Killing GM And Sucking More Taxpayer Money Into A Black Hole

This was totally predictable:

If Barack Obama thinks that a government takeover of General Motors will rebuild consumer confidence in the automaker, he’d better have a Plan B.  Rasmussen polled current owners of GM cars, and found that less than half would consider buying another.  And in the general adult population, only 16% said they’d be likely to buy from GM for their next auto:

Only 42% of those who currently own a General Motors car are even somewhat likely to buy a GM product for their next car. That figure includes just 30% who are Very Likely to do so.

The latest Rasmussen Reports national telephone survey shows that 43% of current GM owners are not likely to buy another GM car, while 16% are not sure.

Democrats who own GM cars are somewhat more likely than others to buy their next car from GM.

Only six percent of non-GM owners thought it would be very likely that they would buy from the bailout recipient.  While 6% represents a healthy number of adults in the US, it does not bode well for market growth that 94% of Americans would consider something else other than a GM product first.  And since GM competes in a global market, that number has to approach statistical zero abroad.

Some other interesting details:

Obama’s normally strong age demographics have bailed on GM.  Eighty-three percent of 18-29s won’t consider GM, while 62% of thirtysomethings reject GM as well.  Fifty-six percent of Democrats take a pass, and that number goes to 71% among Republicans.

On the other hand, 51% of Americans say they will consider a Ford, primarily because they didn’t take bailout money from the federal government.  That gives Ford a potent selling position, one that will resonate both commercially and politically — and one that may stick in the craw of the Obama administration.  Ford has already vaulted ahead of GM for the first time in decades in sales, and if this poll gives any indication, those trends will deepen.

Count me in on this!  Our family currently has a Dodge SUV and a Buick sedan, but I've never been fond of Fords…until now.  I refuse to buy a car owned by a bailed out company, even if that means buying a foreign car (actually, Chrysler will be owned by Fiat, anyway).

I expect that, as Hot Air suggested above, this trend will continue, and the Obamamotors companies will suffer even more.  There are then only two real possibilities for Obama to do:
1. dump unending amounts of taxpayer money into them
2. penalize Ford to such an extent that they go out of business

I think number 1 is a given, but eventually the American people will put a stop to it.  With the new CAFE standards that were just put in place, number two is already in progress, as well.  They're going to kill any hope of making profitable vehicles (the only things making money now are trucks and SUVs, and those are the precise targets of measures such as increased CAFE standards), and without an unlimited source of cash, Ford cannot possibly survive indefinitely.  I don't know that it'll get to the point where an actual law gets passed to target Ford — yes, this sort of thing can happen…remember the AIG bonuses, or that law in Maryland that whacked Wal-Mart? — but they'll do something that will achieve the same effect.  Plus, Ford still has the albatross of the union hanging around its necks.  If Ford could get out from under that smothering blanket, I think we'd see them rocket into the black in a very, very short period of time.

I think this will be a prime case study in the inferiority and outright thuggishness of socialism.  Ford, as a private company, will flourish against the beauracratic nightmares of the Obamamotors companies right up until the point where the federal government will forcibly remove Ford from the equation.  Gone is the American way of life.  You're watching it happen right before your eyes.

There's my two cents.

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About

I'm a gun-owning, Bible-thumping, bitter clinger conservative in the heartland. You can disagree with me if you want (you do, after all, have a right to be wrong)...just don't be rude or stupid and we'll get along just fine! :)

Posted in Economy

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