The People’s Pottage

I don't much blog the auto industry because it is so depressing. But this passage, from Francis Cianfrocca, today caught my eye:

Today, the President of the United States is expected to make
significant announcements about GM’s warranty policy. No, that’s not a
typo, and yes, it’s remarkable. I didn’t say the President of General
Motors, I said of the United States.

This bit was interesting too:

Many of GM’s dealers will receive lavish buyouts as an inducement to
close their doors, for a total cost in the billions of dollars. That’s
disgusting, but it’s required both by GM’s contracts with them and by
the welter of state laws that protect the dealers. (If you want to know
who the political power brokers are in any given city or town, look for
the car dealers.)

This is going to be kept scrupulously out of the news, because car
dealers contribute huge sums to every last man and woman in Congress
and the Senate. The public was ready to torch the private residences of
AIG executives, but they won’t make a peep about paying billions of
their own hard-earned dollars to provide a cushy retirement for
thousands of already-rich auto dealers.

The post is interesting throughout.


Comments for this post are closed