Biz

Government Motors Still Getting Bailed Out

|| By FITSNEWS || From the “recovery” file … General Motors (a.k.a. Government Motors) saw a three percent drop in June auto sales … in contrast to expectations of a three percent increase.  Pacing the decline?  A whopping 18.5 percent decline in Buick sales. You won’t read about this in…

|| By FITSNEWS || From the “recovery” file …

General Motors (a.k.a. Government Motors) saw a three percent drop in June auto sales … in contrast to expectations of a three percent increase.  Pacing the decline?  A whopping 18.5 percent decline in Buick sales.

You won’t read about this in The Detroit News, but Government Motors bad month came amid soaring purchases from … well, government.

“State and local government sales were up 6 percent in June, with full-size pickup and Tahoe PPV deliveries more than doubling,” the company noted in a press release. “State and local government sales are up 19 percent calendar year to date.”

Wow …

Of course GM didn’t disclose the dollar amount of all those government purchases because according to Zero Hedge such information might “crush the fiction that it is the US consumer that is behind GM’s powerful ‘rebound’ and not the entity that has an unlimited balance sheet.”

And God forbid anybody crush any fiction …

***

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36 comments

Victorious Secret July 1, 2015 at 12:57 pm

When it comes to vehicles, I think this is one topic that most people on either “side” of the line can mostly agree–key word, “mostly.”

The overwhelming majority of Americans don’t feel entitled to drive a brand new car every year. Nor do they think it makes sense, financially. However, some gov’t agencies purchase a new fleet at least every other year.

Compare with some of the more successful and wealthy people I know who drive 6 or 8 year old Honda Accords or something similar.

(Reason being –> A vehicle is a depreciating liability the minute you purchase it–in other words, its not a wise use of money)

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RogueElephant July 1, 2015 at 1:11 pm

Very true. I have found that the second and third 100,000 miles are the cheapest driving one can do. There is a stigma associated with the magic 100,000 mile mark. Back in the day it was a lot of miles but with the technology we have today it is just another number. 30 to 50% of new is a significant figure in anyone’s book. A well maintained vehicle should go at least three hundred thousand . It won’t be worth anything as to trade in but who cares. Govt. agencies aren’t spending their money, they are spending ours. It makes my blood boil every time I go down Shop Rd. and see all the new vehicles lined up. Look around at all the old HP cars still getting driven. Look at al the old state trucks (yellow) still going. I think SC could get at least ten to twenty five percent more mileage from their fleet. That would be a significant savings to the taxpayer. Or more repairs on our roads.

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Rakkasan July 1, 2015 at 1:49 pm

Maybe your legislators shouldn’t give them so much funding for fleet vehicles? They haven’t had any problem starving state higher ed so I’m sure with a few nudges they could be persuaded.

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Yep! July 1, 2015 at 3:44 pm

One of the reasons I don’t drive a new car aside from your well described reasons in regard to it being a depreciation liability, is the taxes that are charged in SC after the initial purchase of a new car.(after the sales tax cap year)

There’s also the matter of savings on having only liability insurance versus full coverage on vehicles.

I could buy a new car every year if I wanted, but it would be a stupid waste of money.

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Victorious Secret July 1, 2015 at 4:46 pm

Indeed. The “new car sales” lobby is quite strong here in South Carolina.

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RogueElephant July 1, 2015 at 1:00 pm

A friend of mine works for a large local co. They ran a side by side test and over the life of their trucks the Chevy was well ahead of Fords in reliability. The operating costs were significantly lower. They are now 100% GM. Maybe their mgt. isn’t the best but the trucks are.

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Sic Semper Tyrannis July 1, 2015 at 3:32 pm

I’m a Toyota master tech, Ford, Chevy, ain’t even close

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Bible Thumper July 1, 2015 at 4:04 pm

You must sit around doing nothing all day.

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Sic Semper Tyrannis July 1, 2015 at 5:07 pm

Sometimes, not a lot goes wrong with Toys, Gm should look into why. 100k is not even broken in by toy specs.

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RogueElephant July 1, 2015 at 9:43 pm

I have a neighbor that has driven one of those little Chevy vans his whole career. He has over 400,000 on it. Taking care of any vehicle is the key to long life.

Tazmaniac July 1, 2015 at 5:45 pm

Really? I have to ask about the sudden acceleration issue some years back. Was that a real thing or was it an isolated event with the majority jumping aboard the litigation bus, so to speak? I remember a news story in Charlotte in 1998 where a CATS bus was in a minor fender bender with the driver and one or two passengers on board. When emergency crews arrived. the bus was half full and people came pouring out holding their necks and backs and flopping on the ground like they were dying. When I read about Toyota and all the wrecks popping up it really made me wonder if there was some crazy enough to stage something for the money. I’m a little jaded that way.

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shifty henry July 1, 2015 at 7:40 pm

Deciding it was time for a history review, the teacher asked the class, “Who can tell me what historical figure said, ‘I have not yet begun to fight’?”

The little Japanese girl in the front row raised her hand
and answered, “John Paul Jones.”

“Very good, Miako. Now, who can tell me who said, ‘I regret that I have but one life to give for my country”?”

Again the little Japanese girl was the only one to raise her hand, and piped up, “That was Nathan Hale.”

The teacher said to the class, “What’s going on? So far, Miako is the only one to answer any of my questions.”

Suddenly a voice was heard from the back of the room. “Aw, fuck the Japanese!”

“Who said that?” asked the teacher sharply.

Miako’s hand shot up. “Lee Iacocca!” she said brightly.

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Sic Semper Tyrannis July 1, 2015 at 9:10 pm

There is a way to make the issue your talking about, take the 2 throttle position wires, cut them and install a 300 ohm resistor inline and Walla. Now tell me who is going to do that. That was a farce from people wanting lawsuit money.

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RogueElephant July 1, 2015 at 8:49 pm

Add in the fact that they are union free and you have a good point. I really like Toyotas. Good quality and nice looking.

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Sic Semper Tyrannis July 1, 2015 at 9:17 pm

Month ago l had a corolla, 98 model, with 275k. You could tell it wasn’t taken care of, a teenage male. The car was driven in with 2 holes in the block. They wanted me to find the oil leak and find out why it shakes so bad, LOL.

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RogueElephant July 1, 2015 at 9:44 pm

I once had a Chevy block crack. Fixed it with JB weld. It was still going when I traded it a year later.

Rakkasan July 1, 2015 at 1:59 pm

Since they didn’t give a dollar figure the MUST be a conspiracy involved. I got it. They needed more vehicles so they could take over Texas and the Southwest under the guide of a military operation. No, wait, they are storing the vehicles in a huge underground bunker near Detroit (close to the one with the Russian tanks) for when the New World Order is deployed for the big takeover and gun confiscation.

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flip July 1, 2015 at 2:48 pm

Hey! That welfare should be going to me! LMAO!!! LMAO!!!

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Fools Suckered In July 1, 2015 at 2:48 pm

Over priced SUVs. The mark up is more than double the actual cost to build. And if you finance, which 75% of American do, you will dish out tens of thousands of dollars extra.

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Bible Thumper July 1, 2015 at 3:57 pm

BMW Slips Past Mercedes With Record June for U.S. Luxury Lead
It all depends on if you’re an optimist or a pessimist. This was published today along many other positive headlines on Auto sales. It also is more relevant to South Carolina.
http://www.bloomberg.com/news/articles/2015-07-01/bmw-slips-past-mercedes-with-record-june-for-u-s-luxury-lead

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Sic Semper Tyrannis July 1, 2015 at 5:08 pm

Check out Lexus products vs bmw, get back to me.

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erneba July 1, 2015 at 4:32 pm

I drive a twenty year old pickup(close to 300,000 miles). I will never own another brand new car. If you need a ride, look for a used vehicle with some warranty coverage left on it. Let someone else absorb the up front depreciation.

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Tazmaniac July 1, 2015 at 5:49 pm

Or better yet, work for a company that provides a personal use vehicle. ;-)

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erneba July 1, 2015 at 7:17 pm

Yeah, when I lived in Atlanta for over twenty years, I worked for a company that provided a company car with virtually unlimited personal use. I did not miss payments, insurance, and service hassles.(they had an onsite garage with a mechanic, for oil changes, tires, etc..

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shifty henry July 1, 2015 at 7:20 pm

Those taxi companies really keep them up…

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erneba July 1, 2015 at 7:41 pm

Touche… You got me on that one.
And I hated that Yellow color.

shifty henry July 1, 2015 at 8:21 pm

(heh) (heh)

shifty henry July 1, 2015 at 10:24 pm

— came upon this site for the Sacramento Taxi Service with jokes/funny taxi pictures/videos and more — an interesting little time-waster

————————
http://sactaxiservice.com/

shifty henry July 1, 2015 at 10:04 pm

A Japanese man who went to London sightseeing.
On the final day of his holiday, he called a cab to the airport. During the journey, a Nissan drove past the cab. Thereupon, the man leaned forward excitedly and shouted, “Nissan, very fast! Made in Japan!”
After a while, a Toyota zoomed past the cab. Again, the Japanese man leaned out of the window and shouted, ” Toyota, very fast! Made in Japan!”
And then a Mitsubishi sped past the cab. For the third time, the the man leaned forward excitedly and shouted, “, Mitsubishi! Made in Japan!”
The driver was a little irritated, but he kept quiet… this went on for quite some time. Finally, the cab arrived at the airport. The fare was £150… The Japanese man exclaimed, “Wah?… so expensive!”
The driver replied, “Meter, very fast! Made in Japan!”

shifty henry July 1, 2015 at 10:04 pm

A kid walked up to a guy wearing a 10-gallon hat, leather vest, leather chaps, and sneakers. The kid asked him, “Mr. Cowboy, why do you wear that big hat?”
The cowboy replied, “Well, son, the big hat protects me from hot sun and driving rain, and at night I put it over my face when I sleep on the range, so it protects me then, too.”
“Why do you wear that leather vest?”
“It also helps to keep the weather off me, and it has pockets where I can keep my valuables.”
“Well, why do you wear leather chaps?”
“They protect my legs when I’m driving my horse through mesquite and cactus.”
“Well, Mr. Cowboy,” the kid finally asked, “Why do you wear sneakers?”
“That’s so nobody will think I’m a taxi driver.”

shifty henry July 1, 2015 at 10:10 pm

While out cruising, the Taxi Driver misjudged a curve and drove his cab into the wall dividing the houses of a Mr. and Mrs. Smith and a Mr. and Mrs. Ball.
Thankfully, he was pulled out by the Smiths.

Scooter July 1, 2015 at 9:12 pm

GM is putting that crap together worse than they ever did.

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Elfego July 1, 2015 at 9:23 pm

GM would be gone if not for The Government!

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RogueElephant July 1, 2015 at 10:00 pm

If GM and Chrysler had been allowed to go bankrupt it would have been the best thing. They could have come back non union with a much cleaner operating program. Putting union representatives on their boards was another mistake. The whole bailout thing was a gift to the unions any way. The unions are most of what is wrong with these businesses. Work rules, unnecessary duplication of work, (featherbedding) keeping workers that should be fired, etc. I’ve worked both ways and non union is far better.

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Child Please July 2, 2015 at 10:00 am

This is dumb, whatever you think of GM. State and local governments own cars. Those cars are made by car companies that do not then give the cars away. This was true before any government bailouts. It remains true after. And, of course, the auto bailouts were not paid with state and local tax dollars.

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