Cheap Shots at Detroit?

In a recent column Tom Friedman blasted the "Big 2.5", re-treading the usual claims: vehicles not suited for the market, poor quality and fuel economy, poor management, and lack of innovation. He pines for an American automobile industry that works like Steve Jobs' Apple.

Let's look under the hood at some of Friedman's arguements:

Vehicles not suited for the market. The market for vehicles is complicated and fickle. It is not dictated by fuel economy alone, despite the recent panic caused by $4-a-gallon gasoline. The market is a convolution of product capability, quality, economy, safety, and style. In the early 1990s Detroit made an excellent decision about the automobile market: the SUV. A vehicle now nearly despised, the SUV met the needs of many consumers. It could carry several passengers (spouse, kids, grandma, dog) or could carry the bulky loads from trips from home improvement stores. Drivers valued the improved road visibility and the feeling of greater safety over a compact car (although "improved safety" was a dubious claim). And consumers were willing to pay the premium that SUVs imposed in fuel costs in order to acquire the benefits from the vehicle. Some of the aspects that attracted consumers to SUVs were shared by light trucks, which also enjoyed robust sales. The profit margin on trucks and SUVs was substantial, which was needed to subsidize the production of economy cars, needed to reach CAFE requirements.

The market decision to produce SUVs was so successful that the Japanese automakers, finding themselves out in the cold on trucks and SUVs, began producing these vehicles for the American market.

American cars have poor quality and fuel economy. The claim that American cars have lower quality is no longer true (for example, see this article), but the myth is now engrained into the media brain. As for fuel economy, American makers offer mid-sized cars with conventional power plants yielding 30+ mpg (highway), such as the Chevy Malibu, Saturn Aura, Pontiac G6, Chrysler Sebring, and Dodge Avenger (with the Ford Fusion at 29 mpg). American SUVs have improved fuel economy (the Chevy HHR with 30+ mpg; the Jeep Patriot and Compass in the high 20s).

Poor Management. Why then didn't the Big Three switch to a majority offering of small, fuel-efficient passenger cars as the price of oil rose? SUVs and trucks were required to offset the loss in making smaller cars - because of the 2:1 labor rate disadvantage that the Big Three have compared to the Japanese North American operations. During the SUV Salad Days, the UAW staked an uncontested claim to the "record profits": it was just a matter of choosing a strike target and getting it. The blithe notion for Detroit to produce a larger number econo-vehicles ignores the fact that they would lose money on every such car, while the Japanese builders would not.

Lack of Innovation. Please - hybrids are a Green Vanity Vehicle: even after six years of operation, a Toyota Prius will not recover its price premium through higher fuel economy. The Chevy Volt is likely to list for $35K, so it is also a Green Vanity Vehicle. For the short term it is more efficient to increase the fuel economy of the gasoline-powered engine than to plunge into a crash program to develop alternate fueled-vehicles. This is Ford's principal strategy for the next few years. One exception may be making the new fleets "flex-fuel", able to use either straight gasoline or 85% alcohol mixtures. The modifications to make most vehicles flex-fuel is quite cheap, a few hundred dollars.

Have Car CEOs be more like Steve Jobs. Lest we not forget Jobs' NeXT Cube: so innovative in hardware and software, yet so catastrophically uncompetitive in the PC market of the early '90s. Jobs has done well since then with consumers that will accept the stiff Apple price premium and its proprietary hardware and formats. There are analogies to Apple in the car industry: Cadillac, Lexus, Audi, Volkswagen, Mercedes, and other upscale brands, but to map Jobs' business plan onto car making for the general consumer market is naive.

We Are A Bank!

We at Deaddrifts have decided that if you can't fight the lurch toward socialism of our economy, you might as well fight for your place in line for the Government Cheese. Therefore, we declare ourselves to be a bank and insist we are entitled to a handout. And if this doesn't work, we will consider building cars...

But Just to Make it Perfectly Clear...

Mr. Obama will become our President, and we him success. He will need all of the support, good wishes, and prayers that Americans can muster; to quote Lincoln, "the occasion is piled high, and we must rise with the occasion." Where we find ourselves in opposition to the President, we will voice our opposition in a civil and intellectually honest manner. No brainless wailing of "Obama Taxed, Jobs Axed!" or the like will be found here. As of now it appears that ambition, namely, Mr. Obama's desire to be successful, is overriding ideology. But we shall see as the events transpire.

The Case of the Vanishing Iraq Policy Statement.

A few days ago, we mentioned the rather detailed plan that was unveiled for Iraq at Change.gov, Mr. Obama's official transition site. That page has now been removed. Amazing what a dose of reality (courtesy a presidential briefing) can bring about.

Note Bene: Wizbang reports that most of the lofty policy plans from the Obama campaign have now vanished from Change.gov. This risks making Mr. Soros angry. You don't want to make Mr. Soros angry.

No doubt over-zealous Obamites thought it was only reasonable to transcribe the campaign bombast to the honest-to-goodness we're-on-the-hook-for-this-now transition plans.

Combustible Courage.

Winston Churchill was derided by Lord Haw-Haw for possessing "liquid courage", i.e. bravery from a cognac decanter. If so, we few (we happy few?) might rally with a snifter of Remy Martin 1738. In the meantime, we have procured a good supply of Rocky Patel Rosado, Punch, Padron, and Arturo Fuente Churchills to soldier on through the winter.

Change Some Can Buy Into.

The background of some of Mr. Obama's economic advisers, and their substantial financial contributions to his campaign (found on Instapundit).

Some Restraint, Please!

We recognize that Mr. Obama is the President-Elect, and will become the new President in a few months. But that does not mean it's prudent nor tactful to establish a parallel government during the transition, complete with policy declarations. Yet, he has already done so, with pronouncements on issues that are not particularly supportive of the real United States Government.

The Parallel United States Government has articulated, in rather clear language, exactly what will transpire in Iraq in the first year: we will be skulking out, apparently without little realistic regard to the conditions on the ground:

...Immediately upon taking office, Obama will give his Secretary of Defense and military commanders a new mission in Iraq: ending the war. The removal of our troops will be responsible and phased, directed by military commanders on the ground and done in consultation with the Iraqi government. Military experts believe we can safely redeploy combat brigades from Iraq at a pace of 1 to 2 brigades a month that would remove them in 16 months. That would be the summer of 2010 – more than 7 years after the war began. Under the Obama-Biden plan, a residual force will remain in Iraq and in the region to conduct targeted counter-terrorism missions against al Qaeda in Iraq and to protect American diplomatic and civilian personnel. They will not build permanent bases in Iraq, but will continue efforts to train and support the Iraqi security forces as long as Iraqi leaders move toward political reconciliation and away from sectarianism...

There is also planned for plenty of opportunity for Iran and Syria to provide their constructive inputs.

Yes, elections have consequences, one of which is inheriting the responsibility supporting the present government while you plan for the new government. The early behavior of the "shadow government" does not exhibit this responsibility.

Sound Recall.

The Conservative Corps has been shattered on the field of November 2008. The corps' generals and their camp followers have skee-daddled. It's time to sound recall - not retreat, but regroup, carry our dead from the field, find brave and brilliant new officers, and refit to fight another day.

The enigmatic General Obama has carried the day. We salute his brilliant victory, and to the extent that his interests in governance are harmonious with our visions for the welfare of our land, we can cooperate. We'll now see whether his mind is governed more by ambition than ideology. Ambition may to temper his socialism to "socialism-lite". But how he will proceed in the details of Iraq is a total mystery.

Required reading around the campfires: "Ten Conservative Principles", by the late Russell Kirk.

Triumph of the Brain Dead.

Jay Nordlinger comments on the spirit of mindless zealotry of Obama supporters; it has manifested itself in Ann Arbor with the harassment of McCain supporters. One guesses the change justifies the means.

The Bell Lap.

It's almost here, our national political orgasm is imminent. And whatever the result of Election Night, on Wednesday morning the Sun will rise, the geese will honk as they fly south, babies will gurgle "good morning" in their cribs, the toast will pop, coffee will be poured, and America will go on*.

Of course, for the pathological types, Wednesday morning will kickoff the campaign cycle for 2012: the planning for acquring power, retaining power, hoarding power, expanding power, or to ingratiate themselves with the newly powerful. Many will forget the reasons why they sought power in the first place. Some will be awake from the religous ecstasy, and ask "now what?"

In David Lean's magnificient film version of Doctor Zhivago (arguably the greatest film ever made), Red Army General "Strelinkov" proclaims to Yuri Zhivago that "the personal life is dead" - that human existance is reduced to service to the Communist Party - and derisively asks Yuri what he intends to do by traveling to the rural backwater of Varikino. "Just live", Zhivago replies.

Whether under the rapturous beneficience of Obamism or not, we can't wait to "just live".

*Inspired by Lou Rukeyser's post 1987 Crash Pep Talk.

No Room on the Plane.

It is reported that McCain campaign has denied Maureen Dowd a seat on the campaign plane. However, the refusal was to make room for more journalists.

Too Little and Too Late?

Jake Tapper has a "wait a minute!" moment with Mr. Obama's ENORMOUS list of promises to the people. Looks like you'll be off "O-Force One", Jake; you can pick up your luggage at the Greyhound terminal.

Old Home Movies Found of Obama Baby Shower!

Look for George Soros giving the gift of gold and Saul Alinsky's gift of a copy of "Rules for Radicals!"

Not Mentioned on The Daily Show.

The Russian Navy returns to the Western Hemisphere, guests of Hugo Chavez...

Thank Heavens You're Here!

The market has tanked, the economy is going south, socialism is knocking on the door, massteria is running amok, Democrats threaten us with unbridled power, and cats and dogs are in the streets. But there is one man who can save us in this desparate hour...

I Am Bill the Terrorist.

That Genius Iowahawk strikes again!

Obama, MoveOn, and Iraq.

Here is the audio of an April 2007 Q&A session on Iraq between members of MoveOn.org and Senator Obama. Its salient content: (i) Obama's declaration of the "failure" of the then-recent surge in Iraq, (ii) his insistance that US withdrawl from Iraq begin immediately (to be completed with a year), (iii) advocacy for a multilateral negotiations on the fate of Iraq between Iraqi Sunnis and Shias, Iran, and Syria, and (iv) appreciation and enthusiasm for MoveOn.org, the folks that brought you the infamous "General Betray Us" ad.

MoveOn endorsed Mr. Obama for the Presidency of the United States in early 2008 with 70% of its voting membership.

Lest we forget.

Barney Frank's Brave New World.

In an expansive and victorious mood, Congerscritter Frank describes his goals for an undivided government: a 25% spending cut for the DoD (forcing our hand in Iraq), expanded federal support of state spending programs, and higher taxes for The Rich^® (from Commentary Magazine).

An Ignored Story...

has been the explosive growth of the federal budget in non-defense related areas: consider the inflation-adjusted growth in the following catagories in the last eight years (courtesy WSJ):

• Transportation +22%
• Community Assistance +91%
• Education +57%
• Welfare +30%

Colin Powell's Endorsement.

The endorsement substantially hurts McCain, no doubt, but it was not a surprise. We wonder what Powell thought of Obama's earlier fellow traveling with MoveOn, who called General Petraeus, a brother in arms, "General Betray-Us"?

It's very clear that Obama has been building a firewall between himself and the Far Left organizations that provided early sustinence for his campaign. One wonders if such a wall will be demolished the day after Inauguration.