Go Back  The Hull Truth - Boating and Fishing Forum > BOATING FORUMS > Dockside Chat
Reload this Page >

WTF is happening to the car business in America?

Notices

WTF is happening to the car business in America?

Old 03-30-2009, 05:38 PM
  #1  
Senior MemberCaptains Club Member
Thread Starter
 
Join Date: Jun 2003
Location: East Central Florida
Posts: 7,381
Received 700 Likes on 332 Posts
Default WTF is happening to the car business in America?

This is totally demented. The president "ordering" restructuring steps and guaranteeing warranties?

WTF is going on in this country?

Obama backs consumer incentives to boost auto sales

Mon Mar 30, 2009 6:03pm EDT
WASHINGTON (Reuters) - President Barack Obama ordered tough steps on Monday to restructure General Motors and Chrysler but he also offered incentives and other plans to boost sales and reassure consumers.
"We must also recognize that the difficulties facing this industry are due in no small part to the weakness in our economy," Obama said in announcing several steps to invigorate sales that are near 30-year lows.
Detroit and top overseas manufacturers are expected to report a severe decline in U.S. sales for March, continuing a trend that has accelerated this year as the recession deepened and consumer credit woes worsened.
Manufacturers have responded with zero percent financing, cash rebates, and deep discounts to lure consumers with little success.
The centerpiece Obama incentive is proposed legislation that would give consumers a voucher worth between $3,000 and $5,000 toward a new, fuel efficient car in exchange for a poorer performing older model.
The program, which was scuttled in Congress last year, has been credited with turning around sales in Germany and elsewhere in Europe. But the plan would cost billions and Obama and congressional supporters would have to find a way to fund it.
"Even the most dramatic of restructurings will only help the auto companies if more Americans decide to buy cars," said Sen. Charles Schumer, a New York Democrat and member of the Banking Committee.
"For Americans who have an inefficient clunker sitting in their driveway, our bill would provide a better trade-in offer than they could get from most car dealerships," Schumer said, hoping that Obama's endorsement will help the measure move quickly through Congress.
The Obama administration also is planning to accelerate the purchase of fuel efficient vehicles for the federal fleet using economic stimulus money, and further aid auto finance companies to stimulate lending.
Separately, Obama said the IRS, would immediately begin alerting consumers of a new program that allows consumers to deduct sales taxes when purchasing a new car.
To reassure consumers wary of purchasing a vehicle from a financially distressed company, Obama said the government
would underwrite warranties beginning on Monday.
"Let me say it as plainly as I can, if you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always. Your warranty will be safe," Obama said.
(Reporting by John Crawley; editing by Carol Bishopric)


http://www.reuters.com/articlePrint?...52T7EG20090330
Old 03-30-2009, 07:54 PM
  #2  
Senior MemberCaptains Club Member
 
Join Date: Dec 2007
Posts: 15,749
Likes: 0
Received 653 Likes on 359 Posts
Default

you know, as much as I want to continue to hate the concept of the current administration's antics, things like this move make good sense.

Bankrupt the car companies and bring the labor costs in line with the world is what might save them. The alternative is to continue to throw money at the problem that the UAW helped to create by clawing concessions beyond the world's ability to pay.

The other side is the overweight management that is also being pared left and right.

I am both amazed and impressed that the current administration is doing this.
Old 03-30-2009, 08:00 PM
  #3  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Dec 2004
Location: Not in Texas
Posts: 10,213
Likes: 0
Received 6 Likes on 4 Posts
Default

It's about reshaping America's auto manfrg. The board that declined GM's plan has sitting at it someone from the EPA. They want GM to make little enviro-cars. The pres knows GMs bread and butter is trucks. The two did not see eye to eye.

It is al designed to strengthen the unions, weaken corp America.


ETA: GM took how many $-billlions in govt bailout? They need more, the top dog is out. AIG, Goldman Sachs, and all of the other banks took how many $100's-billions in govt bailout WITH NOT PLAN TO PAY IT BACK, and we are being told they need more -- which one of their top dogs got bounced?

Last edited by Eyeball; 03-30-2009 at 08:10 PM.
Old 03-30-2009, 09:52 PM
  #4  
Senior MemberCaptains Club Member
 
Join Date: Oct 2003
Posts: 743
Likes: 0
Received 0 Likes on 0 Posts
Default

pretty damn good point eyeball. And the guy on top of GM was only making 1 buck a year. I personally think they should have filed bankruptcy and maybe it would have tossed the monkey off their back in the process (get rid of the unions). Don't know if that was possible though.
Old 03-31-2009, 04:25 AM
  #5  
Senior MemberCaptains Club Member
 
Join Date: Jul 2006
Location: NJ
Posts: 7,329
Received 207 Likes on 119 Posts
Default

Another step towards socialism. like the Drudge headline said yesterday: GM Government Motors
Old 03-31-2009, 06:14 AM
  #6  
Senior MemberCaptains Club Member
 
Join Date: Sep 2006
Location:
Posts: 3,390
Likes: 0
Received 3 Likes on 3 Posts
Default

It sounds like Obama is trying to force Detroit to make cars that nobody wants...even more than they dont want the current offerings.
Old 03-31-2009, 07:56 AM
  #7  
Senior MemberCaptains Club Member
 
Join Date: Sep 2001
Location: Somers Point NJ USA
Posts: 1,633
Likes: 0
Received 2 Likes on 2 Posts
Default

Originally Posted by DrJim View Post
...even more than they dont want the current offerings.
I'll second that. We make great trucks and SUVs, but (other than Corvette) our US mfrs just don't make any cars that people lust after. Look at posting history here as an example - any number of threads touting BMW, Lexus, Mercedes, Honda....... but if you can find one where someone says "My (GM-Ford-Chrysler) auto is the best car I've ever owned" I'd like to see it.

How 'bout it - anyone love their US car enough to stand up and tell us their Chrysler-Ford-GM car (not pickup, SUV, or minivan) is the best car they've ever owned?
Old 03-31-2009, 08:29 AM
  #8  
Senior MemberCaptains Club Member
 
Join Date: Oct 2003
Posts: 53,964
Likes: 0
Received 28 Likes on 21 Posts
Default

Originally Posted by DrJim View Post
It sounds like Obama is trying to force Detroit to make cars that nobody wants...even more than they dont want the current offerings.
Old 03-31-2009, 08:38 AM
  #9  
Senior MemberCaptains Club Member
 
Join Date: Mar 2002
Location: Coeur d Alene, Idaho USA
Posts: 2,091
Likes: 0
Received 0 Likes on 0 Posts
Default

I see the possibility of something more sinister. Perhaps giving the unions ownership of GM?
Old 03-31-2009, 09:44 AM
  #10  
Senior Member
 
Join Date: Mar 2006
Location: South Carolina
Posts: 9,755
Likes: 0
Received 1 Like on 1 Post
Default

Any way you cut it empty suit will never ever cut the UAW out of the loop. If they have to make turds with training wheels they will be UAW built.
Old 03-31-2009, 09:55 AM
  #11  
Senior MemberCaptains Club Member
 
Join Date: Feb 2002
Location: North East
Posts: 5,938
Likes: 0
Received 2 Likes on 2 Posts
Default

Once a car salesman always a car salesman.
Old 03-31-2009, 10:02 AM
  #12  
Senior MemberCaptains Club Member
 
Join Date: Sep 2005
Location: CT
Posts: 3,289
Received 230 Likes on 139 Posts
Default

Originally Posted by sr31aj View Post
I'll second that. We make great trucks and SUVs, but (other than Corvette) our US mfrs just don't make any cars that people lust after. Look at posting history here as an example - any number of threads touting BMW, Lexus, Mercedes, Honda....... but if you can find one where someone says "My (GM-Ford-Chrysler) auto is the best car I've ever owned" I'd like to see it.

How 'bout it - anyone love their US car enough to stand up and tell us their Chrysler-Ford-GM car (not pickup, SUV, or minivan) is the best car they've ever owned?

I agree 100% The corvette and CTS are the only 2 nice cars out of GM that can compete. They NEED something to compete with the accord, camry, civic, and corolla. On paper they certainly can compete (malibu, impala, cobalt), but their designs leave a lot of room for improvement.
Old 03-31-2009, 10:04 AM
  #13  
Senior MemberCaptains Club Member
 
Join Date: Nov 2003
Location: San Diego
Posts: 4,683
Likes: 0
Received 4 Likes on 4 Posts
Default

Originally Posted by Eyeball View Post
It's about reshaping America's auto manfrg. The board that declined GM's plan has sitting at it someone from the EPA. They want GM to make little enviro-cars. The pres knows GMs bread and butter is trucks. The two did not see eye to eye.

It is al designed to strengthen the unions, weaken corp America.


ETA: GM took how many $-billlions in govt bailout? They need more, the top dog is out. AIG, Goldman Sachs, and all of the other banks took how many $100's-billions in govt bailout WITH NOT PLAN TO PAY IT BACK, and we are being told they need more -- which one of their top dogs got bounced?

You my friend have struck the nail on it proverbial head.
Old 03-31-2009, 10:08 AM
  #14  
Senior MemberCaptains Club Member
 
Join Date: Mar 2002
Location: FL
Posts: 20,187
Received 997 Likes on 551 Posts
Default

Originally Posted by Seacat FL View Post
This is totally demented. The president "ordering" restructuring steps and guaranteeing warranties?

WTF is going on in this country?

If you do not understand, rather than asking "WhatTF is going on in this country" you should be looking in a mirror and asking "WhereTF have I been for the past 30 years?"
Old 03-31-2009, 10:58 AM
  #15  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Dec 2004
Location: Not in Texas
Posts: 10,213
Likes: 0
Received 6 Likes on 4 Posts
Default

Originally Posted by First Light View Post


Originally Posted by Seacat FL
This is totally demented. The president "ordering" restructuring steps and guaranteeing warranties?

WTF is going on in this country?




If you do not understand, rather than asking "WhatTF is going on in this country" you should be ... asking "WhereTF have I been for the past 30 years?"



Good point, but it's only I.H.P. -- interest historical perspective. We should be asking ourselves, "what can I do to fix this?".

Think global -- act local. The most powerful govt office you have immediate access to is called the "quite govt" or "the other govt" -- the elected offices that are most overlooked, and least understood. They control the purse strings for what matters in your life. It is your local county board of supervisors. What is stopping you (anyone reading here) from running for a county supervisor seat? You can make a difference, a significant difference.
Old 03-31-2009, 11:00 AM
  #16  
Senior MemberCaptains Club Member
 
Join Date: Mar 2002
Location: FL
Posts: 20,187
Received 997 Likes on 551 Posts
Default

Originally Posted by Eyeball View Post
Good point, but it's only I.H.P. -- interest historical perspective. We should be asking ourselves, "what can I do to fix this?".

Think global -- act local. The most powerful govt office you have immediate access to is called the "quite govt" or "the other govt" -- the elected offices that are most overlooked, and least understood. They control the purse strings for what matters in your life. It is your local county board of supervisors. What is stopping you (anyone reading here) from running for a county supervisor seat? You can make a difference, a significant difference.

Old 03-31-2009, 11:22 AM
  #17  
Senior Member
 
Join Date: Jul 2005
Location: Texas..
Posts: 6,250
Received 1,286 Likes on 687 Posts
Default

I still can't figure out why the aztec didn't make it..lol
Old 03-31-2009, 01:27 PM
  #18  
Senior MemberPLEDGERPLEDGERCaptains Club Member
 
Join Date: Sep 2004
Location: ATL & SAV
Posts: 12,372
Received 2,007 Likes on 990 Posts
Default

Originally Posted by DrJim View Post
It sounds like Obama is trying to force Detroit to make cars that nobody wants...even more than they dont want the current offerings.
No shit Doc. It is my understanding 11 of the top 20 most profitable GM vehicles are SUV's and trucks.......and Team BO wants GM to stop building them. Let me see if I got this right......Team BO's idea of a viable business model is to discard the profitable product lines and sell more of the money losers......gosh, if only Wagner had thought of that.

The incredible part of BO's blunder is this idea......US taxpayers backing the warranty work on GM products. Question, how dam expensive will those warranty claims be if GM went out of business?

=======================

Just call him Mr. Goodwrench.

That's what President Obama is telling American car owners and buyers, making them an offer they can't refuse: If General Motors or Chrysler won't honor their warranties, he will.

Playing pitchman for the ailing U.S. auto industry, Obama on Monday offered guarantees on the warranty of every new vehicle sold by the Detroit automakers during their restructuring efforts. Obama said with additional incentives for new car buyers, the industry could sell an additional 100,000 new cars this year.

But Uncle Sam won't stand by warranties held by current vehicle owners or safety recalls, which can occur years after the warranty expires. That would leave uncovered about 10 million to 15 million GM and Chrysler vehicles bought in the past couple years, said Clarence Ditlow, executive director of the Center for Auto Safety.

Under the so-called Warranty Commitment Program, an accounting reserve must be established that contains 125 percent of the projected warranty costs for each new vehicle sold by GM and Chrysler.

Automakers will contribute 15 percent of those costs from their own funds while the U.S. government will cover the remaining 110 percent from the Troubled Asset Relief Program, the Treasury Department Web site says.
A separate company will be established to manage the funds and will continue to pay warranty claims even in the worst case scenario: automakers go into bankruptcy or out of business.

If that happened, the warranty administrator and the U.S. government will search for a third-party warranty service provider to assume responsibility for all the warranties covered by the program in exchange for the assets of the program.

"If you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always," Obama pledged Monday. "Your warranty will be safe. In fact, it will be safer than it's ever been. Because starting to day, the United States government will stand behind your warranty." Ditlow pointed out that plenty of legitimate claims are denied by warranty companies and the program offers no details about how the government would honor claims. He added that among the biggest unknowns are the ability to find third-party warranty service providers to perform the work and ensuring a continual flow of parts if the automakers go into bankruptcy or out of business.

"It's a good idea but it's not a proven plan to date," he told FOXNews.com. Obama "has the right concept but there's no guarantee in that warranty plan." Ditlow said he received a number of complaints from Daewoo owners when that South Korean car company went bankrupt and GM bought some of its assets but none of its liabilities. "For vehicle owners, if GM or Chrysler goes into bankruptcy, get ready to lobby to have your debt recognized," he said. "And that debt is your warranty."
The White House nor the Treasury Department responded to requests seeking comment.

But the National Automobile Dealers Association said it also isn't impressed by Obama's plan. "We are encouraged by President Obama's commitment to putting the domestic auto industry back on the road to recovery but continue to urge the administration to focus immediately on correcting the dysfunctional credit markets," the organization said in a statement, adding that bankruptcy should not be an option. "It would further erode consumer confidence and, therefore, our ability to sell at the retail level. Moreover, it would further exacerbate the availability of credit."
Old 03-31-2009, 01:37 PM
  #19  
Senior MemberCaptains Club Member
 
Join Date: Feb 2007
Posts: 6,253
Received 283 Likes on 157 Posts
Default

Makes me proud I own a Ford.
Old 03-31-2009, 01:47 PM
  #20  
Senior MemberCaptains Club Member
 
Join Date: Feb 2006
Location: G-Vegas
Posts: 876
Likes: 0
Received 2 Likes on 2 Posts
Default

Originally Posted by 23Dorado View Post
Makes me proud I own a Ford.
Makes me want to go out and buy a Ford

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.