The American Spectator

Moe Blotz| 5.4.10 @ 6:55AM

If GM returns to profitability,how does the corporation recover the shares held by UAW?

DaveS| 5.4.10 @ 8:09PM

The GM chairman (old guy in the commercial) is flat-out purveying a lie about the loan payback. GM won't last, and at least some of the bondholders got 20 cents on the dollar for getting their arms twisted. I bought Toyota (highlander) and Ford (Focus) last year. I buy only from capitalists.

Tracy Mehan| 5.4.10 @ 7:20AM

Re the "F-15," good catch, SC Mike. I did mean the F-150 truck, not the jet! I will get that fixed.

SpiralArchitect| 5.4.10 @ 6:48PM

What we really need is to worry about our aerospace companies...

The YF-22 ... mothballed? Typical rubbish.

Well, Im sure I would merely be preaching to the choir if I were to continue.

USA - FTW

Tracy Mehan| 5.4.10 @ 7:21AM

Moe Blotz: I am not an expert on finance, but I understand that GM would have to do its own public offering to finance the payback to the government. Maybe other readers can address the mechanics of this better than I.

Dave M.| 5.4.10 @ 8:25AM

One big problem still remains with Ford: take a look at the organizations and causes the Ford Foundation finances. Sorry, though I respect the fact they did not take money from Obama, until it changes its politics, Ford will not get a nickle from me.

lonestarm| 5.4.10 @ 9:50AM

If Ford Motor Company was funding the Ford Foundation, I would agree with you.

However, they don't. The ties were cut in 1974. (Perhaps noteworthy-Ford Foundation was founded by Edsel Ford, best known for another less than bright idea)

While Ford does have a UAW contract, they didn't knuckle under to Obama's czars - at least not yet. Considering that the purchase of a Government Motors car includes a direct cash contribution to Obama's overthrow of free market capitalism, why should we buy one.
Besides, Fords are better cars. (IMHO - Based on 50 years of personal experience)

George Grande| 5.4.10 @ 9:53AM

You stole my thunder. The Fords ceded control of the Ford Foundation long ago. I believe they still make contributions to a hospital in Detroit, among other charitable activities. The one thing that you can be critical of the Ford family for is the Detroit Lions ...

Gr0w1er| 5.4.10 @ 12:44PM

At least Matt Millen's gone!! (Now if we could that with all the Obama-nids...lmao!!)

SBIV| 5.7.10 @ 3:41PM

lonestarm is correct. Ford manufactures better quality and better looking cars. Additionally, there are many people who will refuse to buy a government motors car. Ford will reap the benefits of this trend..

JmsA| 5.6.10 @ 10:12PM

Hear, hear!

Howard| 5.4.10 @ 8:32AM

Fords comeback is all the more impressive considering its history. David Halberstam wrote an opus, "The Reckoning" which focused on ford and Nissan. During the period covered, Ford was focused strictly on accounting and financial considerations. During that time frame (1975-1985) GM was vastly superior. It shows the value of good management, good engineering, and attention to detail.

jd| 5.4.10 @ 8:35AM

I agree with Dave M. Although my dad was a line worker at Ford and I was very happy that Ford did not take a dime of taxpayer bailout monies, I dislike many of the organizations that the Ford family personally supports. Sound business model under Mulally is one thing, but the organizations that the Ford family personally supports are more in line with Obamacrats and I, under those circumstances, will not buy a Ford product either.

TennesseeVolunteer| 5.4.10 @ 9:08AM

Tracy, my wife has always used GM products for her company car. She is now looking at a Ford when her lease runs out in June. She is apolitical but knows what is gong on with GM.
The Ford/GM story is a perfect analogy for the free market vs. the Government market. When a company is allowed to learn from it's mistakes, it get better and smarter and is better off in the long run. When a company is buoyed up by the government or anyone else, they don't make the necessary changes to survive or improve. What this administration does not see coming is that millions of successful people are looking at the insatiable appetite of government and entitlements and are down sizing themselves for the onslaught of taxes. They are going to present a small as target as possible. Government revenues will not grow, no matter what Big Brother tries to do.

Geogre Grande| 5.4.10 @ 9:50AM

Great post. No doubt, Ford is on the right track.

Dave M. is right that the Ford Foundation is pretty bad, but the Ford family hasn't had any connection with that for many years. And, Henry Ford would be rolling over if he knew what had become of the organization.

Judy| 5.7.10 @ 6:28PM

Just bought an Edge. Nice ride and all the functions are easy to manage. Haven't had a Ford in 25 years but there is no going back.

Pete| 5.4.10 @ 9:55AM

Ford or Toyota (built in US) is the way to go when my old Chevy SUV dies. Isn't it curious how Toyota is suddenly having all sorts of issues with their primary US competitor being run by the government? Sleazebags.

loulou| 5.4.10 @ 10:24AM

I'm not saying I wouldn't buy a Ford but I prefer Toyota, Nissan or Honda.

RAMIII| 5.4.10 @ 4:03PM

Agreed! If I do consider a new car it would probably be the Taurus (if a FORD is the decision) otherwise Toyota is my choice.

The wind bags in congress believe they are righteous in their self-serving grandstanding, while trying to destroy their "Government Motors" competition.

Everything they have done in the past 5-7 years has been destructive to the job market except for one sector -- government employees.

P.Smith| 5.4.10 @ 10:08AM

Dear GM:

You have put our great country in mortal danger by the precedent you and others have set, and my hope is that you fail. You could have done things correctly, and lawfully, and declared bankruptcy and reorganized as a new and stronger company, but instead chose to go against normal business precedent and capitulated to United Auto Workers and the Obama Administration. You could have honored your contractual agreements, but instead you violated the rule of law and used the force of government to demand that your shareholders waive their rights of ownership and turned over your company over to a band of thugs. I don’t wish to see people lose jobs and I don’t want to see an industry that I adore fail, but your behavior has left me gravely concerned about the future of this country that I love. So I hope you fail in a colossal manner, so that others will learn of the stupidity and foolhardiness of what you did.

I refuse to buy a product from a company that has been subsidized by the federal government. I don’t care how good your cars are now, I don’t care what a great value they are for the money. I don’t care what stupid or smart scheme you come up with. I will not buy your products ever, until everything has been made right. When you have been reorganized in a proper fashion under the rule of law, and are owned by an individual or consortium that understands the basic concepts of a free market, then maybe I’ll consider. One more thing GM, there are more folks who think like me than you realize.

P.S.
To those who say,” Well if you buy a foreign car they are subsidized too”. I say, “I don’t give a damn what another country does to mess up its economy; that is their business.”

Respectfully,
P.Smith

Ryan| 5.4.10 @ 2:42PM

If you refuse to buy anything subsidized, better look at everything you eat with high fructose corn syrup.

Andrew| 5.4.10 @ 10:23AM

I've been a Honda/Toyota guy for 27 years, since my first Civic. I vowed never to buy an "American"-made car while they lagged behind H/T in every way. I still will NEVER buy a GM (Government Motors) car, but I have a feeling that my next car is going to be a Fusion. Just a personal anecdote.

Bob| 5.7.10 @ 5:12PM

ditto....will not spend money to buy government/union car. Whydoesn't someone feel for the poor shareholders who had the rules changed in the middle of the game. Why would anyone invest in GM/Chrysler if the rules can be changed retroactively and your investment spread to someone else?

Richard Baker| 5.4.10 @ 11:10AM

Am a Ford Salesman in Florida and many of our customers come to us, as they say, "because you didn't take the money." This includes folks who will also say that they have been die-hard GM and Chrysler fans, in the past. Mr. Mulally doesn't think like a traditional "car guy" and Ford's Renaissance is a direct result of his out of the box thinking. There a lessons here for American business but too many CEO's seem to spend their time kissing the Kenyan's ring to notice or learn.

DaveS| 5.4.10 @ 8:13PM

Bingo! The Ford I mentioned above was bought after answering the dealer question: why? Because you didn't take the money! Patriotic purpose, and it gives Ford something to embrace for the next few years.

Maddox| 5.4.10 @ 11:20AM

Our family has only owned General Motors SUVs and we always liked them. Now we will only buy Ford TRUCKS. Government Motors is dead to us, as they should be with all freedom loving Americans.

Bill Hussein O'Stalin| 5.4.10 @ 11:23AM

I currently own a V-8 powered vehicle but am looking to increase my carbon footprint by buying a Ford Expedition. It's big, it's luxurious, it's American. That's a bigger idea.

Doug Lee| 5.4.10 @ 1:19PM

Allow me to recommend the F-150 Supercrew 4x4. I bought one in 2001, and have a carbon footprint that would make a Yeti feel inadequate. Generally, I get 15 mpg, though I can get as much as 16 mpg if I keep my speed down below 80 on the interstate.

Bill| 5.4.10 @ 1:23PM

Thanks for the suggestion but I already own a big pickup that gets about 14 around town and 19 on the highway.

Bill Hussein O'Stalin| 5.4.10 @ 11:23AM

I currently own a V-8 powered vehicle but am looking to increase my carbon footprint by buying a Ford Expedition. It's big, it's luxurious, it's American. That's a bigger idea.

Bill Hussein O'Stalin| 5.4.10 @ 11:27AM

By the way here's an update on the GM taxpayer payback lie which is actually fraudulent. I'm surprised those Congressman don't have GM officials and Turbo Tax Timmy testifying about their fraud.

From the Washington Enquirer:
Statement C is being repeated daily in a national advertising campaign featuring General Motors Chairman Ed Whitacre. (He is referring to $49.5 billion the Treasury Department gave GM in last year's bailout. In return, Treasury got a 60.8 percent common equity stake in GM, $2.1 billion in preferred stock and $7.1 billion in GM debt.)

Whitacre sounds convincing in a down-home sort of way in the TV spot, but the reality is that this statement is a blatant misrepresentation. And Whitacre knows it. He's probably not worried about that fact, however, because it was endorsed by none other than Secretary of the Treasury Timothy Geithner, who issued a supportive statement saying, "We are encouraged that GM has repaid its debt well ahead of schedule and confident that the company is on a strong path to viability."

Here are the facts, according to Neil Barofsky, inspector general for the Troubled Assets Relief Program. His most recent quarterly report explained that, "the source of funds for these quarterly [debt] payments will be other TARP funds currently held in an escrow account."

In other words, as Reps. Darrell Issa, R-Calif., and Jim Jordan, R-Ohio, said in a letter to Whitacre, the GM chairman's words come "dangerously close to committing fraud. ... Your false statements may expose GM to millions of dollars in damages, further reducing the value of the taxpayer-owned company. The American people, as the majority shareholders of GM, have a right to know the truth behind the cost of the GM bailout and GM's genuine financial condition." Issa and Jordan are minority members of the House Oversight and Government Reform Committee, chaired by Rep. Edolphus Towns, D-N.Y. The Towns panel should put Whitacre and Geithner under oath and demand to know the facts behind this misrepresentation.

Read more at the Washington Examiner: http://www.washingtonexaminer......z0myUvqIZ6

Roger Thompson| 5.4.10 @ 11:31AM

"Going all in" Boeing has a history of betting the company on a product. A prime example is the 747. If I recall correctly, the cost of building the facilities to construct the 747 was more than the capitalization of the company. They bet that they could break even on as few a 100 aircraft, I believe they have sold more than 1,000. Mullaly comes from this kind of risk taking environment.

coal carrier| 5.4.10 @ 11:36AM

I have been a GM man my entire adult life. My next car or truck will be from Ford.

Doug Lee| 5.4.10 @ 1:22PM

And I've always been a Ford man, thought I'd have to change due to Ford's pursuit of the gay agenda (which resulted in a boycott by the AFA that did have a great deal of impact), but Ford finally reversed course on that one, to my immense relief.

MikeN| 5.4.10 @ 12:00PM

Maybe if Ford stops pestering its drivers to wear their seat belt. Absolute dealbreaker, and their cars are much worse than other models.

Joe D| 5.4.10 @ 1:22PM

GREAT ARTICLE! It would have been better. I will no longer by GM or Chrysler because of what the unions and the government did to the companies and are still doing. This is even though my son in law works for GM

Ryan| 5.4.10 @ 2:45PM

Not just Ford cars, but Ford stock. Their quality waffled in the mid-00's, but it looks like Ford is on a serious upswing again.

Something else to think about - they also dumped most of their ownership in Mazda, which was weighing them down heavily and probably would have meant near-disaster when this last wave hit.

I drive an '06 Chevy Equinox, but in a few years my first stop is a Ford dealership.

tom| 5.4.10 @ 3:32PM

I'm still not clear about how the President can fire the head of GM.

Cowboy| 5.4.10 @ 3:57PM

Ford's all that's left for me. I've got three: a 1977 F-150, a 1996 Crown Vic, and a 2005 Five Hundred. I've never had to fool with anything other than routine maintenance and very minor stuff with them (note: they print the recommended maintenance schedules out in the back of the manual for a reason. Follow it!).

It looked like Ford was dead when I was one of the very few buying a new Five Hundred back in 2005. I can't understand why - it's a solid, full-size car. Thank God Mulaly pulled them out of that spin.

I wish they'd bring back the Crown Vic, though. Guess it's been CAFE'd out, but, dang, my Crown Vic, at 300k miles, is my dependable, long road trip ready, ole faithful.

Richard Baker| 5.4.10 @ 4:42PM

MikeN:
Obviously, you've not examined Ford cars lately. To be intellectually honest, I recommend you do so.

Mark| 5.4.10 @ 5:32PM

Every time you buy a UAW built car, you are a campaign donor to the Obamanation & the Democrate Party.

Jake| 5.4.10 @ 7:33PM

Agreed. Buy a new Camaro - they're made in Canada. Hopefully not UAW.

Tom in Michigan| 5.4.10 @ 9:42PM

Canadian UAW - built. No GM car is non - UAW unless it's a Japanese or Korean - built but GM labeled car such as those made by CAMI (Suzuki) in Ingersoll, Ontario. The "buy American" crowd doesn't seem to understand or care about where it's really made, just the name plate.

Jake| 5.4.10 @ 7:35PM

GM Engineering puts Fords' to shame.

Tom in Michigan| 5.4.10 @ 10:10PM

It's funny reading this GM vs. Ford debate. This is how we used to spend our time when we weren't talking about girls or rock - n- roll when I was a kid. We were all dedicated to our brands whether FoMoCo, Mopar or GM. There were no Japanese cars and only the very eccentric or very, very rich drove German, British or Italian cars. Nobody drove a French car except those who had what would later be called a different "sexual preference." We could not have conceived of a Korean or Chinese car let alone an Indian car.

Now those once-hallowed American brands have been driven to the brink of extinction by union and management greed and stupidity (or, as George Will said by "the hubris of a corporate oligopoly and the myopia of a union monopoly") as well as government interference, most egregiously in the form of CAFE standards.

Did you know for example that the UAW membership is one-third what is was when I moved to Michigan and that we now have the highest unemployment in the nation and have had for at least the past 5 years? The UAW leadership would rather have a high hourly wage that nobody collects than maintain a competitive wage that would keep their members employed and jobs in Michigan. I know; I am a former UAW worker. I was once actually "bumped"off my job as a quality control inspector by a more senior "brother" who could neither read nor write. I literally taught him to fill out his inspection paper work by "rote" because there was no way I could fight to retain my job and, frankly this was as far as he was going to go in life so, I did the best I could for him.

The unions' unholy alliance with the Democrats has kept the leadership and the Democrats in clover but doomed the rank-and-file to ever-decreasing numbers. No matter though, they are relentlessly brainwashed and like so many other Democrat dependents will continue to march lemming-like to the polls to keep electing the same folks who have brought our industry and our state to this low condition.

This is justice in Obamanation though; Ford took on $23.6 billion in debt to avoid an Obamavik takeover while GM dumped its debt on us and became a ward of the State. Obama's $50 billion loan to GM translates into 60.8% Federal Government ownership, 17.5% for the UAW, and Canada's government got an 11.7% stake.

Also, don't forget the totally illegal hosing the Chrysler bond holders got. I made a pants load of money off auto bonds when they were "junk," buying only short-term bonds. All of them except some Ford bonds have matured but, I will never, never, never buy a GM bond again (I wouldn't touch a Chrysler bond with a ten foot pole) lest I take it up the tail pipe, so to speak by the next government bailout - which were really bail outs of the UAW not the companies.

I will need to buy a new car in the next year or so (much sooner if the Democrats get their way with a Value-Added Tax). Right now, I'm leaning towards a BMW.

Old Goat| 5.4.10 @ 11:47PM

I might get hit by lightning, or win the lottery, or even vote for a democrat someday.....but I will NEVER forgive GM for dumping Pontiac.

Michael Brown| 5.4.10 @ 11:52PM

At Ford, Quality is Job #1 based on my experience with two Rangers and a Sport Trac. Mr. Ford's capitalist legacy lives on and I am so proud to say I own one of his family's SUV's. I do admit that the styling on BMW 3-5-7 series and Z-4's is snazzy and their performance is amazing, but you pay for it (owned a Z-4 and currently the wife has an X3). Then again, they are state of the art, precision German machines, but I digress. Mr. Ford eschewed government interference and was correct in his appraisal of FDR and his ham-handed attempts at government intervention.

Sadly, the Foundation that bears his proud name has twisted and perverted its mission to become something unrecognizeable to the elder Mr. Ford and even its founding son, Edsel. It seems as though the leftists have gradually infiltrated and commandeered the great fortune left for philathropy through the generosity of Henry and his son.

Still, Ford Motor Co. remains the all-American car brand and represents some of the best America has to offer. Come to think of it, if not for the ridiculous crash standards, perhaps the Model T could be updated to be a stylish version of the Obamamobiles that the left is intent on making us drive.

Have YOU driven a Ford lately?

J.P. Travis| 5.5.10 @ 1:14AM

It's been explained to me that the only reason Ford didn't need a government bailout in 2009 was because they were doing an even worse job of selling cars than Chrysler and GM, to the extent that the year before, 2008, Ford had to beg, borrow, and mortgage everything it owned to avoid bankruptcy. The end result was that when the financial world collapsed, Ford was sitting on a pile of cash. You can call that good capitalism and good carmaking if you want - I call it blind stupid luck. In any case, bad as the UAW is for productivity, I think the stupidity of management is the bigger problem at the U.S. auto companies. You can read my analysis of that issue here: http://www.jpattitude.com/081015.php
And here: http://www.jpattitude.com/081205.php

Curtis| 5.5.10 @ 7:33AM

I was a Chevrolet/GM fan ever since I was a little boy. My first vehicle was an 84 Silverado. The first new car I ever bought was a Saturn. of all the cars I've owned, only two weren't GMs prior to the bailout.

But not now. Considering the products GM is currently producing, its irrational termination of Saturn and Pontiac, (While saving Buick?)... Oh, and its CEO LYING to the country on national television, (We paid back our loans! Really, Kinda, sorta...pay no attention the bureaucrat behind the curtain.) I can in no way currently support buying another GM product.

General motors broke my heart to the point where I'm thinking the next car will have a football on the nose.

Ryan| 5.5.10 @ 8:02AM

Actually, dumping Saturn made tons of sense. The brand never made money.

Buick is a HUGE moneymaker in China.

Not sure about Pontiac, but that would be a good one for someone to pick up and run away with a nice performance brand.

Curtis| 5.5.10 @ 6:10PM

I agree that Saturn was a financial failure, but that was primarily due to the fact that GM never invested anything into it, and killed the few good things it had going for it.

Saturn could have been a profitable and revolutionary brand, much like Toyotas' Scion but with a broader appeal vs Scions' strictly youth and sporty demographic.

GM promised to introduce and focus on state-of-the-art hybrids and fuel economical tech, and then stopping production of the Aura hybrid, Vue hybrid, and Astra. The tech will eventually jump over into the remaining brands, but GM lost a good 2-3 years. We might see another GM hybrid sedan or crossover in 2011, but I doubt it.

Vic| 5.5.10 @ 11:25PM

There are more American made cars than GM, Ford and Chrysler. Some BMWs are made in SC, Toyotas in Maryland, and Hyundais in Alabama, just to name a few. The Modern Auto industry is so intertwined with parts makers over the country that it would be hard to purchase one now days with 100% American made parts. Likewise, it would be hard to purchase one with no US made parts.

Automobiles, being machines, make it hard for me to get caught up in a particular brand. Most seem to have built in time bombs to cause them to turn into a mission impossible messages the minute the last payment is made.

I have had good luck with cars other people are turned off by. Like the 78 AMC Concord most car magazines of the day seemed to hate.

I hate to say it, but I hope to see GM fail. Not because I want people to loose their jobs, but because I would love to see an end to American economic fascism. If it is successful, you can bet the house we will see more of the same in the future.

I feel as though I was forced to buy a Buick without having the option of actually being able to drive it!

Elmer| 5.7.10 @ 4:05PM

My 2004 F-150 has gone over 180,000 and I expect it to make it to 300,000 or more. Runs better and more comfortable than the 2010 Impala I had as a company car from my former employer. The truck has had less problems also.

Adam| 5.7.10 @ 4:51PM

Ford does seem to be doing well. Unfortunately, for all their "initial qualilty" ratings, I still can't bring myself to buy one for at least a decade or two: I've been to the well too many times with American cars that fall apart after 80-100 thousand miles. Meanwhile, my Nissan gave me 160,000 before any major problems, and my most recent car (Toyota) has had NOTHING go wrong with it - and has 120,000 miles on it right now. This is what a company gets after putting out crap for years - so good luck Ford. If your 2010 cars are still running strong in 2025, I'll consider buying a Ford at that time.

Bruce| 5.7.10 @ 7:00PM

My wife owns an Avalanche, which she loves, but if I were in the market for a new car right now I would not buy a GM product, nor a Chrysler. I remember how the force of government was used to put the unsecured unions in front of the secured creditors.

Brad Crooks| 5.7.10 @ 9:07PM

I wouldn't even consider a GM.... I'd definitely buy a Ford or another Toyota. And if you think GM is doing so well that they were able to pay off their government loan (as the White House says), well, read this piece to see what actually took plsce....... http://www.nytimes.com/2010/05.....f=business

Joe Doakes| 5.7.10 @ 9:53PM

If I was Ford. I would buy the Jeep brand before Chrysler/Fiat kills it.

Joe Doakes| 5.7.10 @ 9:54PM

In fact I would love to see Porsche buy Corvette from GM. That would be something. I love Corvettes.

Mkelley| 5.7.10 @ 10:04PM

Consumer Reports has rated the Ford Fusion very high for reliability since its introduction. It is very comparable in quality to an Accord or a Camry, which have been the gold standards for years.

Republic of Tejas| 5.7.10 @ 10:29PM

That the majority owner of GM has the authority to fine Toyota $16 million for building "faulty" automobiles tells you all you need to know about the state of the auto business in the US. I tried to think of an analogy to highlight this fact, but failed. My 02 Tundra has 240,000 miles and still runs and drives like new. If it ever wears out (no signs yet), I can't imagine replacing it with anything but another Toyota. I may look at Ford, but Texas hasn't enough horses to drag me into a GM dealership.

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Tonneau Cover Reviews| 3.30.11 @ 2:21PM

My dad decided to sell his Prius to replace it with the Fusion, replacing a hybrid for a hybrid. Not just because of the recall issues that the Prius had, but mainly because Ford didn't take the bailouts that others took.

He hadn't owned a Ford for 20 years... definitely a sign that Ford has been on the right path. I hope they keep it up.

Tonneau Cover Reviews| 3.30.11 @ 2:24PM

The recalls have been a major issue for other manufacturers as of late. And Ford's new models have surprisingly improved in quality control. I used to own a Ford Tempo in the 90's and that thing broke down every 2 years.

Andrew
Tonneau Cover Reviewer