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-- next big story.
Is the government subsidizing jobs at all and -- plants.
General Motors and you've got to go to look at it off fighting over plans to import more cars and clothes US factories.
John Stahl covers all -- -- the Wall Street Journal he's a frequent guest on this program.
This looks pretty bad John looks like the wick closing plants in America getting borrowing costs to come in all of a government subsidy isn't as -- event.
I think a lot of this has to do it GM and trying to rebalance its portfolio.
And and really this being part of a longer term plan that's been in place for a while an urgent planned for GM to be able to divert diversify -- these cars come from one of the problems at the General Motors Ford and Chrysler management teams have had for decades as being too locked in.
The US and North American manufacturing not being able to pull levers and other markets win win currency fluctuations happened to -- and starts to shift when demand -- it's it's a small cars for instance here in the US last year.
The American automakers are definitely caught flat footed because he didn't have the same.
Capabilities to Poland vehicles from overseas.
That their foreign rivals did so a lot of this has to do it.
Whether or not these guys compete globally competitive and global supply base the media obviously the devious sub point here is the UAW.
Risks losing more jobs because of this strategy.
-- John stay right after a moment please could not go breaking news on the auto business listen to this job.
We have corporate average fuel efficiency standards that's the cafe standards they're going to be changed tomorrow we understand President Obama we understand set to announce that cafe standards and other was how many miles -- gallon.
Cause we'll get on -- fuel on.
A fleet -- average.
That's those new standards are set to be announced tomorrow but of course as companies struggle to.
To figure out exactly what caused the bill.
John -- you'll still with me you'll bats presumably these the cap based on will be raised you got to build cars that get more miles per gallon.
Again this plays to the government telling Detroit walk on accounts to make.
And then a lot of moving this is the end game in Washington headed there tomorrow to discuss exactly this with people in it inside Washington.
That the end game here is to try to find a way to what Obama in the administration.
Feel is the solution for the American automobile industry which are more fuel efficient cars for too long.
The Detroit up and auto makers have been at least blamed as part of the problem bigger gas guzzling vehicles that make a lot of money but don't make lot of very good gas mileage.
By raising the rules you're simply sending a message that this is this is really what would Obama want to see of long term question is going to be.
Whether or not this is -- coupled with funding.
To help support the auto makers actually.
Build -- real to -- retool plants develop them the automobiles that would help -- meet these mandates and it is essentially the government is telling Detroit no more suvs.
They'll build them.
Because you can't conform to cafe standards -- we're not gonna pay for it the government would he is telling Detroit what caused the Mike.
Again I think this has been going on other governments for for quite a long time.
That's stricter emission standards in Europe who you know I have often been cited as why the Europeans have more balanced product portfolios and had shied away from trucks and suvs.
That it's a question of whether or not this will stick I mean.
In in an era of low gas prices even mention that that deference that the 230 when a gallon that's really not a lot of money compared to what.
You know they're paying overseas is that the consumer will continue demand big you -- vehicles like yes you be the pick up truck.
The crossover as long as gas prices remain.
Pretty -- so you can mandate.
Certain product line the question is -- -- are you gonna help find it.
-- is it actually -- -- and need to consumer where they're demand isn't as of right now still an overwhelming portion of the of the the American car buying public wants these trucks and suvs tenacity more than just mandates to get it done I think they're gonna go to the Toyota -- built in the United States of America that's a big I suspect that's -- they gonna -- but -- thought they were out of time.
Come back and -- against their will love just off on the auto industry.
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