Carmaker could be majority owned by government under a new plan »
Posted By pagey 7 months ago in Business & FinanceDETROIT - General Motors Corp. could be majority owned by the federal government under a massive restructuring plan laid out Monday that will cut 21,000 U.S. factory jobs by next year and phase out the storied Pontiac brand.
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vor7 months ago
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GM would be in the process of deconstructing its remaining business if it were not for government intervention.
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This is a long way from over. Look at the inventories sitting unsold in dealers lots. Those are all devaluing. With the advent of electric cars and hybrids the rate of decline in the value of these vehicles will only accelerate. And who is going to buy them in the first place? A lot more misery on the way. And until the union contracts are redone they simply cannot be competitive with foreign makers. You cannot blame consumers for making logical choices. -
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simonsez7 months ago
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This is not a good thing. Government ownership guarantees inefficiency and waste. GM should have been allowed to enter into re-organization to regain their competitiveness.
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If they follow through on dropping Hummer, it would be a good investment to buy one. It's popular throughout the world and will become a collectors item I believe. Since it is primarily a military vehicle, I'm not sure how this plays out. -
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vader827 months ago
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I feel that we should have never intervened on behalf of ANY of these private enterprises that are faltering and recieving government bailouts. In the case of the banks, and the automakers, our governments excuse for giving these bailouts has been the potential economic ramifications of allowing these companies to falter. GM and the other U.S. automakers should have seen this coming, their sales have been in decline for years. If these companies are to imcompetent to stay in business on their own then they deserve to falter and file bankrupcty. If they cant recover out of bankruptcy and remain viable then someone else has the opportunity to create a car brand and take the failed companies place in the market. It is this dynamic that makes a free market so great, inefficient companies are outcompeted and more efficient ones take their place. I do admit that we do not live in a pure free market economy, but these steps being taken to prop up failing companies is a great mistake. The banks and automakers failing would have consequences in the short term, but I feel that the consequences of intervention in private enterprise are going to hurt us in the long run, neither the banks or the auto industry are going to learn their lesson.
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