Early Reviews of Obama's GM 'Gamble' Don't Look Good

[cobra de capell]

Originally Posted by Wayne Maybury

I read a very interesting article this morning from the New York Times. Basically the author states that there is no way for the government to now get out of GM and there is no way for GM to become profitable. He feels that GM will continue to lose money and keep going back to Washington asking for more and more. His opinion is that it would be political suicide for any government, especially for Democrats, to pull the plug so they will just keep funding further GM losses.

I have always driven Fords but even if I were a GM person, I could not see myself buying another GM product. I think that they are going to have a very difficult time getting the general public to purchase their cars.

Wayne

My understanding is that there is a New GM and an Old GM, so perhaps the New GM can be profitable at some point in time - but, what about the Old GM? Car companies run by the federal government - it's going to be a disaster.

[Wayne Maybury]

Originally Posted by cobra de capell

My understanding is that there is a New GM and an Old GM, so perhaps the New GM can be profitable at some point in time - but, what about the Old GM? Car companies run by the federal government - it's going to be a disaster.

Won't the new GM rise from the ashes of the old GM as it fades from memory? Have you ever seen anything turn a profit with the government running it? That was one of the points raised in this article. With the government in charge, there is little hope that GM will ever be able to break even. I guess that I should be saying "governments" because in addition to the US Federal Government, the Governments of Canada and Ontario have also jumped into the fray and have handed out lots of the public's money to this project.

Wayne