Comments on: Government Motors: Why It Will Fail

By: Bellvue

Bellvue — Wed, 30 Dec 2009 02:47:45 +0000

I say we mandate everyone buy a “green GM” car every four years. That will keep all the GM employees employed, isn’t that how things work in Europe? I just adore all things Europe. sarcasm off.

By: Eben

Eben — Tue, 29 Dec 2009 16:06:51 +0000

I have driven about a million miles to date, but most of them on non-GM cars, since about a 70’s Pontiac station wagon with the lowest factory purchased original equipment defective tires, blew out while towing a small travel trailer. The tires were used up prior to the recall, cost GM nothing, and I never bought another GM car. I would not even now buy a Pontiac or Saturn at a 46% discount. Sometimes you get what you pay for.

By: GM Plans Pontiac/Saturn Fire Sale | The Freeman | Ideas On Liberty

GM Plans Pontiac/Saturn Fire Sale | The Freeman | Ideas On Liberty — Tue, 29 Dec 2009 14:43:39 +0000

[...] Timely Classic: “Government Motors: Why it Will Fail” by William [...]

By: David J

David J — Tue, 16 Jun 2009 20:36:28 +0000

<i>hmmm…did the Feds have anything to due with either of those?;) </i>

I can hear a resounding \\"hell yeah!\\"

Anything, and I mean ANYTHING, that Uncle Sam touches eventually rots. I think it has something to do with not turning a profit. Oh sure, they can \\"create jobs\\" by slapping a few extra coats of paint on some federal building, and the \\"employed\\" will be better off for it, but at what expense? The government doesn\\\’t make any money off of doing that, so it only piles on public debt (assuming taxation doesn\\\’t change to compensate the additional expense). Enter the auto industry. Now we\\\’re going to have a defunct company that will be kept afloat by the government, by tax revenues, by you and me. But are we true \\"shareholders\\" or owners of the company like the mainstream media would like us to think? No. Enter Keynes\\\’ moronic \\"pyramid\\" analogy…

They should have let GM fail and stand as a lesson to other auto companies: watch your bottom line, streamline your processes, and listen to consumers.

By: David

David — Mon, 15 Jun 2009 13:31:22 +0000

There has not been a “free market” for U.S. automobile manufacturers for years. The Feds have enacted ridiculous laws and onerous regulations i.e. CAFE standards, domestic content stickers etc. as well as creating monopolistic labor unions who strongarmed the manufacturers while enjoying protection by the Feds. I find it laughable that the domestics are being criticized for building trucks and SUV’s. Most people don’t know that the U.S. government applies a 25% tariff to imported trucks….so now they have created an artificial advantage and demand for the domestic automakers to build trucks and SUV’s. Really now, what did they expect them to do? The problems of today have many causes, not the least of which was the perfect storm of skyrocketing fuel prices then the collaspe of the credit markets (hmmm…did the Feds have anything to due with either of those?;) Certainly, management shares the blame but interference in free markets by the meddlers had more than a little to do with the current situation

There are always the seen and the unseen. Look deeply.

By: Nick Woodson

Nick Woodson — Fri, 12 Jun 2009 20:09:53 +0000

I find that argument absurd bordering on irrelevant. Real socialist countries li
like France, Italy and Germany produce cars that are sold the world over and
purchased by people who actually want them.

The real problem with Chrysler was always their failure to achieve a
successful global marketing position. The company was almost exclusively
isolated to the North American market. Even during their joint venture period
with Simca and their control of Mitsubishi their foreign market share never
expanded.

GM simply built too many brands in an attempt to adapt to too many markets.
That in itself was wasteful. Marketing under different brands on each
continent was expensive and really irrational: Opel, Vauxhall in Britian,
Isuzu, Kia, Hyundai in Asia, Holden in Australia. Different models and some-
times different tech for each subsidiary can add up.

Regardless of what labor does, those are management decisions. Lack of
unified leadership, decision-making and marketing as well as mismanagement of
human resources have led to the near demise of the U.S. auto industry and many
companies that are tied to it. Saab (GM), Volvo (Ford) and others are
suffering because of their relationships with the U.S. automakers, but the
rest of the industry is suffering because of the global downturn as well.

It is time for U.S. business leaders to adapt to a truly global marketplace
where they have to compete against agile companies that respond to consumer
needs and tastes quickly. Dependence on government support must be considered i
in the context of international competition, i.e. industrial policy a la the
rest of the industrialized world. Most of all U.S. consumers must adjust to
paying market-driven prices (read: higher) if they expect to eliminate
subsidies based on price support and government contracts.

The current system has been in place for over 75 years. It can not be dis-
manteled in a year or two and certainly the world economy will take time to
absorb the losses that will be sustained in such an adjustment.

By: David Spellman

David Spellman — Fri, 12 Jun 2009 00:45:17 +0000

The government has ways of making you buy their cars.