GM eyes Bankruptcy, sell company to US Government

http://www.reuters.com/article/mergersNews/idUSN1943363120090519

 

WASHINGTON (Reuters) – U.S. President Barack Obama took aim at climate-warming greenhouse gases on Tuesday and obliged the struggling auto industry to make more efficient cars by imposing tough national standards to cut emissions and increase gas mileage.

Obama said the new standards, announced at a White House ceremony attended by auto industry and union leaders, would reduce U.S. dependence on foreign oil and give five years of cost certainty to an auto industry battling to survive.

http://news.yahoo.com/s/nm/20090519/bs_nm/us_obama_emissions

I wonder if there is some wierd conflict of interest going on here. If the US owns GM . . . couldn't they propose legislation that would benefit GM over it's competitors?

 

What a clusterfuck. GM just should have declared bankruptcy from the get go. That would have guaranteed a free and unfettered auto company going forward. Now, we'll have a car designed by the Democratic Party. Fucking perfect. Good luck buying an American-made pickup truck or SUV.

 

How can it be considered "bankruptcy" when bond holders are bypassed in the selling of assets? This isn't a "bankruptcy", it is the federal government stealing the assets of a company and deciding who gets to buy these assets. This is theft and I don't see how it can be constitutional. I haven't even got to the part yet where the Obama administration gets to pick and choose its new board. What an outrage.

 

Can somebody please explain to me what was the point of "bailing out" these automakers with billions of tax $$? What happened to that money?

 

Yeah, because otherwise the American public would have been lined up for blocks for the opportunity to purchase a non-warrantied, service-disadvantaged gas guzzler.

-Pop

 

Ford stopped making SUVs?

 

I was merely countering maxiep's point. A bankrupt company doesn't exactly inspire consumer confidence that warranties or service contracts will be honored.

-Pop

 

The most successful models sold in the US by GM, Ford and Chrysler are all trucks and SUVs.

 

Well, at least until the President of the World opened his mouth today and imposed gas mileage limits on American-made vehicles.

 

Just remember, the Government knows better what you need than you do.

 

You're missing my point. This move was made to shore up the confidence of consumers that warranties and service contracts on new purchases would be honored even as the parent company was in bankruptcy.

-Pop

 

they're going to make california emission standards nationwide standards. He also wants to have cars average (probably by maker?) 35mpg.

If you live in California, you know how lame the DMV and smog tests are.

 

Smog tests aren't much fun, but the DMV is actually great in California (where I've lived--Bay Area and San Diego). It's efficient and quick...I've never made an appointment and I've gotten my business done within 15-20 minutes.

 

Yeah. Just try registering your car from out of state, having to get a new emissions system put in, etc. DMV has been fine for me, I actually do most of it at AAA. but they have morons working there, the forms are all fucked up and jesus, its like $170 a year just to have my car registered.

 

That's basically still the system. Except you have to find an "inspection only" shop (one that doesn't do repairs) so that the shop won't have incentive to fail the car.

I'm just lazy, I wasn't really criticizing the system.