GM and Chrysler have failed to impress upon President Obama that their continuance as currently structured is more valuable to him, personally, than the good will of the American people. So they will only get a few billion more dollars to keep operating until they can make a better sales pitch. That's one story, but there is another one here.
GM is going to fail this year. So why not go ahead and push their new 5 year/100,000 mile warranty on new cars?
Their cars have improved but continue with a public perception of low quality. Even the luxury models have cheap plastic interiors.
Hyundai is actually selling MORE cars this year than in the past. They have been making problem-free cars that don't need to use the standard-for-a-decade 10 year/100,000 mile warranty. They came on strong and stayed strong, and their luxury cars have high quality interiors.
The luxury cars from Hyundai are on a par with the (greatly fallen) Cadillac line at GM, but for 1/3 to 1/4 or less the cost of the Union-built GM product.
Gee, I wonder what's wrong with the American consumer not buying up all those GM and Chrysler products!
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I will give President Obama credit where credit is due. Faced with the option, he came right out and said he doesn't want these companies to be operated as wards of the State, and that bankruptcy might be what's required to restructure them. That's really good news for us Capitalists, although it comes out of his mouth about 40 billion dollars after it came out of mine.
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