Automakers' only real hope

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So, you might own an automaker soon.

The Obama administration and Congress have made bold moves to take a majority stake in General Motors Corp. and a minority stake in Chrysler LLC.

Good luck with the new Government Motors.

Forced into bankruptcy with rebuffed business plans to move forward that resulted in the recent and hastily executed closings of dealerships, GM Chief Executive Officer Fritz Henderson and Chrysler President James Press lamented their options as "last chance" to a House panel last Friday.

Their arguments of acting in the best interests of their business by cutting off viable dealerships that bear no real immediate burden on their business are hollow.

The lack of transparency in the decision process, or even a heads-up about what was coming and why, inflames the anger of local businessman Jimmy Scott, the acting general manager at the Henna Chevrolet Cadillac in Aiken.

"(They have) no right to stick their nose in private industry," Mr. Scott said. "They ain't going to gain business by doing this!"

To say these actions weren't the result of administration pressure is preposterous. The entire issue of dealership relationships is secondary to what is needed.

To pinch revenue streams from the "Main Street" faces of GM is in opposition to the argument by the government for bailout.

Lest we forget, no real automaker experience resides on the task force panel.

Given that dealers pay for inventory in advance, the logic of the cuts is befuddling. Legislation on franchise agreements and lawsuits linger. The Nebraska attorney general sees violations in coercing dealers and is seeking help from other states to block those efforts.

The administration and Congress are up to their elbows under the hood and have the wrong wrench. The dealership debacle is an ill-timed, hasty move that rips at consumer confidence.

Justified or not, the total surprise delivered to dealers ripples through our communities, leaves a bitter taste in showrooms and is a travesty to family businesses built on loyalty and a relationship with Detroit.

We agree with Sen. John Thune, R-S.D., who is trying to set a 2010 deadline for the government to sell all bailout fund stakes; limiting control and exposure for the American people is a must.

Back off and let the automakers maneuver without government controls. It is their only real hope.

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charliemanson
1
Points
charliemanson 06/19/09 - 06:39 am
0
0
These automakers went to the

These automakers went to the government with their hands stuck out looking for easy money. The government didn't look them up. Now, they can't pay the government back. I don't blame the government for taking them over.

dhd1108
1
Points
dhd1108 06/19/09 - 06:46 am
0
0
obi wan kenobi

obi wan kenobi

southernguy08
496
Points
southernguy08 06/19/09 - 06:58 am
0
0
DHD, huh?
Unpublished

DHD, huh?

shivas
2
Points
shivas 06/19/09 - 06:58 am
0
0
Yes, the automakers have

Yes, the automakers have certainly proven they know what they are doing.

southernguy08
496
Points
southernguy08 06/19/09 - 07:05 am
0
0
The automakers should have
Unpublished

The automakers should have been left to crumble. It's called free market. The strong survive and the weak fail. Now, every industry that is failing will go to Uncle Sam with a hand out. This is one item that I blame Obama and Bush for. Interesting how both parties are guilty of this irresponsible behavior. It makes the argument to elect more candidates of other parties.

patriciathomas
42
Points
patriciathomas 06/19/09 - 07:07 am
0
0
Sieg Heil ! Sieg Heil! Sieg

Sieg Heil ! Sieg Heil! Sieg Heil ! Soon we will all know what to do as the government (according to Fuhrer Obama) absolves us of all responsibilities and ownerships.

southernguy08
496
Points
southernguy08 06/19/09 - 07:29 am
0
0
The credit card companies
Unpublished

The credit card companies will be next to have their hands out. They've even got a new name for the government backed companies. It's called "FedCred."

deros
2
Points
deros 06/19/09 - 07:36 am
0
0
Banks and industry needed to

Banks and industry needed to just "bleed out". Too much government involvement. Come on, Government can't take care of its own problems so what makes anyone think they can fix anything. There are basic business principals that have just been ignored for years. If you are any kind of business...You can't continually spend more than you make and expect to stay in business. It is called fiscal responsibility. They need to face the consequences of their actions. This is stuff your parents should teach you.

Georgiais1
0
Points
Georgiais1 06/19/09 - 07:58 am
0
0
Another one of the lefts many

Another one of the lefts many failures. More to come with King Obama and the crooked dem Congress at the helm. If we can just hold out.......

TechLover
15
Points
TechLover 06/19/09 - 08:08 am
0
0
2008 Toyota sales in US -

2008 Toyota sales in US - 1.96 million, number of dealerships - 1,585. Honda - 1.28 million sales and 1,248 dealerships. Ford 1.68 million sales and 3,430 dealerships. Chevy 1.79 million sales and 3,812 dealerships. Dodge 784 thousand sales and 2,614 dealerships. Check the average per dealership to see why they are closing many. As far as Thune's plan, an arbitrary date to sell no matter what condition the companies are in, might limit control but would increase exposure. Potential buyers could easily work to bid down stock prices in anticipation of a mandatory sale date and get the companies on the cheap.

Riverman1
78407
Points
Riverman1 06/19/09 - 08:19 am
0
0
One factor did the American

One factor did the American automakers in.....unions. Instead of excessive wages, money should have been spent in quality control.

egan01
0
Points
egan01 06/19/09 - 08:27 am
0
0
Who is going to buy the

Who is going to buy the Goverment Motors govrement designed car so the goverment can at least break even?

itwuddntme
0
Points
itwuddntme 06/19/09 - 08:48 am
0
0
Egan: King ob will enact laws

Egan: King ob will enact laws that give tax credits to people who buy ONLY Government Motors produced cars. Just like Government Health Care, private industry cannot compete against any company backed by those who can print money when needed.

MadSnapper
51
Points
MadSnapper 06/19/09 - 08:49 am
0
0
If Obama wasn't in bed with

If Obama wasn't in bed with the Unions he would have asked for union president Gettelfinger's resignation along with GM's CEO Rick Wagoner. Wouldn't that make sense? I don't totally blame the union's, but that would surely have sent a message that things had to change on both sides. Also, make the Union (UAW) sell the golf resort they own and divide the profits among the unemployed autoworkers, there is some wealth redistribution worth looking into!

Niko Mahs
83
Points
Niko Mahs 06/19/09 - 09:15 am
0
0
If the government did not

If the government did not step in then very soon only Ford would be left. Choke on your SUV because gas is going up again!

AAQueen
18
Points
AAQueen 06/19/09 - 09:21 am
0
0
I agree with a tax credit for

I agree with a tax credit for anyone that buy AMERICAN cars. Remenmber when we, America, had the TOP three. Now there are too many foreign car manufactors/dealershipss here. Go to Korea or Japan and see how many American dealerships ae there. Seee how many american owned business are there. The saying that America is the land of milk and honey is correct only all of it is going overseas. BUY AMERICA!

TechLover
15
Points
TechLover 06/19/09 - 09:24 am
0
0
River" Did the unions design

River" Did the unions design and decide which cars to build? How about Six Flags, Eddie Bauer, Washington Mutual, Circuit City, Lehman, etc., not to mention most of the US textile industry? All non union and either closed or are in bankruptcy. The uion blame game only goes so far. The deal is Americans need to buy American. When Sam Walton was still alive, you saw "Made in America" signs all over WalMart. They are history. I admit I own a Honda, but I also own a Chevy Blazer, 2 Chrysler minivans, and a Gm pickup. If the states had given the US manufacturers the billions in tax and energy breaks they have given the foreign automakers (Alabama-$253 million to Mercedez, $158 million to Honda and $90 million later to expand the plant, $29 million to Toyota, Tenn-$577 million to VW, $197 million to Nissan, SC- $150 million BMW, Miss-$363 million Nissan, Ga-$415 million Kia) maybe they'd be in better shape.

Riverman1
78407
Points
Riverman1 06/19/09 - 09:38 am
0
0
Dang TechLover, you are using

Dang TechLover, you are using up our state's quota of carbon offset credits with all your vehciles. Eddie Bauer and the others went BK because of the bad economy if that's what you are getting at. What caused our economic crisis, giving credit to nonworthy individuals, companies and institutions...plain and simple. The obvious fact is that automaker workers made too much and were unproductive compared to the Asians. As far as tax breaks to automakers who would build factories in states, Tenn also gave to bring the Saturn factory. States would also have given tax breaks to bring U.S. automakers. Heck, Augusta is doing it to bring cookie baking jobs. If the cookie jobs were union, I doubt I'd eat them.......okay, I lied.

southernguy08
496
Points
southernguy08 06/19/09 - 09:48 am
0
0
NIKO, if that's what the
Unpublished

NIKO, if that's what the market supports, so be it. Business should not be bailed out by Uncle Sam. Ford is the only one that didn't have a hand out. I drive a Ford and already believe in the company...enough to buy stock in it. GM and Chrysler can go the same way as Packard, LaSalle, and Studebaker. It's called the free market. You either make decisions that insure your success, or you fail...simple as that! By making these bailouts, we've opened the bailout door for any big corporation having financial problems. Who's next? Kelloggs? Delta? Goodyear? Phillip Morris? Any of them can now go to good old Uncle Sam and whine and our idiots in government will bail them out. God help us because this government can't do squat!

Niko Mahs
83
Points
Niko Mahs 06/19/09 - 09:56 am
0
0
Well Southern, it's now 2

Well Southern, it's now 2 days in a row that I am agreeing with one of your posts! And that's not such a bad thing. I do think that if we did not bail out these auto companies, just like we bailed out the banks & AIG, then our economy would have really tanked. If these businesses don't turn around after these bailouts (WHICH NEED TO BE PAYED BACK TO THE USA), then they need to go under for good. But we also need to reinforce the regulations that were lacking in the banking industry for the last 3 decades. With that done, and with more conservative lending and banking practices things should stabalize. Let's give it some time and see what develops. I think we would both worry a heck of a lot more if we were standing together in the soup line or selling apples on Broad Street. And keep the top down on that Mustang convertible!

TechLover
15
Points
TechLover 06/19/09 - 10:10 am
0
0
River:Hey they're old but why

River:Hey they're old but why buy a new one? I can only drive one at a time. Pickup for hauling, Honda cause we got a great deal used and good on mileage. Blazer and one van for camping and one van cause it's not worth squat used and no need to get rid of it. The states should have concentrated on giving EXISTING US manufacturers the tax breaks to keep them in business. As it is they sacrificed tax dollars to undercut American manufacturing.

southernguy08
496
Points
southernguy08 06/19/09 - 10:21 am
0
0
NIKO, glad you see things my
Unpublished

NIKO, glad you see things my way. My question is, now that we've bailed out these companies, who is next and where do we draw the line? We can't very well say no to them now. It's been my experience that more government regulations only harm business. The market is the best remedy. You either make it or you don't. Sound hard? Guess what, it's a hard world? And, as a matter of fact, my Iraq war veteran son has a 68 Mustang convertible that I helped restore when he returned last year...red, dual chrome exhaust, mag wheels, 4 in the floor...beautiful! It's a real "babe magnet" as we said when I was young, not that he needs help there.

mable8
2
Points
mable8 06/19/09 - 11:05 am
0
0
The Federal Government has NO

The Federal Government has NO business dealing in the free enterprise market and should get out of it immediately. If manufacturers cannot operate a sound business, there are options available to them and they should use those options, even if it means going out of business. The big O is more wasteful in expenditures than the companies he has "bailed out." As for his proposed "health care reform," what is he "reforming?" What he proposes to do is to ram an UNhealthy health care program down the throats of the public--believe it, once he has done this and you are denied adequate and appropriate treatment because one of his cronies denies the physican's request to perform said treatment, you just might wake up to the reality of his socialistic, communist ideology. Unfortunately, it will be too late because the big O has secured a law that says you have to accept what he says is appropriate. Senior citizens are especially at risk because the big O does not see them as a viable part of the community; instead, a senior citizen "bleeds the coffers dry" and are "nonproductive members" who should not have been allowed to live such a long life.

Niko Mahs
83
Points
Niko Mahs 06/19/09 - 11:23 am
0
0
Southern, agree the bailouts

Southern, agree the bailouts are done for now and we need to monitor the progress of them stringently to assure payback. And when I got out of college in the early 70's I had a medium brown metallic 72 Gran Torino with Mag wheels and a 351 engine. So when I went to see the most recent Clint Eastwood movie I was truly amazed.

marandan
24
Points
marandan 06/19/09 - 11:57 am
0
0
UNIONS are the main reason

UNIONS are the main reason for the failure of GM and Chrysler. I know plenty of people here in the south who are struggling to keep the business afloat and keep their employees, but GUBMENT aint jumpin in to help them. So WHY should ALL of America be TAXED to Keep the UNION workers in a job, but those union workers aint sending no money down here for us? GM failed in its business model and must therefore go into bankruptcy. GOVT should have never given them one Bailout DOLLAR. Free market is a "Sink or Swim" concept, that weeds out poor business plans. GM gave too much to unions, and became noncompetetive. BIG O gives them more money, fires private citizens, and totally supports his UNION fanbase. I believe all the shunned GM dealers should go to Toyota, Honda, Hyundai, Nissan, KIA, and offer to sell their products exclusively. We need to Kill the union cancer now, before it is put on the OBAMACARE waiting list. We now have an administration that says"He doesnt want to be in the car business", but he is. "Doesnt want to be in the insurance business", but he is. Says he" loves America", unless he is in another country,then he is ashamed of America. ACTIONS speak louder than words!

jackfruitpaper833
41
Points
jackfruitpaper833 06/19/09 - 12:12 pm
0
0
Lord these white people are

Lord these white people are nutting up. *SHRUGS* I'm still praying, didn't Cheney say he and Bush bandage up the auto system prior to leaving office and decided to let Obama have that mess? isn't that what he said, didn't Cheney say that out of his MOUTH, I heard him say it.

marandan
24
Points
marandan 06/19/09 - 12:41 pm
0
0
Whether Bush started it or

Whether Bush started it or not is irrelevant. How long can Obama blame others for his actions? Two wrongs dont make a right, but two Wrights made an airplane. hahaha If Obama thought what bush did was wrong why did he continue on the same path, and why he encouraged Bush to do it, when he was the campaigning Senator? He cant have it both ways, with the American people. While the Mainstream Media wants to drop down on their knees and perform pleasures for him at every given chance, the People will soon realize what a snake oil salesman he is. Are you going to follow him to Hell? Because that is where he is going someday. This guy will be KNOWN in My Family, as the WORST president our country has ever had. Move down one space Bill Clinton.

southernguy08
496
Points
southernguy08 06/19/09 - 01:22 pm
0
0
MARANDAN, Obama can blame
Unpublished

MARANDAN, Obama can blame Bush as long as the stooges in Hollywood and the mainstream media let him. In other words, forever. JACKFRUIT, love the racist comment. You should try for a cabinet position. And NIKO, you're lucky. The only vehicle I had out of college was a city bus that took me from my apartment to the base. But, I survived without a handout, and it made me appreciate what I have now, unlike the ungrateful brats that dominate our society now. You know...Obama supporters.

imdstuf
10
Points
imdstuf 06/19/09 - 01:46 pm
0
0
If the car makers are going

If the car makers are going to survive they have to cut their production down to meet their current demand, which means they cannot supply as many dealers (else they would just have to eat those cars when they did not sell).

marandan
24
Points
marandan 06/19/09 - 02:04 pm
0
0
Yes southernguy08, obama

Yes southernguy08, obama supporters for now, will enjoy their percieved Saviors' wrongdoings. But soon they will realize the path they supported is the one of self-destruction. When the people that Have, stop paying in to the system, and decide to become Users instead of Creators, there wont be enough money to pay for the socialist lifestyle, where all, are the same. Americans have a lust for freedom, especially freedom of choice. I believe the only way to accelerate the speeding of this Socialist direction to its failure, is for ALL corporations to fold or become as totally reliant on the gubment to the point where even the govt cannot sustain any sense of support for even itself. Then the people will rise and overcome this socialistic trend, and return to what our country GREAT. Everyone has the chance to succeed, if they do what it takes. The American Dream. We dont need Gubment to dictate every aspect of our lives. Some will win, some will lose, that is what keeps the American dream real and gives winners the incentive to keep trying. The present Administration is discouraging ambition for unlimited success.

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