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December 1st, 2009
11:16 AM
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stupendous advocate text
I just want to thank the children of America
For providing us with $4500 towards our shiny new car.

Of course it will cost you much more than $4500 when you have to pay back the federal debt, with interest.

Still, I'm sure we kept someone employed. Even though the work was already done to make the car. And the dealers already had them. Though a lot of extra work had to be done to make sure the vehicles involved qualified for the voucher.

So yeah, we kept some finance managers up late. :D

Anyway, we bought a Saturn. (Suck it, Obama! I'll never buy a Ford even after you force Chrysler and GM out of the domestic auto business!)

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us flag
I have seen the future
And the future of selling cars in America will be better. Certainly better than the old ways.

I predict that Penske's model for the Saturn distribution network will eventually be the way that all new cars are sold in the US. Instead of dealers being tied to one manufacturer you will instead see distribution networks that work with manufacturers all over the world and only sell the models they wish to sell and on far more even terms than the today's beholden dealers endure.

The bankruptcy process has shown dealers in the US that they are not worth anything to the manufacturers and that their loyalty has not been reciprocated.

Certainly automakers will resist the change but the smart dealer will dig in their heels and leave them with the choice of selling the cars themselves via direct sales or working with dealers as equal partners. Some manufacturers, especially niche marketers, will chose the direct sales route but that is a win-win situation. Niche markets do little for a dealer who must devote considerable resources to each car line sold.

The car selling process has been an oddity for a quite a while now. The retail sector long ago transformed itself into a network where many suppliers bid to provide lower-cost items to the retails to sell. If the auto industry had undergone the same sort of process decades ago it probably wouldn't be in the situation it is in today.

Competition does wonderful things for consumers. That's a lesson everyone involved in the current auto industry mess should be reminded of.

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obama nazi
Fascism is as Fascism does
The oozing underside of Obama's "deals you can't refuse" is starting to leak out. (Subscription required. Essence of article below.)
The emails show Fiat ignoring requests for documents and trying to change contract terms late in the talks. A Chrysler adviser at one point said the deal risked looking as if the U.S. auto maker and the Treasury Department, which helped broker the pact, were "in bed with a shady partner." In another note, an official referred to the Treasury Department as "God."

The documents, filed in the Southern District of New York as part of Chrysler's bankruptcy proceedings, provide a glimpse at the tense debates that shaped Chrysler's final days as it raced to find a suitor.

On Friday, a federal appeals court upheld Chrysler's Fiat deal, dismissing a challenge by dissident Chrysler debt holders. But the court also issued a stay until 4 p.m. Monday -- leaving a small window for Thomas Lauria, the lawyer pursuing the case, to appeal to the Supreme Court. One judge on the three-judge panel suggested the Supreme Court should have "a swing at this ball."

Mr. Lauria's persistence led one government lawyer in the Chrysler case to dub him a "terrorist" in an email to a Chrysler adviser.

In a written statement, Chrysler said "comments extracted from emails exchanged in the heat of negotiations reflect the normal hyperbole that occurs in the final stages of negotiating any complex transaction." Chrysler said its concerns about the deal were answered.

Fiat said it "provided full access to all information relevant to the due-diligence exercise performed by Chrysler and the prospective lenders."

The revelations come as the Obama administration is rushing to get a bankruptcy court to sign off on the Chrysler-Fiat merger as early as next week. Fiat has the right to walk away from the deal if it isn't consummated by June 15.

The official called the negotiations "a high-wire act" in which a small team of government advisers had to quickly pull together a complicated deal. In such situations, "people speak in elevated tones," the official said. "People get threatening."

Hey, what don't you get about a deal you "can't" refuse? :/

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us flag
Supreme Court halts sale of Chrysler to Fiat
Ah, more drama. And the justice that signed the order: Ruth Bader Ginsburg. Let's see the left try to spin that into a "right wing" conspiracy. :D
The Supreme Court on Monday granted an emergency appeal asking it to halt the impending government-backed sale of Chrysler to Italian automaker Fiat.

The order stops for now Chrysler's sale, which the company claims could scuttle the deal.

Justice Ruth Bader Ginsburg signed the order, but it may be only temporary.


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stupendous advocate text
GM sells Saturn network to Penske
This is what GM should have been doing all along and why the government should not be trying to run GM. That means you, Barney Frank! Didn't your meddling in the housing industry teach you anything?

This is good news for GM and great news for Saturn.

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obama nazi
Obama's destruction of the auto industry even more partisan that believed?
It's hard to believe that Obama's relentless destruction of the American auto industry could be even more partisan but there are reports that dealers who made political contributions to Republicans are being targeted for closing.

Now, it may just be a coincidence...or more evidence that Obama is making companies offers that they "can't refuse".

Has anyone else noticed that Obama has essentially granted Ford a domestic monopoly by forcing a sale of Chrysler to Fiat and forcing GM into bankruptcy? It will be interesting to see where the political money from Ford flows to in the next few years.

Perhaps that is why the unions have been so complacent in the face of their members loosing tens of thousands of jobs (not counting the millions of jobs that Obama saves or creates each day). They've received assurances from the Obama administration that they will be well-rewarded through increased employment at Ford once the dust settles.

You can be sure that companies in other industries are taking note. One company in each industry will be allowed to remain operating as a de facto monopoly. Nationalization by other means!

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obama one big ass mistake America
500 mpg cars by 2020 or else!
Because a simple decree is all it takes to force those evil car manufacturers to build cars with such gas mileage! Obama is a wimpy girly-man for only decreeing an increase to 35 mpg! Why stop there?!

500 mpg today...infinite gas mileage tomorrow!

So let it be written; so let it be done!

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liberalism kills liberty dead
The UAW is going to do what?
They're going to sell their ownership stake in Chrysler?

Um....

Haven't we been told for 100 years that the reason evil management was evil was because the poor lowly workers didn't have a say in how the company was run?

Yeah, just another lie from the left. Here is a golden opportunity to influence how Chrysler is run and demonstrate how superior the ideas of labor are to management's evil profit-seeking and they...punt.

Way to step up to the plate, labor!

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stupendous advocate text
And he said "I am the Obamanation, destroyer of industries".
Pontiac is merely the latest victim.
LOS ANGELES – It could crash through burning buildings, make a fool of any number of small-town Southern sheriffs, help save the world from giant robots, even take criminals off to jail while engaging in witty repartee with its driver.

In the end, about the only thing a Pontiac automobile couldn't do anymore was persuade enough people to keep buying it. survive the Obamanation.

(I fixed the article.)

RIP Pontiac. I drove my Sunbird GT Turbo up to 135 mph and had the Firebird Formula up to 100 (nowhere near its limit). I drove the Turbo until we swapped it for some basement work seven years later. The Firebird was five years old when we sold it for $7000 to a teenager who hopefully looked after it as well as we did.

Inept GM management certainly played a role in Pontiac's demise but we'll never know whether it (and GM) could have weathered the recession intact or sold off.

Just remember when Obama comes for your industry that you didn't say anything when he killed off "dirty" coal, the "evil" auto industry and "big" banks.

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reagan hope
A sign of intelligence at GM
Or is it spine? GM says it will sell Saturn.

Finally, some signs of intelligence at GM! Instead of just throwing assets into the trash GM is going to sell them. What a concept!

That is, unless The One sniffs his disapproval in GM's general direction. Then you'll see some furious backtracking and Saturn's fate will be the same as Pontiac's.

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obama nazi
The slow disintigration of GM begins
Can you imagine the outcry if a group of industry executives got together and decided to "oust" President Obama because they felt that he wasn't running the country correctly? How about if they then demanded that the replacement shed various federal agencies as a requirement for obtaining their blessing?

Reverse that and you have the Obama administration presiding over the destruction of General Motors.

I've asked before where and when Obama obtained the knowledge and experience to run (or destroy) an auto company. As far as I know, he still hasn't explained why we should agree with him that GM needed to get rid of its then CEO Rick Wagoner or now needs to shed the Pontiac division. Those moves may be necessary but it should be the owners (shareholders), debt holders and board of directors making those decisions, not a government official. Mussolini made the trains run on time and Hitler put workers back to work...but there's the downside of Fascism. (Hopefully it's obvious!)

You can kiss Pontiac, Hummer and probably Saturn goodbye.... You'll have to ask Obama what else GM is going to have to get rid of to satisfy him.

Can a government edict on which cars to produce be far behind? Will Obama appoint a loyal follower to "run" GM?

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right vs wrong
Antitrust proves to be it's own worst enemy
Somewhere in the universe of free trade, protectionism, competition and antitrust lies the story of General Motors. The National Review ponders how GM came to this point.

Antitrust, of course, is concerned about one domestic company dominating the domestic market. As Burton Folsom points out this leaves a company targeted by antitrust proponents vulnerable to competition from outside the country.

So the history of GM, once a feared titan often cited as an example proving the need for stronger antitrust laws, is apparently going to end with the government that created such laws forcing GM into bankruptcy (and killing off Chrysler almost as an afterthought) which will leave exactly one domestic car manufacturer left: Ford.

An ironic end to decades of antitrust activity, isn't it?

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obama resist
I have a question for Mr. Obama
Mr. Obama: when did you become an expert at running automotive companies?

Note: I am willing to forward this to a Democrat operative if that makes you feel more secure about answering it.

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obama communism
The right move for a very wrong reason
GM CEO Rick Wagoner has decided to step down. This should be greeted as welcome news for everyone except GM's rivals. Rick Wagoner is part of the problem at GM; a generation of managers who can't see the forest for the trees.

However, the reason he stepped down is entirely wrong: the President of the United States "asked" him to.

If it's one thing we really don't need right now it's a totalitarian flavor of socialism (whether it be Communism, Fascism or a new -ism) where the President orders businesses around.

Update: Kent Kresa, the new chairman of the board for GM is a big Democrat contributor. He has contributed thousands of dollars to the campaigns of people like Jane Harman and Dianne Feinstein.

Update 2: It is apparently over for Chrysler. Unless it can sell itself to Fiat (with the help of six billion taxpayer dollars) it will be the first US automaker to fall victim to Obama's war on corporate America.

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obama head shoved up
Obama industry death watch
Remember when Obama promised to put the coal industry out of business? Well, he's already decided on another industry to kill: the auto industry.

While government pledges tens of billions of your tax dollars for the auto industry with one hand, Obama is busy killing it off with the other hand by giving the green light to even more burdensome federal regulations including mileage standards as high as 40 MPG by 2020.

The result is going to be a bloodbath of failed domestic auto makers and the total loss of all bailout money sent their way.

Watch out coal, you're next!


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stupendous advocate text
There's a saying among those of us who know how union car factories operate
Never buy a car made on Monday or Tuesday-Friday after 10AM.

This is the reason why.

We could fix that, but Democrats whine that that is "union busting".

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libertarian republicans
Yet another reason why politics often makes very little sense
Is there a (good) reason why we should "save" an industry that refuses to offer products the public wants to buy?
WASHINGTON (AP) - Democratic-controlled Washington stepped in to help save Chrysler nearly 30 years ago when the automaker was on the verge of bankruptcy due to lackluster sales of its fuel-thirsty vehicles.

With the Big Three struggling again, many political leaders now are taking Detroit to task for failing to do more to reduce how much gas their vehicles use. The Democratic presidential candidates are pledging tougher gas mileage rules. Automakers say such changes would hurt an industry already down.

Detroit has had 30 years to learn its lesson and apparently that lesson has not yet sunk in.

And speaking of people who haven't learned their lessons...why are politicians again trying to tell people that all they have to do is pass a law to make everything magically get better? Seriously, who believes that? If that were the case why not mandate cars with infinite gas milage that only cost $1?

If consumers want better gas mileage they'll buy it from whatever company offers it to them, regardless of whether that company is in Detroit or not and regardless of whether Congress has passed a law or not.

Now, if Congress really wants to help it will simplify the tax system, open up US sources of energy and start building nuclear power plants as fast as they can be fueled. Heck, we're buying all of those old Soviet warheads, let's build a lot more plants to put that fuel to better use.
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