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Why Some Americans Will Never Buy a GM Vehicle
National Legal & Policy Center ^ | June 14, 2012 | Mark Modica

Posted on 06/14/2012 10:17:10 AM PDT by jazusamo

I recently wrote about a boycott of General Motors' products that was contributing to the company losing market share. The Heritage Foundation now has come out with a report that analyzes the wealth redistribution which occurred during the Obama Administration orchestrated GM bankruptcy process. This redistribution saw money taken from US taxpayers and GM bondholders and given to the politically powerful UAW. The unethical behavior at Government Motors, which has been occurring both during and since the bankruptcy process, gives reason enough to those paying attention to eliminate GM vehicles from the many quality choices offered to new car shoppers.

The Heritage Foundation report confirms what I have long expressed, which is that UAW members sacrificed little compared to other, less politically-favored groups. Even the allegedly corrupt and seldom honest ex-car czar, Steve Rattner, is quoted as stating, "We asked all the stakeholders to make very significant sacrifices. We should have asked the UAW to do a bit more. We did not ask any UAW member to take a cut in their pay." That statement differs from his stance during the GM bankruptcy process when he stated that UAW members deserved to get paid because they made the cars and GM bondholders didn't because they made a bad investment choice. Rattner's previous warped philosophy had no basis in contract law. And for the record, sacrifices weren't "asked for," they were forced.

As little as I respect Rattner, I have to give him credit for being the only member of the Obama Administration or GM who admits that the UAW sacrificed little in the bankruptcy process. While the workers of the UAW deserve to be paid a fair wage, it is totally dishonest to portray the group as having made noble sacrifices to save GM. In fact, the pension plans and benefits that were protected now leave GM with under-funded pension obligations of $25 billion. The higher cost of labor at the company causes GM to operate at lower profit margins than competitors, a fact that Obama-appointed CEO, Dan Akerson, refuses to acknowledge when trying to explain GM's poor stock performance .

The injustice of the GM bailout that cost the taxpayers billions of dollars is enough in itself to boycott GM. What solidifies the negative sentiment is the constant dishonesty and ethical shortcomings at Government Motors as Obama campaigns on the "success" of the bailout. There is now a reliable indicator of how you can tell if GM executives or those in the Obama Administration are lying when they talk about the great success of the company and its political flagship vehicle, the Chevy Volt. That is, their lips move.

The list of questionable ethical behavior at Government Motors is long. The Department of Energy continues to throw good money after bad on its failed green energy initiatives by giving millions of dollars in advisory fees to law firms that cooperated in the GM bankruptcy process. Another $2.7 million of taxpayer money is being handed out to GM to "develop an integrated super-vacuum die casting process using a new magnesium alloy to achieve a 50% energy savings compared to the multi-piece, multi-step, stamping and joining process currently used to manufacture car doors." Why should taxpayers pay for that?

Cronies within GM get their piece of the pie as well. The wife of GM CFO, Dan Ammann, saw her firm awarded a $600,000 contract for an online ad campaign. Even though the SEC was not properly notified of the potential conflict, don't expect a government agency under a president that is campaigning on GM's perceived success to make many waves for the company.

NHTSA has also been criticized for its response to Chevy Volt fires. Regardless of whether or not the fires are evidence of safety issues for the Volt, the agency seemed to forget its obligations to motorists' safety as they were reluctant to publicize news of the fires. They even issued a statement saying the Volt was perfectly safe; before the investigation was complete!

The list goes on. GM's parts supplier, Delphi, had UAW pensions protected while non-union workers lost theirs . Federal funds went to localities so that they could help prop up dismal Chevy Volt sales as false claims of huge demand for the vehicle were made by GM. GM was given huge tax credits enabling them to go years without paying their fair share of taxes . Billions of taxpayer dollars were given to GM's former finance arm, Ally Financial (formerly GMAC) to ensure future funding for GM retail loans and dealership inventories. Promises to back warranty issues for cars sold by "old" GM were broken. Misrepresentations were made that taxpayers were repaid in full. Is it any wonder that those who are aware of these types of misconduct refuse to buy a GM product?

It is a ridiculous defense of GM to say the process had to play out in this manner or the automotive industry would have collapsed. There is no justification for dishonesty, cronyism and political paybacks. If GM wants to appeal to all Americans instead of just to those who condone or are unaware of the bad behavior, they have a long way to go. A removal of the government from GM operations would be a first step as Treasury should not be gambling taxpayer funds by continuing a market-timing strategy for exiting its ownership stake. There are many conflicts arising from a president campaigning on a platform that touts the bailout of GM as the only accomplishment of the Administration, other than the assassination of Bin Laden.

After the government divests its taxpayer-funded stake, management that has been appointed by Obama should be removed. The political undertones of the company have been witnessed as Republicans were blamed for hurting Chevy Volt sales and disproportionate money is spent to market the vehicle, which loses money for shareholders while supporting the failing green agenda of Obama. Akerson should exit with all board members that were appointed by the Administration.

The final closure on the GM bailout debacle will come when there is an admission that certain groups were unfairly treated in the process. An apology is owed to taxpayers, GM bondholders, Delphi non-union retirees and any other group that lost its rights as a result of the unprecedented government intrusion into the auto industry. I wouldn't hold my breath waiting, but until that time I have one thing to say. Car companies other than GM are making some nice vehicles!

Mark Modica is an NLPC Associate Fellow.


TOPICS: Business/Economy; Government; Politics
KEYWORDS: bailout; gm; governmentmotors; uaw
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Car companies other than GM are making some nice vehicles!

Amen to that. Get the government out of GM by selling their shares and fire Obama appointees.

1 posted on 06/14/2012 10:17:24 AM PDT by jazusamo
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To: jazusamo

I will never buy a car or factory parts from either GM or Chrysler. They are dead to me. Forever.


2 posted on 06/14/2012 10:23:10 AM PDT by muir_redwoods (I like Obamacare because Granny signed the will and I need the cash)
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To: jazusamo

I wouldn’t even consider buying a Government Motors car.


3 posted on 06/14/2012 10:24:23 AM PDT by Standing Wolf
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To: jazusamo

I love my 2003 Chevy Avalanche. It’s been comfortable and utterly reliable. I might even trade up for another used one dated no later than 2008. Otherwise, not another vehicle from GM.


4 posted on 06/14/2012 10:24:32 AM PDT by Noumenon (If people saw socialists for what they truly are, slaughter would ensue - in self-defense.)
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To: muir_redwoods

I totally agree. They don’t exist for me anymore.


5 posted on 06/14/2012 10:24:40 AM PDT by Essie
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To: jazusamo

FUGM!


6 posted on 06/14/2012 10:27:06 AM PDT by AngelesCrestHighway
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To: Essie

I’m with the others—nothing from Government Motors for me. I’m a Ford and Toyota (American built) customer now.


7 posted on 06/14/2012 10:28:07 AM PDT by House Atreides
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To: jazusamo
.....Americans Will Never Buy a GM Vehicle..

...never say never.

...if SCOUTS upholds Obamacare, what in the hell keeps some nut government from mandiating that certain Americans buy a Volt, for instance?..really...

..if you can be forced to buy a healthcare policy why not a car?

I know that this is an old, tired argument, but think about it, if Obamacare is upheld, and then is repealed, the decision still stands, and we are all in danger of being forced to buy anything from that point on.

8 posted on 06/14/2012 10:28:41 AM PDT by B.O. Plenty (Elections have consequences....)
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To: muir_redwoods; All
I will never buy a car or factory parts from either GM or Chrysler.

Totally agree and I had several over the years.

9 posted on 06/14/2012 10:28:54 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: B.O. Plenty

You make a valid point, I agree.


10 posted on 06/14/2012 10:31:16 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

Bought a new Suburban during The Great Panic of 2008. Literally stole it.

I use it for business, and that means lots of towing.

Not sure what I will replace it with in a couple of years. Ford quit making the Excursion. But I know it won’t be a Gubment Motors product.


11 posted on 06/14/2012 10:33:37 AM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: B.O. Plenty
Not an old argument at all. If National Socialist Healthcare is found to be Constitutional, the enumerated powers and limitations we the people placed on our government are gone.

Obamacare is legalized tyranny.

12 posted on 06/14/2012 10:34:12 AM PDT by Jacquerie (No court will save us from ourselves)
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To: Noumenon
I love my 2003 Chevy Avalanche.

Like you, I really do like my '01 Suburban and '06 GMC pickup. It will be a cold day in Texas before I buy anything built by Gov't Motors.

13 posted on 06/14/2012 10:36:22 AM PDT by tpmintx (Problem: The people who work for a living are outnumbered by those who VOTE for a living.)
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To: muir_redwoods

DOUBLE DITTO


14 posted on 06/14/2012 10:39:15 AM PDT by woodbutcher1963
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To: jazusamo
Why Some Americans Will Never Buy a GM Vehicle

I am one of those Americans. Its not like my business matters that much, becuase I'm not buying new cars very often -- but I certainly make my feelings known to people around me, especially if I know someone planning to buy a car. I won't buy a GM, ever, as long as it has any competitive advantage due to politics.

15 posted on 06/14/2012 10:40:01 AM PDT by PGR88
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To: jazusamo

I own a 1993 GM pickup. It is TOTALLY reliable, comfortable and when I do have a problem, it is inexpensive (as well as easy) to repair. In the almost 20 years I have owned it I have put on 240,000 miles and spent no more than $4000 total in repairs. $2400 of which was my fault because I was not used to automatic transmission and allowed it to go dry and had to repair it. (My bad)

I would not buy a new GM (Government Motor) car because I have looked at them and though they look pretty, they are “tinny” as hell and I have no confidence in something that will crumple in even a minor fender bender.


16 posted on 06/14/2012 10:44:02 AM PDT by jongaltsr
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To: Noumenon

I love my 2000 Accord and will buy another one day but I also want a new Camaro....They are gorgeous!!!!


17 posted on 06/14/2012 10:44:02 AM PDT by geege
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To: jazusamo

My ‘01 Silverado is pushing 210K miles with nothing but standard maintenance and tires ... best vehicle I’ve ever owned ... and my last GM product ever.


18 posted on 06/14/2012 10:46:28 AM PDT by tx_eggman (Liberalism is only possible in that moment when a man chooses Barabas over Christ.)
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To: geege

I TOTALLY agree about owning an Accord and would still want a Camaro. I did own an Accord and it was the best sedan I ever owned.


19 posted on 06/14/2012 10:48:21 AM PDT by jongaltsr
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To: jazusamo
My wife and I will both be getting new cars within the year.

Not even considering those crooks at Government Motors. It would be like a direct contribution to the Democratic Party.

Not a chance.

20 posted on 06/14/2012 10:50:34 AM PDT by dead (I've got my eye out for Mullah Omar.)
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To: jazusamo

Maybe because almost 80% of them have foreign parts?


21 posted on 06/14/2012 10:54:55 AM PDT by SkyDancer
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To: jazusamo

From a family that has bought nothing but GM for more than 7 decades... I’ll NEVER buy another GM vehicle. I made that promise in 2009 and have bought two new vehicles since then. Neither GM or Chrysler.


22 posted on 06/14/2012 10:57:06 AM PDT by Sequoyah101 (You've been screwed by your government.)
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To: jongaltsr

She’s always garaged, has 190k miles and still looks brand new....


23 posted on 06/14/2012 10:58:35 AM PDT by geege
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To: muir_redwoods

Me too—no chance of my ever buying one of their cars again. As far as I am concerned, those firms no longer exist.


24 posted on 06/14/2012 11:05:03 AM PDT by dinodino
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To: geege

My Accord has 270,000 and fires on first lick.

My other is a Ford F-150 XLT supercab.

I have found a good combination.


25 posted on 06/14/2012 11:16:07 AM PDT by eyedigress ((zOld storm chaser from the west)/?)
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To: jazusamo

Government Motors will never get a nickel of my money.
I do not support unions or socialism.


26 posted on 06/14/2012 11:21:26 AM PDT by BuffaloJack (End the racist, anti-capitalist Obama War On Freedom.)
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To: eyedigress

Wow....I hope mine will last that long....I’m unemployed and don’t need a car payment right now but I always said if I won the lottery I would still keep/garage her because she’s been such a good car.....


27 posted on 06/14/2012 11:22:22 AM PDT by geege
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I owned a Ford Pinto and I’m still p*ssed.


28 posted on 06/14/2012 11:24:09 AM PDT by Jenny217
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To: Jenny217

Never will I purchase a GM vehicle. We used to only buy GM trucks.. now we have Fords. Don’t like them as much but it’s the principle of the thing!


29 posted on 06/14/2012 11:26:35 AM PDT by rocketmag
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To: geege

Never sell it. Mine has been a gold mine during lean years. Of course I am a minor shade-tree mechanic that can handle the old age stuff.

BTW, change that transmission fluid with Honda ONLY ATF. It’s an easy job. These cars need that from time to time.


30 posted on 06/14/2012 11:31:07 AM PDT by eyedigress ((zOld storm chaser from the west)/?)
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To: jazusamo
General Motors was stolen from the owners
(GM bondholders) and was given to the union thugs.


The 0bama administration is all about Anarcho-syndicalism


31 posted on 06/14/2012 11:32:33 AM PDT by Uri’el-2012 (Psalm 119:174 I long for Your salvation, YHvH, Your law is my delight.)
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To: eyedigress

I always maintain per Honda requirements.....Right now I need back tires but everything else is “purring” away(:


32 posted on 06/14/2012 11:33:35 AM PDT by geege
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To: Standing Wolf

GM products will never again be parked in my garage. Only Fords at the present time and American built Toyotas and Hondas in the future.


33 posted on 06/14/2012 11:40:08 AM PDT by Patriot365
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To: muir_redwoods

34 posted on 06/14/2012 11:53:07 AM PDT by AngelesCrestHighway
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To: muir_redwoods

I’ll second that. I’ve been a GM and Chrysler man all of my life. I’ve had numerous Chevy trucks and cars and 3 or 4 Dodge vans. Not any more. My latest purchase? A new 2011 F-150 last fall.


35 posted on 06/14/2012 11:54:23 AM PDT by NotTallTex
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To: jazusamo

Put me on the boycott list too. GM is dead to me. Even for a rental car, I refuse to take a GM vehicle.


36 posted on 06/14/2012 11:55:02 AM PDT by Pollster1 (A boy becomes a man when a man is needed - John Steinbeck)
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To: jazusamo

No one in this household will buy a GM vehicle due to the bailout.


37 posted on 06/14/2012 11:59:06 AM PDT by bgill
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To: dead

Agree 100%. I’m 65K into my 2006 Camry and if I live long enough, I’ll get another one. I am a Detroit boy and I catch a lot of crap from my HS pals for driving a rice burner (even though it’s made in TN by non-union workers).


38 posted on 06/14/2012 12:01:07 PM PDT by Ax (You've got to hand it to Venus de Milo.)
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To: dead

Agree 100%. I’m 65K into my 2006 Camry and if I live long enough, I’ll get another one. I am a Detroit boy and I catch a lot of crap from my HS pals for driving a rice burner (even though it’s made in TN by non-union workers).


39 posted on 06/14/2012 12:01:29 PM PDT by Ax (You've got to hand it to Venus de Milo.)
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To: Pollster1

ditto. i go further in that i’m also disinclined to buy anything built by UAW goons, even Fords. but GM is worst obviously.


40 posted on 06/14/2012 12:11:05 PM PDT by pogo101
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To: jazusamo

ping


41 posted on 06/14/2012 1:23:52 PM PDT by ThirstyMan
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To: pogo101

I love our 1996 Suburban but chose to recently buy a Lincoln Navigator. Will never buy another GM car. Love the Navigator.


42 posted on 06/14/2012 1:28:52 PM PDT by agondonter
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To: jazusamo; a fool in paradise
An Opel I'd hit.


43 posted on 06/14/2012 1:35:18 PM PDT by Revolting cat! (Let us prey!)
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To: jazusamo

I’m strictly Acura/Toyota. Reliable as can be. My Sequoia has 160,000 and is still in perfect shape. My Acura TSX is the best car I’ve ever owned.


44 posted on 06/14/2012 1:42:21 PM PDT by albie
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To: jazusamo

Yup, no GM or Chrysler for me...

When the government sends me a check for the damage, I’ll reconsider.

I have a Honda and a Ford, and like them both.


45 posted on 06/14/2012 1:44:26 PM PDT by cookcounty ("We're all born idiots, and we only get over that condition as we get less young." -J Goldberg)
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To: tcrlaf

Ford has the Expedition el, an expanded version, thats nearly identical dimension/ wheelbase as suburban, instead of excursion.


46 posted on 06/14/2012 2:53:40 PM PDT by jkeith3213
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To: UriĀ’el-2012

This happened to my 80 year old Dad, who lost 90% on the value of his GM bonds, which he was going to use for his retirement. He lost about $200,000. GM? Dead to me...


47 posted on 06/14/2012 3:05:32 PM PDT by vicdoc
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To: Noumenon

I’m definately hanmging on to my ‘08 silverado, just love it!


48 posted on 06/14/2012 3:12:30 PM PDT by Iron head mike (The government will soon make criminals of us all.)
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To: Noumenon

I’m definately hanging on to my ‘08 silverado, just love it!


49 posted on 06/14/2012 3:12:49 PM PDT by Iron head mike (The government will soon make criminals of us all.)
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To: muir_redwoods

I quit buying GM in the 80s. I like toyota.


50 posted on 06/14/2012 3:52:57 PM PDT by plain talk
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