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Name: Jeff Bressler
Location: Smithtown, NY
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Madness in Washington

 

A classic movie of the 1950’s was The Bridge on the River Kwai, One of the famous lines in that film were just two words – “Madness, madness.” Major Clipton, the British Army officer that uttered these words might have been a seer. Although the movie took place during World War II, Clipton could have been talking about what is happening in the automotive industry today.

First, the government is assisting in the bailout of GM and Chrysler with billions of dollars. Strangely enough the guys who brought on this mess are still sitting in the executive seats at the two automakers. Nothing brings more personal confidence in my taxpayer dollar disbursement then knowing that both Rick Wagoner and Bob Nardelli are being given a second chance to squander billions again. Instead of being innovative and cutting edge, guys like Nardelli are asking there dealers to buy more junkie losers like the Chrysler Sebring to help inflate corporate sales. Madness! And to add to this insanity, dealers are lining up like lemmings to use their own personal finances to make these purchases in the hopes that “the sun will come up tomorrow.”

Now Barack Obama’s Chief of Staff David Axelrod is making some frightening statements on the administrations hope for the automotive industry. Do they create a “car czar” position with a Lee Iacocca type behind the desk to try to set a steady path for the future? No, they’re politicians and have decided to ask some real car “geniuses,” Treasury Secretary Geithner, White House economic advisor Larry Summers and an assortment of hacks, who have zero knowledge of the automotive industry to work to create its destiny. This is double madness.

The really scary comment from Axelrod was contained at the end of this quote. Axelrod said that "How that restructuring comes is something that has to be determined, but it's going to be something that's going to require sacrifice not just from the auto workers but also from creditors, from shareholders and the executives who run the company. And everyone's going to have to get together here to build companies that can compete in the future."

 

Unfortunately the current administrations public view of “competing in the future” means eliminating the dependency on foreign oil and seeking a path of alternative energy only in years to come.

How wonderful that if we follow this golden path to the future we will be eventually told what size our cars will be and how they will be propelled.

Tell that for example to a construction worker who needs a heavy duty gas powered Chevy Silverado 3500HD , or tell that to a muscle car fanatic who seeks the power and joy found in a Dodge Challenger SRT with a big old 8 cylinder power plant, or tell that to the millions of car buyers who find their drive an extension of their own being.

As Ralph Kramden once said to Alice during an episode of the Honeymooners, “they’re all nuts Alice.”

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Cars in Aisle 3

 

I am a firm believer in the free enterprise system, but we all need a liitle fresh air to breath. Not necessarily green but fresh.

Wal-Mart continues their march to use every square foot of the United States and turn us into one gigantic indoor box store. Who needs to worry about energy when you can use your shopping cart for all of your transportation needs.

In another Wal-Mart first, the mega retailer is hooking up with a company called Live X to create the “Live X Auto Exchange,” an electronically enhanced auto trading service that will set up shop on the floor of two Phoenix area stores. Instead of buying Rice Krispies and Fruit of the Loom, you can now buy Chevrolets and Scion’s.

I guess you can shop for cars, on your computer, in the privacy of your own home, but some people just need to get pushed around in a crowded hot store with their parka zipper stuck to the top.

The virtual “showroom” will feature music, televisions and computer screens to bring sellers and buyers together. And just to make sure you understand that this “experience” is somewhat automotive related, there will be one car on each showroom floor to attract potential buyers into the environment.

Trading assistants will be at the two test showrooms to help people navigate through the online inventory of automobiles, which will feature new and used cars from dealerships around the Phoenix area.

Live X Auto has an exclusive arrangement with Wal-Mart. It is an electronic trading platform that combines a virtual trading experience bringing car buyers and sellers together. Financing can be approved on the spot with several lenders including Wal-Mart's local phoenix partner, Desert Schools Credit Union.

 There is a three-day, 500-mile exchange policy on most cars.

If you think this idea is new and creative look to Sears back in the early 1950’s. In a little automotive history nugget, Sears contracted with Kaiser to build a version of Kaiser’s Henry J sedan. The cars carried the Allstate brand and appeared in the 1952 and 1953 Sears Catalog. The compact 2-door sedan was not what post-war Americans wanted and the contract with Kaiser was cancelled. Still almost 2,500 cars were sold via catalogue.

Still the whole thing is pretty amazing. You can go on a casual shopping visit to Wal-Mart and end up leaving with a $30,000 bill. I wonder if they take pennies?

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