Public perception of the automotive bailout – one year later
Please vote in the poll at the end of this article.
Has it really been over a year since the first emergency loans were provided to General Motors
and Chrysler? In fact, it was a year on December 19, 2009. It was then that President George W. Bush and his administration decided to give both automakers the money to keep them out of bankruptcy, at least for the time being. Billions of dollars were extended to both companies by the Bush administration and later in 2009, the Obama administration agreed to give billions of dollars more, all in the name of keeping them viable. Eventually, it became clear that the bailout was not working and both automakers declared bankruptcy. Both companies have since restructured themselves, but the stigma remains. It is not uncommon to hear GM called Government Motors.
In 2003, my family and I purchased a 2003 Chevrolet Venture and were well pleased with it. We paid it off a little over a year ago and we discussed getting something different to drive, but decided against it. Oh what joy it was to not have a vehicle payment every month. When we were having those discussions, we both found ourselves thinking about buying a Ford vehicle, something that I had not done for a very long time. It’s not that I disliked their automobiles, but I just liked GM vehicles better, maybe for reasons unknown to me or anyone else. Because of the government bailout for GM and Chrysler and the fact that Ford refused to accept government funds, we both felt Ford deserved another look.
This is not our's but it is the same color.
After Tammy and Randi had their accident on the night of February 14, we had no choice but to purchase another vehicle and we settled on a 2008 Ford Edge. It is much more vehicle than I expected to buy, but we are very satisfied with it so far. Great gas mileage and performance and very comfortable to drive and ride in. With our granddaughter nearly here (any day now), that was very important to us both, as Alexia Danae will be riding with us at times. I know the government would have probably chosen a different vehicle for me to purchase, as it doesn’t get nearly enough gas mileage for them and it probably isn’t green enough for their tastes. However, it suits me and my family and the purpose for which we purchased it.
I would be lying if I said the fact that General Motors solicited government loans and bailout funds did not play at least a small part in my decision to purchase a vehicle from Ford. Not only that, but I know of one man who is a die hard GM man, (he really likes their trucks and has had the same one for years) but he is taking a very serious look at Ford and their lineup of vehicles. His stated reasons are that they didn’t have to be bailed out by the government and they have a good looking truck, in that order. Hearing him talk like that made me wonder if this feeling was widespread or if he and I were just off our respective rockers?
So I would like to ask a question, in the form of a poll. It is just a yes or no vote, but please feel free to elaborate in the comment section.
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I wouldn’t buy a Chrysler product for the simple reason that their quality levels are way too low. GM builds a much better product, but I would think twice about buying a car from them because of the government bail out.
Ford offers a better quality product, has nicer offerings and didn’t receive a hand out. Though I am not buying a car yet, I would definitely put Ford on my list.
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“Because of the government bailout for GM and Chrysler and the fact that Ford refused to accept government funds, we both felt Ford deserved another look.
-Says Larry.
We all need help sometimes, and if GM pays their loan off, what’s the problem?
http://thehill.com/blogs/blog-briefing-room/news/77801-gm-will-repay-bailout-loans-by-end-of-june
This is from way back in January:
“General Motors will pay back its bailout funds in full to the United States government by the end of June, the Department of the Treasury announced Monday.
GM will repay the $6.7 billion in loans it received in 2009 from the Troubled Asset Relief Program (TARP) after having said late last year that it would accelerate its repayment.”
David W. Walters´s last blog ..Ward 9-B
Yes, we all need help from time to time, but for over a year now, GM and Chrysler have both had their hands out. They said it was the only way they could stay out of bankruptcy, but it didn’t work. I just don’t like the idea of them asking for handouts from the American taxpayer. I didn’t like it when Bush allowed it and I didn’t like it when Obama extended it. Also, regardless if they pay it back or not, the government still has a stake in the company. Like I said, there are multiple reasons why we chose to purchase a Ford.
Oh, Fords are great, especially their trucks. Me? I’m looking for a used F250 Power Stroke Diesel to pull my big old Avion trailer. I have a Dodge truck. Great vehicle, but the Ford is best when it comes to trucks.
But Larry, my point is that you seem to be treating the loan as a gift and it isn’t. It is a loan to be paid back which GM says it CAN do. Chrysler, on the other hand will probably default.
Larry,
On it’s face, I understand your argument. But I would remind you and all the others out there who would condemn GM for it’s “bailout” loan that, when America deperately needed its own “bailout” after 9-11, GM (and to be fair, Ford as well) was there. When a boost was necessary for an economy at a stand still, the Big 3 were there. Zero down loans, factory incentives, no-up-front-cost lease deals and other tools designed to get the consumer economy moving again were offered, and other auto manufacturers followed suit. As good as it was for the economy, it was damaging to the already suffering bottom line of American car companies. But they did it, for the greater good.
I had issues from the beginning with the bailout to Chrysler. It’s privately owned by a very healthy equity group that had the cash to invest in itself…It just wouldn’t. But GM? The best thing to come from the bailout money given to them was that the company was forced to examine their poor management structure and the bad lines it had continued to prop up. Without the money, which (as David points out) will be paid back in record time, I’m not sure that a quick reemergence from bankruptcy would have been possible.
I’ve been a GM fan since I was a kid. I’ve always liked them better. That, and nothing sounds better than a Chevy small block.
That being said, our next car is a Ford. My wife has a Fusion right now, and we have been very pleased with it.
As for the bailouts, they are a factor for many people. I’ve talked to people about this, and even a local radio show talked to a Ford dealer, who said that many people are trying Fords for the first time in a long time because of the bailout. The people are speaking to this government in many ways. Our “leaders” will never get the message, as we lowly citizens are irrelevant to our elites, but we’ll win in the end.
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I simply cannot abide by the fact that the Federal Government has an ownership in GM or Chrysler. I will purchase cars only privately owned companies. I truly feel sorry for the workers at GM and Chrysler that may affect, but I want my Government to know, they have no business in business. If they wanted to help the auto business, they should do so through reductions in taxes and regulations, not by socializing automotive production. That only leads to an eventual failure, as apposed to an immediate one.
I’m with ya, Larry. If I was buying a vehicle, I’d look at a Ford first, and probably second, too.
MuskogeePolitico´s last blog ..The Conservative View: Open the Gate