Opinion from TheSorrentino.com: The layoffs at GM shouldn’t surprise us. It’s a crony and poorly run company

 

I remember somewhere around 2011 or 2012 being in a supermarket parking lot and talking to a guy who was just getting out of a Chevy Volt. Being a car guy I was interested to know what the guy thought. I strike up conversations with people about their cars all the time. (Lord help you if you park next to me in a Mini. I’ve embarrassed my children more times than I’ll admit.)

He liked it he said and I concurred that it was great to see fully electric vehicles on the road. But I told him I had a bit of a beef with GM and the Volt because at that time there was almost $200,000 worth of tech, paid for by taxpayers, in each individual new Volt. He was a bit taken aback by my statement and perhaps I shouldn’t have said it, I didn’t know the guy.

“I don’t believe it.” The guy said and drove off.

Thing is, what I said was true and I wasn’t trolling the guy. I was genuinely interested in the car. New and interesting cars are a kick. He chose to be offended because, I can only assume, that I took a bit of the shine off of his virtue signaling.

In retrospect it’s probably good that he was offended.

I can’t say that I will NEVER own another GM car in my lifetime. I’ve owned one and to my shock it was actually a great car and it died with almost a quarter of a million miles on it. If someone gave me a brand new Corvette ZR1 I’d have to keep it around for a while. But generally speaking I am loathe to support Government Motors in any way because it chose government over the marketplace. But support I did during the Great Recession. And so did you. We had no choice if you remember.

We certainly should not be supporting it still. But in many ways we still are.

(From The Investors Business Daily)

We see that in the Obama administration’s decision to subsidize GM during the financial crisis by investing tens of billions of taxpayer dollars in its stock and propping up money-losing operations. By ignoring the supply-and-demand signals of the marketplace, it only made GM’s problems worse.

More specifically, it led to GM committing itself to the unprofitable electric car market, one of President Obama’s pet projects. At one point, Obama even vowed to buy a Chevy Volt when he left office.

Click here for more on this from IBD and The Sorrentino.