GM will likely go into bankruptcy this week and soon re-emerge as a new company - as will Chrysler. The Obama administation, the UAW and others have done much to give GM and Chrysler another chance. A new chance as companies where the old stockholders and bondholders have largely been replaced by the UAW (actually their retiree benefits plan) and the Federal Government -- and some ownership by Fiat in the case of Chrylser.
The fact remains that the Obama and UAW will fail in this unless American consummers buy GM and Chrysler cars and trucks far more frequently than they have in recent years.
Just as some people have purchased a Prius to make a statement about their support for the environment, purchasing a GM or Chrysler could become a way to make a statement of support for Obama and UAW workers.
The question is will Americans change which cars they buy? In some states, such as California, many people don't even consider GM, Ford and Chrylser when they buy a new car - they go to Toyota, Honda, Nissan, VW, Mercedes, BMW, etc. without ever thinking about going to GM or Chrylser dealer.
In the next two years, the cars GM and Chryler can produce are largely already in the product pipleline - so we should not expect too much in how the cars will change. But recovery for these companies will depend upon what happens to their sales over the next two years. These companies cannot be successful in 2014 if they die in 2010.
I think we all realize that if GM and Chryler do have a successful new life as companies of the UAW and Federal government - this will be seen as an acheivement of the Obama administration, th UAW and unions in general. If these compnies fail the Obama administration will get a share of the blame for their failure.
Will those who say much in their support for Obama and Unions - also do much when it comes time to buy a new car?
What will you do? I would especially like to hear from those who don't have a GM, Ford or Chrylser.