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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lowellbrown
4
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lowellbrown 06/19/09 - 03:01 pm
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The automakers had their

The automakers had their chance to put up or shut up. Maybe the Italians will have more luck with Chrysler than the Germans did. Maybe the Czech Republic's Skoda will look at GM. Government part ownership will not last long; we are the government, remember? What taxpayer wants that mess? Not Obama, for sure, he's just doing his job. But as long as I'm about to become a taxpaying shareholder, maybe GM and Chrysler wouldn't mind my making a few design and engineering suggestions.

southernguy08
499
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southernguy08 06/19/09 - 03:35 pm
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Go ahead, LOWELL...see how
Unpublished

Go ahead, LOWELL...see how far your suggestions go. And MARANDAN, since when has government ever encouraged people to succeed? They tax people who work hard and take the chances to get ahead, and reward the lazy [filtered word]es who sit around all day and produce more lazy [filtered word]es to feed on the public breast. The number of people pushing the wagon is being overwhelmed by the number of people who want to ride in the wagon. Thank you Obama and Democrats. It reminds me of the old bumper sticker, "Vote Democrat...it's easier than getting a job!"

jackfruitpaper833
41
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jackfruitpaper833 06/19/09 - 03:48 pm
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So many angry white people

So many angry white people looks over at marandan *Shakes my head* there are more angry white people in the US today than it has been since President Obama has taken office. But to say and ENTIRE family OMG, sad. I bet if Rush, O'Reilly, Hannity, say UNLEASH for sure most crazies in the CSRA will do whtaever they say. I need to check my bullets and be ready.

patriciathomas
42
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patriciathomas 06/19/09 - 04:04 pm
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fruit, sh-h-h, people are

fruit, sh-h-h, people are noticing you've got a large spoiled place on the inside of your head.

fishman960
1420
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fishman960 06/19/09 - 04:25 pm
0
0
Ahhh, the good ol' days of

Ahhh, the good ol' days of Ronald Reagan! Makes one wish all we had to worry about was funding the Contra's.

KSL
121165
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KSL 06/19/09 - 07:27 pm
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0
None of you libs ever address

None of you libs ever address the issues when conservatives bring them up. You just insult and joke and carry on. Is it that you can't defend what is going on. Can't because you honestly are not equipped to have a viable alternative opinion and solution, can't because you are part of those who sit around on the receiving end? I would love to have substantive arguments, and in the present case for the Chrysler and GM, some comment as to your take on bond holders, who are the first to take money from distressed corps, why they got the royal shaft, just because Obama said so. You all obviously are not working people who had an enormous amount of their retirement investment diminished. And I'm not talking about the fat cats, I'm talking about teachers and policemen and firefighters.

Riverman1
79221
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Riverman1 06/19/09 - 07:50 pm
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Geez, getting the Contras in

Geez, getting the Contras in this coversation is neat. Violeta Chamorro won the election and kicked out Daniel Ortega, in case you forget.

fishman960
1420
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fishman960 06/19/09 - 08:41 pm
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Thanks for bringing me back

Thanks for bringing me back to today, rman. I was reminiscing.

humbleopinion
0
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humbleopinion 06/20/09 - 12:44 am
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The auto manufacturers did

The auto manufacturers did NOT need a bailout. They needed to sell cars, or trim production to allow sales to catch up with inventory. TwentyFive years ago you went to a dealer and ORDERED a car, unless you happened to like one of the few on the lot. Today, dealers have HUNDREDS if not THOUSANDS of cars on the lot because Americans are in a hurry and couldn't wait for their new toy. The manufacturers would have had a 90 to 120 day shut-down with layoffs to allow sales to catch up. The UAW members would have been paid almost 90% of their base pay during this time. The industry would have rebounded by now, but that was not in the plans of the Obama administration from their beginning. The credit industry was destroyed by Pelosi, Reid, Dodd and Frank with much of this in mind. They are now talking about bringing back the Community Reinvestment Act to "stimulate" housing sales.....Uh, excuse me, but isn't this the SAME plan that started the insane sub-prime loan market and the inevitable collapse of the housing market? WAKE UP AMERICA. WE NEED REAL CHANGE IN 2010 AND 2012.

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