Barack Obama says the US government will guarantee the warranties for GM vehicles.
It is my hope that the steps I am announcing today will go a long way towards answering many of the questions people may have about the future of GM and Chrysler. But just in case there are still nagging doubts, let me say it as plainly as I can — if you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always. Your warrantee (sic) will be safe.
In fact, it will be safer than it’s ever been. Because starting today, the United States government will stand behind your warrantee (sic).
In other words, you the American taxpayer will be paying for your own GM warranties. Your taxes will just be recycled through the government first before they’re sent to the dealerships to pay for warranty work. So, taxpayers would be smart to avoid purchasing GM vehicles all together in order to save themselves some money. As I’ve said before, everything this administration touches it ruins.
Rush is talking about this now, and he’s absolutely right when he predicts that eventually you will find union members and environmentalists on the board of directors and that GM will begin making the cars the environmentalists want. He also predicts that GM will ultimately be run and owned by the UAW, as a pay back to the union. Rush called it a union coup – and he’s spot on. As a result, the UAW won’t have to make any concessions, at least none of any significance, in this deal.
My husband and I will be in the market for a new vehicle in September. I can tell you right now we will not purchase a GM or Chrysler vehicle. Instead, we’re looking at a Ford first and then Honda and Toyota, and one of the reasons is because Ford turned down government money. I would have had a lot more respect for GM and Chrysler for that matter if they had declared bankruptcy. At least they would still be autonomous organizations. Now they’re just another arm of the US government and will be run by politicians and bureaucrats who have not run even one small business before, let alone an auto company.
Added: Obama can’t prevent GM from still entering into Chapter 11. If this new CEO Fritz Henderson has any intelligence at all and truly wants to save his company, then he will contact his attorneys and enter Chapter 11 immediately and stop this UAW coup.