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Automobile industry

Bailout Blues: A Critical Look at the Automotive Industry and Congressional Intervention

Strategic Insights

— 2 min read

The debate over congressional intervention in the automotive industry has been heating up, with some arguing that the bailout is necessary to save thousands of jobs and regional economies. However, a recent article in Consumer Reports magazine suggests that such intervention may not be warranted, particularly for companies like Chrysler that have struggled to produce cars that meet consumer expectations. Meanwhile, New Jersey lawmakers are pushing for a clean energy bill that would require all new state buildings to be built with solar or geothermal energy systems, and a sentencing hearing is set for a former real estate executive who defrauded the federal government of $2.3 million.

Key Takeaways:

  • Consumer Reports' latest issue ranks Honda, Subaru, and Toyota as the top three automobile brands, with Mazda, Mercedes, Nissan, Volkswagen, BMW, and Hyundai following closely behind.
  • The Detroit Big Three, including Ford, General Motors, and Chrysler, scored significantly lower, with Ford ranking 12th, General Motors 14th, and Chrysler a distant 15th.
  • A recent interview with Michael Sirota, co-chairman of the bankruptcy department at Cole Schotz Meisel Forman & Leonard PA, suggests that the government's bailout of General Motors has come without a permanent fix to its balance sheet and legacy costs.
  • New Jersey lawmakers are pushing for a clean energy bill that would require all new state buildings to be built with solar or geothermal energy systems, but this bill does not extend to high-profile projects like Xanadu and the new Giants and Jets stadium.
  • A sentencing hearing is set for Joe Greenblatt, a former real estate executive who has admitted to defrauding the federal government of $2.3 million.

Statistics:

  • 95% of Hondas tested by Consumer Reports received a recommendation, while only 17% of General Motors models and none made by Chrysler received a recommendation.
  • $2.3 million: the amount fraudulently obtained by Joe Greenblatt from the federal government.
  • 38 months: the amount of time Joe Greenblatt has been in jail awaiting sentencing.
  • 3-9 years: the sentence a Brooklyn judge imposed on Joe Greenblatt three years ago.
  • 63 points: the ranking of Ford among 15 brands in Consumer Reports' latest issue.
  • 57 points: the ranking of General Motors among 15 brands in Consumer Reports' latest issue.
  • 48 points: the ranking of Chrysler among 15 brands in Consumer Reports' latest issue.

Sources:

  • Consumer Reports magazine, April issue
  • The Record newspaper, Mar. 18
  • Cole Schotz Meisel Forman & Leonard PA
  • New Jersey Legislature
  • Manhattan DA's office
  • Bergen County Prosecutor's Office
  • McClatchy-Tribune Information Services
  • The Permissions Group Inc.

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