Another Automobile Bailout

(00:00.534)

The automakers are getting bailed out again. It’s funny, I had, yeah, I got getting popular with the trolls. You know, on internet trolls out there and they post all sorts of nasty stuff and someone was commenting on the auto bailouts and I didn’t know what I was talking about. Right, right. Anyway, I’ve got another auto bailout for you. Wait for it, taxpayers. That’s right. Biden administration is going to be making up, making up $12 billion available to retrofit facilities to bake both EVs and hybrids. That’s right, 10 billion from a U.S. Energy Department loan, an additional 3.5 billion in financing to expand domestic battery manufacturing. Again, it’s funny, it’s because they’re pushing for EVs. They’re pushing for EVs,

when you’re, the manufacturing of electric vehicles is less labor intensive. And that’s not good for, again, one of the big contributors to the donkeys that is the United Auto Workers. They’re none too happy about this. In fact, they haven’t even come out and endorsed, they will, they haven’t even come out and endorsed Joe Biden for the presidency. And again, they may go on strike. They’re looking to go on strike within the next week or two.

So the United Auto Workers has argued that the shift to EVs are going to cost the industry union jobs. And taxpayer money, again, you and I, we go out, we pay for our cars, we do what we need to do. But now we’ve got to have our tax dollars that are going to be sent to the automakers to keep workers on that they’re not going to need.

Again, I keep thinking of Paulie Walnuts in his sopranos there with his little laughter. Hehehehe. Sitting outside, sitting outside some sort of New Jersey works project. What was that? Was it a museum of science and trucking on the soprano? Something like that. Anyway, it’s going to get a lot of people there. A lot of people, a lot of auto workers are going to be sitting around doing nothing, getting paid, sunning themselves like Paulie Walnuts. Anyway, have you actually even seen that UAW?

(02:27.214)

contract, 46% wage increases, raises over the next four years, 32 hour work weeks even though you’re getting paid for 40.

(02:45.054)

Anyway, again, this is the bailout business. It is a cash grab. And again, you know, this.

They’re going to have to pay off the automakers, give them this money so they can keep these workers on, so they can continue the gravy train. Not to mention the fact that, you know, this whole EV business is not doing too well. Actually had a story here out of Europe. The EU’s pledge to ban the sale of new gasoline and diesel cars and vans from 2035 poses an imminent risk to Europe’s car manufacturers.

BMW Mercedes are coming out saying, we’re not going to win this price war with Chinese competitors, just not gonna happen and our companies are gonna go under.

(03:44.05)

That great? Yeah, you force them to make cars that they cannot make money on. Isn’t that wonderful when governments do stuff like that? Again, even Tesla right now. Take a look at the price decreases in Tesla’s. Tesla’s crushing the other EV manufacturers because they’re way ahead of the game and they’re able to lower costs. And they are hitting right now all of these electric car manufacturers.

Anyway, another story as well. Just in time for Labor Day, the White House said Thursday that it will offer $12 billion to help automakers retool their plants for electric vehicles. Car makers planning to build more EVs can apply for loans and grants from the energy department. But the scoring system comes with this big labor catch. The program gives preference to projects that are likely to retain collective bargaining agreements.

This means that this EV transition has done what? It’s lost more jobs than it creates. This is a subsidy for union jobs that might be lost in the transition to EVs. The numbers here, each EV can be built with 30% fewer workers in a gas-powered car. And yes, many of these new plants are being opened up in right-to-work states such as Tennessee and Georgia and are currently union-free.

And again, union jobs are going to be lost in the gas powered auto assembly as the auto companies make fewer to meet federal and California EV mandates. I give you government involvement in the economy. Again, your electricity prices are going up as well. Because all of these solar farms, large offshore wind developers.

are losing their shirt. New York State Energy Research and Development Authority, NICERDA, there’s an acronym for you, NICERDA. Large offshore wind developers are asking for an average 48% price adjustment in their contracts to cover rising costs. The Alliance for Clean Energy New York is also requesting an average 64% increase on 86 solar and wind projects.

(06:13.954)

The Inflation Reduction Act includes federal tax credits that can offset 50% of a project’s costs. But renewable developers say their costs are increasing faster than inflation and that the projects will not be economically viable and would be unable to proceed to construction and operation under their existing pricing. When I hear the phrase, not economically viable.

You know what I hear? I hear Gordon Gekko saying, you either get it right or you get eliminated. If you’re not economically viable, then you should be gone. You should go to business. You shouldn’t exist. Do you understand? You are an island of Dr. Moreau, mutation on the overall economy. Okay, you are COVID generated in the Wuhan lab as far as the economy is concerned. You are…

We, in essence, we are unleashing COVID companies and the overall economy. And you get all these green energy developers. It’s Russia’s fault. Come on. No, no, no. When the government demands things, again, it’s just a government getting involved in the free market, okay?

when you mandate things, when you subsidize things, what do you do? Okay, you raise the cost of all of this nonsense. The only way, because you get all of these people, the climate people out there, yes, the prices for wind and solar have come down, it’s cheaper than fossil fuels. No, it’s not. And one more time, unless you’re getting, unless you take away the government subsidies and the tax credits,

and the zero interest rates that they pay because they’re getting Department of Energy grants, no, they’re not cheaper. On a level playing field, they wouldn’t be here. Watchdog on wallstreet.com.