My Thoughts on the GM Bailout

General Motors CorporationImage via WikipediaI simply don't like the idea of our government bailing out GM. I personally know a lot of people who would be affected if the big auto maker went under, but I also know a lot of those people are capable of doing other things. Yes, it would be messy, horrible, and have a really negative impact but from my vantage point it seems wrong.

However, if a bailout does happen I think every executive in GM must go. They created the mess and have not proved that they can fix it. As 'they' say, "A new broom sweeps clean". Also, unions have to go. Workers have to work to keep their jobs and not be entitled to one because they have been there for so long. Perhaps we'll then see GM cars start performing better against other auto makers. Take pride in the company - not the union.

I'm just putting down my thoughts....what are yours?
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6 comments:

  1. I went to JD Power to check on the "quality" of the 2008 cars. They report the ranking by nameplate:

    1. Porsche
    2. Infiniti
    3. Lexus
    4. Toyota
    5. Mercury
    6. Honda
    7. Ford
    8. Jaguar
    9. Audi
    10. Cadillac
    11. Chevrolet
    12. Hyundai
    13. Pontiac
    14. Lincoln
    15. Buick
    16. Acura
    17. Kia
    18. Nissan
    19. Volvo
    20. BMW
    21. GMC
    22. Mazda
    23. Volkswagen
    24. HUMMER
    25. Subaru
    26. Scion
    27. Dodge
    28. Chrysler
    29. Mitsubishi
    30. SAAB
    31. Suzuki
    32. Saturn
    33. Land Rover
    34. MINI
    35. Jeep

    If you take out the luxury cars, the list would look like this:

    1. Toyota
    2. Mercury
    3. Honda
    4. Ford
    5. Chevrolet
    6. Hyundai
    7. Pontiac
    8. Buick
    9. Acura
    10.Kia

    5 of the top ten name plates are US branded plates, with a Ford product as #2 and GM having 3 of the top 10.

    It looks like the pride is there.

    Certainly legacy costs do contribute to the Big 3's costs. But then these were contracts agreed to by the automakers and the workers. Contracts are promises. If you were hired by GM 30+ years ago and you were promised certain things, shouldn't those promises be lived up to?

    Perhaps the major problem is perception vs reality of the quality of the US nameplates.

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  2. Interesting....How do sales compare?

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  3. A lot has changed, but I did find this for January, 08. rank and units

    1. Toyota Camry: 31,601
    2. Honda Accord: 23,957
    3. Nissan Altima: 21,635
    4. Honda Civic: 20,993
    5. Toyota Corolla: 20,736
    6. Chevrolet Impala: 17,544
    7. Chevrolet Cobalt: 17,310
    8. Chevrolet Malibu: 14,105
    9. Pontiac G6: 13,942
    10. Ford Focus: 11,600

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  4. Ah...this must be the list that shaped the view and opinions of the consumers. Thanks for the info.

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  5. Quality doesn't mean appeal. Fact is the American car makers aren't making cars American's want to buy at the price they are selling them.

    While quality has indeed gone up, there is still a stigma on the big 3 due to quality issues in the 80's and 90's. And those quality issues point squarely at the UAW.

    And the UAW is nothing but a drain on the automakers and provides little benefit to it's members. If it was such a good deal why can't they get the Japanese factories in the US to unionize?

    And finally the reason the UAW is such a drain is because the state and federal gov'ts have legislated a strangle hold on the manufacturers. Unions are all bad per se, but power corrupts and the Unions have been given rediculous amounts of power over management by the legislators who sold their votes to the very union that benefits from their legislation.

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  6. I meant "Unions AREN'T all bad"... and I even edited.

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