Dwight Watt - Watt Thoughts #183 6/16/2009

#183 Government run auto makers(Watt Thoughts)

Reorganization of the American automakers thru bankruptcy, government loans and funding and reorganization I had understood would result in cars built by Americans that were more of the prices Americans can afford and be more efficient and that the companies needed to drop inefficient brands such as Dodge cars, Saturns, Saabs, etc..

Chrysler announced today it is re-opening its first plant since closing all of them in bankruptcy. The cars they will be building (Dodge Vipers) are priced at $90,000 and get 22 mpg. So much for closing inefficient brands, building price conscious cars (I cannot imagine very many Americans in 2009 being able to buy $90,000 cars) and fuel efficiency (Obama wants to go to 36mpg or higher soon) (My 2001 Saturn gets 36-37 mpg). So Chrysler is building muscle cars as the first car in the New Chrysler.

We will see how GM and Chrysler continue under the new companies from bankruptcy with ownership being primarily the US government and the UAW. I am waiting to see how the UAW will demand higher wages from their employer, the UAW, for the autoworkers in a year or two. Can you strike against yourself? Comedians will have a field day.



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