Posted on 06/07/2009 8:41:43 AM PDT by Kaslin
Breaking News: An American car company will soon be taken-over by a business person who has expertise in the car industry. And the guy “taking over” is actually “happy” about it.
As the bankrupt General Motors corporation seeks to get rid of it’s “non core” car brands, Roger Penske, the American race car driver-turned global business magnate, will soon be purchasing Saturn, and taking over the sales, marketing, and distribution of Saturn cars and parts.
Penske‘s company will not be manufacturing Saturn cars themselves - he’s soliciting bids from other companies to design and build the cars for him - but will focus instead on what the Penske group does best. "Our success has been with handling the business that is closest to the customer,“ Penske stated when the news was announced, “so I don't want us to get into our own manufacturing business.."
You may have ignored this news, and it may seem like “no big deal” now. But consider how this conflicts with the predictions and assumptions made by Washington politicians.
Recall that fateful day (November 18th) back in 2008, when the executives of Ford, G.M., and Chrysler, took their turns before Congress begging for their “share” of bailout cash. “This is about much more than just Detroit," then- G.M. President Rick Wagoner stated, "It's about saving the U.S. economy from a catastrophic collapse."
And it was presumed that catastrophe would necessarily ensue, if our government didn’t “bailout” the car companies. “We're concerned about the hundreds of thousands and millions of people who are involved in the automobile industry” Senate Majority Leader Harry Reid rationalized 2 days later, “we want them to have the jobs..” If our tax dollars weren’t spent to save these companies from their own mismanagement, then, to follow Senator Reid’s logic, the companies would simply cease to exist, and “millions” would be unemployed.
But we all know what happened after the U.S. car exec’s groveled. Politicians insisted that without their meddling, the entire industry would collapse, and so they went about meddling. The Congress tried to pass a “car bailout bill,” but it failed. President Bush then used his executive powers to take money from the TARP (bank bailout) funds, and doled-out a few billion to G.M. and Chrysler (Ford had to good sense to say “no thanks”). In doing this, Bush completely defied the will of the people and the Congress, and kept Chrysler and G.M. afloat just long enough for Obama to get inaugurated.
And one inauguration and two additional car bailouts later, President Obama has now kicked and punched his way to the point of having GM and Chrysler in a headlock, and both companies are at his mercy. With Chrysler, President Obama has drawn law suits for his interfering in the relationship between the company and its secured creditors. Additionally, Chrysler executives are fearful of Obama’s coercive efforts to “force” a Chrysler-Fiat merger, believing that Fiat is in even worse financial health than Chrysler itself. As for G.M., President Obama claims that "our goal is to help GM get back on its feet ... and get out quickly, " but the Administration’s behavior suggests that G.M. will be, indeed, “government motors” for the foreseeable future.
So despite all the “without us they will fail” predictions from Washington, after some $50 billion of our hard-earned money being handed-over, and now with two of the nation’s automakers in the hands of one individual - Barack Obama - the companies are still failing. Yet in the midst of the doom and gloom, and despite the predictions of President Obama, Senator Harry Reid and other congressional Democrats, an American business owner and entrepreneur sees opportunity in the car industry and is excited to jump-in.
Roger Penske isn’t asking for a “bailout.” He isn’t even asking for special government-subsidized financing for his purchase. He wants Saturn, a product line deemed to be one of the least attractive on the G.M. roster, because he believes that he can make money with it, and he’s willing to risk his money and his good reputation to make it happen. “This (Saturn) is still a good business” Penske stated, “and we’re going to make it better.” In the process, it is believed that Penske’s acquisition will in the short-run save some 13,000 American jobs, and eventually create more.
For some, it’s hard to believe. But all this benefit is being derived- - for Penske, for his associates, for the can industry and for the global economy - without the expenditure of more of our tax dollars, and without President Obama coercing it. It’s happening at the hands of free people, freely choosing to take risks, to innovate, to create, and to produce.
This is the reality of American-styled Capitalism at work. I’m quite certain that most members of Congress lost sight of this reality long ago, and I suspect that President Obama knows nothing about it at all.
But it is a reality that the American citizenry must never forget.
Please, does this even need to be mentioned? Obama has never in his entire life produced a nickel's worth of value. Every job he has ever held has been parasitic. He is unfit to run a lemonade stand, and everyone who ever has run any productive enterprise knows it.
I would buy cars from Roger.
A smart move by Roger.
Could be he’s trying to get out from under UAW contracts.
Saturn already does some of it’s work in Japan...Have a relative who worked for them there.
I am hoping Hummer is acquired by a more favorable entity OTHER than the Chinese though it appears that even that prospect may not go through.
I would like to hear a possibility of a company like PACCAR buying the name, they have the expertise with over the road trucks like Peterbilt. And that would be a boost for future Hummer sales especially if they can get the price down a bit as I am attracted to owning an H2 but I cannot reason buying one when it costs almost as much as a Corvette.
Isn't FIAT one of the Church of Rome's big holdings? Hmmmm?
Roger Penske isn’t asking for a “bailout.” He isn’t even asking for special government-subsidized financing for his purchase. He wants Saturn, a product line deemed to be one of the least attractive on the G.M. roster, because he believes that he can make money with it, and he’s willing to risk his money and his good reputation to make it happen. “This (Saturn) is still a good business” Penske stated, “and we’re going to make it better.” In the process, it is believed that Penske’s acquisition will in the short-run save some 13,000 American jobs, and eventually create more.
If "US" means U.S. Workers, let me name a few: US sales people, US auto mechanics, US investors who have millions in Saturn Franchises, US Clerical workers in Dealerships. In my world all of these US citizens are just as valuable as people who build cars; in the US government's view, they are second class to UAW workers.
It also helps us tremendously that Penske will not be using taxpayer money to finance the new operation. From the article:
Roger Penske isn’t asking for a “bailout.” He isn’t even asking for special government-subsidized financing for his purchase. He wants Saturn, a product line deemed to be one of the least attractive on the G.M. roster, because he believes that he can make money with it, and he’s willing to risk his money and his good reputation to make it happen. . . .For some, it’s hard to believe. But all this benefit is being derived- - for Penske, for his associates, for the can industry and for the global economy - without the expenditure of more of our tax dollars, and without President Obama coercing it. It’s happening at the hands of free people, freely choosing to take risks, to innovate, to create, and to produce.
In my book, that is an enormous benefit for all Americans, even if Penske does import foreign-made cars.
With Penske in charge, Saturn will have a better chance of survival than the rest of General Motors.
I loved my Vue.
As long as the Baraqqis are in charge, the future of American vehicle manufacturing is in China.
They already have a huge cost advantage which will only get bigger after Cap N Tax is initiated.
And we can’t impose trade restrictions because they hold so much of the Federal debt.
Yep, one of the head members of the family is a zero population guy.
I would buy one IF Penske was building them instead this is just a walmart of the auto business..
Dissatisfied Saturn owners are genuinely hard to find.
We also need a competitive taxing arrangement of not allowing the offshore competitors the advantage of their import/export regulations of rebates and VAT. Second if the unions remain in US manufacturing their legacy costs are upon them much like the building trades to sink or swim. And Saturn needs to build a crossover/pickup for the soon to be growing hobby farmer/suburban gardner/small business demographic.
Palin/Bolton would also work...
Are you referring to Alan R. Mulally, President and CEO?
After owning three Honda Accords (78, 86, 98--all new, all 4cylinder), I bought a 2007 Saturn Aura XR and absolutely LOVE this car. It's the best car I've ever owned. It's quiet and fun to drive. When you push to go pedal, it GOES all the way across the power band! 35K+ miles and not a single problem.
Extreme value compared to Camry and Accord. Time will tell if that continues to be the case. I keep cars until they die so depreciation isn't an issue with me.
RE: Pickup
Someone needs to build one with woman in mind....My feet won’t reach the pedal in Ford or Chevy.
I buy Nissan (Which was built in Tenn) for that reason....4 wheel drive, standard transmission and small enough I can handle it.
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