Wednesday, November 19, 2008

No Government Loans for GM

The US considers subsidies by foreign governments to be unfair trade. I think a loan to GM fits in the same category and shouldn't be done. If we loan GM the billions they want, then they could still fail and we'd lose all. So instead of giving GM a loan, let the market decide what happens. And if necessary use the money to protect the pension plans and health care benefits of the workers.

I have no problem with GM Europe. Vauxhall and Opel are fine (they have such little in common with their American parent that perhaps they could thrive better on their own?). However, GM North America builds (mostly) tacky cars for people who don't know what a good car is like, or who can't get a car loan anywhere else.

And now GM NA sales figures are on a slide. Why is that? Let's ask GM president Bob Lutz (known in the industry as "Maximum Bob"). According to Maximum Bob it's not GM's fault that their cars and trucks are so poor. He says they were just building the cars and trucks that Americans wanted to buy. So Bob, that means that GM's problems were caused by the people who bought your cars and trucks? Bob, are you acknowledging both the poor quality of your cars and your contempt for the people who buy them?

At first it will be difficult for Americans to accept the demise of GM. But I think they can adjust to driving Toyotas and Hyundais instead of Chevrolets. They adjusted to watching Sony televisions instead of Zeniths. And they just elected a black man for president after 43 white men. They will adjust.

Categories:Cars Politics

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