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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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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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