Who Is to Blame For GM's Collapse? All of Us

November 21, 2008

It’s great that Chinese companies may want to buy Chrysler or GM. That’s how the free enterprise system works. Companies are priced at a fair market value in public exchanges (if they’re publicly held) and then anyone with the cash can buy them, just like any products are bought and sold a la Adam Smith. IBM was able to unload its no-longer viable personal computer business to Chinese investors. It’s a great way to get money back into the hands of American businesses and investors. And as John Dodge pointed out on his Facebook page, GM has a capitalization of only $1.35 billion at current stock prices. GM has a large product development center in China and Buick is one of the top-selling brands in China. Most importantly, a Chinese buyout of GM or Chrysler saves US taxpayers a lot of cash.

Divestiture of assets to foreign investors is not a great long-term strategy, however. Our weak financial situation is a result of years of deficit spending and a bulging federal debt. If you’re mad about General Motors going bust—don’t be mad at me. Be mad at your own spending and voting patterns.

Posted by Doug Smock on November 21, 2008 | Comments (5)

December 3, 2008

In response to: Who Is to Blame For GM's Collapse? All of Us
MSimon commented:

Congress passes mandates on the auto companies. The companies must come up with the cash to fulfill them. In other words the auto companies have been taxed to death.

Take air bags as one example: 95% of the safety improvements from $1,000 air bags could have been obtained from 4 to 6 $10 seat belts. And guess what? If you are not wearing your seat belts air bags don\’t work so good.

Or how about the demise of the station wagon and the rise of the SUV? Station wagons were low mileage \”cars\”. SUVs were even lower mileage \”trucks\”. CAFE put station wagons off the market.

We have idiots in congress. And the folks who vote for the most \”environmental\” Congressional clowns? Don\’t even get me started.

December 3, 2008

In response to: Who Is to Blame For GM's Collapse? All of Us
JW commented:

Where is the UAW? Why aren\’t they on their knees asking to keep their jobs? Figure they think their union contibutions to Obama will buy them a bailout with out giving anything up. What a load of crap.

November 25, 2008

In response to: Who Is to Blame For GM's Collapse? All of Us
FLRP commented:

Made in America? I just shopped for a new car and the american content of Toyota and Honda cars was 3 times the content of Ford and Chevy. In this past month, Ford spent 20 or 30 million dollars in Wales and increased the number of workers in that plant by a substantial amount. Engines for Europe? American dollars? How many jobs in the US are being created by \”foriegn\” cars?

November 21, 2008

In response to: Who Is to Blame For GM's Collapse? All of Us
JERRY commented:

A self inflicted wound.

GM has mis-managed its business for many years.

There should be no tax payer infusion of cash without pre conditions. The only way to insure that is to force them into chapter 11 reorganization.The present management cannot be trusted to spearhead a workable turnaround to include cost reductions in wages and benefits,from both Management and the labor Unions. Agreeing to labor demands that could not be sustained is one of the major reasons they are in this mess.

According to the president of the UAW, there will be no more concessions from the union. This kind of arrogance can only be addressed by a bankruptcy judge. It has never,(and never will be) dealt with by the current management.

There-in lies much of the problem.

Chapter 11 will change many attitudes, and that is much needed. GET ON WITH IT.

November 21, 2008

In response to: Who Is to Blame For GM's Collapse? All of Us
gmspud commented:

hello thats all well and good.but what the #### ever happened to good old AMERICAN MADE PROUD!!! who will buy all this foreign @@@@ when america has become truly a SERVICE ONLY nation.i do work for GM and we do need to change the way we do things to get better butthe public views must also change.the big 3 make just as good a vehicle as anyone!there is nooo pride in MADE IN AMERICA anymore.AMERICA in this mans view needs to start taking care or AMERICANS and not worry about everone else before its too late for AMERICA.THANK YOU

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