Auto Bailout Backfire

[DrMike]

It is increasingly clear that the auto bailouts have not worked out as the Obama Administration told us they would work out. Retirees and other bond holders were deprived of income so the UAW could get a boost from money stolen from US taxpayers. GM managed to close multiple dealerships, putting numerous people out of work, as did Chrysler. Now come the reports that Fiat is planning to move production of Jeep (first to China and now to Italy). What is apparent is that the entire deal left the UAW, who thought they were getting government protection, at risk. A bankruptcy as mandated under US law would have avoided many of the problems that are now cropping up. Washington has no business trying to pick winners and losers. This is another classic demonstration of the inability of government to manage business. In all, it is a disappointment to many, which is certain to grow more bitter still.

http://nlpc.org/cached/fiat-says-ch...-says-chrysler-jeep-production-may-move-italy

http://nlpc.org/stories/2012/06/12/akerson-admits-gm-bankruptcy-not-well-thought-out

http://www.businessweek.com/news/20...en-missing-fiat-sales-target-by-19-billion#p1

http://www.bloomberg.com/news/2012-...ild-all-jeep-models-as-suv-demand-climbs.html

 

[onesonek]

"This is another classic demonstration of the inability of government to manage business."

I will agree that this is true with most Administration's. However, in this inept Administration, it more like the ability to ruin bussiness. Oh,,,, and you can throw in health care as well. Just more control, as they want to control every aspect. In the end, this Admin. intends to go beyond socialism.

 

[JD338]

I am done with GM.
I have owned many GM vehicles but no more. My next truck will be a Ford as well as my next car. I would rather see my money go to the only car company that didn't ask for help.

JD338

 

[DrMike]

I've purchased a number of Chevrolet over the years. I'll be driving other vehicles since this misdirection of both American and Canadian taxes to fund the UAW at the expense of the retirement funds of many elderly folk.