The federal government announced Friday that it will help Detroit’s ailing automakers survive at least another few months by offering $17.4 billion in rescue loans in exchange for concessions from carmakers and their workers. $9.4 billion is allocated for General Motors and $4 billion for Chrysler. An additional $4 billion will be made available to the companies later.
This among other reasons is why I will never buy a Chrysler and GM product again.
My question is, what kind of business can stay behind its competition for years and years making a product that in many ways is inferior, steadily losing market share along the way and then ask the government to bail them out? Obviously ones that are more focused on government lobbying than their customers.
The sad thing is whether you have ever bought a Chrysler or GM product no longer matters. We are all their customers now (at least if you pay your taxes) as the $17.4 billion is non other than taxpayer money. I among many Americans did not approve this action and this is one of many reasons why I am now boycotting Chrysler and General Motors.
While I sympathize with American workers who stand to lose their jobs, at the same time I’d advise them to seek a new career or possibly even look for work at a competing auto maker. I just don’t have confidence that Chrysler and General Motors are going to be able to fix problems that have been piling up for years and years in just a few months. This essentially means they will be back early next year asking for more of taxpayer money.
When questioned as to whether the companies should be left to file for Chapter 11 bankruptcy so they can restructure, those against this course of action argue that consumer confidence would not be good when a company is in bankruptcy. In other words, who is going to buy a car from a company in bankruptcy? Is borrowing taxpayer money despite overwhelming disapproval by those taxpayers any better for consumer confidence ? I think not!
As far as the arguement that the bailout is necessary because so many American jobs will be lost to foreign auto makers, do not many of the foreign companies have plants here in the United States?
Honda was the first Japanese automaker to produce automobiles in the United States beginning with an auto plant near Marysville, Ohio, where production of Honda Accords began on Nov. 1 1982. Today, the Marysville Auto Plant manufactures the Accord Sedan and Coupe models, and the Acura TL on two assembly lines using domestic and globally sourced parts.
Toyota has eight plants in the United States with its largest in Georgetown, Kentucky. This plant is Toyota’s 2nd largest facility outside Japan.
Nissan, Hyundai and Kia are additional foreign owned auto makers that have manufacturing plants located in the United States. I’m sure there are others. And who works at these plants – foreigners? No but good ol’ Americans.
While many Americans would lose their jobs if Chrysler and GM were to go out of business, there seems to be plenty of opportunity for employment in the auto industry within the United States.
So I’m through with Chrysler and General Motors. My last vehicle was a Jeep Grand Cherokee which I enjoyed thoroughly until it started to fall apart after 100,000 miles. Now besides my old 1967 Ford Mustang, I’ll most likely stick to Toyota, Honda or Nissan products.
I’m pissed that two failing auto makers got my money without my approval and that does not make me want to do business with them.
I can only hope that others will follow suit, not so American workers can lose their jobs and two iconic auto makers can go down in flames but so that the U.S. Government will learn a powerful lesson not to continue to offer these bailouts which are in all reality bad investments and dangerous to the stability of our economy.