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.
Closing private dealerships further irked the masses.
I just purchased a Toyota so I guess I dissed GM. That company stinks anyway.
—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?
“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???”””
I won't buy a GM car for any reason as long as Obambi has anything to do with it.
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.
I stopped buying GM over 25 years ago. I got tired of watching them fall apart before I had them paid off.
No thanks. I’ll boycot Honda, and Toyota....
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.
“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.
I guess I’m part of those in the “minority” that will NEVER buy anything from GM ever again. Hope they go broke.
“I’ll boycot Honda, and Toyota....”
Good. More for me.
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.
“...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.
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.
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.
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?
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.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.