In the old Soviet Union, factories were measured not by the quality of what they produced, but by the quantity. With the state economy organized under Gosplan production targets, a successful factory was one that met its quota — not whether the product it produced was desired by consumers. Television assembly plants, for example, would rush out worthless televisions at the end of a production period lacking crucial parts just to meet quota.
Goodbye, Gosplan. Hello, Obamaplan.
With the recession and $2-a-gallon gas, hybrid car sales have tanked this year, with sales falling at a greater rate than gas-powered vehicles (-44 percent vs. -36 percent). Ford’s Escape and Mariner hybrid sales, for example, are down 33 percent compared to 12 percent for conventional model sales.
Consumers don’t want them, but Washington pols demand them. Regardless of market conditions, President Obama has determined hybrids are the car of the future. So on April 9, the Obama administration announced that it is buying 17,600 fuel efficient vehicles from Detroit’s Big Three by June 1, using $285 million from the $787 billion stimulus bill. April’s quota order is 2,500 hybrid sedans. Total 2008 hybrid sales for GM and Ford (Chrysler offers no hybrids) amounted to 34,000 units.
While $285 million is pocket change in this age of trillion-dollar deficits, it is worth noting that the bill should be a lot less — since hybrids typically cost $5,000 more per vehicle than the gas-powered cars, a premium that will not be made back from fuel savings. For example, a 30-mpg Chevy Malibu hybrid costs $4,000 more than the27.5 mpg gas-powered model, meaning it would take 20 years to make up the gas savings even at $4 a gallon.
“You know the truth,” the president fibbed. “It will . . . save the government significant money over time.”
Michigan lawmakers, however, were clear that the government buying program is all about producing products that guarantee jobs and meet government demands.
“The federal government’s purchase of thousands of hybrids and other fuel efficient vehicles from the Big Three shows that our domestic auto industry will weather this current crisis and build the cars of the future,” said Rep. Sander Levin (D., Mich.).
Your tax dollars at work. Happy April 15.






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