Growing up I was so in love with Elvis Presley (young) when I heard he gave away cadillac's well that was the most royal gesture a car and it was a Caddy! He was the King to me....in fact my father used him as a lure to get me to peacefully move from our home in Canada to Los Angeles. He said I would meet "The King". Didn't happen the closest I got to EP was my dear friend Linda T. (spent 6 years with him) thankfully she was generous with Elvis-isms.
Since I am on a save the economy with new idea's kick I thought I would share a proposal my dear friend Ralph Gipson wrote recently and sent to the White house for the automotive bailouts only this one includes the consumer.
I think it's genius and I vote we do this!
Here it is;
A. Direct Bailout Of Big 3 Is No Solution
Funds or loans direct to Big 3 will not resolve their problem. The problem that will remain is there is no demand for their vehicles, A direct bailout will not resolve their problem; they just will be back in months asking for more.
B. Alternative For Economic Stimulus And Creation Of Demand
Creation of demand and help for the middle class and poor is what is needed. The way to accomplish the demand is to provide=2 0the $25 billion to the middle class and poor is to purchase eligible vehicles. from the Big 3. There would be a 1,000,000 cars purchased with this plan. The Big 3 would be required to accept trade ins. Those currently making payments would not have payments any more, thus if the payment, for example is $200 a month; this would be equal to a salary increase of that amount and as it is spent would create economic stimulus for the country.
C. Disappearing Dealerships And Dealership Jobs
A direct bail out does not do anything for the bankrupting dealerships (over 800 in the past two years) , laid off sales and office personnel at dealerships or the towns suffering from the bankruptencies and job losses. The 1,000,000 car purchase would restore jobs, and/or prevent more layoffs, reduce or prevent dealer bankruptencies and restore some vitality to city and town economies affected by dealership job losses.
“Almost 600 of the about 20,00 0 U.S. new car dealers have shut their doors this year, and an additional 2,000 will close within 18 months, predicts Mark Johnson, president of a Seattle consulting firm that helps auto dealers buy, sell or merge operations
”In Georgia, a dozen new-car dealerships have closed so far this year. The Heard closings — in which 2,700 people lost jobs — were so swift that employees are suing the dealer for failing to follow federal laws regarding layoffs” Atlanta Journal-Constitution
D. Energy and Environment.
Since most of the trade-ins are older, the there would be greater fuel economy and less pollutants due to newer care being purchased.
E. Eligibility Factors.
In order to be eligible to receive a new car, salary below $35000, car age, etc would be required. For example, no one could receive payment to purchase a new car unless their existing car was older than a 2004 model or if they have no vehicle but need one for employment. No one with three cars would be eligible
F. Auto Manufacturer Guidelines.
Excessive compensation pay, golden parachutes, etc. would be regulated. Price of cars will not exceed MSRP of three months prior to enactment. Stricter mileage guidelines and pollution controls would be required on future cars.
G. Method of Payment
After a sales contract is approved and the consumer has provided an income tax return as proo f of income, the dealership would draw down (funds transfer) from a national fund created for this purpose of payment.
High mileage vehicles, vehicles costing in excess of $28,000, sports cars would not be eligible for purchase.