the average profit on an SUV is approximately $10,000, I believe. The profit on a Fiesta? Not so much.

I find it hard to believe that either GM or Ford makes anywhere near that much margin. I think they’re lucky to make ANY profit (see the sale of Chrysler last year).

Bmaz, my 2002 4-door VW Golf gets 23/28, so you’re doing pretty well. It has a lot more interior room than Marcy’s Fit – but she’s got way better mileage.

Jenny drives an 07 Nissan Versa. 27/33, very disappointing fuel performance.

It’s not a strategy without costs and risks, but it’s a powerful tool, especially in Big Auto, which claims its labor costs are a significant drag on its ability to regain longterm profitability.

I’ve always been amazed how leadership that performed so poorly that it took its company into bankruptcy as a “solution”, should then be incentivized with bankruptcy court-approved compensation plans to keep and reward those same managers, while rank and file were being tossed on their ear and company lenders were being assured that they would get theirs.

What if they went bankrupt — could they get out from under union contracts?

They can’t bail their vessels fast enough, cannot sell enough assets, close enough plants, layoff enough workers fast enough to staunch the hemorrhaging. Why cling to illusions so publicly, unless there were a reason for it?

I think it’s comparable to the behavior of today’s energy giants, which spend hundreds of millions (a few weeks’ profits) on lobbying to avoid mandatory emissions restrictions, and to keep their own subsidies while preventing the alternative energy industry’s access to them. Apart from avoiding short-term costs, it’s a strategy designed to characterize government regulation itself as ineffective and illegitimate. A theme used by big oil since J.D. Rockefeller monopolized the oil industry and then tried to fight off Teddy Roosevelt’s trust busters.

TR, no stranger to rank and privilege, knew better. He may have regarded regulating business in the public’s interest as an aspect of noblesse oblige, the obligations of a nobility toward its people. But he respected the oblige part. Bush and colleagues only recognize the noblesse part.

Foresight (or looking over your shoulder at the Japanese as they moved into hybrids in the mid-90’s)? Priceless.

Unfortunately, too late for Ford / GM / Chrysler. I’ll tell my grandkids about the days when dinosaurs with chrome tailfins ruled the earth, but I doubt they’ll believe me.

Earl, I am putting together a group discussion/working thread some time in the somewhat near future to talk about reform of corporate structure, alteration of corporate personage, corporate tax structuring etc. There was a time when even big business had something for not just themselves, but for their employees, communities and country as well. I want to discuss how we can get back to that. I will give everybody here fair notice ahead of time, but I very much hope that you and all the other regulars will start giving this some thought and will bring your wisdom to the discussion when we have it. This is a critical subject that never gets mentioned, and it is time to start the discussion on it.