Cyberwanderer’s Blog

December 17, 2008

Why GM Can’t Fail; China’s Electric Car Plan

Filed under: Technology,World News — cyberwanderer @ 4:50 pm
Tags: , , , , , , , , ,

This is a follow-up to my previous blog about China’s plan to accelerate their push to put electric car in the market.  I came across this opinion piece in the internet, which makes several good points. Summary of his opinion follows with few of my comments added.

  • Car is the source of our problem – oil dependence leading to war, etc and pollutions leading to climate change.
  • Solution can be found by helping GM while letting Chrysler go under. Make it medium term commitment only (10-year). Obama appoints new head for GM. Offers rebates for purchase of electric car. Government and taxpayers become part owners (medium term) giving more incentives for Americans to purchase GM cars.
  • The Chinese government already plan to support the production of electric car announced by BYD (which will go on sale end of the year and to U.S. market by 2010). BYD is partly owned and invested by Warren Buffet (Berkshire Hathaway’s investor guru with reputation for good foresight).  U.S. should not lose the opportunity to be at the forefront of the future of car industry.

This is just a summary, read the full article here >> Jim Kingsdale: If cars are the problem, they can also be the solution. I don’t think I could have said it any better.

Letting all three automakers fail would set U.S. and North America so far back in the auto industry. Meanwhile, countries like China would get the upperhand and have greater chance of dominating the future of car industry.

Even with government support, GM would face some challenges in rolling out their electric car. The batteries needed are made mostly in Asia. Nevertheless, this is certainly not a time for doing nothing and just standing idly by. Moment of crisis offers the best chance for renewal. Either we cease this moment or be contented to lag behind.

The other often quoted reason that GM should not be allowed to just fade away is the half a million job that would be lost in Ontario alone. Toronto Mayor Miller warned that not only that, but when people lose their homes as a result of losing their jobs, then the bank would lose tremendous amount of money and even the banking jobs would be lost.

That scenario would lead to deep recession at best, another great depression at worse.

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2 Comments »

  1. I predict that the Chinese B.Y.D. cars will be politicaly withheld from the Canadian car market. This will be Canada’s way of bowing to the pressure from the U.S. (environment be dammed). And if you think Canadian car makers will be given a share of the production of U.S. cars you are sadly mistaken, This is survival mode every man for himself and we don’t fit in the lifeboat. The free trade free enterprizers are at the government trough instead of rolling up the sleaves and producing products priced for the times. Any C.E.O.’s taking a cut or forgoing the big bonus or giving up the jets I think not. The I’m all right attitude is alive and well. Remember at the end of the day these people will have the marbles if you snooze you loose and we snoozed big time.

    Comment by benover — January 18, 2009 @ 3:30 pm | Reply

  2. […] that GM would totally close and discontinue selling Pontiac. In my blog last year, I expressed support for bailing out GM to keep North America in the impending electric car race. Their decision to close down their more […]

    Pingback by GM Closing Pontiac, Concentrating on Bigger Cars « Cyberwanderer’s Blog — June 2, 2009 @ 6:00 pm | Reply


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