Does anybody want to buy my Chevy?

It is lightly used and in fairly good shape, trouble is, with the changes going on I don’t know how much longer I will be able to keep it that way. Does GM now stand for Government Motors? What has happened to this country?

(As I am slow to get this one published and have since noticed that the August issue of Motor Trend as also used the reference to Government Motors. I may be slow but I am not the only one thinking these things.)

I have said that it was a grave mistake for the financial bailout to happen the way it did and that the government should have only stepped in to help smoothly apply the laws already in place for an orderly application of bankruptcy procedures. Those banks and financial institutions that took the money have either regretted it greatly or were most definitely on the verge of collapse and saw this as the only way to continue to draw an overpriced paycheck for a few more months while they polished up their resumes.

So after seeing this happen, why would any other industry be willing to participate in the grand scheme for the government’s takeover of American industry? Two of the Detroit Three has succumbed to the temptress while Ford is trying for a holdout and now the other two no longer resemble anything of their former selves. Ford will go through its own changes and will most likely not resemble its own former self as it tries to reposition for the new automotive world's future but it will at least be trying to maintain a pretense at independence.

(Also, do you notice how they are referred to as the Detroit Three now instead of the American Automakers? This is done to realize the global nature of the auto business and that there are car builders in America that go by the name of Toyota, Nissan, Honda, Mercedes, BMW etc. that were not part of the original elite designation. Do you suppose that these American jobs are somehow not valued the same way as those originating out of Detroit to those in Washington?)

Chrysler is an old hand at bailouts having successfully completed one in the 80s. Trouble is this time there is no Iacocca to come to the rescue. With a lack of real leadership at the helm and a government that isn’t interested in leaving them as an American car company, they were handed over to Fiat with far too much ease. This move makes absolutely no sense other than that Fiat makes small cars that the government thinks can be rebadged as Chryslers, sold in large quantities to the American public and thereby meet the politically correct Al Gore global warming agenda.

When I said they gave away the company, I meant it literally as Fiat just promised some of their current technology and they walked away with controlling interest (at least so far as the government will allow). This will not work any better than the merger Chrysler had with Mercedes and for the same reason but on a larger scale, namely culture clash. If hindsight for a Benz and Dodge combo teaches us anything it should at least provide a flashing red light warning for a K-car Fiat.

The new Government Motors on the other hand is just pathetic and sad. After Obama forced out existing management before the bailout was complete (bloodless coup anyone?) GM announced that they are appointing Edward E Whitacre Jr. to become the new chairman after the bankruptcy is complete. Whitacre’s former position was head of AT&T. While this brings praise from the government officials that thought to select him as well as those he will be working with, my view is somewhat different. If AT&T is any example of the kind of company GM is about to become then I do not want anything to do with them. AT&T under Whitacre’s care had become one of the most bloated, conceited, arrogant and uncaring corporate entities to service the public and private sectors. The level of customer care sank to the lowest of depths under his reign and the only reason I can think of for AT&T to continue to exist is that the behemoth was so big it somehow carried on in spite of itself. Actually, it had so much free cash from earlier years that it bought out any potential competitors or spent them into the ground if they tried to enter their markets.

Come to think of it, GM has done much the same thing only somewhere along the line it lost its profitability and ran out of funds to buy out the competition. It then had to stand on its own merits (and GM did have plenty of merits to play from) but it didn’t trust itself to do so. How and what will Whitacre do when the government pulls back the purse strings and makes GM stand on its own? Unlike AT&T, GM will continue to face competition in the automotive world and they won’t be able to rely solely on new government contracts to keep them afloat.

Actually they might. How many other corporate or service entities are there that are strongly subsidized by taxpayer funding for an overzealous government bent on political manifestation? The arts, National Public Radio, the postal service and of course Amtrak quickly come to mind. But wait, don’t these also have competitors present that attempt to service the customer’s needs and the competitors do so at a profit? Yes, yet the government sponsored entities continue to exist with much taxpayer subsidy thereby satisfying its one true customer which is government self interest. Should we expect anything less from their endorsement of Government Motors?

The thought of all this physically sickens me. As a car loving guy, I hate to see what is going on more than most and fear that we will be tossed into the automotive dark ages like that which followed the first gas crisis that generated fuel mileage and emissions mandates and produced some of the lamest excuses for autos for over two decades. These were government mandates and not consumer driven desires and that led to innovative stagnation. All signs are indicating that this is the path we are once again headed.

Also, I am an American and a taxpayer. This country is founded on principles of fair play for everyone yet with every passing day I see less and less of it and not nearly enough voices standing out against the changes taking place. Liberty, and freedom are words that have somehow lost their true meaning as have capitalism and free markets; the consequences both frighten and infuriate. Wake up America. Return to the values our fathers stood for or we will never be able to know them again in our lifetime. We need to return the white elephant now before it eats us out of house and home. For those that do not understand, we have only begun to pay the price for this folly. If we hurry, maybe we can still cancel the check and get our money back.

So if any of you are in the market for a new car, do you really want to pay for it twice, once as the consumer and once as a taxpayer? I know we do that somewhat anyway but really we should be expecting something for our dollars. I have an idea instead of buying new; does anybody want to buy my slightly used Chevy? I just don’t have the desire to support it anymore.

This is Ed Nef with a view from the Farr West.