Here we go again with another multi-billion dollar bailout meant to shore up an industry that can’t adequately calculate its own risk. The part that frazzles me is that GM, in the late 90’s, came out with a plug-in electric car and pulled them from the roads. The company they had partnered up with Ovonic was bought by Texaco and the soon after the project was shelved. At the same time they were sending millions of lobbying dollar to Washington to keep the MPG standards low claiming that everyone wanted an SUV and now they are choking the docks and back lots of every new auto dealership and factory.
GM 1996 Volt
It’s a bit hard to justify wanting to spend a dime on an industry that’s in bed with the oil companies. It was in their best interest to go Green with all the other auto makers, but chose to stay the course and now we going to pay for it. Of course this is at no risk to the American Taxpayer. (a note of general sarcasm in his voice).
Of course the Government is going to give them the money, with some hokie set of political requirements that won’t actually make them worth keeping, but the brownie points for re-election will be secured, and we’re such a dumb country at this point that the general population will eat it up and talk about over coffee like we’re really informed. It’s a bit salty if you ask me.
The truth is that had the Government NOT allowed them to consolidate to such an extreme that there’s a “Big Three” in the first place, this whole problem might have been limited to a smaller sector of the industry. Congress, for the sake of political Kudo’s, calls them “Brands” and simply says they have too many each, when in reality it is a clear case of monopolization.
GM owns Pontiac, Saab, Chevy, Buick, Cadillac, GMC, Hummer, Saturn, and there’s more in the UK and in Germany. This didn’t just happen overnight. It’s been going on for years, while the Government spent time breaking up Ma-Bell, the Railroad Trusts of the 1800’s, and Standard Oil. It similar to the banks and right the banks, who are receiving bailout money, are using it to buy up other banks. Anti-trust needs to be re-examined. It is not just about anti-competition. It is about healthy business practices and consumer choices!
