Faulty premise. Every auto manufacture in the world bar Rolls Royce and Lambo have suffered catastrophic drops in sales volume. It’s called OVERCAPACITY!

Think about it, why the hell do we need to replace cars so often? A large % of that is to ‘keep up with the jones’ rather than the vehicle becoming unusable. The bad news is that auto over capacity has lowered prices so much at the low end of the market that it has all but killed resale values in the second hard car market making it more expensive to trade ‘up’. Combine that with the evaporation of “buy-now-with-no-proof-of-income” finance which helped the new car market extending itself further down the social economic ladder and you have a stalled market.

Most car purchases are not from necessity, it’s exactly like the PC market where everyone already has a PC that works fine and the trend is to buy new form factors (laptops, smartphones). What’s new about current cars? Absolutely nothing.

There has been so much news about EVs that IMHO everyone is waiting for them before making any decision to replace their current car. With the ridiculous nature of the fuel market who can blame them. EVs will help automakers to have sales volumes like the iphone.

So, considering that this plan only works for people who buy a vehicle out of comfort, I ask the following: Why should the government provide an incentive program only for people who are in a better position than those who are forced to make on-demand purchases due to financial necessity?

I believe the key is to let the assets of U.S. car companies to be taken over by the more efficient auto manufacturers. These companies have proven themselves in efficiently satisfying consumer demand.

If this is not done, then the U.S. car companies are being artificially rewarded.

Government is surely not in the business of forecasting supply and demand…Sadly, they’re in the business of redistribution…

Forecasting consumer demand should be left to the car companies who have not made poor decisions and have a proven record or successful anticipation.

Government merely transfers funds to politically favored companies. Under the Bush Administration it was companies like Haliburton, etc.

Under Obama, it will be a different group of politically connected “green” companies. This is hardly worthy of being called “change.”

The results will be the same as always.