Personally, I think that till Obama’s Auto Task Force turns its focus on how to reduce the labor expenses of the Big 3, it is merely putting up a dog and pony show.
Overall, GM / Chrysler /Ford need to get to a point where their operating expenses are lower than their revenue so that they can turn a profit, currently, their labor expenses remain at an average of about $73.50 per hour, which is about $25 higher than those of foreign owned manufacturers.
Ultimately , it therefore doesn’t really matter if Detroit produces a Volt, or a super duper Dodge Ram Pickup, they simple can’t be competitive price wise.
Anyway, back to the issue at hand, when Obama’s Auto Task Force was put together, the task force that is meant to figure out what is wrong with American car manufacturers and rectify it so that they can come back to profitability, it turns out that of the 18 members, only two own cars with American badges: Detroit News
The vehicles owned by the Obama administration’s auto team could reflect one reason why Detroit’s Big Three automakers are in trouble: The list includes few new American cars.
Among the eight members named Friday to the Presidential Task Force on the Auto Industry and the 10 senior policy aides who will assist them in their work, two own American models. Add the Treasury Department’s special adviser to the task force and the total jumps to three.
Well, all that is about to change, at least temporarily as they will test drive the Chevrolet Volt on Wednesday: Chevrolet
Members of the Obama administration’s autos task force will test drive the Chevrolet Volt rechargeable electric car and tour a Chrysler LLC pickup truck factory when they visit the Detroit area on Monday, an administration official said Sunday.
Task force members, led by Wall Street financier Steven Rattner and Steelworkers union official Ron Bloom, also will meet with United Auto Workers President Ron Gettelfinger and other top union officials, and they will sit down with senior General Motors Corp. and Chrysler executives, said the official, who asked not to be identified because the schedule has not been made public.
Task force members apparently will begin their day with a tour of GM’s sprawling tech center in suburban Warren, Mich., followed by a tour of Chrysler’s nearby Warren Truck plant, where the new Dodge Ram pickup is put together. The tech center houses GM’s U.S. design and engineering operations, as well as a special facility for the Volt.
The Volt, a battery powered plug-in electric vehicle, is being tested at the tech center, where GM has a studio dedicated to developing what the company is betting will be the car of the future.
GM is working on advanced lithium-ion battery packs for the Volt, which the company has promised will be able to go 40 miles on a single charge from a home outlet. After that, a 1.4-liter internal-combustion engine will kick in to generate electricity to extend the car’s range.
Struggling GM has promised to have the car in showrooms late next year.
For Chrysler, the revamped Ram is an important product that executives hope will lead the company to profitability once the U.S. auto market recovers from the worst sales slump in 27 years. Chrysler points to the Ram as a sign of its improved quality and upgraded interiors that will spread to the rest of its model lineup.
The White House said Friday it was trying to determine “how to be the best partner” for the struggling auto industry.
