I hate to say this, but this 50 billion dollar thing will not work for many reasons.
People are obviously upset about this bailout for a company whose sales diminish almost 50% every year.
Even though the American cars are better now too many people got burned by GM building cars that had too many problems. I am seeing people who are retired now who always bought GM cars tell me stories of problems they had with the cars and now they are driving Toyota's and Honda's.
This Chevrolet Volt is supposed to cost $40,000 but I hear you can get a Toyota Prius for $25,000. This Volt can go 40 miles on a charge, in a few years you will have cars that can go 100 miles or more on a charge.
The head of GM was on TV pleading with people to buy there cars, its basically too late, eventually the government will not give them anymore money if they are not selling cars.
I believe this new fuel economy standard for 2016 was a bad idea for Obama to bring up, I talked with the CarQuest guy yesterday and his business is doing well, seems people around my neck of the woods are taking care of there cars. Many people will hold onto there cars until the car companies build more fuel efficient cars or since there is such uncertainty with the economy they are afraid to go out and buy a new car.
GM will be gone in a few years, just like:
1) Packard
2) Studebaker
If GM had voluntarily gone into bankruptcy last December and had gotten rid of the union maybe they would survive, but the end of GM will be coming soon or in a few years, same thing with Chrysler, Ford will be the only one to survive.
GM was good at making money on big cars, but small cars are another story unless you sell alot of them.
This fiasco for GM started with the LT1 that replaced the small block chevy, the parts were very expensive and they had many other problems with this engine. They went on to build these S10 Blazers and pickup trucks with V-6 engines that did not hold up as well as there transmissions. I also believe when GM went to overdrive transmissions and they started building front wheel drive Impala's, Monte Carlo's and some other junk this was leading to there downfall. GM is good at building rear wheel drive V-8 cars, the foreign car companies are great at building small cars.
