Energy Bill Favors GM

Tweet

The saga continues, on July 6th, the Gazette published a letter co-authored by Rep. Sheridan, the Janesville GM shop foreman and plant manager.

JG Letter Excerpt:
If the Senate's proposed fuel economy increases are final, the likely result will be auto manufacturing moving to other countries in order to build smaller vehicles that customers don't want to buy.

Huh? I don't mean to poke fun - honest, but you don't have to go overseas to build vehicles nobody wants, according to the latest sales statistics, WE are building vehicles nobody wants right here - NOW.

Certainly, the co-authors of this letter have their reasons to oppose the energy bill but, when American organized labor beats the fear-drum normally employed by the very corporatists who have sold them out, it’s time for a wake-up call.

JG Editorial Excerpt:
Lumping trucks and cars into an overall fleet average is a problem for U.S. automakers in general, General Motors in particular and Janesville plant specifically.

The latter is not quite true. In fact, out of the big three American automakers, GM is by far the best positioned to compete for gas-miser sales in all segments. Since trucks account for 56 percent of GM's sales, they have a better balance to offset mileage requirements within the categories. Trucks account for 65% of Ford's and nearly 75% of the Chrysler Group's. The energy bill could use some tweaking, but the changes will benefit Chrysler, Ford and some of the imports - not GM.

Just consider this supporting information courtesy of Janesville Plant Manager Gary Malkus as posted as a sidebar to their editorial in the Janesville Gazette on Sunday.

JG Editorial Excerpt:
GM offers 24 models, more than any other automaker, getting at least 30 mpg on the highway.

GM is currently the frontrunner in number of fuel efficient models, this alone puts them in an excellent position to attain future mileage requirements and compete for market share.

JG Editorial Excerpt:
GM leads in fuel economy for nine out of 16 models of small cars, seven out of ten models of large pickups and 17 out of 26 SUV’s.

I’ll say this folks, if this information is true, GM has a clear advantage against all the automakers including the imports.

JG Editorial Excerpt:
GM is at the forefront in producing E85 models that burn ethanol.

There is no reason not to believe these statements. GM is holding the best opening hand against ALL the competitors.

Then there's the Gazette.

JG Editorial Excerpt:
It might already be too late for the local GM plant. By voting for the Senate bill, Feingold turned his back on Janesville.

What a pre-mature and shameless thing for a newspaper to say considering the energy bill is not yet finished. But two can play at this game.

If they soften the gas mileage requirements as per Paul Ryan, GM WILL NO LONGER BE AT THE FOREFRONT ON ANYTHING. ANYBODY can build a gas guzzler. If autoworkers really believe gas guzzling trucks and SUV’s are the future, stick with Paul Ryan. If anyone thinks that gasoline will never pop to five dollars a gallon or more within the next ten years, stick with Paul Ryan. Building EnergyStar Trucks and SUV’s will be the future market and to the contrary, Janesville can be the future if we don’t turn our backs on this reality. Don’t be fooled by the satisfaction of complacency or the blindness of a partisan newspaper.

If U.S. automakers outsource overseas to build the EnergyStar vehicles they insist they can’t build here, you can blame Paul Ryan. The fear-mongering is strictly political AND short-sighted if not selfish economics.

Don't be fooled. The U.S. Senate including Sen. Feingold has done GM a big favor.