Too Small to Fail

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Now that President Obama is running Government Motors, he will have free reign to direct the automaker to produce vehicles that will be smaller, less comfortable, less safe, with smaller driving range and less load-carrying capacity. I call them No-Utility Vehicles, or NUVs.

I foresee a much smaller market for these NUVs, which in spite of being less useful will be more expensive to make, especially with Obama in charge of setting excessive wages in order to satisfy his union voting base.

No matter, according to a recent article in the Arizona Republic, “The federal government considers a transit system to be cost-efficient if it recovers a quarter of its operating expenses from fares.” So we can probably expect Government Motors to be happy to collect purchase prices of NUVs at a quarter of the cost to manufacture them. At that price they may find sufficient buyers for them, and GM will be deemed cost-efficient.

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