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How Deep Does GM Boycott Run? (Good read)
National Legal & Policy Center ^ | September 22, 2011 | Mark Modica

Posted on 09/22/2011 9:14:22 AM PDT by jazusamo

Media headlines about General Motors trumpet events that would lead one to believe that the company has successfully transformed itself into a self-sustaining, profitable American corporation. Readers are to believe that thousands of jobs are now being created at GM and the taxpayers are on their way to reaping the rewards of their so-called "investment" of $50 billion in an ownership stake of the company, even as Wall Street pricing of GM shares indicates otherwise. However, there is a portion of Americans who do not buy into the GM success story and now refuse to purchase vehicles from the company based on moral grounds.

Amidst the GM internet headlines can be found dissension by those who do not agree that the Obama auto bailouts and subsequent taxpayer funded initiatives exemplify actions that were in the best interest of America. Comments by readers, like those at the end of an article at biggovernment.com criticizing the government intrusion that sees taxpayer funds being used to support sales of the controversial Chevy Volt, unveil a quiet boycott of GM products by many who have a negative view of the bailouts.

Another piece on the web entitled "Obama Haters Shun GM" speculates that those who dislike President Obama are punishing GM by not buying the company's cars or shares. I think the title is a bit over the top, but the point of some consumers shunning GM is valid. As for the sentiment influencing share price, that's ridiculous. Markets are too efficient to allow a widely traded security to be driven by such a sentiment. The fact is, the institutions and people who control the "smart" money are not buying the GM hype, it has nothing to do with their feelings about Obama. The article quotes comments from a seemingly wise fellow named Mark from the Philadelphia area who states the reason for not buying GM shares is that the stock is a dangerous investment and has nothing to do with personal feelings about Obama.

The strategy at GM and at the White House is to convince the majority of Americans (i.e. auto consumers and voters) that General Motors is the picture of patriotic, domestic industrialism at its best. Add the hype for the Chevy Volt as a savior for the environment and the hope is that enough Americans will have a favorable enough view to ensure the success of GM and the 2012 Obama election campaign. Proponents of GM will argue that relatively strong sales (of vehicles other than the Volt) are proof of acceptance by the American public.

Those Americans who view the actions at GM as the epitome of crony capitalism at its worst will remain unconvinced that the auto bailouts were a great success. They saw that favored classes, such as the UAW, benefited while other less politically connected groups, such as GM bondholders, accident victims, taxpayers, etc., sacrificed. Many recognize that government support for the struggling Chevy Volt is costing taxpayers billions of dollars. The question is, how widespread is the negative sentiment?

I really don't believe that the majority of the populace pays close enough attention to the happenings at GM to have it influence their car buying decision. Most consumers will buy the vehicle they believe offers the best value. What is important to recognize, however, is that in such a competitive field as the auto sector, every advantage is crucial. Ford is now running ads that play upon Americans dissatisfaction with GM's costly taxpayer funded bailout.

If even a small minority of Americans will not consider purchasing a GM vehicle, General Motors will have to spend extra on marketing initiatives and incentives to maintain market share. Add the risks of a slowing economy threatening already thin profit margins and the quiet boycott of GM may be enough to make the difference between success and ultimate failure. Perhaps for both an auto company and an administration.

Mark Modica is an NLPC Associate Fellow.



TOPICS: Business/Economy; Government
KEYWORDS: bailout; chevyvolt; cronycapitalism; freemarket; gm; governmentmotors; marxistcoup; nlpc; obamunism; uaw; unions
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GM made a lot of enemies when they were bailed out with taxpayer dollars and the UAW bailed out with them. Then they made many more enemies with the declaration the Chevy Malibu owners were on their own fixing the GM defect because GM claims the "old" GM manufactured those cars and the "new" GM is not responsible for repairs under warranty.
1 posted on 09/22/2011 9:14:31 AM PDT by jazusamo
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To: jazusamo

Closing private dealerships further irked the masses.


2 posted on 09/22/2011 9:18:28 AM PDT by All Blue State
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To: jazusamo

I just purchased a Toyota so I guess I dissed GM. That company stinks anyway.


3 posted on 09/22/2011 9:19:10 AM PDT by napscoordinator
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To: jazusamo

—Add the hype for the Chevy Volt as a savior for the environment —

Maybe I live under a rock, but just how stupid would a person with the brain power needed to keep their heart beating have to be to believe that nonsense. Anyone?


4 posted on 09/22/2011 9:20:10 AM PDT by cuban leaf (Were doomed! Details at eleven.)
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To: jazusamo

“Another piece on the web entitled “Obama Haters Shun GM” speculates that those who dislike President Obama are punishing GM by not buying the company’s cars or shares.”

So, is the converse when 000bama says:

“””If you love me,
you’ll buy GM???”””


5 posted on 09/22/2011 9:21:33 AM PDT by fishtank (The denial of original sin is the root of liberalism.)
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To: jazusamo
GM made a lot of enemies when they were bailed out with taxpayer dollars

I won't buy a GM car for any reason as long as Obambi has anything to do with it.

6 posted on 09/22/2011 9:21:55 AM PDT by laweeks
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To: All Blue State

Exactly. Then it came out there was political party considerations involved in some closures which really was not surprising considering the turkey we have in the White House.


7 posted on 09/22/2011 9:22:20 AM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: jazusamo

I stopped buying GM over 25 years ago. I got tired of watching them fall apart before I had them paid off.


8 posted on 09/22/2011 9:22:51 AM PDT by Malone LaVeigh
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To: jazusamo

No thanks. I’ll boycot Honda, and Toyota....


9 posted on 09/22/2011 9:23:25 AM PDT by Moleman
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To: jazusamo

When I was a young lad in the ‘50s, my dream was to retire and roam the country in a Suburban with an Airstream in tow. Still working and wouldn’t buy a Suburban. I refuse to research Airstream cause a lad has to have some dream left.


10 posted on 09/22/2011 9:23:51 AM PDT by Gadsden1st
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To: jazusamo

“General Motors will have to spend extra on marketing initiatives and incentives to maintain market share”

I know a handful of people who have bought GM products. I always enquire why. The responses have been a variation of, “You know, they gave me such an incredible deal, I couldn’t turn it down.” That sounds as if they’re sacrificing profit to make sales numbers. I won’t buy a GM product because of the two reasons, anti-Obama, anti-bailout and because I don’t want a penny of my money supporting the UAW.


11 posted on 09/22/2011 9:24:53 AM PDT by Gen.Blather
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To: jazusamo

I guess I’m part of those in the “minority” that will NEVER buy anything from GM ever again. Hope they go broke.


12 posted on 09/22/2011 9:25:57 AM PDT by bfree (The revolution is coming - OBAMI IS THE ENEMY OF FREEDOM)
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To: Moleman

“I’ll boycot Honda, and Toyota....”

Good. More for me.


13 posted on 09/22/2011 9:26:25 AM PDT by Mr Rogers ("they found themselves made strangers in their own country")
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To: jazusamo

Their complicity in the screwing of premium bond investors coupled with the wholesale illegal takeover of the real value of they company by Government, who handed over that value to the UAW Pension and Medical funds goes THREE GENERATIONS deep here in MY Georgia.

These people can choke on the their GM ‘products’ certainly for the rest of MY lifetime and the rest of my childrens’ lifetimes. Since rich grandaddy will likely help out or buy their grand daugthers’ first cars (which sure as hell won’t be GM), I’d say they won’t get accustomed to them either.

All you GM UAWers, New Stockholders and government tyrants had better buy the damned products yourself; I won’t....EVER.


14 posted on 09/22/2011 9:28:53 AM PDT by Gaffer
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To: jazusamo

“...General Motors will have to spend extra on marketing initiatives and incentives to maintain market share. Add the risks of a slowing economy threatening already thin profit margins and the quiet boycott of GM may be enough to make the difference between success and ultimate failure.”

So what? GM will have to spend more of the tax payer money to advertise, produce cars at a loss, or even pay people to drive them off the lot. The UAW and GM corporate will still have a job, and still have our money. Maybe just a little less than if we’d also bought the cars we already paid them to make.


15 posted on 09/22/2011 9:33:31 AM PDT by ConservativeWarrior (In last year's nests, there are no birds this year.)
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To: Malone LaVeigh
I grew up in a Chevy household. Loved the Vette. I quit buying their products 20 yrs ago. Now I own BMW's and a Porsche. Much better products!
16 posted on 09/22/2011 9:35:32 AM PDT by martinidon
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To: Gaffer

My now deceased FIL had a brother who retired from GMAC and had a BUNCH invested in bonds for retirement. He passed away about 10 years ago but his surviving spouse is now living on a meager SS income.


17 posted on 09/22/2011 9:36:48 AM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: laweeks

I have an ‘03 Avalanche that I will basically drive into the ground. At which point, I will purchase any other brand besides one that took my money for their bailout. Never another GM product.


18 posted on 09/22/2011 9:37:26 AM PDT by Noumenon (The only 'NO' a liberal understands is the one that arrives at muzzle velocity.)
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To: Gadsden1st
I refuse to research Airstream cause a lad has to have some dream left.

I think "Cliff Clavin" did a show on Airstream. I was impressed if
they really did everything they showed to all the units they produce.

I'm surprised the article didn't mention the $5K "bonuses" the GM
UAW types are reportedly going to get. Shouldn't they use that
money to repay the taxpayers?

19 posted on 09/22/2011 9:37:44 AM PDT by Calvin Locke
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To: jazusamo

Did they ever honor the warranty problems the Chevy Malibu owners were having? GM said it was the previous (Before Obama) GM’s warranty and they weren’t going to cover the repairs.


20 posted on 09/22/2011 9:40:07 AM PDT by listenhillary (Look your representatives in the eye and ask if they intend to pay off the debt. They will look away)
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To: jazusamo

Count me in the “boycott GM and Chrysler” group. As of April, I am “GM free”.


21 posted on 09/22/2011 9:40:25 AM PDT by JoeGar
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To: listenhillary

They haven’t honored it as yet because if they would have there’d have been plenty written about it, so far just crickets.


22 posted on 09/22/2011 9:42:38 AM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: jazusamo

Government backed corporations are fascist. It is anti-American. It’s very simple. Buy GM, support Fascism.


23 posted on 09/22/2011 9:42:57 AM PDT by douginthearmy
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To: jazusamo

Government backed corporations are fascist. It is anti-American. It’s very simple. Buy GM, support Fascism.


24 posted on 09/22/2011 9:43:11 AM PDT by douginthearmy
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To: jazusamo

Also, they screwed their creditors and shareholders in favor of the unions, gleefully violating bankruptcy law with the backing of the Obamunist.

I’ve always driven GM cars, but I don’t think I but another one, certainly not new or used from the dealership. Maybe a nice classic from a private seller someday, but that’s about it.


25 posted on 09/22/2011 9:45:16 AM PDT by Boogieman
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To: jazusamo
I'm not sure that I want to make my auto buying decision contingent on politics. I might consider it as one factor but just one factor. I drive Blue Ovals because I have had good experiences with them, not for political reasons.

IMO the only good product that GM offers is the Cadillac line and unfortunately for GM, I'm not in that market nor expect to be anytime soon.

26 posted on 09/22/2011 9:45:49 AM PDT by CommerceComet (Governor Romney, why would any conservative vote for the author of the beta version of ObamaCare?)
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To: CommerceComet

Oops. Add the Corvette to the good GM product list. I’m not expecting to be in that market either.


27 posted on 09/22/2011 9:47:13 AM PDT by CommerceComet (Governor Romney, why would any conservative vote for the author of the beta version of ObamaCare?)
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To: jazusamo

Chevy runs deep alright, deep into your pockets and deep into the government pockets. They will never see another $ from me or my family members.


28 posted on 09/22/2011 9:52:10 AM PDT by TheDailyChange (Politics,Conservatism,Liberalism)
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To: Gadsden1st
Airstream
^^^^^^^^

I love the Casitas.

Also...My dream is to own a white Harley with pink raccoon tails on the handles. ;=)

29 posted on 09/22/2011 9:58:57 AM PDT by wintertime (I am a Constitutional Restorationist!!! Yes!)
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To: martinidon

I would have to respectably disagree on the Vette to BMW/Porsche comparison. Even ignoring price, the Corvette is a more reliable product.

Porsches are known lately for blown engines on track day (see TTAC, where there is a recorded history), and most BMW owners I know have their product in the shop, perpetually.

You could say the interior quality is slightly higher on the BMW and the Porsche, but you don’t buy those cars on the interior, you drive them for performance.

Given that, I wouldn’t buy any of the Porsche, BMW, or Chevrolet brands. Only BMW is not state made made, and they still have severe reliability issues.

Check out the stock ownership of VW, Porsche’s holding company.

So, in the end if it is between Porsche and Vette, not sure how one could make a objective quality comparison and pick the Porsche, the Vette is known to be better built, even though touched by the UAW.

At least with BMW, you would be supporting a company with mostly non-state investors.


30 posted on 09/22/2011 10:09:26 AM PDT by Aqua225 (Realist)
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To: jazusamo

didn’t the gov also bail out Chrysler?


31 posted on 09/22/2011 10:10:13 AM PDT by redhead (Never Forget. Never Forget. NEVER FORGET!)
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To: jazusamo
Another piece on the web entitled "Obama Haters Shun GM" speculates that those who dislike President Obama are punishing GM by not buying the company's cars or shares.

I don't think "hate" is a strong enough word....

In the market for a new truck at some point. Love my 11 year old Chevy. Never really liked Fords, I am learning to though.

32 posted on 09/22/2011 10:15:23 AM PDT by Envisioning ( Call me a racist................, one more time......................)
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To: TheDailyChange

The best hope Chevrolet/GM has of me purchasing a new car from them, is if they go into bankruptcy again, this time under a president supporting of free markets, and they finally fix their UAW relationship, and truly learn a lesson.

I read the other day that GM has 20 billion dollars in unfunded pensions on the books, so it won’t be long before they are down and out again. I just hope the president on the day it happens, and the following years, is free market focused.

If this happens, I will resume bowtie ownership. Till then, forget about it.


33 posted on 09/22/2011 10:15:33 AM PDT by Aqua225 (Realist)
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To: jazusamo
Another piece on the web entitled "Obama Haters Shun GM" speculates that those who dislike President Obama are punishing GM by not buying the company's cars or shares.

So if I refuse to buy GM can I be considered a racist?
He never quite said it, but it's between every line.

34 posted on 09/22/2011 10:16:25 AM PDT by ZOOKER ( Exploring the fine line between cynicism and outright depression)
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To: redhead

They are Chrysler now in name only. They are owned by Fiat now. Who just got their credit downgraded this week.

I really don’t understand the Chrysler bail out at all. At least GM will more than likely limp along as a American company. Chrysler was given to Italians, who arguably produce worse cars than Chrysler did. I don’t get the management selection on that deal...

For all those who say, “what about Ferrari and Lamborghini?”, well, go own one, and call me about that maintenance bill, and the constant breakdowns.


35 posted on 09/22/2011 10:18:24 AM PDT by Aqua225 (Realist)
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To: jazusamo

At the end of the day, gubmint may be forced to buy exclusively GM products to keep it afloat.

No so much for the company, but for its powerful union.

And it has a silver lining for the rest of us, it will be much easier to spot the gubmint workers drving such cars ......


36 posted on 09/22/2011 10:18:45 AM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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To: jazusamo

37 posted on 09/22/2011 10:23:46 AM PDT by Bobalu (More rubble, less trouble)
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To: Bobalu

Like’em all except that Calvin & Hobbes one. I hate that one.

Every Ford redneck has one around here, and every Chevy redneck has a similar one with the blue oval under the stream.

I think they are all copyright violations, but there is so many producers out there, the guy who owns the rights can’t hope to ever get it under control again.


38 posted on 09/22/2011 10:27:31 AM PDT by Aqua225 (Realist)
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To: redhead

Yes, taxpayers bailed out Chrysler also. The U.S. closed out and lost somewhere around $1.3 billion dollars.

As GM stands right now if the U.S. closes out I believe we’ll lose 10 or 15 times that much.


39 posted on 09/22/2011 10:28:39 AM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: listenhillary

GM did not cover problems, but it was the Impala, not Malibu. Add Impala owners to the list!


40 posted on 09/22/2011 10:30:57 AM PDT by Mark Modica
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To: All Blue State

That right there, is the main reason I would never ever buy a GM product.


41 posted on 09/22/2011 10:38:47 AM PDT by annieokie
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To: Mark Modica; listenhillary; All

Thanks Mark.

I don’t know what I was thinking when I said Malibu, it was the Impala.


42 posted on 09/22/2011 10:39:05 AM PDT by jazusamo (His [Obama's] political base---the young, the left and the thoughtless: Thomas Sowell)
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To: jazusamo
a quiet boycott of GM products by many who have a negative view of the bailouts

That's me.

Mind you, I already have a hugely negative view of any company that is run by UAW goon trash to the extent that GM is. (Same goes for non-bailed-out Ford.)

Plus, another reason I didn't like GM even pre-bailout was that its Really Ultra-Crappy Years (quality wise) in the late 70s and early 80s were my growing up years, when cars were something I really scrutinized (age 9-18). My dad, obviously from a different time, bought a Cadillac, his dream car. It spent more time in the shop than on the road, I'm not kidding. After that he went MBenz and never has gone back.

But the bailout? Nail in the coffin.

I can't quite say "I'll never buy GM," as never is a long time, but it's extremely unlikely. Anytime I have a car-buying choice, that "hey they took a bailout, and screwed over their bondholders," is going to weigh so heavily on my mind that I can't imagine I'd buy a GM unless they made far-and-away the obvious best car for the money. Maybe if they invent the flying car, we'll talk.

43 posted on 09/22/2011 10:49:20 AM PDT by pogo101
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To: redhead

Whatever is bought, it should help out the unemployed in this country by your economic stimulus before another during these times of hurt here.

I’ve worked for all the big three and with two German manufacturers - anecdotely, the Germans refuse to deny they have a problem. The Americans accept it but try not to fix it for everybody. They’re the same in the end - human.


44 posted on 09/22/2011 10:57:35 AM PDT by If You Want It Fixed - Fix It
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To: napscoordinator
I just purchased a Toyota so I guess I dissed GM. That company stinks anyway

I bought a Ford Focus for my mom...

45 posted on 09/22/2011 10:59:44 AM PDT by ExCTCitizen (Palin/Bachman 2012....What would the NAGS say? :-))
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To: All Blue State
Yes, some dealership owners that lost their business through Obama committed suicide, you don't hear much about that.
Also all the stock holders were forced to take pennies on the dollar, then the government turned around and gave unions the ownership despite the fact they were ALREADY compensated with their pay checks.
46 posted on 09/22/2011 11:01:23 AM PDT by A CA Guy ( God Bless America, God bless and keep safe our fighting men and women.)
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To: Aqua225

FIAT = Fix it Again, Tony!!! :)


47 posted on 09/22/2011 11:02:30 AM PDT by ExCTCitizen (Palin/Bachman 2012....What would the NAGS say? :-))
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To: If You Want It Fixed - Fix It

I disagree with helping those who are hurting by buying American Big-3.

Many of the Japanese branded cars that Americans love are built here in some quantity now.

You could support those non-UAW Americans, rather than throw more money and support towards UAW employees.

And manufacturing is marching back to us with the weak dollar, but you can be sure it will march into the right-to-work states without the UAW.


48 posted on 09/22/2011 11:08:45 AM PDT by Aqua225 (Realist)
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To: A CA Guy

I retired from Hughes Aircraft company (owned by GM at the time) so I am eligible for the employee discount. I have an 04 Trailblazer and an 07 Tahoe. I think they are both quality vehicles. Because of the bailout, they are the last GM cars I will ever buy. My next vehicles will not be made by anyone in the UAW.


49 posted on 09/22/2011 11:09:45 AM PDT by saminfl
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To: Aqua225
Well my Porsche is a toy so it is not an everyday vehicle, so I have not had any problems with it. Plus I don't race it so blown engines are not a concern. My BMW's have been the best, they go in the shop only once per year for oil changes and that is the only time they are in. Plus I have the maintenance program where the oil changes do not cost me anything (I really paid for that service in the price of the vehicle). So I am very happy with my BMW's and Porsche.
50 posted on 09/22/2011 3:13:15 PM PDT by martinidon
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