Stuck in Reverse

Assigned Reading: GM CEO: Bankruptcy Likely; Firm May Leave Detroit
(FROM: CNBC)

GM shares dropped by 20 percent today on news that the venerable automaker may leave Motor City and sell off plants as part of its government-advanced restructuring plan. The way that the company has stiffed bondholders–with the government’s help, 89 percent of the company would be held by the government and the United Auto Workers–it should come as no surprise to the folks in Michigan that long-held policies of kowtowing to union thuggery would combine with this administration’s vilification of success and support of said thuggery and spell disaster for the state.

Ideally, for General Motors to survive, it would have to take a good, long look at what foreign automakers are doing, successfully, with their stateside operations. And it would have to do what’s best for itself and its investors, rather than for the government currently holding the carrot and stick.

Unfortunately, rather than shift operations to a state with a right-to-work clause, such as Bobby Jindal’s Louisiana or Mark Sanford’s South Carolina or Rick Perry’s Texas, should such an exodus from Michigan take place, GM and its Obama-selected chief executive will likely ship jobs to Canada or elsewhere. And with it would go a valuable opportunity, rife with potential and the chance for the company to wipe the slate clean and start being profitable again, much like the aforementioned success of foreign automakers like Hyundai and Kia with plants and facilities in right-to-work states like South Carolina and Alabama.

Making such a move would benefit General Motors, would benefit post-Katrina Louisiana or unemployment-ravaged South Carolina, and it would benefit America — but it would not benefit Barack Obama, nor would it benefit the Democratic Party. As it stands, the Democrats and their president would rather lose thousands of jobs than take a political hit, would rather see an American stalwart, General Motors Corporation, go the way of the Chicago Motor Corporation, American Motors, Studebaker or Packard than abandon the party agenda.

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Comments

  1. CAL says:

    I am sorry to say this, but I think it is best for our country if Chrysler and GM just go out of business altogether now that the government and the UAW have taken over. It would send a message that government/union thuggery does not make for long term economic growth. I hope Americans stop buying GM and Chrysler cars.

  2. cariolinagirl says:

    I know I will not buy a Chrysler or GM product ever again! I resent beyond words what is happening.

  3. sharon says:

    It is tough now in Michigan… We have had tough times, but this is scary awful.

  4. Anonymous says:

    I think that everyone, if they’re going to buy a “domestic” brand, buy only from Ford.

    That won’t be hard for me, because I love my Ford Powerstroke truck anyway, but I think Ford should be rewarded for having stayed off the Federal dole.

    Old Bob

  5. Lilly says:

    I just read that GM will be importing cars from China by 2011. How sad. They should have done chapter 11 before any bailout from the government. I know lots of people that work in Chrysler at all levels. They are optimistic but cautious. Not all union members are liberals. The Unions don’t want stock in the companies, they just want to fund the pensions. I hate what BO is doing and the only way it will stop is if people will start talking and fighting back without being threatened.

  6. Linda says:

    Where have you gone Joe DiMaggio!

  7. TAKE ME OUT OF THE BALLGAME says:

    Baseball, hot dogs, apple pie, and now Mitsubishi (the company that built the Japanese Zeros that bombed Pearl Harbor).

  8. Anonymous says:

    I live in Michigan and it is beginning to feel like a morgue here! God help us all.

  9. tm says:

    Your right. The only way to still make it work would be:
    Go bankrupt, move all operations and manufacturing to right-to-work states, and pray “card check” fails.

    Here is also a very interesting article on this written by one of my daughter’s professors at George Mason University about Chrysler:

    Chrysler and the Rule of Law
    The Founders put the contracts clause in the Constitution for a reason.

    http://online.wsj.com/article/SB124217356836613091.html

  10. Anonymous says:

    Can you imagine the hopelessness for not only the workers and their families but anyone living in Michigan ‘after’ GM leaves??? Tell us again how Obama is helping the auto industry?? he;s helping it out of the country because he and his admin. are to dumb to understand that this not yet a ‘workers’ socialist paradise and corps. will simply leave the USA it’s nuts!!!!!

  11. Rix says:

    You may start throwing rotten veggies at me but at some point, Lenin’s “the worse, the better” approach will have to be adopted by the conservatives. Whatever harm befalls the country in the next year or two, there is always a hope that it can be reversed by peaceful means, but it’ll be certainly dead and gone under if it has to endure another eight years of this regime.

  12. Gail B says:

    If Obama is so damned smart, why hasn’t he ever owned his own business?! He has somebody behind him pulling the strings on this. Follow the money!

    There is too much unaccounted for money floating around, which provides a ripe environment for corruption using taxpayer dollars.

  13. ANGRY WHITE MAN says:

    That unaccounted for money floating around is to be paid for by our grandchildren too. Pisses me off. Bring on the damned revolution.

  14. Rix says:

    > Gail B said:
    > If Obama is so damned smart, why
    > hasn't he ever owned his own
    > business?!

    He does now. Look at the Clintons: being a Democratic president pays, and pays well. I'll bet my last cent that ten years from now, the O's are at least five times richer that now.

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