GM Strong-Arming Dealers, But That’s Not The Real Problem

Sen. Charles Grassley, R-Iowa Automotive News reports that General Motors is strong-arming dealers into signing a statement opposing congressional legislation that would reverse the company’s decision to close more than a thousand of its dealerships. AN quotes a letter Sen. Charles Grassley, R-Iowa sent to GM CEO Fritz Henderson as saying “It’s alarming to have GM corporate leaders force dealers — some who are losing everything they worked hard to build — to take an active stand against it.”

The bills would restore the eliminated dealerships of GM and Chrysler, forcing the companies to work through state courts rather than the U.S. Bankruptcy court to close the dealerships. Complaints have come in all across the country of GM district offices pressuring the surviving dealerships to sign the statement. It’s not really surprising that GM is playing hardball with its remaining dealers, and maybe they should back off a little.

To me, the bigger problem is that such legislation exists in the first place. It’s hard to see this as little more than a purely political move on par with Rush Limbaugh’s ludicrous call to boycott GM altogether. Partisanship in Congress and across the nation has reached such a fever pitch that opponents of the GM bailout would rather see the company fail — and have absolutely no prospect of recovering any of the bailout money, which is supposed to be repaid by 2015 — than have it succeed and have a manufacturing giant restored to at least some of its former glory. A strong manufacturing base is critical to the U.S. economy, and it has been slipping away for decades. Are short-term political goals more important than the long-term health of one of our major industries? At the very least, isn’t it worth it for the company to be successful enough to repay its debt to American taxpayers?

In all honesty, I’ve been on the fence about this whole bailout thing from the beginning, unsure if throwing billions of dollars at a company with such deeply ingrained problems was a good idea. However, what’s done is done, and it seems to me as though voices calling for the failure of the GM bailout are similar in tenor to those on the left who hoped the U.S. effort in Iraq would fail just because it would make Bush look bad. I’ll leave the hard-core political punditry to those on the left and right who have much more practice than I do. Instead, I’ll just see this legislation for what it is: Opposition for the sake of opposition, rather than an attempt to actually do any good.

2 Users Responded to " GM Strong-Arming Dealers, But That’s Not The Real Problem "

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Brian DR1665 said,  

I’ll give you that much at the end, there. Bi-partisan hackery does more to divide and conquer the American people than it does to actually represent us.

As for why some of us don’t support the “new” GM, we’re seeing a lot of spin-doctoring in the media about how GM is new and improved, but most of the positivity is pretty thin.

“GM makes better cars than they used to!” Maybe so, but they should be making better cars than anyone else. So long as they continue to dilute market share by rebadging the majority of their products, they are second rate hacks.

“GM now has less expensive union contracts!” Sure, but now the UAW owns a big chunk of the company, so where is the net advantage, here? Where are the mutually beneficial contracts that recognize GM and the UAW need each other? As long as they are at odds with each other, they are not working together.

“GM has chosen a new CEO!” Ugh. Are we supposed to believe that this company has learned anything when they dip right back into the cesspool they call talent up there to run this “fabulous, new” company?

This all went badly. There’s been no real change. It’s all spin doctoring. They want us to settle for less than promised and it’s not right.

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Keith Buglewicz said,  

I’m pretty skeptical about a lot of the changes as well, Brian, but I have to disagree with you on the vehicles themselves. Over the past few years, GM really has had a renaissance in its product lineup. True, there’s still some crap there — the Chevy Aveo leaps to mind, and the Cobalt isn’t far behind — but anything released in the past couple of years is competitive on merit, not because GM is piling cash on the hood. The Chevy Malibu, Buick Enclave/GMC Acadia/Chevy Traverse, the new Chevy Equinox and its various spinoffs, and so on. I think that the cars are at or near the top of the class in most respects. The biggest bugaboo for them is long-term reliability, which still lags, but is improving.

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