Sunday, April 26, 2009

Obama Motors



Yep, for those of you old enough to remember, that’s a Hudson Hornet. And for those of you who aren’t old enough to remember - that’s a Hudson Hornet. The Hudson Motor Car Company, located in Detroit Michigan, was at one time the third largest automobile manufacturer in America - and for several years in the early 1950s, the Hudson Hornet dominated NASCAR. So why isn’t the Hudson still with us -- well, they went out of business. And over the last century, so did Desoto, and Packard, and Kaiser-Frazier, and LaSalle, and Rambler.
So why I am telling you this, well, it seems the Obama administration fails to realize there have been American car companies that have actually gone out of business. Back in the day, there were no government bailouts, so everyone simply lived by the rule of economics. If you built a product that people wanted to buy, your company grew. If you built a product people didn’t buy, you went out of business. To put it simply, capitalism worked. So why does the Obama administration continue to pour money into General Motors? Is GM more sacred than car companies that have gone before? Can we not fathom an America without GM as we know it today? As long as GM knows Uncle Obama will keep sending cash, they will never make the changes they need to stay competitive. And what would those changes be? Perhaps follow a successful business model, like Nissan, Honda, and Toyota who all have major nameplates, one mainstream line and one upscale line. So no Saturn, no GMAC, no Pontiac, no Buick, no Hummer - just Chevy, and one upscale line, Cadillac. Wanna survive in a tough economy? Well take a tip from Sam Walton, who followed one simple business plan, find someone successful at what they do, and do that.

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