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Politics : A US National Health Care System? -- Ignore unavailable to you. Want to Upgrade?


To: John Koligman who wrote (17019)4/18/2010 6:48:46 PM
From: i-node  Read Replies (1) | Respond to of 42652
 
PS - I'm surprised you aren't railing (yet) against the substantial tax credits the government is providing currently on these vehicles. I'm sure as you say these would have been built without them also...

I was railing against it, and yes, of course the vehicles would have been built without the credits.

No auto manufacturer would be foolish enough to commit the resources it requires to set up an auto assembly line on the basis of a tax credit that can disappear with the wave of a congressional hand. Although, there are undoubtedly those who would make such a claim, financially, it simply doesn't hold water.

Current law phases these credits out long before production could become profitable for ANY manufacturer. Just look at the credit for hybrids; Toyota STILL can't make money on Prius without the subsidy of the credit (although Toyota claims otherwise, they can make that claim only due to alternative costing methods; analysts have debunked the claim for several quarters).

These subsidies to auto manufacturers are inexplicable to a rational person.