Survival Plan? It's Government Motors Now

GM is now "Government Motors." Via a GM press release:

"As a result of its ownership of GM common stock, the U.S. Treasury will be able to elect all of our directors and to control the vote on substantially all matters brought for a stockholder vote. In addition, through its stockholder voting rights and election of directors, and its role as a significant lender to us, the U.S. Treasury will be able to exercise significant influence and control over our business if it elects to do so."

You know damn well it will "elect" to do so.

I can't wait to see how well these geniuses of the "new capitalist" model for America do in running a modern automobile company. Probably as well as the great central planners of the Supreme Soviet did in creating modern autos for the comrades of that nation.

And when sales lag, Congress can jigger with tax credits to make sure that we, the "owners" of Government Motors, realize that we must avail ourselves of our "discount." Which will end true competition in the marketplace if Ford, Toyota, Honda, etc., do not enjoy the same federal benefits.

Truly, GM has become "too big to fail" in the sense that the government will not allow it to officially fail, ever again, even if requires killing off the competition through regulation and disincentives.

Too gloomy? Just watch.

GM has eliminated its Pontiac line which was one of its two four sales "producers" last year. That doesn't make a lot of sense.

GM is eliminating Hummer, Saab and Saturn. That last was a major success during its lifetime, a well-built American car that helped GM return to competitiveness with foreign automakers. Killing Saturn is a major mistake. Another senseless act.

GM is eliminating 42 percent of its dealers over the next 18 months. Fewer places to purchase the official automobiles of the United States. Is it fair to say, "Dumb ass move!"?

What's next? Getting out of NASCAR to show Americans that Government Motors is serious about not wasting fuel on frivolous pursuits? (Especially since it provides cheap thrills for all those conservative, extremist red necks?)

One thing you can count on when the humorless, clueless bureaucrats start throwing their weight around is that they will know the price of everything and the value of nothing. The modern version of Cuffy Meigs will be in charge of public relations and a new Wesley Mouch will ascertain production quotas.

This is unusual socialism, using the federal treasury to purchase controlling interest in a private company, but it is socialism nonetheless. It will end as do all socialist experiments: in failure.

I feel very, sincerely sorry for anyone who still owns GM stock. But then again, we will all suffer for it.