PDA

View Full Version : Gore should make a play for Chrysler


Vegas
04-11-2007, 01:32 PM
http://www.mlive.com/business/statewide/rick_haglund/index.ssf?/base/business-0/1176243004147020.xml&coll=1

Of all the possible Chrysler Group buyers with billions of dollars burning holes in their pockets, there is only one who has a chance of saving the troubled automaker AND our greenhouse-gassed planet: Al Gore.

You can stop laughing now. Al isn't just your typical former U.S vice president, best-selling author, Oscar winner for his movie, "An Inconvenient Truth," and 2007 Nobel Peace Prize nominee.

He's also chairman of Generation Management LLC, a private equity firm whose managing partner is former Goldman Sachs executive David Blood. The firm, with offices in Washington, D.C., and London, is known in financial circles as "Blood and Gore."

And unless you've been locked up in the West Wing of the White House for the past six years, you know Gore is the world's most outspoken advocate for reducing heat-trapping greenhouse gases that he and many experts say could destroy the planet through global warming.

While President Bush and some conservatives say global warming is nonsense, many scientists contend carbon dioxide emissions from vehicles are a leading cause of greenhouse gases.

And on April 2, the U.S. Supreme Court ruled that the Bush administration's Environmental Protection Agency must reconsider its refusal to regulate carbon dioxide emissions. On a 5-4 vote, the court said the emissions from car tailpipes and other sources meet the definition of pollutants, which the EPA is charged to regulate.

On Tuesday, EPA Administrator Stephen Johnson said it was too early to outline steps the agency might take as a result of the Supreme Court decision. The president is calling for higher fuel economy standards, though.

So what is Gore to do?

It's time for him to stop relying on the bully pulpit and the big screen, and put some skin in the game. He should buy Chrysler, which parent DaimlerChrysler put up for sale in February, and make it the greenest automaker on the planet.

Dump Chrysler's gasoline-fueled internal combustion engines altogether and replace them with fuel cells, electric motors and engines that run on biofuels, such as ethanol and biodiesel.
Raising the cash should be a cinch. Chrysler is thought to be worth somewhere between $7 billion and $9 billion. Investor Kirk Kerkorian is offering just $4.7 billion.

Numerous eco-celebrity activists, such as Leonardo DiCaprio and Salma Hayek, who are probably getting tired of squeezing their butts into those little Toyota Prius hybrids on Oscar night, could likely be counted on as major investors.

So could billionaire environmental activist Ted Turner and his eco-buddies, such as billionaire philanthropist George Soros.

Owning Chrysler would accomplish several things for Gore. First, it would demonstrate, as he has claimed, that we can eliminate the internal combustion engine over the next couple of decades.

Analysts say the key to a Chrysler sale is to find a buyer who can get a better labor deal from the United Auto Workers union.

If anyone could do that, it's probably Democrat Gore. (Although Gore and the UAW haven't always seen eye-to-eye on issues such as free trade.)

It might also give Gore an appreciation for automakers' claims that going green could bankrupt them at a time when they're losing billions of dollars.

But Gore could make a killing if consumers were to buy up Chrysler's all-green cars and trucks. And that would force other automakers to follow suit with their own green fleets, which is Gore's larger aim in life.

Democratic Gov. Jennifer Granholm also has a role in a potential Gore play for Chrysler. Other bidders for Chrysler just want to make money, and probably further hurt Michigan's economy by slashing thousands more jobs.

A Gore-owned Chrysler could catapult Granholm's aim to make Michigan the nation's leader in alternative energy.

Granholm often says she'll "go anywhere and do anything" to find new jobs for Michigan. But tracking down fellow Democrat Gore should be easy: His number is probably stored in her cell phone.

BambinoBear
04-11-2007, 01:55 PM
He does kinda look like a used car salesman

BoredWithNoSB
04-11-2007, 01:56 PM
Wow. I actually like this idea. It puts the money where the mouth is and if he can do it, he'd shut up the close-minded auto execs who say it can't be done.

Sold.

IBC
04-11-2007, 01:57 PM
Wow. I actually like this idea. It puts the money where the mouth is and if he can do it, he'd shut up the close-minded auto execs who say it can't be done.

Sold.
Agreed. There is a reason our automakers have been in the dumps.

Vegas
04-11-2007, 02:00 PM
Agreed. There is a reason our automakers have been in the dumps.

I'm curious......what do you think that reason is?

IBC
04-11-2007, 02:05 PM
I'm curious......what do you think that reason is?

I think there is a perception, right or wrong, that we have refused to make efficient and quality cars. Couple that with lots of bad press in the past twenty years for not making the cars in America anymore. Those are some of the main issues with why people don't buy American.

I think the automakers have suffered from many retiring workers and current workers and the cost of healthcare and retirement.

BoredWithNoSB
04-11-2007, 02:08 PM
I'm curious......what do you think that reason is?

"It can't be done"- Ford Execs 1972-2007
"The government would bankrupt us by raising milage requirements"- NADA
"We're not going to make fuel efficient vehicles till the public demands them."-GM Execs 1976-2007

This American auto industry is the most non-dynamic, -non-forward looking industry ever. If not for huge barreiers to entry and economies of scale, each of the Big Three would have been gone long ago. Heck Chrysler wouldn't even research Hybriud until a couple years ago. My aunt (a Chrysler VP) claimed Deisel (like the Deisel Liverty) was a huge enviornmental step forward and would meet market demand for eco-friendly vehicles.

If they would just step forwad and say, "we're not going to react to the market, but we're going to create and define the market" they'd be way better off.

Vegas
04-11-2007, 02:21 PM
"It can't be done"- Ford Execs 1972-2007
"The government would bankrupt us by raising milage requirements"- NADA
"We're not going to make fuel efficient vehicles till the public demands them."-GM Execs 1976-2007

This American auto industry is the most non-dynamic, -non-forward looking industry ever. If not for huge barreiers to entry and economies of scale, each of the Big Three would have been gone long ago. Heck Chrysler wouldn't even research Hybriud until a couple years ago. My aunt (a Chrysler VP) claimed Deisel (like the Deisel Liverty) was a huge enviornmental step forward and would meet market demand for eco-friendly vehicles.

If they would just step forwad and say, "we're not going to react to the market, but we're going to create and define the market" they'd be way better off.

I remember the big 3 complaining about how meeting emission standards were impossible and Honda would meet the same requirements first followed by Toyota and then eventually everyone else.

In addition to the victim attitude they have often taken, they have tried to be all things to all people in regards to money. They caved in on wages (including the unionized workers, salaried workers, and executives), made too many promises to stockholders, and want to compete on prices in the world economy.

IBC
04-11-2007, 02:24 PM
I remember the big 3 complaining about how meeting emission standards were impossible and Honda would meet the same requirements first followed by Toyota and then eventually everyone else.

In addition to the victim attitude they have often taken, they have tried to be all things to all people in regards to money. They caved in on wages (including the unionized workers, salaried workers, and executives), made too many promises to stockholders, and want to compete on prices in the world economy.
The wage issues of this and other large American companies could be easily solved with a Universal Healthcare System.

Vegas
04-11-2007, 02:26 PM
The wage issues of this and other large American companies could be easily solved with a Universal Healthcare System.

Wages and benefits are separate issues. And the universal healthcare thing is another debate.

IBC
04-11-2007, 02:33 PM
Wages and benefits are separate issues. And the universal healthcare thing is another debate.
I don't think so. Many of the automakers say what is really hurting them is paying benefits. Wouldn't a Socialized healthcare System help that? Wouldn't it help small business?

Nixon's Head
04-11-2007, 02:37 PM
I'm curious......what do you think that reason is?Union workers who get at least fifty grand a year to sit, read newspapers and drink coffee.

LSU
04-11-2007, 03:36 PM
While great in theory, I don't think buying a huge automaker and converting it to green is the way to go, unfortunately. You need a small market maker to begin making them (or a small piece of the overall industry) to build up interest...get a few cars out the door and pimp them around the nation...then set up a few more dealerships or stock a few more on existing lots...

Can't forget that there's gotta be a place to fuel up, too...so the market would have to be based off of that...I don't see any biofuel stations around. Probably because there aren't many biofuel vehicles...which may be why there aren't many stations...wait, is this a circle?

Vegas
04-11-2007, 03:55 PM
I don't think so. Many of the automakers say what is really hurting them is paying benefits. Wouldn't a Socialized healthcare System help that? Wouldn't it help small business?

Most startup businesses don't pay for health care benefits, so the increased taxes that would come from a government run system would hurt them.

BoredWithNoSB
04-11-2007, 03:56 PM
I don't want to hear any more about this biofuel crap unless we get a large sugar cane industry in Nebraska, corn ethenol is pointless. I want hydrogen fuel cells, some sort of mini-nuke, or electric.

LSU
04-11-2007, 03:58 PM
I don't want to hear any more about this biofuel crap unless we get a large sugar cane industry in Nebraska, corn ethenol is pointless. I want hydrogen fuel cells, some sort of mini-nuke, or electric.


I meant biodiesel...the Willie Nelson fry fat stuff.