Sometimes I feel there is little to like about the American auto industry. It is a crony institution from top to bottom. From senior management to the union line guy everyone has an angle. Consider why it is that the price of cars always goes up. Why don’t TVs do this? Or computers? Cars today are just rolling computers with seats, and yet every car goes up in price each year while other types of technology generally trend down over time. I submit that it is because the auto industry is structured poorly (from the consumer perspective) and dealerships are a classic example.
No it was not. There are a few union members who made out like bandits and a few more senior managers who got to keep their very generous pensions. It was worth it for the president because he was able to sway Michigan and Ohio by convincing people the auto bailout was for them. But for the rest of us, the world would be better off if GM had died in 2009.
It never stopped being Government Motors. But the “partnership” seems to be strengthening again as the ignition switch scandal continues.
For the companies which make parts for car manufacturers Government Motors now ranks as the worst with which to do business. GM even beat out Chrysler which has traditionally occupied this particular basement.
No biggie. $11 billion here. $11 billion there. And because Treasury sold the shares back to GM, even though it was at a loss, the move took the restrictions off of executive pay. So that’s nice for the executives.
We’ve said multiple times that GM is a company which deserved and deserves to die. It is a shame that this company still treads the earth along with the rest of the herd of bailout dinosaurs.
The one city where Americans on average can? Washington DC!