Obama About To Put The Government Into The Auto Warranty Business

• March 30, 2009

Why not? General Motors has become Government Motors, so it’s just natural that we’d have the government running warranties too right?

Obama will make two other announcements Monday.
One, the president will announce a new government-backed warranty program for all new GM and Chrysler vehicles purchased during this restructuring period. A fund will be set up equal to 125 percent of the total cost to pay for warranty service. The auto makers will contribute 15 percent while the government will provide 110 percent, with the money coming from the economic stabilization funds, the gift that keeps on giving. A separate company will hold the funds and pay the claims even if one of the auto manufacturers goes into bankruptcy or out of business.
The president will also name a Director of Recovery for Auto Workers and Communities. Edward Montgomery, labor economist and former Deputy Secretary of Labor, will serve in the role, helping autoworkers, communities, and regions adversely impacted by the failure of the automakers find new jobs, businesses, and industries.

Owners of GM and Chrysler vehicles can expect the same level of customer service and responsiveness they get from the DMV.
Frankly, this will probably be a big selling point for Toyota, Honda, Kia and other foreign auto manufacturers. At least until Obama drives them out of the country with protectionist, anti-foreign business policies in order to eliminate their competition with our new nationalized domestic auto industry.

Tags: Asshats, Domestic Issues, Politics

http://Array HideFromObama

I’m buying a Ford next time around…
kbiel

Hmmm, I wonder how this will turn out. British Leyland worked out so well.
http://SayAnythingBlog.com The_Whistler_ofnd

Why should my money go to fix someone else’s car?

I don’t mind the portion that GM and Chrysler pay into the fund. It’s ridiculous to use taxpayer money for this.
http://SayAnythingBlog.com The_Whistler_ofnd

I’ve never bought a Japanese car, but that’s where I’m going next time. (Although I prefer one made in the USA, but run by honest businessmen rather than corrupt politicians and greedy union thugs).

I still like American made pickups, but that big Toyota looks not half bad.
docdave

I owned Fords most of my life until recently. The best of the lot was a 62 Galaxy 500. The worst other than the Pinto I foolishly purchased was a Taurus that I bought used. I switched to Toyoto when they gave me the best trade on the Taurus.

My take on American car manufactures was that they were slow implementing innovated changes. For instance, Ford stuck resolutely to rear drive vehicles long after front wheel drive became popular.
SigFan

Growing up in the 50′s to 70′s in Detroit, American iron was king. Fast cars, big engines, all the fun a kid could want. Somehow though the big 3 got away from the idea of building what the public wanted and started producing crap – the beginning of their downfall. Since the early 90′s all I’ve owned are BMW, Infiniti and Lexus (all US built). Never had a problem with any of them, well built, fun to drive, retain their value, excellent service when routine maintenance was needed. Currently driving two Infiniti’s, probably will buy another in a year unless one of the Americans come up with something unseen as yet that compares. The thought of the government being in the warranty business is absurd though. Imagine all the efficiency of the DMV coupled with the competence of Congress – too scary for words.
http://SayAnythingBlog.com The_Whistler_ofnd

One thing that is killing the American auto industry is the inability to specialize in what they do well. I think that the CAFE fuel standards are to blame.

If that weren’t there I think manufacturers would be able to build cars that they are good at making. They wouldn’t have to do things they aren’t good at.

And there’s no reason that another car company wouldn’t find a niche satisfying customers that want small fuel efficient cars as well.

We need the government to quit interfering with things they don’t understand.
kbiel

Rob,

I think the folks at Daimler will take offense at your statement that “cars were invented in America.”

But I hear what you are saying.
Bat One

Over the years, I’ve owned quite a selection of British sports cars, and with each purchase I reminded myself that the Brits build their automobiles with the intention that the owner should become intimately acquainted with the workings of his car.

When Ford purchased Jaguar, the company was a shambles, the quality control was all but non-existent, and Jags had a well-deserved 50 year reputation for leaking oil.

Yet, last week when the J.D. Power automobile ratings were released, the award for most reliable marque was shared by Buick and Jaguar.
http://sayanythingblog.com robport

Ford has always made good pickups, to my mind. I haven’t owned anything later than a 2002 though. Since then I had an ill-advised bit of time with an Explorer (not a bad vehicle, but too small for my needs) and now I’ve got a Yukon.

I wouldn’t have bought the Yukon, but I got it from a family member at a deal so…I took advantage.

In the future, I’d probably look at Ford again I guess. Although Honda has some very nice SUV’s out these days.
http://sayanythingblog.com robport

The American auto industry once made the best cars in the world. Heck, cars were invented in America.

You know what cars have never been the best in the world? Cars like the Trabant made by government-run industry.

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Obama About To Put The Government Into The Auto Warranty Business

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