GM's PR problem?
Might the government subsidies come at a real cost?
"[GM's] pride, [the celebrated] Chevy Malibu, was outsold in June not only by the Japanese competitors and the Ford Fusion but even by the Korean Hyundai Sonata. . . . GM has some fine vehicles, but it is working uphill against public resentment. Here are the people who don't like it: the stockholders who got wiped out, the bondholders who got moved to the back of the creditor line, the dealers who were dumped, the workers who lost their jobs, the retirees who are at risk of losing some of their health benefits, the owners of orphaned brands (Pontiac, Saturn and Oldsmobile) and the several million taxpayers who think government support is just wrong" -- veteran Forbes Magazine auto writer Jerry Flint on the continuing hurdles GM faces in getting Americans to buy its cars.
Labels: bailout
posted by John Lott at 1:41 PM
3 Comments:
Anecdotal evidence - I've been looking at new pickup trucks. In prior years Chevy or GMC would have been at or near the top of my list. Ford has never been a contender. When the government took over GM I crossed them off the list and Ford became the only domestic brand I'd consider. Enough of these anecdotal stories and you have a trend.
If one is looking to be Political Correct when buying a car or truck, make sure to do your homework. Most folks for example would be surprised to learn that the French Government owns a chunk of Nissan.
In addition, Japanese and Korean car makers have less health insurance burdens for their employees in non-US factories because of government-run health care systems.
Also when foreign car makers set up plants here in the U.S., state and local governments provide all sorts of subsidies to get these companies to locate in their states.
Personally I buy a vehicle based on its features and price. I have never found GM products particularly appealing.
I will never buy a Government Motors vehicle no matter how little it costs and how good it is.
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