GM: Turned Into Fail by the Gubbermint

Well, it finally happened.  GM files for Bankruptcy and is now owned  by the messiah SPENDULUS MAXIMUS and his minions.  But what does this mean for you and me?  CNS News has an insightful article found here.

GM filed for bankruptcy Monday, as the administration announced a Treasury-financed plan to push the 100-year-old American company into government possession. Under the plan, the U.S. will own 60 percent of the company; Canada will own 12 percent; unions 17.5 percent — and bondholders will receive 10 percent of the pie.

Between 60 to 90 days after GM’s bankruptcy, the administration said it expects a rapid sale process that will permit a better and smaller company to surface.

However, economists and consumers are united in saying that a government-owned GM will mean bad news for consumers making them less likely to purchase a car made by the reorganized company.

“Public institutions or public enterprises tend to focus less on customer service, tend to focus less on innovation, and tend to focus less on continual improvements in their goods and services,” said Niels Veldhuis, senior economist at the Fraser Institute, a Canadian organization that promotes free markets.

Well said.  But don’t forget that there is a political agenda involved as well.  They will be making small, low margin, cars…cars that you will NOT want to buy!

It is pretty well know that small cars usually don’t create profit for the companies.  It’s the larger cars and trucks/SUV’s that make the money.  Concentrating on smaller cars will make it more difficult for the “new” government approved GM and Chrysler survive.  That, combined with all the new equipment and technology needed to meet the messiah’s new CAFÉ standards, these new small cars will be even more expensive.  In then end, you’ll end up paying more, for less and less.

“I would expect that, yes, you will see a drop off in terms of consumers buying the product, not for emotional reasons, but rather to reasons that are attributable to how public enterprises are ran and that is there is a lack of focus on the consumer,” he added.

THEY COULD CARE LESS ABOUT THE CONSUMER!  THIS IS AGENDA DRIVEN!!!

Dan Ikenson, associate director of the Center for Trade Policy Studies at the libertarian Cato institute, said that, on the surface, given the fact that the U.S. government will have a stake in GM, consumers could have an incentive to buy from the company.

“There is going to be less availability of bigger cars, there is going to be much more emphasis on cars that Americans have traditionally not wanted to purchase,” Ikenson said.

The government, Ikenson said, is going to make it easier for consumers to purchase unwanted cars “by subsidizing them.”

BWUHAHAHAHAHAHAHAHAHAHA!  The messiah will subsidize this junk to satisfy their move to get everyone to drive these sub-compact nightmares that will be low quality and deadly in crashes!

But Ikenson also pointed out that, given the amount of money the government has invested; the new government-owned GM will hinder competition.

“My concern is that we are less likely to see robust competition in the auto sector because the government has such a stake in GM now,” Ikenson told CNSNews.com.

“It’s going to be more likely to invoke policies that sort of tilt the playing field in GM’s direction,” he added.

Ikenson predicts that competition will be affected because the government may impose policies that “hamstring” the competition by raising prices of non-GM automobiles.

Ah, the agenda is revealed!  Take over GM and Chrysler, have them make subcompact junk, subsidize this junk, put pressure on the other automakers to make the same kind of junk, or fail – and get taken over by the government too!!!

However, Ikenson points out, “There will be fewer alternatives for consumers who just want to purchase GM products.”

WANT an SUV?  NEED a truck?  DESIRE a car that will “bend” speed limits?  Too FREAKIN’ BAD FOR YOU!  The messiah SPENDULUS MAXIMUS and his minions will be deciding what kind of vehicles you can buy.  Your opinion is irrelevant!

James Gattuso, senior research fellow in regulatory policy at The Heritage Foundation’s Thomas A. Roe Institute for Economic Policy Studies, agreed that a federally owned GM is bad for consumers.

“It’s bad news for consumers in two senses, first as taxpayers by having $30 billion of risk as their money is invested in GM,” Gattuso told CNSNews.com.

“But more important directly as consumers, there is real concern that General Motors now will be run with a political agenda,” he added. “Consumers will lose if General Motors in effect becomes another Postal Service.”

I was thinking more like Amtrac.  Leaks money like a sieve, and provides less and less.

Well, here it comes.  They take over industries, CALL IT SOMETHING ELSE, and destroy customer choice .  They’re closing more dealerships too, which will mean less selection, and poor service.  They are going to make cars that are small, that people do not want, and will do it on our dime.  This is about control, nothing more.  They want us all in “sustainable villages,” riding bicycles anyway.  This is just another step in that process.

BTW, How ya likin that change?