In communist economic theory – which is fast becoming general economic practice in America – there is something called the labor theory of value. It mean (Borat voice) that how much work you put into something determines how much it’s worth. Thus, the digging of holes – and the filling of them back in – is very valuable, indeed.
The same kind of “value” manifests in electric cars.
Stellantis CEO Carlos Tavaras tried to explain this the other day when he told journalists that component suppliers for the electric cars that Chrysler, Dodge, Ram, Jeep and all the other other brands of cars under the Stellantis umbrella are being forced to build must help “absorb” the costs of doing so. He points to the heavy “investment” in electric cars – which is costing Stellantis and every other car company being forced to build electric cars huge losses not being offset by profits made selling the electric cars they’re all being forced to build.
“It’s not because we’re the bad cop,” Tavares said. It’s because we see the magnitude of the challenge.” Indeed. Like making money by giving it away.
That’s a challenge, too.
The industry trade publication Automotive News quotes Tavaras as saying that “Stellantis and it suppliers are in this EV journey together . . . and the sooner they find opportunities to reduce and absorb costs the better . . . Stellantis is already aggressively pursuing ways to save money with new language in its North America (contract terms) that directs suppliers to pass on any savings they achieve” to Stellantis.
In order to help offset the losses incurred by building electric cars.
“They may not like the fact that we are too frank or transparent,” Tavares goes on . . . about the costs of losing money, building vehicles without a profit margin (arghh! that word!) “ . . . but in a way, they should be expressing some gratitude for the fact that we are giving the wake-up call early enough for them to prepare for it.”
Sergio Marchionne – the former head of what is now Stellantis (and was FCA, or Fiat Chrysler) is spinning at redline in his grave. Marchionne – as opposed to Marx – understood that you have to make money in order to make money.
He encouraged people to not buy the overpriced, under-performing electric cars the company he oversaw were forced to build in consequence of “complying” with the “zero emissions” regulations used by governments around the world as a very effective de facto ban directed at every car that’s not an electric car. He knew that people want to buy – could afford to buy – cars like the Charger and Challenger, Jeeps and Ram trucks. Not electric cars that cost more than most people can afford and which for that reason it makes no sense to build.
It is like insisting that home builders put triple-pane Pella casement windows, radiant floor heating and solar roofing in (and on) every new home – irrespective of people’s ability to afford such a home.
Of course, it’ll be very green (the outside of red) when half or more of the people currently driving aren’t – because they no longer can afford to.
Which by now ought to be obviously the point of all of this – just as the forced wearing of “masks” was meant to lead to the forcing of Jabs. As this contrived fiasco in Ukraine is meant to distract people’s attention from all of that – and those responsible for all of it.
You want “zero emissions” for real – as opposed to the play-pretending that two-ton EVs with half a ton of batteries aren’t “emitting” anything because they emit it elsewhere? Force people out of the driver’s seat and onto their feet. Pedal power is affordable.
And very “clean,” too.
This is what comes of buying into the green (red) agenda, which Tavares appears to have done. Do you want “to fix the global warming issue or not,” he says. “Are you sincere about bringing your fair share to fix the global warming issue”?
Italicized to emphasize another talking point familiar to those familiar with Marx and his doctrines. What you’re allowed to keep – and what you’re obliged to give away. From each according to his ability, to each according to his need.
“If you don’t want to face this reality, then I cannot help you because I will have to find a solution for my company.”
That would be earning money – by offering people cars they want and can afford to buy. But you’d have to read Adam Smith or Von Mises – rather than Marx – to know about that.
. . .
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