U.S. ‘Unlikely’ to Recoup Auto Outlay, Panel Finds

http://www.msnbc.msn.com/id/32751671/ns/business-washington_post

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."

Text of "Cash for Clunkers"

http://www.gpo.gov/fdsys/pkg/PLAW-111publ32/pdf/PLAW-111publ32.pdf

This was really hard to find and the reason being because it isn't its own bill. No, it is buried within the Supplemental Appropriations Act of 2009, Title XIII which interestingly enough appropriates "public funds for spending in the Iraq War and Afghanistan War during the 2009 fiscal year." Who knew tanks and cars went together?

More Problems for Cash for Clunkers: Worthless For Most Auto Recyclers

http://jalopnik.com/5324812/cash-for-clunkers-worthless-for-most-auto-recyclers

"This is because the law requires destroying the engine and the transmission, which makes up to 60% of a vehicle's salvage revenue according to the Automotive Recyclers Association. Being unable to sell these parts means the value has to come from the scraps and whatever parts they can strip for sale within 180 days of receiving the vehicle. After this period they are required by law to destroy it."

"'The CARS act, as written... is horseshit beyond repair' and points out the current scrap value is $140 a ton, which means a two-ton vehicle is only worth $280 as scrap. Subtract out the estimated cost of $200 to detox the vehicle as required by law and the total value is only $80 per car if nothing can be sold on it."

"There is nothing from a federal standpoint to stop a consumer from removing the radio, doors, etc."

Cars.gov Privacy Agreement That Taps Into User's PC

http://www.realclearpolitics.com/video/2009/07/31/beck_exposes_carsgov_privacy_agreement_that_taps_into_users_pc.html

"This application provides access to the DoT CARS system. When logged on to the CARS system, your computer is considered a Federal computer system and is the property of the U.S. Government."

"Any or all uses of this system and all files on this system may be intercepted, monitored, recorded copied, audited, inspected, and disclosed, to authorized CARS, DoT, and law enforcement personnel, as well as authorized officials of other agencies, both domestic and foreign."

Government Suspends 'Clunkers' Program

http://wcbstv.com/consumer/cash.clunkers.success.2.1108544.html

"At Current Rate, Giving Out $3,500 Or $4,500 Per Vehicle Would Burn Through $1 Billion Allocated In No Time"

"If they can't administer a program like this, I'd be a little concerned about my health insurance," car salesman Rob Bojaryn said.

When something is free, more people always come to the table than expected. Like Mr. Bojaryn said, just wait until the government gives out "free" healthcare...

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. "

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?

Hedge Fund Manager Strikes Back at Obama

http://dealbook.blogs.nytimes.com/2009/05/05/a-hedge-fund-manager-strikes-back-at-obama/

"The managers have a fiduciary obligation to look after their clients’ money as best they can, not to support the President, nor to oppose him, nor otherwise advance their personal political views."

Obama's flawed auto logic

http://detnews.com/article/20090507/OPINION03/905070376/Obama-s-flawed-auto-logic

The sly dog.

Free cars for poor fuel road rage

http://news.bostonherald.com/news/regional/view/2009_05_07_Free_cars_for_poor_fuel_road_rage/srvc=home&position=also

So, i have to pay $300 a month on my car loan because I have a job and can afford it, but these people get a free car because they don't have a job and can't afford it?

U.S. Forces Out GM CEO Wagoner

http://online.wsj.com/article/SB123841609048669495.html

First of all, I am torn with this move by the administration. On one hand I am content because the loans that the government would be giving GM come from us, the taxpayers. So, if the company isn't restructuring efficiently, I'm sort of glad to see that there are at least some preconditions that GM must fulfill. If that means replacing their CEO, then go ahead.

On the other hand, we now have the government forcing an employee of a private sector business to set down. Is that really American? If a company becomes uncompetitive through it's own fault, where in the Constitution does it say that I have to pay money to "save" it? Americans deliberately did not buy GM cars because they did not prefer them. Now we are being forced to buy them anyways by having to fork over our tax dollars. And when does it end? How much more money? If the CEO had to step down because GM isn't making necessary gains in restructuring, when do we cut our losses and say enough is enough?

And since when is a political administration experts in the auto industry? We have this:

"The clearest losers appear to be the thousands of bondholders and lenders to both GM and Chrysler. In both cases, administration officials said that the companies were burdened by inordinate amounts of debt that would have to be scrubbed. Chrysler's survival, the administration said, would require "extinguishing the vast majority" of the company's secured debt and all of its unsecured debt and equity"

So now the administration is cancelling debt? These people risked their money to invest in this company and they are now just being wiped out...through a political process that is arbitrary? What ever happened to chapter 11? That's what was set up for situations like this. If the investors lose everything in chapter 11, then so be it, those are the rules. But to have a political administration making decisions such as this is horrible.

So, I guess I'm not torn, this is a bad idea.