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Monday, March 30, 2009

Predicable future for Government Motors (formerly General Motors)


Now that the Feds have given money to the automakers and said automakers have taken the money, market forces have officially been removed from the auto market. When an entity takes a large sum of money from the Government they are now at the behest of the Government. Who is the Government? A collection of politicians and bureaucrats. This means the following will happen:

1. Removal of the business leaders from the company and replace them with bureaucrats and friends of those in political power. First thing Obama did was remove the CEO. The new leaders may look like business leaders but they will not make a single business decision without first consulting the political leaders for a political decision.

2. The company will change type of cars they make. This won't happen in one fell swoop. The current models will still be there but we will start to see a series of cars that no one wants but the politicians think are politically correct. For instance you will begin to see "Green friendly" cars - that suck and no one will want - as they begin to phase out the previous un-PC car models.

3. Once the Government realizes that no one wants the crap the the company is now putting out they will begin to pass laws to "encourage" the purchase of their cars. This may include tax breaks for those who purchase them. They will also begin to pass laws to "discourage" the purchase of any car not manufactured by Government Motors. This may come in the form of higher taxes and extensive regulation on a Non-Government Motors car which would drive up the cost of the "competition". It should be noted that any new regulations will not be enforced when it comes to Government Motors.

4. Ten to Fifteen years from now we will learn that Government Motors cars pollute the environment more than anything today and that no one enjoys driving them (except for the pony-tailed guy in the rich part of town). We will also learn that the executives at Government Motors have been overpaid through continuing government "loans" in order to funnel money back to the re-election coffers of the Democrat Party.

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