Boston Globe: Wheel Dividends (Op-Ed)

[nxylas]

http://www.boston.com/bostonglobe/editorial_opinion/oped/articles/2010/04/27/wheel_dividends/

Bremen, Germany
THE SELF-congratulations by bailed-out American car companies are hard to take seriously in a continent of relatively Lilliputian cars, amazing trains, and almost perfect public transit.

Chrysler last week claimed it may break even this year. General Motors boasted of repaying billions in government loans. GM CEO Ed Whitacre said, “I think the government and us, the taxpayers, made a terrific investment, and I think it’s going to pay off big time.’’

The payoff is not yet visible. GM promises the electric Volt, but it currently has only one car, the Malibu, among 52 wagons, sedans, and small cars cited by Consumer Reports for high fuel efficiency. Chrysler has none. Both companies still dominate the ratings for worst fuel efficiency from subcompacts to SUVs. Ford, which did not take a bailout, remains the only Detroit competitor in fuel efficient vehicles with its Ford Fusion hybrid. Fittingly, Ford is expecting a $1 billion first-quarter profit.

While America spends $82 billion hoping bankrupt companies retool for President Obama’s 35-mile-per-gallon standards by 2016, other countries are already into high gear getting cars off the street completely.

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