The Obama Administration has threatened to veto the House of Representative’s “Cut, Cap and Balance” deficit reduction legislation; because it does not preserve what the President refers to as “investments that encourage economic growth”. A signature example of that Presidential encouragement has been prioritizing production of the Chevrolet Volt electric car in the government bankruptcy restructuring of General Motors. But after six months and a $700 million to build the cars; only 2,745 Volts have been sold at the $39,995 price tag and 508 unsold vehicles are languishing in dealer inventories. Deficit spending to finance losses of $255,009 per unit doesn’t sound like an investment that will encourage growth.

The Administration effectively fired the CEO; forced bondholders to take 75% loss; and “invested” $50 billion of tax payer money to gain 61% control of GM’s stock. Since the restructuring, the independent Government Accountability Office has issued reports that cast “substantial doubt” on the likelihood taxpayers will fully recoup their investment. More troubling is the Administration, at the behest of the UAW, forced GM to withdraw from their profitable NUMMI joint- venture with Toyota in California.

GM reported the NUMMI plant’s production in 2008 of 149,000 Toyota Corollas, 122,000 Toyota Tacomas, and 71,000 Pontiac Vibes 2008. According to Motor Trend Magazine, Toyota stated: “Our hope was for the 50/50 joint venture to continue,” and indicated willingness to move production of their wildly successful Prius Hybrid from Japan to NUMMI. But under pressure from the Administration, General Motors opted out of the 25-year-old California venture with Toyota and spent hundreds of millions building Volt manufacturing in UAW friendly Michigan.

NUMMI ceased operations on April 1, 2010. The closure left 4,700 employees jobless at the Freemont plant and affected another 25,000 supplier jobs around the state, according to a study commissioned by California State Treasurer Bill Lockyer.

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Over the weekend, news broke that the White House intends to push for fuel efficiency standards that would require cars and light trucks sold in the U.S. to average 56.2 miles per gallon of gasoline by 2025.

The latest effort at establishing highly green regulation would add about $2,400 to the cost of each new vehicle sold in the U.S., a cost that could have an effect on the overall auto market, and therefore employment numbers.

Environmentalists seem to be greeting the news positively.  However, consumers might have a different view.  Setting aside that few new car buyers are likely to want to have to pay an extra $2,400 for their car or light truck, they may find their vehicle choice rather limited by virtue of the White House’s preferred number.

According to the federal government’s own fueleconomy.gov website, a grand total of three cars currently on the market in the U.S. get 56.2 miles to the gallon or better.  They are the Nissan Leaf, and two varieties of Smart car.  The famed green Toyota Prius is a dirty polluter by this standard. So would be 2009 and 2010’s green cars of the year.

Is the White House really serious about this number, or is this a negotiating stance assumed at the outset, aimed at enabling the White House to push automakers to accept the highest efficiency standard that they are apparently willing to concede (46.7 mpg)?

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Toyota, which employs over 35,000 workers in the United States with factories in eight states, is the target of a government-led and union-supported attack due to recent recalls.

In the U.S., it is estimated that 15,000 Lexus HS250h and 133,000 Prius models will be recalled due to gas pedal issues, with another 500,000 Prius and other gasoline-electric hybrids needing anti-brake software modification. As unfortunate and inconvenient as recalls can be, this not the first, or last time an automobile will need to be brought back to the shop for a quick fix.

One might think this is the first auto recall in decades from the way government officials and Congressional Committees have pounced on Toyota. However, as recent as last month, Honda announced a recall of 646,000 Fit models (or Jazz in some markets) due to a faulty master switch that could allow water to enter the electrical components resulting in fires. Ford, less than one year ago, was forced to recall more than 4 million cars based on 550 vehicle fires. The recall concerned cruise-control deactivation switches that were installed in 16 million Fords. Part of the recall included nearly 1.1 million 1995-2003 Ford Windstar family van models.

There was no government outcry and no demand for Congressional hearings over these recent recalls. So why has Toyota suddenly become the target of a government-led witch hunt?

Toyota’s U.S. operations are extremely successful, not saturated by inefficient union monopolies, and are in direct competition with the now government-owned General Motors.

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Later today Scott Brown will be sworn in as the 41st Republican in the United States Senate.
He is on his way to Washington DC right now with certificatation in hand.

One of the many players who contributed to Scott Brown’s victory is Ken Pittman from WBSM in Massachusetts. Ken interviewed Democrat Martha Coakley the week before the Massachusetts election. It was during this interview that Martha told Ken that if you object to abortion and are a devout Catholic then…

“You probably shouldn’t work in the emergency room.”

That was the wrong answer.

Ken sent me this article last night that he wrote on this historic Massachusetts election:

America Chose the Pickup Truck Over the Prius

In what has to be the most important non-presidential election race in many decades, Scott Brown won a most unlikely race in the state bluer than Frank Sinatra’s eyes, Massachusetts. So much weighed on the outcome outside of our state that the RNC finally heeded to the desperate cries for help from those of us here who have fought behind the enemy lines, praying for the cavalry for a half century.

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During the recent COP-15 Conference in Copenhagen, the United Nations claimed it wanted to maintain religious neutrality. It was a lie. Global Warming is the established religion at these international events.

This was made especially clear when, days before the event’s commencement, the Denmark Foreign Ministry rejected a donated delivery of Christmas fir trees. “We have to remember that this is a U.N. conference and, as the [Bella] center then becomes U.N. territory, there can be no Christmas trees in the decor, because the U.N. wishes to maintain neutrality,” explained Ministry official Svend Olling.

Religious objectivity, however, is impossible at a conference explicitly engaged in blind adherence to an unproven premise- a faith in the veracity of global warming. For though the science is not settled, participants convened to devise strategies for what they believe will be the world’s environmental salvation, the capping of carbon dioxide emissions.

Global Warming devotees’ religious fervor commands action, even if their deliverance comes at the expense of economic devastation. American disciples such as Al Gore and President Barack Obama are more than willing to sacrifice economic stability at the alter of Global Warming.

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