GM Turns to eBay to Sell Cars

http://www.reuters.com/article/technologyNews/idUSTRE5792N920090810

The website allows consumers to compare pricing across models and participating dealerships, negotiate prices, and arrange financing and payment. Consumers can agree to pay the advertised price or indicate the price they are willing to pay and can negotiate online with the dealer for the vehicle.

This is genius, if it works. And you know why, because it lets the free market determine prices. However, given the cost it takes GM to make a car vs. imports, I wonder if it is sustainable.

31-Year-Old in Charge of Dismantling G.M.

http://www.nytimes.com/2009/06/01/business/01deese.html

"Brian Deese, a not-quite graduate of Yale Law School who had never set foot in an automotive assembly plant until he took on his nearly unseen role in remaking the American automotive industry."

"Mr. Deese’s role is unusual for someone who is neither a formally trained economist nor a business school graduate, and who never spent much time flipping through the endless studies about the future of the American and Japanese auto industries."

Car Chiefs Grilled on Dealer Closings

http://online.wsj.com/article/SB124405461535882071.html

And so the micromanagement begins. How exactly is a business suppose to function when it has to be accountable to politicians who motivations now-a-days seem to be to lobbyists?

"I never would have believed as a candidate for the U.S. Senate that the U.S. government could buy GM without a hearing, with no vote, yes or no," Sen. Mike Johanns (R., Neb.) said at Wednesday's hearing. "There are billions and billions of dollars at stake here."

The Obama Motor Co.

http://online.wsj.com/article_email/SB124381255295170405-lMyQjAxMDI5NDAzMTgwMTEyWj.html

"Treasury bludgeoned the bond holders in both Chrysler and GM to take pennies on the dollar, which will not make creditors eager to lend to the companies in the future."

"The new agreement simplifies some work rules and job descriptions but makes no reductions in hourly pay, pensions or health care for active workers. The agreement must also be renegotiated in two years by an Obama Administration running for re-election and weighing the need to keep Big Labor happy against the risks to taxpayer-shareholders."

"The Administration's concessions to the UAW also restrict the company's ability to import smaller, more fuel-efficient cars that it already makes overseas....GM is also selling its Opel operation in Europe as part of this restructuring, and the Washington Post reports that one of Treasury's sale conditions is that Opel's new owners must stay out of the U.S., and even out of China, where GM's business is strong. This is raw trade protectionism. It is also textbook cartel behavior and would be an antitrust violation if practiced by a business."

"The Obama Administration has been whispering to the press that it could start selling its stake within a year to 18 months, and that it hopes to be out of the business entirely in five years. But even assuming that the taxpayer investment stops at $50 billion, GM would have to be worth a cool $80 billion for taxpayers to break even on their 60% stake. By way of comparison, GM's market capitalization at its recent peak in 2000 was only $56 billion."

"The larger corruption will be when government tries to vindicate its ownership by favoring GM over Ford and the other auto makers that aren't wards of the state. The TARP legislation contained one blatant example in the form of a $7,500 tax credit for consumers who buy GM's new electric car, the Chevy Volt. "

Romney balks at government ownership of GM

http://www.detnews.com/article/20090531/AUTO01/905310317/1148/Romney-balks-at-government-ownership-of-GM

Wow, this guys name sounds familiar and he has a great idea, why isn't he in a political office? Oh that's right, you Republicans decided to go with a washed-up Obama-light Rino!

GM Files for Bankruptcy Protection

http://online.wsj.com/article/SB124385428627671889.html

Apparently, it isn't to big too fail, wasn't that what we were told? What the hell did GM do with all that money we gave them, the billions of tax dollars? Why would you give someone money if they wouldn't be able to use it effectively? And even if you weren't sure, why would you gamble so much? Once again our government does us great service by wasting our hard-earned money. Nice job guys and girls in Washington...

U.S. to Steer GM Toward Bankruptcy

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/21/AR2009052104467.html?hpid=topnews

"The government previously indicated that it planned to take at least 50 percent of the restructured company, and likely would take the right to name members to its board of directors, as it has at Chrysler, where the government will control four of nine seats. "

Nationalization anyone?

Under Restructuring, GM To Build More Cars Overseas

http://www.washingtonpost.com/wp-dyn/content/article/2009/05/07/AR2009050704336.html

This is what happens when the government meddles:

"Essentially in control of the company, the president's autos task force faces an awkward choice: It can either require General Motors to keep more jobs at home, potentially raising labor costs at a company already beset with financial woes, or it can risk political fury by allowing the automaker to expand operations at lower-cost manufacturing locations."

I would be hard pressed to believe that Obama would allow jobs to go overseas, that would be political suicide. Therefore, we are probably going to see increased labor costs and more money needed to bailout this company that should have gone under already.