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GM Boycott Hurting Market Share?
National Legal & Policy Center ^ | May 8, 2012 | Mark Modica

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.



TOPICS: Business/Economy; Government; Politics
KEYWORDS: allyfinancial; chevyvolt; gm; governmentmotors; nissanleaf; nlpc; obama; taxcredit; uaw

1 posted on 05/08/2012 11:09:14 AM PDT by jazusamo
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To: jazusamo

I won’t ever buy one of their pieces of crap...never have, never will...Chevy SUCKS.


2 posted on 05/08/2012 11:10:50 AM PDT by rightwingextremist1776
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To: rightwingextremist1776

You are completely right. I don’t care if they make the best car on the market, now. This is Government Motors backed up by the UAW Medical Pension Fund. These people can choke on their automobiles. They can eat them, because I will NEVER even think about buying a GM product in the future.


3 posted on 05/08/2012 11:13:55 AM PDT by Gaffer
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To: jazusamo

Buy a GM car, and a portion of the sales will go to the Democrat party.


4 posted on 05/08/2012 11:14:03 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: jazusamo

I don’t do business with thieves. My current vehicle is a pre-bailout GM, but it won’t happen again - unless the thieves restore and make whole the bondholders and taxpayers who were defrauded.


5 posted on 05/08/2012 11:15:19 AM PDT by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
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To: rightwingextremist1776
A lot of people feel the same, especially since Obama bailed out GM/UAW and screwed the bondholders.
6 posted on 05/08/2012 11:15:31 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

I don’t believer in boycotts. However, I personally will never buy a GM produced car that was built during the time after the bailout. If GM makes good on every dollar and returns to private ownership I will add cars built after the day that happens. Anything built within that window, however, is off limits.

It’s a personal choice based on core, principle values.


7 posted on 05/08/2012 11:16:31 AM PDT by cuban leaf (Were doomed! Details at eleven.)
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Please bump the Freepathon or click above and donate or become a monthly donor!

8 posted on 05/08/2012 11:16:41 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

Hubby and I just purchased a Ford 150 Platinum. We knew going in to our vehicle search that a GM product would never even be considered. EVER!

I wonder how many like-minded folks like us are really out there?


9 posted on 05/08/2012 11:21:33 AM PDT by MNGal
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To: jazusamo; All

General Motors is becoming China Motors

http://www.youtube.com/watch?v=Lvl5Gan69Wo


10 posted on 05/08/2012 11:23:00 AM PDT by A. Morgan (Ayn Rand: "You can avoid reality, but you cannot avoid the consequences of avoiding reality.")
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To: jazusamo

They already received too much of my dough via taxpayer bailout. I will never buy a GM product again. I hope their stock price drops out of sight and the UAW goons who benefitted from this corruption end up with worthless pieces of paper.


11 posted on 05/08/2012 11:25:05 AM PDT by Upstate NY Guy
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To: A. Morgan

Thanks for linking, that’s an excellent video.


12 posted on 05/08/2012 11:26:45 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: MNGal

We’re in the market for a new truck and GM has NEVER been a consideration for us.

How do you like your Ford?


13 posted on 05/08/2012 11:27:02 AM PDT by LadyBuck (In the immortal words of Jean Paul Sartre, 'Au revoir, gopher')
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To: jazusamo
Photobucket
14 posted on 05/08/2012 11:28:48 AM PDT by SMM48
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To: jazusamo

Never again GM. Ever. First the bailout, then the parts dept wanted $100 for a replacement key fob to replace the defective one that came with my pre-bailout chevy. GM can pi$$ up a rope.


15 posted on 05/08/2012 11:34:44 AM PDT by BillyBonebrake
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To: jazusamo

I used to buy GM pretty much exclusively (back since the “Mark of Excellence” days that are no more), but I’m done with them. I am their worst nightmare: A once loyal customer permanently (more or less) turned away from them.


16 posted on 05/08/2012 11:36:21 AM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: jazusamo

I am one of the 13%. I tell everyone I know, I will NEVER buy an Obama-motors. Maybe its working.


17 posted on 05/08/2012 11:40:53 AM PDT by PGR88
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To: Cyber Liberty

I used to be a faithful GM owner. Never again. The bailout was bad enough, but the silly environmentalism with the Chevy Volt is over-the-top corruption when you consider the level of cooperation that it takes with Obama to make it ‘work’, so to speak.


18 posted on 05/08/2012 11:41:56 AM PDT by Tallguy (It's all 'Fun and Games' until somebody loses an eye!)
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To: jazusamo

I will NEVER buy a GM product....the bailouts did them in for me.


19 posted on 05/08/2012 11:43:28 AM PDT by SoFloFreeper
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To: MNGal
"Hubby and I just purchased a Ford 150 Platinum. We knew going in to our vehicle search that a GM product would never even be considered. EVER!

I wonder how many like-minded folks like us are really out there?"

Probably more than you think!! Bailouts are NOT the American way.

BUT - that soon might change if Obama is re-ekected.

This past week, Ford UAW sent out snail mail letters to all employees & retirees saying that not taking the bailout was a BIG mistake & they want everyone to vote for Obama in this election so that they can get their share!!!

20 posted on 05/08/2012 11:43:28 AM PDT by LADY J (You never know how strong you are until being strong is the only choice you have. - Author Unknown)
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To: PGR88

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.


21 posted on 05/08/2012 11:45:14 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: jazusamo

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.


22 posted on 05/08/2012 11:46:29 AM PDT by kidd
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To: jazusamo

13% my foot! No conservative I know will ever buy a GM or Chrysler product again. It’ll be liberals who patronize them.


23 posted on 05/08/2012 11:58:59 AM PDT by MamaDearest
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To: MNGal

I just bought a 2012 VW Beetle.....I shopped Audi, Porsche, VW, BMW and a couple Fords.

GM was persona non grata.


24 posted on 05/08/2012 12:16:13 PM PDT by Psycho_Bunny (Burning the Quran is a waste of perfectly good fire.)
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To: MamaDearest

Amen to that.


25 posted on 05/08/2012 12:16:45 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: PGR88

I drive an Asian-label car built in a Red State by non-union auto workers.


26 posted on 05/08/2012 12:17:04 PM PDT by Buckeye McFrog
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To: jazusamo

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


27 posted on 05/08/2012 12:19:39 PM PDT by RatRipper (I'll ride a turtle to work every day before I buy anything from Government Motors.)
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To: jazusamo

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.


28 posted on 05/08/2012 12:24:47 PM PDT by scott7278 ("...I have not changed Congress and how it operates the way I would have liked..." - BHO)
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To: kidd

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!


29 posted on 05/08/2012 12:29:48 PM PDT by scott7278 ("...I have not changed Congress and how it operates the way I would have liked..." - BHO)
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To: jazusamo

“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.


30 posted on 05/08/2012 12:31:37 PM PDT by Texas resident (Hunkered Down)
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To: jazusamo

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.


31 posted on 05/08/2012 12:38:33 PM PDT by jimfree (In Nov 2012 my 11 y/o granddaughter will have more relevant executive experience than Barack Obama)
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To: jazusamo; All

General Motors is becoming China Motors
http://www.youtube.com/watch?v=Lvl5Gan69Wo


32 posted on 05/08/2012 12:39:59 PM PDT by Whenifhow
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To: jazusamo

Our household is proudly GM-free since 2009!


33 posted on 05/08/2012 12:58:23 PM PDT by TheBattman (Isn't the lesser evil... still evil?)
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To: LucianOfSamasota
unless the thieves restore and make whole the bondholders and taxpayers who were defrauded.

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.

34 posted on 05/08/2012 1:02:58 PM PDT by TheBattman (Isn't the lesser evil... still evil?)
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To: SMM48

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.


35 posted on 05/08/2012 1:04:44 PM PDT by TheBattman (Isn't the lesser evil... still evil?)
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To: jazusamo

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!


36 posted on 05/08/2012 1:40:24 PM PDT by Pilated
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To: jazusamo

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!


37 posted on 05/08/2012 1:41:33 PM PDT by Pilated
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To: jimfree
I had FMC and GM vehicles all my life until 1999 and bought a Camry. Had it for 11 years then bought another and am happy as can be with both.
38 posted on 05/08/2012 2:12:11 PM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
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To: PGR88

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.


39 posted on 05/08/2012 2:18:55 PM PDT by RGF
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To: jazusamo

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.


40 posted on 05/08/2012 2:54:32 PM PDT by Joan Kerrey
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To: jazusamo

Is it really a boycott if your products are so crappy people SHOULDN’T buy them?


41 posted on 05/08/2012 2:59:10 PM PDT by discostu (I did it 35 minutes ago)
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To: jazusamo

You are welcome... I think everyone ought to see it, so, don’t be afraid of passing it around.


42 posted on 05/08/2012 3:39:15 PM PDT by A. Morgan (Ayn Rand: "You can avoid reality, but you cannot avoid the consequences of avoiding reality.")
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To: jazusamo

My Saturn Outlook was a pre bailout vehicle. It has 94000 miles, a new A/C unit, one new transmission, new water pump, new temperature gauges, a busted rear spring that just happened yesterday ($500+ I’m sure)....eff you GM.
I’m trading it in for a FORD very soon.


43 posted on 05/08/2012 3:53:45 PM PDT by oust the louse (Mitt...it's time to quit !!!!! ...)
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To: TheBattman

I was in Banff, Alberta, over the weekend and the Banff Springs Hotel, a really classy place, had a couple of plugins for electric cars. Never mind that to get there from Calgary, the closest city, would probably take two or three charges and there’s no place to get them.

Dumb, but not surprising.
Cheers,
Jim


44 posted on 05/08/2012 5:49:00 PM PDT by gymbeau (We're all Breitbart now!)
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