Gm: Government Motors

[JAMESBJOHNSON]

Whats likely to happen now that US and Canada and the Union owns 85% of General Motors?

Will Congress let GM close plants and dealers?
Will Special Interests let GM build cars and trucks Americans want?
Will GM become another US Postal Service? You pay for Priority and get your car fixed next week?
Will car salesmen become government bureaucrats?
Will Obama build factories in China and Mexico?

 

[DesertPirate]

It will be worse than Amtrak

They will be forced to build litte "green" shitboxes that nobody wants. That will cause an even bigger sales slump and lessen the chance of it ever going private again.

 

[JAMESBJOHNSON]

Youre right.

I expect they'll build Cadillacs for Washington and the perfumed princes, but you wont be able to get one, a la Russia. My son-in-law was born and raised in Rumania. They had a government owned car company but average people couldnt buy a car because of limited production, cost, and red tape. Senior government officials had new cars and everyone else made do.

I'm not sure how GM will compete with FORD. But I expect the government to make special rules for FORD. I'll be surprised if GM has to pay any taxes since 85% of the company is owned by government and union.

Would you buy the Post Office? I dont see any legit company wanting GM once the bureaucrats, pols, special interests, and unions have their fun.

 

[jomar]

GM cars will be designed by committee.

 

[JAMESBJOHNSON]

JOMAR

They usually are committee work. But the new GM car committee will include Al Gore and Ralph Nader and Cindy Sheehan and Oprah and the Taliban.

 

[jomar]

JOMAR

They usually are committee work. But the new GM car committee will include Al Gore and Ralph Nader and Cindy Sheehan and Oprah and the Taliban.

As in, a camel is a horse designed by committee.

 

[JAMESBJOHNSON]

JOMAR

Yep. But a whole lot of silly people are about to find out from experience what they refuse to learn from example.

 

[JAMESBJOHNSON]

Looks like the Chinese bought HUMMER.

 

[amicus]

There is another aspect to consider...that of all government agencies from the Feds on down to city Police cars. Tens of thousands on order each year, ahm, from which car companies? Memory tells me over 200,000 cars each year are purchased by Government agencies...thas how GM will stay afloat, the government will subsidize GM by purchasing from them.

ami

 

[JAMESBJOHNSON]

AMICUS

Of course. And taxpayers will pay top dollar as the quality of the vehicles deteriorate.

India recently got rid of the same problem. One government car company made all the vehicles. They were ancient technology, junk, expensive, and you couldnt order one because the backlog was too long.

 

[trysail]

Stimulated by the message below, I made the mistake of opening the linked article. I started shaking my head and laughing when I saw the the kid's photograph and things only got worse thereafter.

The following came from a particularly acerbic (and bright) former colleague:

No personal offense meant, and nothing against this guy in principle or in particular, but is this really the resume you want in charge of the US auto industry? The profile makes clear that it's all about politics; and apparently nobody in the WH is paying any attention to economy, energy, or corporate management implications when it comes to playing games in the auto industry sandbox. These guys claim to have a plan to exit the industry in 5 years with a profit for the Treasury, while leaving a viable competitor in the market place? That conceit is prima facie evidence of a total lack of understanding of what ails the global industry,

NFW. Ain't gonna happen. Therefore you need to start making an alternative realistic plan now.

http://www.nytimes.com/2009/06/01/business/01deese.html

 

[jomar]

...
The following came from a particularly acerbic (and bright) former colleague:

No personal offense meant, and nothing against this guy in principle or in particular, but is this really the resume you want in charge of the US auto industry? The profile makes clear that it's all about politics; and apparently nobody in the WH is paying any attention to economy, energy, or corporate management implications when it comes to playing games in the auto industry sandbox. These guys claim to have a plan to exit the industry in 5 years with a profit for the Treasury, while leaving a viable competitor in the market place? That conceit is prima facie evidence of a total lack of understanding of what ails the global industry,

NFW. Ain't gonna happen. Therefore you need to start making an alternative realistic plan now.

http://www.nytimes.com/2009/06/01/business/01deese.html

Yeah, I saw that article and had a WTF moment.

 

[DesertPirate]

The whole idea of our Government running a business is beyond belief. The most inefficient, wasteful, slow, and slothful crowd around? Bet it take 10 years to get the first new model approved.

and it won't sell!

This is going to be the biggest cluster fuck in the history of the world.

 

[man_4_milf]

Hmm.. not sure how the whole business will roll but for me, I am sure that freedom loving people everwhere should be concerned about such a direction.

 

[TE999]

Just in case you poor slobs out there want to keep your wasteful, non-PC, gas guzzlers; Unkle Sam hasn't forgotten you. I'm guessin' there'll be a tax on all vehicles over so many liters engine displacement, therefore if you don't want a government approved biofuel kiddy kar you'll pay the price.

Only elected officials and government drones will drive big cars, but they deserve it; after all they're smarter than the average peasant. They run your life don't they?

 

[JagFarlane]

Just in case you poor slobs out there want to keep your wasteful, non-PC, gas guzzlers; Unkle Sam hasn't forgotten you. I'm guessin' there'll be a tax on all vehicles over so many liters engine displacement, therefore if you don't want a government approved biofuel kiddy kar you'll pay the price.

Only elected officials and government drones will drive big cars, but they deserve it; after all they're smarter than the average peasant. They run your life don't they?

Erm there is already a gas guzzler tax out there...if memory serves correct the Dodge Challenger with its biggest engine qualifies for it. Its about $1500.

Well duh...they also give themselves pay raises for doing such a great job. While everyone else is getting canned, they cost the private citizen another $3.2mil just for themselves....yay.

 

[JAMESBJOHNSON]

Thats usually how it is. The pissants ride 4 in the cab of a city pickup, and the supervisor drives an SUV by hisself. The mayor has a limo and cuban driver.

 

[TE999]

Erm there is already a gas guzzler tax out there...if memory serves correct the Dodge Challenger with its biggest engine qualifies for it. Its about $1500.

Well duh...they also give themselves pay raises for doing such a great job. While everyone else is getting canned, they cost the private citizen another $3.2mil just for themselves....yay.

I copy on the Guzzler Tax...I'm guessin' the definition of 'guzzler' will drop to about 1.5 liters or so displacement...that nails about 97% of the vehicles now on the road...be the first on your block to drive a Tata.

Thats usually how it is. The pissants ride 4 in the cab of a city pickup, and the supervisor drives an SUV by hisself. The mayor has a limo and cuban driver.

Not to mention all the inspectors, coordinators, social workers and legions of petty bureaucrats driving solo in cars and SUV's on your dime.

 

[WRJames]

A couple of weeks ago I saw a Cadillac pickup truck. Any company capable of that deserves to go bankrupt.

Really, how much worse can the government do?

I worked for a very large corporation, and internally they are screwed in about the same ways as the socialist economies. Too many layers of management, and each layer lying up and down the line. Ideas stunted and destroyed as they get chewed up by the system.

The car company that is doing well is Subaru. They haven't over expanded, they make great cars, they're honest, and people are loyal to them.

 

[R. Richard]

Just in case you poor slobs out there want to keep your wasteful, non-PC, gas guzzlers; Unkle Sam hasn't forgotten you. I'm guessin' there'll be a tax on all vehicles over so many liters engine displacement, therefore if you don't want a government approved biofuel kiddy kar you'll pay the price.

Not necessarily! I drive a 1957 Porsche Speedster with a modified VW engine. Said VW engine is supposedly 1600 CCs in displacement. My 'kiddy kar' will outrun most US cars if the road isn't in a straight line.

 

[TE999]

A couple of weeks ago I saw a Cadillac pickup truck. Any company capable of that deserves to go bankrupt.

Really, how much worse can the government do?

I worked for a very large corporation, and internally they are screwed in about the same ways as the socialist economies. Too many layers of management, and each layer lying up and down the line. Ideas stunted and destroyed as they get chewed up by the system.

The car company that is doing well is Subaru. They haven't over expanded, they make great cars, they're honest, and people are loyal to them.

Subie's are well made and tough vehicles. Havin' the combo of All Wheel Drive and that Boxter-style flat four makes it the ideal transport in any weather and over any ground short of the Rubicon Trail.

If I didn't have my truck, I'd consider one for myself.

 

[TE999]

Not necessarily! I drive a 1957 Porsche Speedster with a modified VW engine. Said VW engine is supposedly 1600 CCs in displacement. My 'kiddy kar' will outrun most US cars if the road isn't in a straight line.

I wasn't referring to vehicular performance per se, rather to a vehicles size. A small car is more likely to wind up in the junk yard in a collision with anything bigger. And what about 18 wheelers? They aren't gonna shrink.

 

[JAMESBJOHNSON]

A couple of weeks ago I saw a Cadillac pickup truck. Any company capable of that deserves to go bankrupt.

Really, how much worse can the government do?

I worked for a very large corporation, and internally they are screwed in about the same ways as the socialist economies. Too many layers of management, and each layer lying up and down the line. Ideas stunted and destroyed as they get chewed up by the system.

The car company that is doing well is Subaru. They haven't over expanded, they make great cars, they're honest, and people are loyal to them.

Excellent point.

Private companies are nuthin to write home about. And before taxpayers became responsible for them, they came and went. Now we're stuck with them.

 

[ishtat]

America does have a future in the motor industry. It's called Toyota, Honda Mazda, Subaru - the people who make good products that customers want.

GM will go the same way that British Leyland did 30 years ago . They will go broke, but very very slowly, at enormous expense to taxpayers.

 

[JAMESBJOHNSON]

ISHTAT

Exactly. This is GMs and UAWs funeral.