Skip to comments.Amtraking Automakers
Posted on 05/02/2009 3:10:49 AM PDT by Scanian
The odds that the federal government will ever get its hooks out of Chrysler or General Motors are slim to none, regardless what President Obama says. Why? In one word, Amtrak.
There are reasons why Chrysler and General Motors are failing, and they have nothing to do with hard luck. Both companies are top-heavy, paying more for union labor (and retirees) than their competitors and, since the 1970s, have turned out cars that consumers want in dwindling numbers.
The Big Three (that includes Ford) have higher costs and have gotten an image as lower quality than some foreign competitors. Toyota and Honda have gotten technology, design, quality, and value right more often. And they build cars on American soil. Though both companies are experiencing downturns in sales, neither is looking for handouts (to its credit, neither is the struggling Ford Motor Company).
In Wednesday night's press conference, and on Thursday afternoon, when the President announced the Chrysler plan, he made it clear that the feds had no intention of staking a permanent claim in either of the two companies.
But with the United Auto Workers receiving a majority stake in the company for its concessions, and Italian automaker, Fiat, claiming a minority share, and the federal government with its stake until every last penny of taxpayer money is repaid, what is the likelihood that Chrysler ever turns the corner?
(Excerpt) Read more at americanthinker.com ...
Good question. Why would they bother cutting costs, which is difficult in any case and painful to the politically powerful UAW, when Obama has promised our tax dollars to guarantee the same outcome regardless of performance?
Why would they bother improving quality to the level of their competitors if consumer demand is no longer relevant to their pay and job security, thanks to our tax dollars? This bailout has turned a company that was unlikely to turn around into one that doesn't even have a reason to try.
The difference is that Amtrak has no competition. Until the government mandates that we buy the car they chose, I will never buy another GM or Chrysler car. I will even pay a premium to buy an Un-Govt Car.
when the President announced the Chrysler plan, he made it clear that the feds had no intention of staking a permanent claim in either of the two companies.
Since I know from his history that Barack Obama is a lying sack of shit,this statement is meaningless. He, acting as the Government, has assumed 50 percent ownership of GM a failing company. The Union has gotten 40 percent. What person or group of persons would buy the Governments 50 percent stake of a failing Company, that the Union, largely to fault for that failure,owns 40 percent of? What a horrible investment. What a trememdous risk..
The sad truth is that we the invidual American taxpayers are now on the hook for this Company
Could not agree with you more. Keep an eye on their sales. I look monthly and for April 09' their car sales were off 60.1% from April 08' with a total volume of only 15,558. Expect the sales to fall further and further until ??? Who will buy and how will they keep going without more Gov $$$
Monthly sales data can be viewed at: motor intelligence.com
This brings us to Amtrak. Amtrak may just be the future business model — if you can call it that — for Chrysler and General Motors. Amtrak is highly subsidized, underutilized and poorly performing.
And should have been allowed to commit Seppuku along with the two automobile giants too big to fail. Instead they will become resume enhancers for the ONE. I can see the headlines now, besides worldclass LS of S, “I ran GM and Chrysler - into the ground”.
Not to worry. Soon Obama will “Amtrak” Amtrak. Hence his blathering about “high speed rail networks”.
I'm sure the den of thieves in DC can come up some means to charge their losses off to other car companies or the consumer.
what’s truly amazing about that fraud in the WH is one day
it’s “we’re going to build a massive loopy train system-Chicago being it’s center, no less and the next day or a month l8r ya’ hear nothing, I’m not holding my breath-what ever happened to that plan?
sounds to me the dude is on crack———here come da’ cracky train right out da’ Chicago
Why is it that even conservative thinkers can only get it half right on the big-3 automakers problem?
Unions and government regulations are their ONLY problem.
It is impossible to build small fuel efficient cars that will sell when you have an extra $2000 in labor costs per car.
They either have to cut $2000 in quality, options, or materials , or they have to overprice a $12,000 car by $2000. It wont work! There is no place to hide that 2k in small cars.
They can hide that 2k in a $30,000 pick-up or SUV only because the foreign automakers have never developed far into the small truck business and it will take years before they get that right.
The feds interest in this has nothing to do with cars and eveything to do with social engineering. The fact that we all need cars, allows them to use business to further their social objectives
I have owned two Ford Rangers (designed and made by Mazda) which were quite satisfactory. Drove the first 180,000 and sold it. Sold the second when wife needed a new car (sold the truck and kept her Acura Integra to drive myself). And the Toyota trucks (both small AND large) seem to be doing just fine.
Fox & Friends this morning had a Chrysler dealer on, who was raving about how good Chrysler cars had become in recent years. His unbiased opinion, obviously. Even if he is right, why contribute to the DNC? (Part of the money paid for the car goes to the UAW and is passed on to the Democratic Party.)
In have a 1992 Ford F350, 351C V8, 6 pax. It has over 200K miles on it.
We now use the truck as the prime mover of Belly Acres, our RV.
The truck just sat for 9 months in winter storage - I went over, hooked up the battery and it fired it up. Turned right over and runs like a champ. Not a spot of rust on it.
I would buy a Ford again, but not just any Ford.
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.