Tuesday, January 27, 2009

Is General Motors Really Trying ?


Last month, the General Motors Corporation (GM) went to Congress and begged for a multi-billion dollar bailout to keep their company from going under. Even though most Americans believed GM had created their own problems by the bad decisions they made, the bailout was granted.

For years, GM had built ever larger gas-hogs as oil prices rose and their foreign competitors opted for smaller more fuel-efficient cars. Then last year, Toyota overtook GM, and for the first time ever, become the biggest seller of cars worldwide. As oil prices spiked, GM was left holding the bag with their gas-hogs, and the company was in deep trouble. They assured Congress and the American people that they had learned their lesson and would change their ways, in return for the bailout.

The American people didn't like it, but they went along with the bailout to save millions of American jobs. After all, GM had learned their lesson hadn't they? Or had they?

This week, because the gas prices had gone down, GM announced they were once again increasing production of their expensive gas-guzzling Sport Utility Vehicles (SUV). They are increasing production of these SUVs, while laying off workers at the same time in other plants -- cutting 1200 jobs in Michigan and 800 jobs in Ohio. Do they really think Americans are going to flock to buy these expensive gas-guzzlers just because gas prices gave fallen?

Someone needs to tell these dummies that the only reason gas prices have fallen is because no one can afford to buy it. This country is losing around 200,000 jobs a month, and that may go on for a while. If GM wants to once again become the car of the masses, and not just the rich, they're not going to do it with SUVs. I have to wonder if they've learned anything at all.

At the same time that GM is increasing production of SUVs, Toyota announced they are considering bringing their smallest car to America. The Toyota iQ (pictured above) is 10 feet long, holds 3 adults and a child, gets over 50 miles to the gallon of gas and costs a hell of a lot less than an SUV. Which company do you think sees the reality of a world slipping into depression?

I'm very disappointed in GM. With their current viewpoint, it's only a matter of time before they're asking for another bailout. Unless things change, they won't deserve it.

3 comments:

  1. That Toyota car looks like the European Mini-Cooper car. The tiny car was very popular in Europe about fifteen years ago when we lived there.

    Like Toyota's new car, the wee Cooper got fantastic mpg and ran forever. I think BMW makes them now. I've often wished they'd be available in the US.

    American car makers are so far behind companies like Toyota. It's such a shame that they refuse to climb out of bed with the big oil companies.

    I agree that they'll be back for more bailout money.

    My sister bought a scooter last summer when gas was so crazy. It gets 80 mpg and looks like a real motorcycle. Not sure what the difference is but, at any rate, in her fifties she is now a motorcycle Mama. Too cool.

    I hope most Americans are like my sister in that they realize that the low cost of gasoline can not last for very long. I hope they avoid the new SUV's in favor of more sustainable transportation choices like hybrids and energy efficient cars or motorcycles.

    People have to get used to the idea that things have changed. Our days of expensive toys and throw-away consumerism are gone... for good. IMO that's not such a bad thing.

    Menopausal Mick

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  2. The mini cooper is currently available in the U.S. and I'm starting to see quite a few of them on the road.

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  3. they have the money..all they're going to do is go buy a new plane.

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