A U.S. Automobile Industry Bailout We Can Live With

The U.S. big three automobile makers General Motors, Ford, and Chrysler are asking got a $25 to $35 billion dollar bailout. If they are like AIG they will use this money for spa trips to Hawaii, incentives, which seem to be the same as bonuses but not much to help out the American middle or lower economic classes. It is another ploy from multi-millionaires trying to become billionaires.

Instead I am proposing a plan (called Steve's Plan) to make us all happy. Instead of giving the Auto executives $25 to $35 billion, give the middle and lower economic class only $10 billion in vouchers each good on a U.S. made GM, Ford or Chrysler car made before January 1, 2009. This would take the form of 100,000 - $10,000 vouchers given via the tax rolls to anyone over 18 years of age and with and income of less than 1 million dollars last year.

The automobile companies could only sell cars in stock as of January 1, 2009. There must be 100,000 vehicles available during that period, I am sure. There would be no vouchers for cars already purchased prior to December 25, 2008. In addition the Automobile dealerships must sell the automobiles at a discount price over Edmund's car price listings giving another $1,000 to $5,000 off the vehicle for a total discount with the voucher of $11,000 to $16,000.

Automobiles getting less than 23 MPG combined highway and city would not be eligible for the voucher program. Therefore the Automobile companies, the consumer and the environment would all benefit and the Auto industry would not need any further bailout. All this for 1/3 the bailout amount they are looking for so the government benefits too.

Vouchers would be distributed at random and can be sold for $3,000 maximum if the recipient doesn't want or need to buy a car. One person can only have 1 voucher (they cannot be combined) which must be used before the end of February 2009. State and local sales tax would be charged to prevent further worsening of the financial crisis in many States and Counties.

Based on a newspaper advertisement from the Washington Post, December 17, 2008 here are some of the deals you can get:

2009 Chevy Cobalt XFE - list $11,995 after voucher $1,995 plus tax and probably free after trade in

2009 Chevy Malibu LS or 2009 Impala LS - $5,995 and possibly free after trade in

2009 Ford Focus - Advertised $14,091 only $4,095 after voucher

2009 Ford Fusion - Advertised $18,135 only $8,135 after voucher and less if you have a trade in

2009 Ford Mustang - $19,995 and only $9.995 after voucher, less with trade in

PT Cruisers and many other models only $5,000 to $,9000 after voucher and trade in.

These are just a small example of Steve's Plan deals. Now isn't this better than The automobile industry's plan. I think so!

What are your thoughts?