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The Stalls of Higher Thought

Automotive Bailouts MUST Include Alternative Manufacturers

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think-oxCanadian alternative automakers like ZENN MUST be included with any government bailout of the automotive industry on either side of the 49th.

The current government bailouts are not allowing the natural forces of the free market to clear the way for smaller, better run competitors. In fact the bailout is in effect giving the old automotive establishment ANOTHER leg up on the smaller and much less funded alternative vehicle industry.

10% of ALL funding should be given to alternative automakers like ZENN and alternative technology developers like EEStor. Many if not all of the current alternative manufactures do not enjoy the huge market capitalization that GM, Ford and Chrysler (a totally private company owned by a venture capital investmant group).

None of the current large market players have exhibited any real or sustained ability to move forward on alternative vehicles beyond the usual smoke and mirrors that GM has blown for the last three decades. Rolling out the “future” of cars every 5-8 years or whenever the political winds are not blowing in their favour. I still doubt the GM’s much vaulted Volt is going to anything more than an overly expensive show piece that average car buyers will not be able to afford. But that will not stop GM from pointing to it as their “alternative”.

BILLIONS of taxpayer dollars are going to be invested in these companies. Once again giving them a huge bankroll with which they can bury smaller more advanced competitors like ZENN. If governments on both sides of the border do not include alternative automakers and technology developers in the bailout scheme then it is inevitable that we will be in this position again in the not so distant future. But without equal support there is little doubt the smaller, more innovative companies like ZENN, Think and EEStor will be around.

Just a few of the electric vehicles currently available. Just imagine what these and many other innovative companies could do with a fracture of the BILLION$ that are going to be pumped into the large car makers:

  • ZENN – $15,995 (Canada)
  • G-Wiz – $14,000 CAD (England)
  • Think – $40,000 – battery packed leased (Norway)

Remember these vehicles are already available in the marketplace unlike the big three automakers who have nothing more then basic PR prototypes or big winded plans that have not been proven in the real world yet!

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Written by mattliving

December 30, 2008 at 11:36 am

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