Friday, June 12, 2009

Mr. Smarty Pants

As President Obama proclaims he does not want to be in the auto industry, he now controls over 50% of GM's board. Meanwhile F-Chrysler struggles to stay afloat until the Fiat designs can be produced here in the US. One of the ways Obama wants these car companies to retool is to get out of the truck and SUV markets, to concentrate on green cars. This leaves these markets to Ford, Mitsubishi, Nissan, and Toyota.

But just you wait, there is an even greater reason for Ford to smile as they tote lots of greenbacks to the bank. A friend last night mentioned that the General Service Administration[GSA] is still buying Ford vehicles. I quipped about them not getting the memo. Well it dawned on me today why GSA is still buying Ford products. You see there is this cute little protectionist law that Congress passed, it requires all federal agencies to purchase through GSA their fleet vehicles from American car manufacturers. By kicking GM and Chrysler out of the truck and SUV markets, Obama is making Ford the sole supplier to DoD, EPA, FEMA, and everyone else who needs a truck or an SUV. But wait, before anyone goes and says the federal government is a niche market; think again. All state, county/parish, and local governments also buy American made vehicles for fear of suffering voter backlash when caught buying foreign. This whole segment is now Ford's to exploit and Ford is not stupid.

I think it was VI Lenin who said "We will hang the last capitalist with the rope he sells us." At this rate, Obama is selling to Ford the rope they will use to hang Government Motors and F-Chrysler.


Rose said...

Obama thrives on creating chaos. And he has no clue what he is doing - it is simply the activist's wet dream come to fruition - they get to design and make the cars they want you to drive. Then they will have to force you to buy them when incentives don't work.

It will be an interesting ride. Wonder how many other businesses he can wreck.

Pat said...

Of course you know that this is not a plot. It is the driveling stupidity of Obama and his corrupt gang trying to run a country. This idiot really thinks he is smart. All those Ds and Cs did not convince him that he is hardly a brainiac. No. He is the type that thinks the math book got the problem and answer wrong.

Anna said...

Rose and Pat. Don't think he thrives on creating chaos, but his ideas/plans creates that because humans do not act like he wants them to. I recall an author's bio talking about he got annoyed when his family would not follow the script he had for them. That was in jest, but with Obama and his supporters it is true.

I also have to modify my contention, it seems Jeep will still be around so the SUV GSA fleet market will be split between Ford and Jeep. Still very paltry competition.

And the only way to get that competition back is to either get Congress change the law so foreign companies can sell vehicles[not going to happen because UAW opposition], let it keep going like it is, or admit that Obama has no clue what he is doing. So option Two will be the default. Unless the DoJ wants to become an even greater laughing stock and somehow accuse Ford of creating a monopoly in selling trucks to the US Government.

Nothing good will come of any of this until the government managed car companies become completely private again.

Legion said...

Ford-- found on road dead, fix or repair daily. I like my Saturns, wonder what company will pick that unit up? My car brand identity is dead, GM is no longer the Mark of Excellence. Government Motors. We are doomed.

Anna said...

Legios, you will end of driving a state designed and state built Fiat 500 like many Soviet citizens did. But this one will be built in Detroitastan.

It will take the still private car companies killing the state propped up car companies before we see a revival of American car companies. Meanwhile VW, Mercedes, BMW, Toyota, Mitsubishi, Tata, and Nissan will pick up the marketshare Herr Obamafuhrer has decreed GM and Chrysler to vacate.