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.
That right there, is the main reason I would never ever buy a GM product.
Thanks Mark.
I don’t know what I was thinking when I said Malibu, it was the Impala.
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.
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.
I bought a Ford Focus for my mom...
FIAT = Fix it Again, Tony!!! :)
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.
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.
So you prefer crap??
Sorry GM makes crap.. I don’t want to spend money on crap..
No, I just prefer to do business with American companies.
So if a American company makes crap, you still buy crap?? Also buy a car from GM you support Obama..
It is true.. So you don’t care that the Fed Government bailed out a company??
Look what happens to the cars and trucks built by government motors. I thought states were hurting for money? Most all of these vehicles are LOW mileage GM. Here are more than 500 pontiacs being auctioned off just in October alone. very strange... http://autoauctions.gsa.gov/autoauctions/searchResult.seam?cid=248587
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.