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In Stunning Reversal GM Asks Closed Auto Dealers To Reopen

A better example of government incompetence, stupidity and overreach could not be found than the just released news today that General Motors is going to reinstate 661 dealers that had their businesses destroyed by President Obama's Car Czar Steve Rattnar (who bolted for New York midway through his term leaving an incredible path of carnage in his wake). According to Bloomberg GM is now sending letters to the axed dealers asking them to return to the fold:

March 5 (Bloomberg) -- General Motors Co. said it plans to reinstate 661 dealers as the automaker attempts to shore up declining market share. GM offered franchise agreement letters to the dealers, North America President Mark Reuss said today in a statement.

"We are eager to restore relationships with our dealers, and get back to doing what we do best -- selling cars and taking care of customers," Reuss said. "The arbitration process creates uncertainty in the market. We believe issuing these Letters of Intent is good for our customers, our dealers and GM."

The Detroit-based automaker is trying to increase U.S. sales and market share while trimming four of its eight brands. Chief Executive Officer Ed Whitacre named Reuss, 46, to the post in December in a shuffle of top managers.

One would think the geniuses in the Obama administration would have thought this through more carefully. Having destroyed hundreds of businesses run by these dealers what we hear now is "Oops, we didn't mean it. Please come back". This reversal is a tacit admission of a monumental blunder (which is why it was released on a Friday afternoon). And this is the same administration that wants to control healthcare. Imagine yourself in the shoes of those dealers or their employees. After billions in losses, families thrown into turmoil caused by unemployment and lost wages, the government suddenly admits that part of its grand experiment in restructuring the auto industry was flawed.

This story should be filed as Exhibit A in the argument against ObamaCare and the government takeover of the healthcare industry.


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Comments (18)

"This story should be filed... (Below threshold)

"This story should be filed as Exhibit A in the argument against ObamaCare and the government takeover of the healthcare industry."

Or the government takeover of any industry.

AND REMEMBER, those returni... (Below threshold)

AND REMEMBER, those returning dealers would no doubt be under Hussein-led "business supervision" for...what, 10 years...more???

O stands for Oooooops!... (Below threshold)

O stands for Oooooops!

So this means after they re... (Below threshold)

So this means after they reject a treatment for an Obamacare patient, they can change their minds after said patient is dead? Brilliant!

I think a sincere "oop's" o... (Below threshold)
mcurbo Author Profile Page:

I think a sincere "oop's" on the part of this administration would be the best scenario. What I see is a company that admitted that one of the reasons they were in such poor financial shape was because they had too many dealers. They assured the American taxpayer that they could trim the fat and become a viable company if we would just bail them out. Now on the path to recovery, they are literally undoing the "fixes" they put in place--all before paying us back I might add. As happy as I am for the dealers and their employers, what has truly changed other than the level of our national debt?

O...hB...oyA.... (Below threshold)
retired military:


Now dems can see why we are pro life.

I'm not a lawyer, but isn't... (Below threshold)

I'm not a lawyer, but isn't that admission a cause for action?

Shows what happens when peo... (Below threshold)

Shows what happens when people who've never run a business, or had to make a payroll suddenly become involved in "business".

Yeah, all those dealerships that DIED will suddenly come back to life. Were I one of those dealers, I'd send a nice short letter.

Dear Government Motors:
FUCK YOU! I work for FORD now!
Screwed Former GM Dealer

re: GrandFanI am o... (Below threshold)

re: GrandFan

I am only a GM owner, not a dealer, but appreciate your use of he very words I would have posted. Well said.

The Government CANNOT run a... (Below threshold)

The Government CANNOT run and SHOULD NOT influence business operations!!!

Imagine these dickwads in charge of your Health Care

What a bunch of assclowns w... (Below threshold)

What a bunch of assclowns we have running, or should I say trying to run the country. And the joker is the biggest one.

All of the old GM dealers S... (Below threshold)

All of the old GM dealers SHOULD reopen....as FORD dealers

This is as silly as asking ... (Below threshold)

This is as silly as asking if The Japanese can have a "do over" for December 7, 1941.

What you have to understand... (Below threshold)
jim m:

What you have to understand is that Obama thinks that he is more infallible than the Pope. He thinks that he can run the auto industry.

But for a moment think of how this does translate to healthcare, Hospitals get Medicare payments from the government. A lot of those payments come from state distributions. In Illinois the government is handing out IOU's because they cannot actually make the payments (these things happen when 50% of your budget is unfunded). It isn't a stretch to think that government will select winners and losers from amongst the hospitals. Inner city hospitals will get paid. Hospitals in GOP districts will not. Hospitals in GOP territory will go out of business because they cannot keep their doors open indefinitely without the payments they are owed.

Obama shut down GM dealers based at least in part on political calculations. How should we expect that he would not do the same for hospitals?

After all, Obama's from Illinois. One of the allegations against the former governor of Illinois was that he held up huge grant funding for Children's Memorial Hospital in Chicago because they wouldn't give him sufficient campaign dollars. This is the sewer that Obama crawled out of. He will expect the very same thing. Hospitals who pay him will get paid. Those that don't will go out of business.

Emily Litella is the Auto C... (Below threshold)
Rich Fader:

Emily Litella is the Auto Czar. Who knew?

"Oh! That's quite a different matter!...Never mind."

Or on second thought, maybe... (Below threshold)
Rich Fader:

Or on second thought, maybe John Blutarsky:



Who would have thought that... (Below threshold)

Who would have thought that you can manufacture as much as you want of a product, but it doesn't mean shit if you have no one to SELL the product or SERVICE it. Guess GM will have to start paying their UAW workers in cars.

Just wondering....what poli... (Below threshold)

Just wondering....what political favors will be given to whom to get which auto dealerships reopened?...."The most transparent and open Congress ever....NP"






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