GM – A Company We Can Be Proud Of?

If you have seen the new GM commercials you know what I am talking about. GM CEO Ed Whitacre speaks about how GM has paid back its loan to the United States, with interest, and that GM’s new goal is to make their company a company that America can be proud of again.

People who are not outraged by this commercial have easily forgotten how GM got into this mess to begin with: unreasonable deals made with their unions combined with large amounts of dollars flooding into Washington that insulated GM from market forces and foreign competition. If that’s not enough, GM didn’t realize (hard to imagine after the ’79 oil crisis, but true nevertheless) the trend towards more fuel efficient cars as the key to the future of any car company.

Where did this lead GM? To financial ruin, and rightfully so: if you do not obey the market and adapt to its influences then you will fail, pure and simple. So, please explain to me why my tax dollars should go to bailing your mismanaged company out of financial ruin?

The only American car company I am proud of is Ford, who bit the bullet, did not take government financing, and got back to the basics: Americans want quality cars at competitive prices. Take a look at the new Taurus’ and you will know what I am talking about.

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