March 31, 2009 7:46AM
By Eric Bolling
Drastic times call for drastic measures.
With billions of TARP dollars being tossed to GM, interim CEO Fritz Henderson today said that they need to change big and change fast. My guess is that they will cut brands and “lines” (models within the brand). I would recommend that they keep Cadillac and Chevrolet and let the rest go to the junkyard in the sky. Bye, see ya later, alligator, sayonara… You cannot compete with so many different makes and models. The bailed-out auto maker should focus its marketing dollars and design talent toward the two relatively successful brands already within GM domestic.
Chrysler is majority owned by Cerberus Capital, a hedge fund. It still infuriates me that a hedge fund is the ultimate beneficiary of my tax dollars. Cerberus, for those who have forgotten, bought Chrysler in a move of financial bravado. They overpaid massively, but justified it by claiming Chrysler was an American brand that would thrive. Thrive it did not — and now our tax dollars are bailing out a hedge-fund bet gone bad.
What has been lost in all this? The fate of the one U.S. car manufacturer that has done things right: Ford. With billions of dollars of free money being thrown at GM and Chrysler, Ford has been placed at a competitive disadvantage. While Ford is still paying high fees to service its debt the old fashion way, its major competitors GM and Chrysler are receiving free cash to shore up their businesses.
Think of it as a neighborhood where homeowner Ford is making its high-rate mortgage payments on time while you and me are paying for neighbors GM’s and Chrysler’s mortgages. Ridiculous, isn’t it?
Where are you, Obama administration? Why aren’t you pointing out that Ford is doing things right? Why aren’t you arranging deals for Ford internationally?
I am doing this, will you join me to promote Ford as the one U.S. auto that is actually doing things right …