Nick Sorrentino

GM at this point should be GMC, Corvette, and Cadillac. These make make sense. There are customers for them and the quality of the cars is nearly that of Japanese and German autos. Cadillac particularly has made tremendous strides. It’s no Mercedes Benz or even BMW, but it has gotten consistently better over the last 10 years. The bumpers don’t fall off anymore. (Remember the Coupe Deville?)

Coup de ville

For the rest of the company not much can be said. Chevrolet should be a dead nameplate. The make doesn’t make one vehicle Americans want and hasn’t for a couple of decades.

But those Chevy plants are full of UAW workers who hold a lot of political sway. It’s why their pensions were bailed out by the taxpayers back in 2009.

Many people think the GM implosion just came out of nowhere. It didn’t. For years prior to 2009 analysts had been calling GM a healthcare and pension company which just happened to make “cars.” When the financial crash came, the unions seized on the opportunity to get the American taxpayers to pay for their overly generous pensions which were going to go bust financial meltdown or not.

When GM went bust the bond holders should have been paid first in a bankruptcy. Then the valuable bits should have been sold off. That is what would have been best for the economy. Now we’d have a leaner and much better American car industry. Instead we have terrible old Chevrolet.

And all the nonsense about “saving jobs” and the rest is just that – nonsense. One can dress it up anyway one wants but everyone outside of Michigan and Ohio (2 vital states for the President to carry in 2012) knows it was a jack, an act of political theft. GM still owes us $10 billion. (Which we’ve lost forever thanks to the Treasury selling GM stock back to the company at a steep loss.)

The government lied about GM and economic Armageddon and it’s reasons for doing what it did. It has propped silly experiments like the Volt (remember the Volt?) with nearly $200,000 in tax money sunk intoEACH INDIVIDUAL VEHICLE. And Government Motors continues to be protected it appears by this administration as the article below reports.

There’s a much better way to see the USA these days than in a Chevrolet. It’s called a Toyota Camry. And at least Camrys are made in the United States.

GM like Goldman Sachs in banking is a company which should be dead. But because it was politically connected it was able to get the government to take money from taxpayers to save it from its own boneheaded business practices. But that’s crony capitalism and that is the system we increasingly live under.

(From IBD)

Turns out the Obama administration has been sitting on evidence that some of these widely touted Government Motors vehicles are death traps due to faulty accelerators that slow or stop without warning, according to a report by Liz Peek of the Fiscal Times.

The problem has left at least 13 people dead and as many as 2,000 injured since 2003, according to reports. The House Energy and Commerce Committee has launched a probe to get to the bottom of it.

It needs to be done because the Obama administration had a political stake in claiming GM’s success even as it was supposed to protect the public as the auto industry’s regulator. That’s a conflict of interest if there ever was one. Was there a cover-up of GM’s problems?

Click here for the article.

For more by Nick Sorrentino, visit CronyCapitalism.org


Nick Sorrentino

Nick Sorrentino is the co-founder and editor of AgainstCronyCapitalism.org, and the CEO of Exelorix Consultants. A political and communications advisor with clients spanning the political spectrum and the business world, his work has been featured in many publications and across the Web. A graduate of Mary Washington College he lives just outside of Washington DC where he can keep an eye on Leviathan.