The takeover of GM by the government makes me a bit nervous. My eyebrows raised when I learned last night that Obama asked GM CEO Wagoner to retire. I understand that the company has not been successful. The problems with GM are very complex. Here are a few things I have thought regarding the situation:
Many bash the American automakers for continually losing market share. Back in the 60's, GM had the largest market share of any automaker. Today, GM has less than a quarter of the total market share. The reason for this is not necessary a lack of quality products. The reason for this is that back in the 1960's there were far fewer automakers in the marketplace than there are today. The competition in the American marketplace has increased exponentially over the last 40 years. When people have more choice, the carmakers that have been in the American market the longest experience a marked decline in market share.
The statistical quality of American vehicles is higher than the public perceives. Consumer Reports, The Wall Street Journal, and "rags" have put down the American automakers due to higher advertising dollars from automakers from Asia. Unfortunately, the American consumers believe the hype. Consumer Reports has been the worst offender. Toyota paid Consumer Reports a large sum of money to tout their vehicles as best buys and tops in reliable. Consumer Reports AND Toyota were outed in their little scheme. Consumer Reports then adjusted their ratings once this story broke into the press. Toyota, of course, did not comment. Consumer Reports is not a reliable source for information regarding reliability of vehicles. The best source of information on vehicle reliability is and always will be J.D. Power. By the way, J.D. Power says the most reliable brand is Buick and Jaguar for 2009.
With Obama asking Wagoner to retire, I wonder if he chose Henderson himself to lead GM into the future. If so, I scares me to think of GM being run in a puppet regime. I don't think the government belongs in big business in a free market economy. I believe that GM should file
for bankruptcy and reorganize themselves into a much smaller company that can be more successful in the future.
It is my hope that the American people realize that to have a strong economy, we must support our economy by purchasing products that are made right here in the U.S.A. Of course, we have fewer choices for American goods, which makes it far more important for consumers to support goods made by American companies that manufacture products here in the good ol' U.S.A. Its a tragic situation. I hope that other Americans see the importance in supporting their country through the purchase of American products.
I am hopeful that GM, Ford, and Chrysler become far more successful in the marketplace than they are currently. I think that Ford has the best shot right now, but only time will tell.