Sunday, March 29, 2009

Nationalizing G.M.

Well not quite yet, but the CEO has been fired by Oboe himself.

No word yet as to who will be appointed to replace the departing Mr. Wagoner, but hopefully it will be someone with his taxes up to date, and no more than one or two outstanding warrants. Loyalty to the president a must. No actual knowledge of running a company required.

This bodes ill for Ford, who has taken no money from the government, and is still independent. A government-owned company has no need to show a profit as long as the grateful taxpayers pick up the losses. A for-profit company cannot compete with an outfit that can price its product as low as necessary to move its inventory.

This is an old story, best read in English History (recent) with regards to BSA motorcycles and British Leyland automobiles. In both cases the government bought up and nationalized the weakest company in the industry, and allowed it to drive its competition to bankruptcy until most of the industry operated under only two logos, British Leyland for the cars, and BSA-Norton-Villiers-Triumph-Cotton and probably a couple more at the end.


Brad K. said...

What gripes me about Barack Hussein Obama and his GM shenanigans - is the clear and obvious application of good old Chicago-style corruption - throw out the merchant, put your own thug in place.

I wouldn't worry about Chrysler - Remember Daimler-Benz bought them - and gave them back as a bad idea.

Did you get the GM "100,000 mile warranty?" As if that will reassure buyers someone will still be making parts for - let alone servicing - GM cars next year.

Billll said...

The guy who replaces Wagoner seems like a competent company man, which rather surprised me.
I, for one, do not believe that Obama gives the north end of a southbound rat if GM ever produces another car again, as long as all those UAW guys keep drawing fat paychecks, and kicking their percentage back to the Democratic party.
Your GM car is warrantied for 100,000 miles or to the end of Oboes term, whichever comes first.