Fixing the auto problem...

[Larry Gude (Premo)]

It just occurred to me; now that rule of law is out the window in terms of GM, Chrysler, contract law and so forth, why doesn't Obama just close all the foreign manufacturers operating in the US? Shut down the manufacturers, the dealerships. Maybe allow them to do repairs on their makes and models. Maybe.

Then, the US makers can have 100% of the market and that should mean no repercussions, domestically speaking, whatsoever for the current problems, how we got here and what to do next.

All the US dealers can stay in business.
All the part vendors.

Plus, in exchange for this, make the US people bring home all their foreign manufacturing. Which they may have to anyway.

[ImnoMensa]

Obma is screwing up by the numbers , he doesnt need your idea's to make it worse.

[Larry Gude (Premo)]

Originally Posted by ImnoMensa

Obma is screwing up by the numbers , he doesnt need your idea's to make it worse.

[ImnoMensa]

Actually your idea would save jobs for Union auto workers while putting all the Non-Unions auto workers out of work.

Surprised Obama didnt think of that.

[Larry Gude (Premo)]

Originally Posted by ImnoMensa

Actually your idea would save jobs for Union auto workers while putting all the Non-Unions auto workers out of work.

Surprised Obama didnt think of that.

EXACTLY.

Then, they can all go on welfare and, viola, in essence work for the government.

[bcp (Premo)]

fixing the auto industry might be easier than people think, as a matter of fact, fixing the country might be within reach.
Look back to the 50s and early 60s
If you bought a car it was either a GM, a Ford, Chrysler or an AMC, it was not a Toyota, or a Nissan (Datsun back then) or a Hyundai etc.. and you filled that car with Gas that was pumped out of a Texas well.
If you bought a tv it was American, same with your Clothing, appliances, Microwaves (that was a test)
The U.S was having it most prosperous years.

so what do we do? We open up some more drilling, we supply our own oil, we stop selling oil to japan because it has "too much sulpher" for our use. on a global scale, does it matter if Japan burns the high sulpher fuel or if we do?
the price of fuel drops.
Let the auto manufacturers build the bigger cars that Americans want. The small cars will slowly cease to exist. At the same time, as the smaller foreign cars are traded for the larger American cars, the work force will shift along with them.
We build our own Tvs again putting more Americans back to work.
Kids will open toys at christmas that were actually built in America.

How do we do this? by imposing a tax on imported items that will increase each year, giving time for American companies to begin producing while the foreign companies slowly pull out.

The most prosperous years for America were when we as a country were able to produce what we consumed, dollars moved back and forth between people, between states, but for the most part, our dollars stayed here in our country, other countries bought from us instead of us buying from them.

We need to look at the past to see the path to the future.

[wintersprings]

jolly good idea, by the way

but please... don't give Chairman Obama to many good ideas, he thinks of them all himself.

//snark offffffffff

[ImnoMensa]

Originally Posted by bcp

fixing the auto industry might be easier than people think, as a matter of fact, fixing the country might be within reach.
Look back to the 50s and early 60s
If you bought a car it was either a GM, a Ford, Chrysler or an AMC, it was not a Toyota, or a Nissan (Datsun back then) or a Hyundai etc.. and you filled that car with Gas that was pumped out of a Texas well.
If you bought a tv it was American, same with your Clothing, appliances, Microwaves (that was a test)
The U.S was having it most prosperous years.

so what do we do? We open up some more drilling, we supply our own oil, we stop selling oil to japan because it has "too much sulpher" for our use. on a global scale, does it matter if Japan burns the high sulpher fuel or if we do?
the price of fuel drops.
Let the auto manufacturers build the bigger cars that Americans want. The small cars will slowly cease to exist. At the same time, as the smaller foreign cars are traded for the larger American cars, the work force will shift along with them.
We build our own Tvs again putting more Americans back to work.
Kids will open toys at christmas that were actually built in America.

How do we do this? by imposing a tax on imported items that will increase each year, giving time for American companies to begin producing while the foreign companies slowly pull out.

The most prosperous years for America were when we as a country were able to produce what we consumed, dollars moved back and forth between people, between states, but for the most part, our dollars stayed here in our country, other countries bought from us instead of us buying from them.

We need to look at the past to see the path to the future.

Won't work, Our politicians are convinced we are a part of the GLOBAL economy. We will just have to start getting used to living at the lowest common denominator like the rest of the world.

[Tilted]

I realize that you weren't offering this as a serious suggestion, but it hints at a question that some of us have been mulling for a while. With it becoming clear that the U.S. government will, at least for some time period, own significant stakes in, and have significant control over, two major American auto manufacturers - will it seek to find ways to give those manufacturers a competitive advantage over other manufacturers (e.g. Ford, Toyota, Honda)? And, if so, what might those ways be?

The cynic in me can't help but conclude that it will - though it would probably choose subtle measures over overt ones. As you can read in the linked article, it appears that we will be giving additional money to GMAC. GMAC is now a separate entity from GM (and Chrysler), but, as per recent bankruptcy filings, going forward it will be the preferred lender for both GM AND Chrysler vehicle financing, and a source for working capital for the dealerships. It seems likely at this point that the U.S. government will end up owning a controlling interest in GMAC.

Will GMAC be the vehicle through which the government favors GM and Chrysler over the rest of the marketplace? It seems that it will be. Will the U.S. taxpayer provide a virtually endless supply of cheap money to GMAC, so that it can provide cheap financing to any potential GM or Chrysler customer (even ones with marginal credit), thus facilitating sales and providing them with a competitive advantage? It's sure looks that way.

Sure, other manufacturers have similar entities that they have similar arrangements with, but those entities are constrained by profitability and risk factors. If the government is providing the capital, then risk of default, and borrowing costs, can be much less important issues.

Not only is the government going to own businesses, but it is going to use the businesses it owns to favor other businesses it owns (or just likes) over the rest of the marketplace. Lawsuits? If American business can summon up the courage to take on the giant - you bet your ass we are going to see lawsuits.

By the way, we're looking at another $7 Billion plus going to GMAC.

GMAC Close To Getting More Government Aid

[Larry Gude (Premo)]

Originally Posted by Tilted

I realize that you weren't offering this as a serious suggestion, Well, under normal circumstances, that would be the case. However, in the shadow of TARP I and the bailout of the UAW by a GOP potus, we are embarking on a long strange trip I think. So, there is some practical consideration to this; given we are in Wonderland, where is the argument against the bizarre? but it hints at a question that some of us have been mulling for a while. With it becoming clear that the U.S. government will, at least for some time period, own significant stakes in, and have significant control over, two major American auto manufacturers - will it seek to find ways to give those manufacturers a competitive advantage over other manufacturers (e.g. Ford, Toyota, Honda)? And, if so, what might those ways be?

The cynic in me can't help but conclude that it will - though it would probably choose subtle measures over overt ones. As you can read in the linked article, it appears that we will be giving additional money to GMAC. GMAC is now a separate entity from GM (and Chrysler), but, as per recent bankruptcy filings, going forward it will be the preferred lender for both GM AND Chrysler vehicle financing, and a source for working capital for the dealerships. It seems likely at this point that the U.S. government will end up owning a controlling interest in GMAC.

Will GMAC be the vehicle through which the government favors GM and Chrysler over the rest of the marketplace? It seems that it will be. Will the U.S. taxpayer provide a virtually endless supply of cheap money to GMAC, so that it can provide cheap financing to any potential GM or Chrysler customer (even ones with marginal credit), thus facilitating sales and providing them with a competitive advantage? It's sure looks that way.

Sure, other manufacturers have similar entities that they have similar arrangements with, but those entities are constrained by profitability and risk factors. If the government is providing the capital, then risk of default, and borrowing costs, can be much less important issues.

Not only is the government going to own businesses, but it is going to use the businesses it owns to favor other businesses it owns (or just likes) over the rest of the marketplace. Lawsuits? If American business can summon up the courage to take on the giant - you bet your ass we are going to see lawsuits.

By the way, we're looking at another $7 Billion plus going to GMAC.

GMAC Close To Getting More Government Aid

Obama is going to be learning it is a whole lot easier to drive into the mud than it is to get out. That is why government MUST take measured steps in all things. It must NOT be dramatic and flashy.

Let your mind wander into just what GM is going to look like in a year once actual government ownership and direction begins to percolate through the company for some time.

Look at Chrysler; what is a labor operated car maker gonna look like? Well, how would chemistry class be if the kids were in charge? How would the asylum operate if the inmates were telling management what to do.

We are literally staring into the abyss here. We are dealing with madness. Just think about how employees would run a company.

Then, go back to musing over government motors.

You wanna good laugh? Consider this; What would USGM (United States General Motors) likely do in a few years to deal with poor production and cost over runs?

Contract it out.