Ford started this planning two years ago, and if the government would simply let the weaker guys (ie, those that played fat dumb and happy for the past three years) fail, Ford would be the big winner.

I’ve been in the retail management sector of the auto business for 18+ years, so I’ve seen the ups and downs up close, and have a grasp of what works and what doesn’t. Moving iron cures many ills, point blank, and here’s the best way to utilize government funds to stimulate the market. In fact, you should pass it along to the key players for consideration.

We know that Congress is willing to go along with some form of spending to help out, originally expecting the amount to be about $25B. They just can’t agree on how it should be utilized for best results. Well let’s look at it from a macro sales point of view. As stated above, in recent years about 16 million new cars/light trucks would be retailed. At an average transaction price of $25000/unit, that would total about $400B in gross sales dollars(pardon the loose math). This would mean at a national average sales tax rate of 5%, approximately $20B would be collected by the states in sales tax revenue. If, beginning in January of 2009 for a period of one year, sales tax on new cars were waived to consumers, the federal government could reimburse the states the amount they normally would collect from buyers (up to the $20B). The states would still receive their funds, consumers would respond extremely positively to the notion of not giving money to the government, banks would be in a better position to approve the loans with no sales tax financed in the deal, and the consumers along with the auto companies both get a stimulus package that costs less than the $25B that has been discussed already. Much more bang for for the bailout buck, so to speak. And most importantly, the national focus (media) would be on something other than the doom and gloom so prevalent now. This will work as the best solution on all fronts.

Similar programs already work extremely well in states like Tennessee where they sponsor a tax-free day just before school starts for families to buy anything related to school preparation. Businesses do very well on those days, and it’s the consumers driving the success through more spending.

Give me your thoughts on the viability of a program like this at jeffmays7@hotmail.com

I am in the new car business and I guarantee you that they do not have a clue. Few businesses are so regulated by governmental agencies — from the Consumer Product Safety Commission on up to the IRS. In between we have OSHA, the EPA, EEOC,NHTSA, and all the agencies that regulate lending, financing,etc. Even the window sticker on a car is regulated. And that doesn’t include the state agencies. But does anyone even have a total picture of what the business model involves — the answer is a resounding NO! Our dealership foresaw problems back in 2006 and as a result we have been restructuring constantly for two years and have more to do. And it has been tough. But we don’t have enterprise partners who are standing in the way of it with legions of lawyers like GM, Ford, and Chrysler will face. Imagine the UAW, the vendors, the suppliers, the sub-contractors, the lenders, and the shareholders with their lawyers all trying to influence the nuts-and-bolts of a realistic turn-around plan. It is simply not going to happen. And if a plan even makes it to paper, it will be “Obamacized”, that is it will say everything and mean nothing and they will be back at the table for more. I can believe the Administration, Congress, and the Senate all can fool themselves to believing something can be done. After all — most are lawyers and are good at persuasion including persuading themselves something is what it is not. Prepare to open your wallets permanently.

Gov’t exists in permanent crisis mode now. That’s the only way it can get away with stealing from the taxpayers in the name of saving them from a worse calamity.

What so many don’t want to accept is the fact that gov’t stealing causes greater calamities down the road. Keynes tried to justify gov’t stealing, called it investment. I just hope at some point we’ll all point out that the emperor has no clothes and tell gov’t to stop spending, give it back to the citizens, let us take care of business and our neighbor. We’ll do it. And we’ll do it better and more effectively than the gov’t could ever hope to do. Alas, though, I’m a realist. I don’t expect the general populace to point out the naked emperor in my lifetime.

The distribution system is already in place (for some) and installation of the appropriate system in homes would not be that difficult nor would converting most gasoline powered cars. Now, how do we pay for it. Simple, federal grant to individual owners through their respective natural gas suppliers.

Besides natural gas is here and not over there. It’s cheaper to use and not as polluting as gasoline. As a side benefit your gasoline powered vehicle will run cleaner maybe resulting in longer life an less maintenance.