the eco-terrorists agenda on the outside chance that it might be true. I was flabbergasted. This person was a friend, so I didn't tear her to pieces... maybe I should have.
Beauxdog
Well, Obama is doing his
May 7, 2009 - 10:29 ET by robert108Well, Obama is doing his best to jack up oil prices with his massive debt weakening the dollar, and his domestic energy development restrictions preventing us from producing our own supply. All of this tends to force people into so-called "green cars", which are actually not "green" at all, costing more to make and more to buy, with the increased pollution from toxic batteries and the like.
I'm sure Ford's pronouncements have more to do with govt pressure than good marketing practice. IMO, Ford should have been advertising it's refusal to take the "bailouts" from the very beginning, but they probably wanted to avoid being smacked with punitive regulations by Obama.
How would you like to be in business against a company owned by the President?
What about the UAW?
May 7, 2009 - 10:30 ET by slickwillie2001One question rarely asked and not answered is how the UAW can bargain with Ford while the UAW owns Ford's two competitors. That has to be illegal in some way, call it an illegal conflict of interest or monopolistic or whatever. It's just not right. Once the bankruptcy proceedings for GM and Chrysler are over, Ford needs to bring that up, or even bring it up as an interested party to the bankruptcy itself.
On the other hand Ford may be confident that GM and Chrysler will never build another car. Their parts supplier Delphi went into bankruptcy four years ago and is still in it.
And Fiat, -why on Earth would Fiat want anything to do with this nightmare and our socialist idiot of a President?
Didn't NBC get the memo?
May 7, 2009 - 10:39 ET by pcantidoteDidn't NBC get the memo? The only people left who believe in man made global warming are those who stood to profit from it.
Enforce Term Limits: Reject ALL incumbents in 2010.
More To This Story!!!
May 7, 2009 - 10:43 ET by flyingmonkeyThere is one important detail missing from this story. NBC failed to point out that GM and Chrysler were unable to get consessions from their UAW affiliates and continued to pay their union workers the exhorbitant salaries that got them to this point in the first place. All on the backs of the taxpayer, I may add.
Ford immediately set out to cut costs, closing plants that produced unprofitable vehicles and offering additional models to profittable plants in exchange for consessions. Ford achieved salary and benefit parity with it's foreign competitors months ago.
But NBC, like the Obama administration, couldn't point this out and risk upsetting the unions. Could they!!!
The problem with most green cars
May 7, 2009 - 10:47 ET by moderncommentaries83The problem with most green cars out on the market these days - like the SMART car - is that they're designed for singletons, or DINK couples.
Not families. Or people who buy more than one bag of groceries. Or people who, for example, do a lot of home improvement work and haul thinks like 2x4s, tools, and equipment.
We have one son, a toddler, and a second child due in August. Not being politically correct, and being pro-life, I'd like to have at least one more (I'd have a lot, but medical circumstances tell me 3 or 4 is my biological limit - we're giving strong consideration to foster/adoption).
How do I put a car seat, a booster seat (or a couple of each) in a vehicle like this?
Now, of course, I know that eco-nuts hate children and would sterilize us all to "save the planet" (for who, they never seem to explain, seeing as there'd be no future generations) so arguing that a family of six needs a vehicle that safely transports all six people is a non-starter with them.
But it's not a non-starter with the families (and others) who need such vehicles.
Aut viam inveniam aut faciam
Very true, mc
May 7, 2009 - 11:02 ET by BlondeI have been driving 2 seat sports cars for the last twelve years (too bad greenies, great big V-8 engines, ha!). While they are alot of fun, that fun comes with inconvenience...take the dog to the vet? Must borrow a car, he was too big to fit in the passenger seat.
Lowe's? Rent the Lowe's truck. Garden Center, same deal...pay for delivery.
I miss my old Jeep Grand Wagoneer many days.
No matter how badly the eco-freaks would wish it, people buy their vehicles according to their needs, not according to Al Gore's wants.
I hope he fails, too.
The problem
May 7, 2009 - 12:05 ET by slickwillie2001Yep, this is the problem with the whole mini-hybrid-electric car movement, -that little car might be adequate for your needs 99% of the time. It's that couple days a year when you need to move the boat, go to the airport and pick up your tribe of relatives, go to home depot and grab a couple of 2x4's, etc, that is the reason you buy a normal vehicle or SUV. The little putt-putt is also fine for a second vehicle, but do we really want to send the message that everyone needs two vehicles?
I hate small cars - death traps
May 8, 2009 - 06:33 ET by OneZeroWhen I was 16, seems like a lifetime ago, I was in a bad car accident. Could have been killed. That was my last small car. I am still terrified whenever I ride in a compact car.
Now married with two kids and 4 dogs I drive a Ford Excursion (F-250 super duty frame with SUV body). I feel very safe driving with my family when I know I have over 9,000 pounds of steel between me and everyone else. You can have their crumple zones.
Ford stopped making the in about 2005 so I will keep this one as long as I can. I laugh when Pruis drivers sneer at me. My Ford has a 6.0L diesel engine and I get 23+ mpg on the highway. When researching the Excursion one quote stood out and convinced me to buy it. "Size always wins!".
I should also mention that I live out in the boonies in the snow belt. Without 4wd I could end up not leaving the house all winter.
There are 10 types of people. Those who understand binary and those who don't.
The Federal Government is
May 7, 2009 - 10:55 ET by pcantidoteThe Federal Government is attempting to trump bankruptcy law for political favors and NBC wants to talk about green machines. Unbelievable.
Enforce Term Limits if They Won't: Vote Against ALL Incumbents in 2010.
How many green cars does
May 7, 2009 - 11:13 ET by ThisnThatHow many green cars does Brian Williams own? Or his family? Or anyone at NBC or MSNBC? How about Obama, or Obama's family? Anyone in Congress?
I know someone who owns one of those hybrid cars. He's thinking of replacing it. Why? Because after 100,000 miles the batteries need to be replaced; and it simply isn't cost-effective to replace them (up to $10,000 he was told). So, he has to get rid of the car, long before the car, itself, wears out. How's that for being green? Myself? I have 200,000+ miles on my 15-year old gas engine car, and still going strong. Thereby saving on landfill costs. Staying green, is what I call it.
___________________________________
The challenge is to follow a consistent plan despite inconsistent prices - Sarah Palin, State of the State of Alaska speech
I agree - who has the bigger footprint??
May 8, 2009 - 06:43 ET by OneZeroMy last vehicle was a 1990 Ford F-250 that I put over 300,000 miles on. It had plenty of power, room and comfort. I had to retire it last year. Now I drive a Ford Excursion and hope it lasts as long as my F-250.
I am curious how my carbon footprint compares to someone that buys a new "green" vehicle every few years?
There are 10 types of people. Those who understand binary and those who don't.
How high will gas prices have to get
May 7, 2009 - 12:03 ET by katainkentto make a green car 'break even' before its 10 yrs old?
Hold on ‘cause the world will turn if you're ready or not ~ KT Tunstall
Confuse a hippy
May 7, 2009 - 12:01 ET by DontFeedTheTrollsPut a bumper sticker on your car that says "This Car Runs On Water". When someone comes up to you at a gas pump to ask you why you are filling a water powered car with gas tell them you only use the gas to run the heater and air conditioner.
D
Keep the ILLEGALS out, join NumbersUSA to send free faxes to your reps.
"cars that people want"
May 7, 2009 - 13:57 ET by traderjamesYou will hear administration hacks speak this phrase quite often. I believe that it is a code phrase meaning 'green cars'. And, since they are what "people want", and the government controls two major auto makers, all these factories are going to be re-tooled to build them. But, it will soon become apparent that they will be "cars that people won't shell out their good money for". Then what?
I want an Escalade with a big-ass internal combustion engine. Are you listening, Mr. President?
Ford's recipe for
May 7, 2009 - 16:05 ET by fitzfongFord's recipe for "success":
Step 1 - Build "Green" cars that few can afford and nobody wants to buy.
Step 2 - Weigh down the already market irrelevant automobiles with extra cost by attaching the bloated Union salaries, pensions, job bank and health care benefits to the price of the vehicle.
Step 3 - Profit!
"Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery." -Winston Churchill
No drilling, No coal, No brains, TEN BUCKS A GALLON.
May 7, 2009 - 16:08 ET by upcountrywaterThis is the carter plan, done better by , wash your hands, increase your tire pressure gang.
TADA the pelosi car
This gang is wanting gas lines again..
Reagan VS 0bama