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Originally posted by: pjstroh
. . . but the government did not "bail out" a single vehicle in GM's lineup did they? As our original poster reported the government used taxpayer money to pick winners and losers in the free market...with the point being GM was a loser. Given the entirety of GM's success I'd say Don Diego's definition of that word runs contrary to most everyone elses'.
GM was a loser.
Had the Government not given/loaned GM a crapload (*see below) of taxpayer money and purchased over 60% of the company with taxpayer money and ramrodded an unprecedented pre-arranged bankruptcy/reorganization, favoring some special interest groups and screwing some others, GM would've been out-of-business and its productive assets and real-and-intellectual properties would have been sold to the highest bidders and put to, presumedly, productive use.
Nonetheless, DonDiego is happy to see GM prospering; he is happy to see GM management and white-collar and blue collar employees enjoying the fruits of their labors. He does not expect it to last.
He is even more happy to see Ford prospering, because DonDiego didn't have to participate in a bailout. It seems a mite unfair for well-managed Ford to have to compete with Government-subsidized GM, . . . but that's what picking winners/losers is all about.
Oh, . . . and the GM Volt is still a loser. Citizens in the market for a compact car can find some excellent automobiles for a bit over $20,000 or they can purchase a Volt for over $40,000 and pocket a $7500-Government-check. Most in this market are choosing to spend the $20,000+.
GM's CEO has stated the average buyer of a Volt has an income of $170,000-per-year; DonDiego is thrilled to contribute his part of the rebate-check to the 1%.
Perhaps the Volt will do better when GM starts building them in China as recently announced. The Chinese offer even bigger rebates, so long as the vehicles are built in China. And the Chinese company partnering with GM will be happy to learn all the technology of electric-vehicles, the development of which was paid for by US taxpayer grants over the years. Heck, they'll pr'bly improve on it and sell it back to us pretty soon.
P.S.: Incidentally, DonDiego would not be surprised if the US Government started buying Volts for official Government use to, . . . well, . . . frankly, to save the world, . . . or something. Or maybe just save GM, . . . again. And probably encourage other Government entities to buy some too. Oh, . . . and there's a provision in the law by which the Government will pay full-price and the dealer can apply for and keep the $7500-rebate himself, . . . unless, of course, the Government raises the rebate to $10,000 as is now being considered; then they can keep that.
P.P.S. The use of the word "crapload" is now approved by the marketeers at GM. DonDiego was, once again, ahead of his times.
Ref: GM Volt Commercial
DISCLAIMER: DonDiego owns no stock in any motor car company.
Addendum: DonDiego supposes incorporating abundant natural gas into automotive transportation would likely be a more efficient means by which to reduce gasoline usage and travel costs. He would still prefer the Government mind its own business. The primary beneficiaries of such application of natural gas could be Westport Innovation [WPRT] and Cummins Inc. [CMI]. (Cummins Westport) Just a tip.
DISCLAIMER: DonDiego owns no stock in WPRT or CMI.
