Buy UnAmerican!
Despite the US Government dumping $50B into a company that is too big to fail, GM is filing for bankruptcy. I would think that $50B was to, you know, pay your bills so you wouldn’t go bankrupt. And the best part is the .gov is going to shell out another $30B.
June 1st, 2009 at 10:17 am
If ever you needed a reason to buy a Ford…the American consumer needs to reward the only member of the Big 3 that isn’t going to the taxpayers with their hands out begging for forgiveness and a big fat check.
June 1st, 2009 at 10:23 am
I drive a ford now.
June 1st, 2009 at 11:14 am
It’s okay the New GM (NGM?) is going to start building small, fuel efficient cars in one of the idled factories. Nothing like depending on your weakest, least profitable product that you are least known for to turn you around.
On the one hand the government is going to help them become a viable entity again by making cars no one wants, on the other hand, the government is working to destroy their only market, i.e., large trucks and SUVs as well big cars. If that isn’t and example of clear government central planning, I don’t know what is
June 1st, 2009 at 11:17 am
The government was not putting that money into the car company, it was paying off a bit of debt to the car company’s lenders. Bank stock pricess are well above their lows of March….
This takeover apparently was done to assure the United Auto Workers would get a better deal than a court would give them.
It is the Chicago way. Laws don’t apply to political cronies.
June 1st, 2009 at 11:52 am
I drive an F350 now…but wanted a Z06 for my next fun car when the economy and my finances are a bit more liquid…I just can’t justify spending $40K on a toy anytime soon, but I do really like the Vettes…but my anti-GM bug just got worse.
Too bad I can’t afford a Ford GT :).
And Mikee is probably right, the bailout was a lot more about bailing out the people holding the bag than GM itself. The only issue I would raise is that it isn’t just the Chicago way…it’s the American way. Pols bailing out their cronies wasn’t new when Burr shot Hamilton, it certainly isn’t new now.
June 1st, 2009 at 1:18 pm
Are you f’in kidding me?!? If they take another $30 billion I can guarantee that neither I or anyone in my family will ever own a GM car again. This has gone well beyond ridiculous.
June 1st, 2009 at 1:29 pm
If GM is soon ‘owned’ by the .gov, I would think that (in normal circumstances, whatever those are these days) that a case could be made that the full weight of the .gov, along with its resources (our tax dollars) could be brought to bear to bring a product to market which would have an unfair advantage against its domestic competitors. By virtue of ‘seemingly unlimited’ financial resources, mind you, couldn’t this be seen as a conspiracy to create a monopoly or cornering a market by squeezing competitors?
Seeing as this is wrong on so many levels, I guess I’m just poking around in woodpiles when I have better things to do.
Regards,
Rabbit.
June 1st, 2009 at 2:22 pm
Hey Unc…The .gov has given $20 billion already and is giving $30 billion more for a grand total of $50 billion, not $80 billion as you imply. (Just pointing out an error in fact, not justifying whats happened).
JKB..the SUV market tanked when oil prices went through the roof which lead to the problems of the Big 3. On the other hand, sales of fuel efficient cars went through the roof. People only wanted SUVs when gas was cheap and the economy was good. It was the same mistake the Big 3 made during the 70s oil shock and the Japanese auto makers ate their lunch..seems they didn’t learn from their mistake then.
June 1st, 2009 at 3:58 pm
Manish, that’s not _entirely_ fair. Gasoline prices have a tighter turning radius than manufacturers the size of the big 3 do… Given the lead time for manufacturing changes, how do you respond to a change in gas prices that takes just a couple of months to manifest and lasts for less than a year (roughly speaking)? The last gas spike wasn’t like the OPEC embargo during the ’70s.
June 1st, 2009 at 5:25 pm
John..its called capitalism and it tends not to be fair, though it does tend to support the “fittest”. If you can’t make a product that consumers want you generally go out of business unless you are the Big 3 in which case you get government aid.
The Japanese automakers somehow managed to sell SUVs and still have resources left over to develop hybrids. The Japanese automakers somehow had the foresight to think about what cars people will want to buy in the future that the Big 3 somehow lacked.
June 1st, 2009 at 5:42 pm
I can’t wait to see the effect on NASCAR, a very caucasian sport that is heavily supported by GM (as well as by Ford and Chrysler).
Under Obama’s rules, minority drivers (and there will be plenty) will probably get to start at the front on each re-start.
June 1st, 2009 at 7:11 pm
Yeah; I didn’t buy a Ford a few years ago because of any brand loyalty horsecrap. I’ve owned several brands in the past, both foreign and domestic. I bought a Ford because it was there, it fit all my requirements and the price was right. Now I’m sorta glad I have a Ford and not a GM or Chrysler product (though I have to admit to liking some of the GM and Chrysler designs).
Now I have to wonder when those designers are going to bail and start their own small company, or go to work for Harley Davidson or something. Do it, Guys– you’ll kick ass!
June 1st, 2009 at 8:06 pm
Well, I drive a wannabe Ford right now (a Mazda 3), but there is a Mustang Bullitt that has been taunting me for the past six months…