Posted on 05/08/2012 11:09:03 AM PDT by jazusamo
Last week's earnings report from General Motors revealed a troubling statistic for shareholders. GM's market share for North America shrunk from 18.3% a year ago to 16.7% for the latest quarter. Not coincidently, a survey by Yahoo Autos revealed that a full 13% of consumers would now "never" consider purchasing a GM vehicle while another 15% are less likely to purchase. A negative perception of the auto bailout process and the continued political overtones at GM are the reasons for the boycott.
Another recent Rasmussen poll showed that 59% of Americans view the auto bailouts as a failure. The Yahoo Autos' article puts a more positive spin on the auto bailouts stating that two thirds of Americans put GM on their shopping list. Unfortunately for GM, a loss of any segment of potential buyers causes the company to have to spend more in incentives to maintain market share.
Incentive spending for GM rose to 115% of industry average for the month of April. This is the highest number in a year. In addition, GM is relying on loosened credit standards to help spur sales as GM Financial sub-prime loans rose to 8.2% for the quarter, up from 6.1% a year ago. The industry average is currently 6%. Government-owned Ally Financial is pitching in as well, offering 72 month / 0% interest on struggling models like the Chevy Volt.
The extra help is needed as GM has taken an unusual position in vilifying conservative and Republican car shoppers by accusing them of running a "wrong-headed" misinformation campaign designed to hurt sales of the Chevy Volt. The argument holds no water as other plug-in cars, like the Nissan Leaf, are selling even more dismally than the Volt. GM CEO, Dan Akerson, claims that Republicans criticize the Volt but not the Leaf, thus hurting Volt sales. If the logic was sound, sales of the Volt would be suffering more than the Leaf. GM continues to spend a disproportionate amount of money promoting the Volt, which serves as a symbol of Obama's green energy initiatives, while losing market share in more profitable segments.
Many Americans recognize the blatant favoritism that political allies of Obama, like the UAW, have received in the GM bankruptcy process compared to other groups. GM bondholders and taxpayers fared worse than UAW members who not only kept their jobs and benefits, but are now receiving thousands of dollars each in bonuses. The auto bailouts seemed to have an underlying goal of protecting the powerful UAW. Perhaps nowhere else is the blatant inequity evidenced than in the treatment of Delphi retirees. UAW retirees had their retirement benefits protected while non-union retirees lost theirs. Congressional investigations are ongoing in the obviously biased redistribution of wealth that favored the UAW.
The automotive sector remains very competitive, companies can not afford to alienate potential buyers by taking political stances as GM has done with the Volt. The continued campaigning by President Obama on the "success" of GM and the Chevy Volt as Treasury refuses to exit taxpayers' stake in the company further alienates individuals who do not agree that the auto bailouts where overwhelmingly "successful." If the sacrifices of those classes that were not politically connected are not recognized, it is hard to let bygones be bygones. 13% of disenchanted Americans may not be enough to change an election, but it can sure put an auto manufacturer at a competitive disadvantage as the GM boycott continues. A strategy by Government Motors to vilify critics is not helping the situation.
Mark Modica is an NLPC Associate Fellow.
It’s no doubt this is hurting Government Motors. Obama and thugs hurt a lot of people due to the bailout of the UAW retirement fund and many are not forgetting it.
Will never buy a GM
nor will I ever rent a GM (hear me Hertz/Avis/National).
Just got back from an 18 day business trip...rented a Hyundai instead.
13% my foot! No conservative I know will ever buy a GM or Chrysler product again. It’ll be liberals who patronize them.
I just bought a 2012 VW Beetle.....I shopped Audi, Porsche, VW, BMW and a couple Fords.
GM was persona non grata.
Amen to that.
I drive an Asian-label car built in a Red State by non-union auto workers.
I’m one of the proud 13%. Check out my tag line that I have had ever since they bailed out GM and screwed the bondholders and taxpayers
My current car is a pre-bailout GM, and while most of my cars have always been GM, I can guarantee you that I will never buy another one as long as I have a choice in the matter.
I didn’t leave GM, GM left me.
Enterprise was low on cars the other day due to the recent hailstorm in St. Louis, and all they could offer me was my choice between five Chevy Impalas and a just-returned-and-cleaned Nissan Altima.
Man, that Altima was nice!
“The auto bailouts seemed to have an underlying goal of protecting the powerful UAW. Perhaps nowhere else is the blatant inequity evidenced than in the treatment of Delphi retirees. UAW retirees had their retirement benefits protected while non-union retirees lost theirs. Congressional investigations are ongoing in the obviously biased redistribution of wealth that favored the UAW.”
nuff said.
GM and Chrysler are off the list for the rest of my life.
Fixin to have to buy a vehicle later this year.
Used Toyota is on the top of the list.
and that’s that.
I am driving our third Saturn after a Chevette and a Skyhawk. Any additional cars come from Ford Motor Company or an Asian brand. Mrs. jimfree craves a Mustang convertible and she is due for the next car.
General Motors is becoming China Motors
http://www.youtube.com/watch?v=Lvl5Gan69Wo
Our household is proudly GM-free since 2009!
What about the poor consumers who purchased a new GM vehicle just prior to the bailout/bankruptcy/reorganization. They got shafted on warranties. One in particular I recall reading about last year was a bearing issue in the Impalas... a rear wheel could just "fall off" the vehicle with no advanced warning... GM refused to fix it, saying it was under the "old" GM, not the "new" GM. Not sure whatever became of it, but it seems that there were even some police vehicles involved.
I’ve seen exactly ONE of those on the road around here, and a handful at two Chevrolet dealers.
Thing is - there are no public “plug-ins” for these beasts. So you have to spend another arm and leg for a charging station for your garage (you do have a garage, right?).
Insanity.
You can bet on it that no one in our family will ever in any of our life times buy a GM product. Even if we had lots of money and they were the very best you could buy!
You can bet on it that no one in our family will ever in any of our life times buy a GM product. Even if we had lots of money and they were the very best you could buy!
I share my love of all things GM and Chrysler with you and everyone I talk to about cars. Heck, I won’t even look at the articles in Car & Driver or Road & Track that tout those two. Both mags seem to be shilling for the won and the dems.
The bailout process of GM was sneaky and slimy beyond unfair, probably illegal and corrupt.
The whole process was worse than porn to watch.
While witnessing the slime, I vowed to myself to never knowingly purchase a product produced under the representation of an Obama supporting Union. UAW is only one of them.
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