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GM Socks Rival For 16 Large

Well, the owners of General Motors have figured out a way to put a hurting on one of their rivals. They've decided to just up and take over 16 million dollars from Toyota.

Oh, it isn't being presented that way. No, instead, it's the Transportation Department (a wholly owned subidiary of Executive Branch USA, which is also the majority owner of General Motors) that is imposing the fine on Toyota over its handling of defective brake parts in its vehicles.

In essence, the auto business is a game where the referee owns one of the teams.

Expect more thorough investigations and hefty fines against other automakers that have the temerity to compete with Government Motors -- and succeed.

For the record, I don't think that "protecting our investment in GM" was the sole or even the key factor in the government's handling of Toyota. But I do think it played a role, and as long as the government insists on being a player in the game, every single one of its actions as the referee is up to being questioned and challenged.


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Comments (29)

Wouldn't this be considered... (Below threshold)
914:

Wouldn't this be considered an unfair business practice? I guess power is all that the leftists crave. They dont give a damn how they get it or who they screw along the way.

Gotta disagree here, Jay. ... (Below threshold)
DJ Drummond:

Gotta disagree here, Jay. The T-car execs have been mighty arrogant in addressing this little problem of the occasional auto speeding far beyond the Gore-approved speed limits, and by the way occasionally killing folks. When the wife and I were shopping for the truck, the Toyota people were not willing to discuss their little safety problem, in a tone reminiscent of the East German judge dealing with the Soviets' little steroid habit (iz not drugs, iz simply healthy wittle goil ... vewwwy healthy six-foot-two twelve-year-old with beard, is all).

Not that the Obama Administration is all that concerned with safety per se, but only the White House and leading Democrats are allowed to be arrogant on a regular basis ...

So DJ, you expected the dea... (Below threshold)
ODA315:

So DJ, you expected the dealer folks to give you the scoop on the problem while litigation was on the horizon???

What did the easter bunny bring ya Sunday?

Smart parasites don't kill ... (Below threshold)
mojo:

Smart parasites don't kill their host, just debilitate it.

"For the record, I don't... (Below threshold)
P. Bunyan:

"For the record, I don't think that "protecting our investment in GM" was the sole or even the key factor in the government's handling of Toyota."

For the record, I do.

ooh, $16 million, that will... (Below threshold)

ooh, $16 million, that will put a hurting on Toyota... a company with (I'm guessing) a few BILLION in the bank!

Would you prefer that the Transportation Department NOT pursue allegations non-safety of non-GM cars just to be able to avoid the knee jerk perception of some that they're favoring GM?

Would you prefe... (Below threshold)
Would you prefer that the Transportation Department NOT pursue allegations non-safety of non-GM cars
When many of the most sensational allegations have since been debunked, one might add.
"debunked"? If you mean th... (Below threshold)
DJ Drummond:

"debunked"? If you mean that weasel with the Prius who thought he could scame some celebrity by faking a runaway accelerator, that's not the same thing, and the sudden acceleration problem is still - hmm - Undebunked.

Real people died, so it's still a problem from where I sit, especially when 'misplaced floor pads' is what the T-boys trot out to 'splain why they ignored the problem for years.

Sturm, nice try. Let me gi... (Below threshold)
Oyster:

Sturm, nice try. Let me give that strategy you got there a whirl:

Jay: But the referee owns one of the teams.
Sturm: Oh, so we shouldn't make the teams play by any rules?

Nah, still sucks.

Steve "Would you p... (Below threshold)
retired military:

Steve

"Would you prefer that the Transportation Department NOT pursue allegations non-safety of non-GM cars just to be able to avoid the knee jerk perception of some that they're favoring GM?"

You miss the point.

If the owner of one team is the referee. THen every foul called against the other team is questionable even if it is justified.

If the foul call is justifi... (Below threshold)

If the foul call is justified, then why is it questionable?

And you miss my point: the government owning GM is a fact (at least for a while). Given that, are you arguing that the government shouldn't monitor the likes of Toyota... just because some people jump to politically motivated conclusions that the referee is biased? And the same holds for banks, with the government holding stakes in many, should the SEC pursue insider trading at a bank that has paid off its TARP funding?

And while I have no doubt that the top ranks of the Obama Administration are capable of much trouble, it's a stretch believing that the rank and file at TD are pursuing investigations and penalties all in furtherance of the Obama agenda. If anything, they proposed the penalties not because 'we' own GM but rather to show Toyota that they're the boss.... don't piss off the bureaucrats...

It's a total scam. Anyone t... (Below threshold)
ck:

It's a total scam. Anyone that isn't smart enough to shift in to neutral or stand on the brake in that situation is too stupid to drive.Remember Audi? they were nearly put out of business with this same scam.

Just for fun, try googling ... (Below threshold)
a. moral:

Just for fun, try googling "GM recalls" and watch the screen fill up. When will the hearings begin on these? I believe they pick their targets when they can and if they really wanted to go after GM, they could and would find an excuse to do so.

The ambulance chasers are l... (Below threshold)
ck:

The ambulance chasers are looking to make over a billion on this scam.

As usual there's more to th... (Below threshold)
P. Bunyan:

As usual there's more to this story then what the MSM/Government is trying to feed you:

How real are the defects...

small point: I believe Toyo... (Below threshold)

small point: I believe Toyota is being fined for not reporting that there were reports of possible problems... this isn't a finding that there were actual problems. Again, it's the coverup...

This has been way over play... (Below threshold)
jim m:

This has been way over played by the administration. Toyota still makes better cars than GM. They have actually had fewer problems with 'sudden acceleration'. (In fact GM had more problems with this than the Audi 5000 ever did. This issue has always been a favorite of the trial lawyers and hair shirt liberal safety nazis)

I'm waiting for Japan to wise up and take this the the WTO as an unfair/illegal tariff and demand sanctions against the US. Really, with so much of "foreign car" production now within the US what does Japan have to lose by slapping a reciprocal penalty on US goods?

Steve Again you mi... (Below threshold)
retired military:

Steve

Again you miss the point

That point being the govt has NO BUSINESS owning a car manufacturing company. PERIOD.

Even if a foul is justified there will be onlookers who didnt see what the referee saw and automatically assume that the game is fixed in favor of the referee's team. In little league that isnt much of a big deal but with billions at stake IT IS.

After all we arent talking about monopoly money. Oh wait with Obama in office I guess we are or at least that is the way it is treated.

I'm sure the next time GM s... (Below threshold)
GarandFan:

I'm sure the next time GM screws up, the government will come down just as hard on them.
HAhahahahahahahahahahaha!!!!!!!!!!

GarandFan: "I'm sure the... (Below threshold)
Justrand:

GarandFan: "I'm sure the next time GM screws up, the government will come down just as hard on them."

LOL!!

Next up, Obama will take over McDonalds (they're "too big to fail"), and then fine BurgerKing out of existance!

What a scam!

No one shot to kill -just a... (Below threshold)
Don L:

No one shot to kill -just a little lob of a cannonball over the bow to keep the copetition's ships out of the harbor.

Not Burger King...my kid lo... (Below threshold)
Gladius:

Not Burger King...my kid loves those $1 whoppers..Does Obama care cover psych. bills ?

RM: I agree with you that t... (Below threshold)

RM: I agree with you that the government shouldn't own GM. but as my first point said, the government does own GM and the question is what comes next, not only with regards to GM but to the other car companies that the government has a need to monitor. I argue that the government can't and shouldn't abandon its oversight responsibilities of the other car companies because it happens to own GM.

And if people jump to conclusions that the process is rigged without looking at the facts, that is their problem, they're the idiots.

Toyota failed to inform fed... (Below threshold)
Paul Hooson:

Toyota failed to inform federal safety regulators until weeks passed about this serious safety flaw. In the meantime, some serious, and sometimes fatal, accidents took place. Toyota is lucky to just pay a fine and not face some criminal sanctions over this matter.

But, Ford is the big winner here. They are now the top auto brand, followed by GM and then Toyota.

Toyota's biggest problem now is that nearly 1/3 of the public still have safety questions about that brand. That's a lot of baggage to carry.

Personally I am more concer... (Below threshold)
epador:

Personally I am more concerned about the unintended acceleration into bankruptcy with which Stimulus I and ObamaCare are driving us over the cliff.

And do you think GM was exp... (Below threshold)
a. moral:

And do you think GM was exposed to the same level of scrutiny regarding their recent recalls? If they were, you telling me that they wouldn't find some problems? It's a witch hunt.

the question is... (Below threshold)
the question is what comes next
What should come next is for the frickin' government to get its frickin' mitts off frickin' GM.
SteveSee response ... (Below threshold)
retired military:

Steve

See response number 27.

The govt needs to sell its shares of GM NOW. Not 5 years from now, not next year, not next month, not tomorrow.

NOW

Let GM sink or swim on its own.

The same goes for AIG and the banks the govt is proppring up.

LET THE BAD INVESTMENTS FAIL.

Yes it will be hard, yes people will lose jobs, yes people will have hard decisions but it is better to take the bitter pill now than the death of 10,000 cuts which is what we are doing. Of course with the death of 10,000 cuts the democrats can bail out the unions using taxpayer money, which they have have been doing and will continue to do.


"steve sturm" says he doesn... (Below threshold)

"steve sturm" says he doesn't doubt the capability of the "top ranks" of the Obama Administration to cause much trouble but feels it a stretch that the rank and file at TD might seek to further 0zero's fascissocialist agenda.

And, thus, does "steve sturm" demonstrate one of our side's fatal flaws.

For "steve's" projection of his own moral integrity on to the the lock-stepping "Democratic" potty-activist "rank and file" at TD actually blinds "steve" -- both to the existence of the lock-stepping "Democratic" potty-activist "rank and file" that owns, operates and controls every one of the feral gummint's bureaus, departments and secretariats. And to the evil such lying, looting, thieving un-and-anti-American fellow travelers have, for more than eighty years already, perpetrated.




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