The Advantages and Pitfalls of Auto Bailouts
I’m (finally) working on my post on the Chevy Volt.
But before I do that, I want to lay out three data points–and point to some of the policy issues that still need resolved if we’re going to have a viable American auto industry.
The first is the excellent news that Obama has will announce really aggressive CAFE efficiency standards tomorrow [they’re not CAFE standards]–35.5 miles per gallon.
The Obama administration is set to announce tough standards for tailpipe emissions of carbon dioxide from new automobiles, establishing the first ever nationwide regulation for greenhouse gases.
It will also establish high fuel efficiency targets for new vehicles that would set a 35.5 mile per gallon average for new passenger vehicles and light trucks by 2016, four years earlier than required under the 2007 energy bill, sources close to the administration said.
The administration is embracing standards stringent enough to satisfy the state of California which has been fighting for a waiver from federal law so that it could set its own guidelines, sources said. Gov. Arnold Schwarzenegger (R-Calif.) will be among a variety of state and industry officials attending an announcement tomorrow, said sources close to the administration.
The compromise deal, which has been under negotiation since the first days of the administration, includes the White House, the state of California, and the automobile industry, which has long sought a single national emissions standard and has waged an expensive legal battle against the California waiver. The industry will get its single national standard, but at the price of one that approximates California’s targets.
Make no mistake–this is a huge bump in gas efficiency and will have a big impact on our gasoline use.
But I suspect Obama’s announcement came with a trade off–and perhaps not the right trade off. As David Sirota and others have reported, GM’s current recovery plans have quietly included plans to import their Chevy Spark (that green thing above) from China.
GM expects to sell about 17,300 China-made vehicles in the United States in 2011 and to triple that to about 51,500 in 2014, according to a planning document that GM circulated among U.S. lawmakers. The document did not name models or say what their brands would be.
The plans are subject to change pending the outcome of negotiations with the UAW and already have drawn fire from lawmakers and others. If GM goes forward with the plan, it likely would become the first major automaker to ship Chinese cars to the United States.
The Chevy Spark is an increasingly popular in China, India, and is being exported from China to Peru (and is, I believe, what GM plans to assemble in the Russian factory it built last year). It’s an A car–a mini that will compete with the Toyota Yaris and the Fiat 500 once it comes to the US.
But it’s also assembled in the interior of China, with dirt cheap labor.
Now, these two events are fundamentally tied together. No one–not even Toyota or Honda–can make a car this small profitably in the United States. Want 35.5 MPG in the auto fleet in this country? You’ve got a couple of options: cede the market to companies like Toyota and Honda, which can import small cars from cheap labor countries, and resign yourself to US manufacturers becoming increasingly uncompetitive as gas prices inevitably rise. Find a way to make GM’s importation of such cars palatable. Or, put a steep tax on gasoline, to make it easier for manufacturers to charge more money for these cars (though even in Europe, where you’ve got similar conditions, manufacturers opt to make these cars in cheap labor places like Poland). I don’t know which option is best (I guess alternately, you could forbid any company from importing such small cars, even while increasingly requiring such cars to be made to meet CAFE standards). But those are the options.
It would help, of course, if we had single payer health care and a national pension plan, to make US assembled cars more competitive with foreign assembled cars. I don’t see that happening any time soon (and yes, the auto companies should be leading the push for this to happen, I agree).
Then there’s the other news, the huge numbers of auto dealers being closed by GM and Chrysler–a total of roughly 2000 dealers in all, each employing about 50 people. Observers and members of Congress claim to be surprised by this news, but they shouldn’t be. The Big 2.5 have been talking about shedding dealers since November. I predicted a Chrysler-Fiat deal would bring about the closure of 990 dealers (which I guess means I still expect another 100 or so to close, beyond those that have already been listed for closure). And frankly, I don’t see much option to this, if the Big 2.5 are going to become more competitive (in fact, I expect that the GM and Chrysler closures will, for the first time in a while, give them big advantages over Ford).
I’ve worked with dealers around the country, and every one of them complains about the same-brand dealer a short distance away (often just a mile or a few miles). Those dealers are always caught in bidding wars with each other, which has the effect of driving prices down and diminishing the perceived value of the vehicles themselves. Honda and Toyota don’t have this problem because the overwhelming majority of their dealers were opened after the time when it made sense to have a car dealer in every town. And they have far fewer dealers anyway, even though Toyota matches GM’s volume. And because Honda and Toyota can sell more cars per dealer, they can invest money in things like good service and new service bays.
Now, like I said, I can’t imagine any alternative to closing dealers (though I pointed out in November that Congress could have chosen to deal with dealers, which might have led to a politically more palatable solution, yet Congress completely refused to consider doing anything with dealers in its attempted bailout). The only thing that might have prevented this is a restriction on dealer size, making all dealers uncompetitive–and I can’t see anyone advocating that.
Still, that doesn’t diminish the pain. The people whose dealers are closing–many of them–have been in this business for generations. They’re leading businessmen in local communities. And somewhere (I have lost the link), I read that car dealers generate about 16% of all ad dollars, in any given ad market (so this is going to hurt newspapers and so on).
Obama’s auto bailout has not entirely ignored dealers. By freeing up credit to auto finance companies (like GMAC), the Administration was basically freeing up the credit that makes the dealers tick. And he made small business loans available to them too. But the price for this, I suspect the auto task force would say, is in requiring that dealers be viable before getting additional loans from the taxpayers.
Tomorrow I’ll have my Volt post (some good news about an American car company!). But for now, here’s the state of play.
Thanks, Marcy
It’s astonishing that you’re keeping on top of this in addition to your torture-related work.
We were talking about heros last night on LateLate, and we all agreed that you top our list. So in the same spirit as adding the middle name “hussein” in support of candidate Obama (remember that?), some of us will sign off:
Funny Wheelie Diva
A couple of additional thoughts occur to me:
1. While mini-mobiles, like the GM Spark, the Toyota Yaris, and the Fiat 500 may help meet the new CAFE standards, they will also likely increase car insurance costs and medical insurance costs given the mini-mobiles inherent low ratings in the “crashability” tests. Growth in the funeral home and cemetery plot businesses are likely outcome too.
2. EW wrote:
And it’s not just newspapers either. From TelevisionBroadcast:
All excellent points !
I think Obama’s central idea for raising CAFE standards is to push for hybrids, Plug- ins & EVs.
We’ll get safer vehicles and help the environment.
BTW Marcy, I’m one of the many Car Buffs who eagerly await the Volt post(s).
Did they let you drive the Camaro from Transformers too ? *g*
Not the one from Transformers. But mr. ew got to drive a pretty Camaro after I drove teh Volt.
*sigh* … if they make it in Convertible, I just might ignore my cerebral side and get one … even though I couldn’t drive it during our Winters.
The V6 gets 29 MPG.
Aye Caramba !
I’ll take mine in Flame Orange with the Black stripe running fore to aft.
Are you sure you don’t want it equipped with fur Tiger? LOL!
ROFL !!! Anything but black interior … makes a Convertible unbearable …
Here ya go Petro!
LMAO … et tu, bmaz ?
I saw an artist’s concept of the Convertible in Orange with a Black stripe (on Jalopnik, I think) and it looked very good.
Yeah, please note that will be about 23-25 in town with a normal human driving. Still, not bad for a car that size with 300 horsepower.
Petrocelli’s in Canada.
Isn’t all driving in Canada highway driving?
That or offroad driving (deliberately or otherwise). *g*
Just about, although the Cops are giving stiff fines now for going over 90 mph.
Just did the Buffalo to Detroit route. They put up new signs, telling you when you lose your license, didn’t they?
Yep and they’re not kidding.
Automatic suspension and vehicle gets impounded for going 30 miles over the speed limit.
Well, yeah, if everyone else is driving a Suburban. But if you could get lots of people in the Sparks and 500s, then they wouldn’t necessarily be devastated by being hit by a tank.
And of course, there will be fewer and fewer Hummers on the road.
Like now, you mean? Yup! *g*
That’s partially true too! But even if everyone was driving a mini, the current “crashability” tests show, if I am remembering correctly, that minis consistently suffer more damage (as do their occupants) at the same speed than do the bigger model autos.
And please note, I’m one of those yahoos who gives the finger or curses under my breath everytime I encounter Denalis, Yukons, Expeditions, etc.
I guess what I’m saying is that I’d be a bigger supporter (and I do support them now) of mini-mobiles if the manufacturers weren’t just reinventing the Ford Pinto or Chevy Vega, and instead spent more effort on designing safety into the minis.
Given the manufacturers’ past history, I guess I shouldn’t be surprised that safety design lags other design aspects like mileage, appearance, etc.
So what’s the deal with Treasury indecision about whether the ex-CEO of Chrysler (or do I mean GM?) will get his $20M golden parachute?
Bob in HI
Yes, you do mean Rick Wagoner of GM.
Haven’t looked closely, but it likely has to do with getting agreements from the people to avoid BK, on what gets counted as a pension. Just a guess.
In keeping with the topic of this post (and near future ones EW has in mind specifically on the Volt), this is an interesting article today from Bloomberg News:
I would look at this news item as an attempt by Toyota to push competition away from developing Plug- ins, in very much the same way that I believe GM has tried to do.
We have become the Plug- in generation, from Laptops to Phones to Shavers to Mowers … Plug- in vehicles will be a natural extension of this culture.
What will decide the success of PHEVs are ease of recharging, range and safety … earlier Li- ion Batteries burst into flames. If that happens to even one Plug- in, the entire idea will get mothballed for 10 years, perhaps forever.
You talk about the Spark, whatever happened to the Volt??
My post on it? I went into the archives (still have to post a bunch from that) and then to visit family, and then had to catch up. I’m caught up. The pix are loaded. And I felt like I had to do this post before I did that one.
Here are two short articles from people who also got the test drive.
I drove the silver one.
Approx. 20 years ago we went to Europe to take my family to my homeland. Three adults and two teenagers plus two weeks luggage. We rented a Renault Nevada wagon with a 2.2 litre motor. We drove all over the Netherlands, Germany and Denmark in those two weeks. We filled up twice, the second time when we returned the car. Excellent mileage and quality of vehicle. 30+ mpg.
Why can’t we do it here? BTW. We actually did 200 kph on the Autobahn.
The makers over here need a lesson from Europe.
And if we had the gas prices here that the Europeans do there, we’d all be driving much smaller and more efficient cars.
We be dinosaurs and don’t even know it.
I love the mini Cooper and since being a 33 yr flight crew that flew France alot ..it is my favorite car..for many many years..I just love that adorable car..
A dear friend who plays golf with my hubby owns a BMW?MINI COOPER dealership..so last spring my husband was going to buy me a mini cooper..our friend who owns the dealership ..would not sell us one..he gave me the speech he gave his own wife..no..it is not safe to drive on our roads as they exist today.
He said ..get hit head on and kiss your rear end goodbye!
This is the man who owned the dealership!
He told my husband he refused to sell us one, and that he will not allow anyone in his own family to drive one.
He said get rid of the big SUV’s and big semi trucks on our roads, like they have in Europe..maybe , but that is not what exists today here in the USA.
I too like smaller cars, but I wouldn’t want to be leading the pack in getting one (I drive a Camry) until a whole lot of those existing monster vehicles are safely in the junkyard.
There is nothing at all wrong with small foreign cars.
As long as they say Porsche and 911 on them.
Nothing at all wrong with my 66 chevy longbed fleetside with a nice 350, bbl, 3 on the floor!
Yes indeedy! *g*
When I was in the military a couple decades ago, a shipmate of mine let me have his 911 for a week while he went on vacation.
I was stationed in Long Beach, CA. then and man, I did my best to blast from one end of LA to the other at the speed of sound for that entire week.
Similarly, another shipmate of mine who owned a Camaro Z28, went on vacation for a week, and also lent me his car. Vroooom, vroooom!
I really enjoyed the “muscle” of that Camaro, but I liked that 911 better because it was as slick as greased lightening.
Reminds me of a blonde joke.
Seems this young blonde decided to make some money for herself doing odd jobs around the neighborhood. Went up to a house and asked if there was any work she could do. Guy said, yeah, the porch needs to be painted and asks how much. Blonde says 50 bucks. Guy says paint and brushes are in the garage, goes inside and tells wife. Wife says did you tell her the porch goes all the way around the house? About 3 hours later young blonde knocks on door and says: “I’m done, gave it 2 coats and had paint left over. Oh, and by the way, it’s not a Porsche, it’s a Lexus.”
No vehicle will survive head on with a semi (or even a side-swipe). But you’re right about the SUV’s and Hummers. But wasn’t there a report a few years back about how those tended to flip and hydroplane?
Yeah, here’s where I have mixed feelings. My wife has a Toyota SUV that we drive when we’re in So. Calif. One night we were tooling around, all innocent-like, and wife had stopped in the left turn lane on a major street when we were violently creamed from behind by a speeding Honda. We were stunned, but unhurt, as the speeding car backed up and took off without so much as a “Sorry, Ma’am,” leaving behind one headlight, the hood ornament (plastered neatly against the Toyota’s rear bumper, leaving a discernible “H” impression), and several other pieces of the Honda’s front end.
Evidently the Honda was still driveable, because it sped away. Eyewitnesses said the car was driven by a young lady, attended by a young man in the passenger seat. I have no idea what happened to them, or their mangled car. Our Toyota, however, was barely scratched– no discernible damage at all, except for the impression of the “H” on the back bumper.
I hate to think what might happen if, with my Ford Focus, I back-ended someone at that speed.
Bob in HI
My buddies who bought those exp. European Toys are fuming, or then hopping over to Buffalo to buy v. exp. radar detectors, which are also illegal up here.
LOL … Touche !
12 of those Sparkies could fit inside a 1968 Bonneville Brougham. My 1968 copy of Cream’s Wheels of Fire got better than 35.5 and it’s still going strong. I learned in a ‘56 Bel-Air (2 4bbls!). Electric won’t be the kind of transformer like automatic transmission and power steering – or financing and leasing. Volt may not be a winning name: Appalachian English says ‘Voltswagon’ for Volkswagen. Impala was a great name. The 1996 Impala SS is a great work of art.
EW, I don’t know if you saw this article from the Cleveland Plain Dealer last week (I’m guessing klynn may have as she resides in Ohio), but it is an interesting read:
Chrysler, Obama take the truth about plant closings for a spin
Yup. I’m with those who believe anyone who thought no plants would be closed are idiots.
And also with those who think that if the Administration or Nardelli claimed no job losses, they lied.
And this is interesting, given Granholm’s apparent candidacy for SCOTUS.
Sounded like Jennifer was more than a wee bit desirous of having the wool pulled over her eyes.
I don’t know whether you Michiganeers are rooting for Jennifer’s departure, but SCOTUS might be a stretch for the rest of us. *g*
Shorter Michigan Gov. Jennifer Granholm: “If you tell me you love me, I’m all yours!”
She isn’t ready for the Supremes, and she won’t get selected. And that was before Conyers started punking her.
“…policy issue that still need resolved…”
I’ve never seen you use Ohio Valley dialect before. Cool.
Or ‘Lotus’ and ‘Elise’.
Of course, there’s greater stratification (and not just competition) at the low end: the Ka/500 platform is entry-level, and so you have it built out in Poland, but the Fiesta is made in Germany. VW have the Group A platform for the Golf/Rabbit, but they make SEATs in Spain and Skodas in the Czech Republic that are cheaper and less trimmy, but fundamentally the same car — or the Audi A3 if you have more money than sense.
I’m surprised, though, that GM is prepared to go straight to China for its small cars instead of looking to Brazil for the low end. Easier to get speedy collision/CAFE approval? No difference? (I remember that the Top Gear crowd hated the Daewoo Matiz, which is the Spark out of its disguise…)
That’s where they started assembling these cars.
Plus, I’m not sure they own the car outright. It’s a subpartnership with SAIC, but SAIC has the majority stake (and Wulin, which I think is in charge of assembly, give the Chinese the biggest stake).
Plus, if they can make $2000 profit on these things (using Chinese interior labor rates, which are unreal cheap), then they can sell the Volt cheaper. (Mind you, I’m not endorsing this view, just suggesting what their thinking might be).
If I were UAW (which is rightfully squawking bc of this proposal) I’d push for Mexican assembly of the car, and then organize the hell out of those factories.
My other Chrysler was a Fiat
MY permanent records reflect my previous ownership of a Fiat 850 Spyder. It had a seven gallon gas tank and a 903cc engine. Two seats and a convertible top. I could almost stretch my arm out the window and touch the ground it was so low. Guess I won’t be the one complaining about how unsafe these latter day econoboxes are. At least they got airbags.
Enjoy.
this is a big mistake and talk about states rights, that is one of them by the wayside right there
if a state wants to regulate higher efficiency and polution standards there’s no reason what so ever the government should stop them
then if the auto manufacturer can’t accomodate those standards they simply don’t go into that market
this is simple stuff and obama gave away the farm
I remember playing monopoly, one day one of my friends said, “I’ll let you start with 9/10ths of the bank but I get all the property”
of course nobody took him up on the deal because starting out with alot but not being able to negotiate more leaves you with nothing
the volt?
how about “the locust”
in more ways than one.
Peru, single overhead cam 900 cc motor, $8,500. Spark as it was known in 2008 in VE. In our neighborhood, local hiway gendarme revenue drought in these constrained times has led to the purchase of the lucrative Lidar, an optical radar which sound frequencies scanners fail to detect. Watsa matta drive 90 mph to the airport, jeeshhhh, then they are gone. or was the name translated as Chevy Snark,
The folks in auto-producing states are seeing the auto industry shrink in the same way the tobacco producing and processing industry shriveled. And yes, the cigarette retailers and wholesalers, the farmers, the political-bases, and the smokers, and black-marketers and all the rest. It is not a perfect parallel, but the auto industry is contracting and adjusting fitfully just like tobacco.
You may say that, bmaz.
But you know how Obama likes him some HLS folks. And trust me, he does like Granholm, against all the odds.
Grr. One part of our rebuilding America’s auto industry is to import a cheap car from China. We can Walmart GM. Build ‘em cheap in China, sell them to an American population struggling to live due to the loss of manufacturing jobs. Who end up working for cheap at Walmart. And this is supposed to rebuild our economic base. Forget swine flu. We are infected with Teh Stupid.
True. But until you can solve the “build a small efficient car profitably” problem, that’s gonna happen. How would you solve that problem?
That is the essential nub of the problem!
We’ve been living at the top of the heap for so long that nobody here can imagine wanting to take a lower seat, much less having to take a lower seat.
And we seemingly are still unwilling to buy into the solutions that our European and Japanese peers have already discovered and implemented wrt to health care costs, more appropriate gas pricing/taxing, smaller, more efficient vehicles, etc.
As I said earlier in this post, we be dinosaurs and don’t even know it.
I dunno how to solve the problem of designing a good, solid, efficient, well-built car made in the US with competitive pricing to the imports.
This is exactly our problem, same as socks: I can have socks made in China that will sell in Walmart for $2 less than if I make ‘em in North Carolina. What to do?
1) Tariff everything until it’s priced to meet the cost of manufacturing in a union plant in the States. That’s protectionism and is absolutely forbidden to even talk about these days. Still…do radically challenging times call for radical steps?
2) Create new technologies that allow for manufacturing so efficient that it brings us to a new price point that meets the challenges of cheap overseas labor. This is a huge challenge–Chinese manufacturing engineers are at least as good as ours. And their labor is cheap.
3) Create innovative solutions through the active use of government that reduce the effective cost of domestic employment in manufacturing: single-payer health care, government support for bringing manufacturing back on-shore (sort of a reverse tariff), and…here’s where we have to get creative.
4) All of the above. If we had a fully-engaged government-private sector partnership to solve the well-defined challenge of producing a superior product at a competitive price–to rebuild our manufacturing industries as our primary goal–could we do it? I don’t see why not. It’s worth a try.
Idealism. Isn’t it great? But why not? Why couldn’t we throw our assumptions out the window and start fresh?
So you’ve built small cars efficiently. But you’ve also put our last and biggest manufacturing industry out of work (see bullet #2).
So now what do you do with those high school grads who just lost their middle class jobs?
Damn. Good point. “Highly efficient” means less people.
Which may mean higher-level jobs with retraining. Maybe not as many, but still a lot of good jobs that support the community far better than the situation in many towns and cities that are losing or have lost most of the local manufacturing plants to Chinese factories.
On a side note, I believe our high school grads are lost in the weeds due to structured undereducation. Some how we’ve built a system that needs–and provides–underperformers with lower level of knowledge to allow the upper middle and ruling classes to keep their positions in our society. Nothing new, but still…it’s friggin 2009! We’re supposed to have rocket cars by now and a condo on Mars!
Where’s My Jetpack?
i have no idea how to assess the problem, but higher efficiency standards, which invariably rely on small cars to meet those standards,
mean more deaths and more injuries for families each year.
neither the auto industry nor the obama administration have done away with the problem of superior mass moving thru space.
i suspect, but don’t know for sure, that rapid rises in fuel standards mean someone will have to pay the price of death in a small auto – a random game essentially for all of us – and for our children and grandchildren.
on the other hand, raising standards steadily over a relatively short time, say a decade, would leave time for technology to intervene in this certain but uncertain game.
i would suggest that if the fuel efficiency standards are going to rise this rapidly, almost certainly requiring small cars to meet those standards), then the auto safety standards (if such even exist) should be required to rise just as rapidly – as should govt (and corporate) money for scientific and engineering research.
the <3000 deaths in sept 11, 2001 got big press – is still getting big press.
the 40K+ americans who die in autos each year (>3k per month) get none but local press. and as a collectivity of the dead, get no press at all.
in public health terms, to this death toll must be added debilitating and hugely expensive injuries – spines, heads, legs/knees/ankles.
american politics – it’s all about who pays, absent determinedly caring policy making?
i’m not sure i understand why people are saying that fuel efficient cars need to be really small. i drive a prius and get 47-48 mpg without trying. it’s not really small.
You are correct, but only “relatively” so. *g*
The “big is better” drunken passion that drove millions of Americans to buy those monster SUVs like the Yukon, Tahoe, Expedition, Excursion, etc. is where relativity went out the door.
greenwarrior
We were talking about overall profitability and efficiency.
The Prius counts as a C car–way smaller than the vast majority of cars in the US. So in fact it is small. And it has only been profitable for a few years, and that made not in the US. So your raising the Prius supports my point. It is 1) vastly smaller than the fleet average and 2) has been very long in turning a profit, even made outside of the US 3) much more expensive than all but 10% or so of consumers are willing to pay for efficiency.
okay. thanks. i believe i understand that better now.
and, for the record, the then-boyfriend’s 911 porsche i drove while i was in college, was my favorite car evah. i dearly loved driving those s curves out of the city. new york city traffic not so much.
O/T, or mortgages update
Mortgage fraud bill goes to Obama to sign
By ANNE FLAHERTY, Associated Press Writer – 1 hr 29 mins ago
“WASHINGTON – Congress on Monday sent the president a bill to clamp down on mortgage fraud and set up a $5 million independent commission to investigate the cause of the worldwide financial meltdown.
“President Barack Obama is expected to sign the legislation, which received broad bipartisan support.
. . .
“The commission will focus on more than 20 areas, including how the government failed to protect investors and the role financial fraud may have played in the meltdown. The group would report its findings by Dec. 15, 2010.”
http://news.yahoo.com/s/ap/200…..meltdown_1
That would be, what, 5 weeks after a national election, and a week or so before Christmas? Hmmm.
Bob in HI
Well, hey, we get a report. You think we should get million dollar bonuses? Or maybe, even, just a break?
It’s really disgusting, isn’t it?
(My Bold)
$5 million sounds like chump change. The banksters regularly drop that much for a night out with the boyz.
See # 71.
Any safe car can get 30-40 mpg and much better, and last and last for 20 years and half a million miles, and be fuel/energy-flexible, but it would cost more than $40K to buy. Since the Model T, cars have driven us crazy, and most of the worst auto issues are emotional and mental. It’s a free country, do what you want.
And totally OT, but an interesting article in ConsortiumNews by Ray McGovern today:
under interrogation
the operative words. how hard would it be for a man in powell’s position to figure out the worth of that “information”?
Given Powell’s own Vietnam War experiences as a junior officer, one would think he’d personally know the likely falsity of coercive wartime “interrogations” of prisoners.
Should’ve known better than to buy that bs.
Perhaps he should have known better about My Lai, too. Just sayin’.
I better get my hands on a Mustang before the new standards make them unworkable.
Bill Hicks was onto something, California should fall into the ocean…
With the economy that we have today some people chose to ride on their bicycle or walk on the way to their work. It is very economical if we are going to do so and this could help us to be physically fit. Because of the crisis that we are facing more and more people today are thinking of ways in where they could save their money. There are also some people who find it hard to meet their ends that’s why some of them would often rely for financial aids like credit card. Unfortunately some lending companies are luring their consumers to debt trap. At last, the CRL takes a stance with what resembles a common sense approach; a call to action regarding something to do with the problem. (Now we have to deal with the horsemen, the rain of fire, and the end of days.) The CRL, or Center for Responsible Lending, has taken aim at credit cards by sponsoring HR 627, or the Credit Card Accountability Responsibility and Disclosure Act of 2009. The Credit CARD Act, as it’s called, could ensure more fairness in how card companies deal with customers, and limit things like hidden fees and retroactive interest rate increases. President Obama is on board. The CRL not going after installment loans and targeting an actual predatory lender – it’s about time.