. . . has a plan, sort of:
DETROIT (AP) – With an almost certain bankruptcy filing days away, General Motors is beginning its reinvention, planning to retool one factory to make its smallest vehicles ever in the U.S. and rid itself of the biggest.
. . . GM said it plans to reopen a shuttered U.S. factory to build subcompact cars. The retooled factory would be able to build 160,000 cars a year and create 1,200 jobs, offsetting some of the 21,000 that will be lost when GM closes 14 factories by the end of next year.
. . . GM is banking on more demand for smaller cars previously shunned by Americans. The government decided earlier this month to raise fuel economy standards for the entire U.S. fleet by 2016 (emphasis mine).
Building the cars you don’t want that government will force you to buy!
The market responds:
GM’s stock tumbled to the lowest price in the company’s 100-year history, closing at just 75 cents after trading as low as 74 cents. The government plan for GM revealed Thursday would make the shares virtually worthless.
Understatement of the year:
Smaller costs after bankruptcy should help the companies make money even though compact cars carry far smaller profit margins than pricey SUVs. But there remains a risk that gas prices will remain low and the cars won’t sell, blowing up the automakers’ new business models.
Full article here. Read it and weep.
Is it a bird? Is it a plane?
No, it’s Socialism! Strange visitor from the 19th Century claiming powers and abilities far beyond those of mortal men!
Socialism . . . which can plunder the wealth of affluent nations, crush industries with its perverse plan to punish success and reward failure!
And who, disguised as Barack Obama, mild-mannered Marxist figurehead for a cesspool of corruption and cronyism, fights a new-ending battle against TRUTH, JUSTICE and THE AMERICAN WAY!
Don’t worry America. There’s plenty more Hope and Change™ on the way. Coming soon to an industry near you!