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By JGillman, Section Multimedia
A reminder of the results of CRONY CAPITALISM.
As we have seen recently, the Chinese were subsidized and transferred Battery Technology by Taxpayers through the likes of the MEDC and Federal programs interfering with free markets. It was pretty bad, but ..
It wasn't the first time.
Oh.. and take note of the Chinese defense contractors operating in Michigan.
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At least for one particular part of production. In fact perhaps this could be a great way to increase our share of North American manufacturing. Simply close the plants across the moat:
"CBC News reports that an Ontario General Motors' plant where Chevy Impalas and Equinoxes were built will be closed down, costing Canadians around 2,000 jobs. GM reportedly plans to partially move production of the Impala to its Detroit-Hamtramck assembly plant in Michigan. You may remember the Hamtramck site from the Chevy Volt commercial which trumpeted the building of Volts there. It now seems that low demand for the Volt has led to the plant having enough time to build other, conventionally-powered vehicles. While the Volt may have been the car GM "had to build," it appears that consumers would "prefer" them to build cars like the Impala."You think?
Lets see. Less VOLTS = less taxpayer subsidies, more electricity available for our playstations, and more Impalas built in the USofA.
And a few less bridge tolls.
Win, Win, super win. Right Guv?
Oh, and anyhow, it probably has more to do with Obummer's recently noted JOBS stagnation,(and all the adjustments downward of the previous gains noted) and trying to make those up.(2,000 at a time) To heck with the cannucks when there's an election to be won!
H/T Paul Chesser
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Break out the champagne, Its looking to be a good year! According to NPR, It will happen in two phases:
GM's plant in Spring Hill will start making cars again for the first time in two years. The factory had sat mostly idle except for some engine production. Now GM will spend about a quarter of a billion dollars on the plant and add almost two thousand jobs in two phases.
OK, its not 870,000 jobs but its a start in the right direction. Maybe the crisis is nearly over? Michigan could sure use those jobs about now, and the news couldn't come soon enough.
BTW where in Michigan is Spring Hill? Is that near Monroe or something?
OH. I see.
So, let me get this straight. Government Motors decided to locate their new jobs in a plant in a Right-To-Work state?
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Detroit - General Motors today announced the roll out of two new hybrid vehicles, one called the "Hammer," and the other, "Sickle." The ultra compact 3 cylinder combination solar/ethanol vehicles will be a new part of the Cadillac line, and will be available only in the color blood red, and scheduled to be available for the 75th anniversary of the Chinese cultural revolution of 1939.
OK, suck the morning coffee back through your nose. Its not real. But why should I even have to note THAT fact? Its absurd, right?
Truth of the matter, is that nearly nothing can be ruled out as absurd any longer. From this current administration to the entities that have somehow become the responsibility of the nation's taxpayers, the separation of government and business has collapsed to the point that it is LOGICAL to expect such ridiculous arrangements as the opening paragraph presented.
"The CCP's state-run China Film Group produced a big-budget propaganda film called "The Birth of a Party," or depending on how the title is translated, "The Great Achievement of Founding the Party." The latter sounds more like what they were shooting for. The "chief business partner" in this venture was General Motors brand Cadillac ..."
Yeah. Government Motors has never been so real.
William C Durant has now rolled fully over in his grave. The high school drop out turned manufacturer, would surely be SICK to see what has happened to the company he once used to bring together a great number of models and makes.
Good Luck GM. Never again.
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By JGillman, Section News
Its worse than we thought.
Back a couple of months ago, we had a few discussions here about the pitiful sales of GM's Chevy Volt, even WITH the monster government incentive. A $7500 rebate just didn't cut it for target buyers of the electric boondoggle of Detroit's once upon a time premier automaker, and sales are worse than flat.
The profits from said eco-box wouldn't pay for the engineering alone much less the tooling and employee cost.
However, the employee cost has apparently brought a little fear to the dues collecting part of the team. So much so, that they have begun to market the volt to a new constituency that is more likely to be swayed by talking green frogs, giant yellow birds, and a fear of drowning polar bears.
Our children. At our public schools.
A little more below.
(8 comments, 579 words in story) Full Story
At the Detroit Economic Club today, Treasury Secretary Timothy Geithner tried to claim the auto bailout is a success.
It certainly doesn't seem like a success for the taxpayers. GM stock is about $30 today, and unless it gets up to $54, the taxpayers lose money on the deal. Why would it go up? You want to fight high gas prices by buying a Volt? How does $41 grand a pop sound? And still GM loses money on every one it sells even at that price. Not only that but we are seeing that government subsidies for electric cars is good tax money wasted in any case.
It doesn't get any better. Worldwide, U.S. cars aren't selling worth beans and domestically, GM is lagging because people who hate the bailouts won't support it with their car-buying dollars any more than they did with their votes last year when they kicked out every incumbent they could find who'd been for it. And GM still has all its old problems, too, like those big fat union pension obligations. Sadly, nothing that caused GM's financial trouble has been fixed.
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Less than two years ago, the American taxpayers bailed out two of Michigan's largest employers. Years of poor management, a belligerent labor force, and aggressive foreign competitors who were willing to listen to the consumer drove once proud GM and Chrysler into a tailspin.
Mark Steyn at the time correctly called GM a company that provided health care and retirement benefits to hundreds of thousands of policy holders while also happening to make cars on the side. They were doomed.
But, guess who stepped up to the plate (though some of us quite reluctantly?)
The taxpayers borrowed billions of dollars from the Chinese to bail out Chrysler, GM, and the UAW. While many private investors had their investments illegally wiped out in favor of propping up underfunded union pension plans, the UAW walked out of the ensuing mushroom cloud carrying a new and significant ownership stake in the salvaged companies--now viable in the marketplace with its more manageable salary and benefits packages. (An infusion of borrowed billions into corporate coffers didn't hurt either.)
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External FeedsMetro/State News RSS from The Detroit News
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