Wednesday, March 21, 2012

So much for the auto industry bailout!

Remember the 2008-2009 auto industry bailouts that were so heralded by the Obama administration? US taxpayers spent over $80 billion 'rescuing' General Motors, Chrysler and associated companies from bankruptcy. Those costs have since grown with interest charges, and it's unlikely they'll all be recovered. Total US government investment in the auto industry may eventually rise as high as $130 billion, depending on whose figures you believe and trust. (Disgracefully, as part of the bailout process, the Obama administration systematically trashed the rule of law, to the advantage of its political cronies and the disadvantage of investors, bondholders and [some] pensioners.)

Well, guess what their forced investment bought US taxpayers? Forbes has just released its list of the '10 Worst Built Cars For 2012'. The top three are General Motors vehicles; the next five are Chryslers. Only the ninth and tenth places are occupied by foreign autos. See for yourself:

  1. Cadillac Escalade
  2. Chevrolet Colorado/GMC Canyon
  3. Chevrolet Tahoe/GMC Yukon
  4. Dodge Avenger
  5. Dodge Ram 2500 Diesel
  6. Jeep Compass
  7. Jeep Liberty
  8. Jeep Wrangler Unlimited
  9. Smart ForTwo
  10. Toyota FJ Cruiser

Way to go, GM and Chrysler! We should have let you both sink when we had the chance. That's still likely to happen, of course; but thanks to our idiot politicians, you'll have cost us a whole lot more money by the time you expire.



Old NFO said...

Concur... sigh

Warlock Sundance said...

exactly why I drive a Ford.

Jive Talkin Tool said... is the only one to pay back the loan in full. Check your shit before you post.

Peter said...

@Jive Talkin Tool: You need to check your facts, Sir. Chrysler's bondholders (whose rights were at least nominally secured by law) were thrown overboard, receiving only 29 cents on the dollar - an act that was prima facie illegal, but rammed through by the Obama administration. The 'old' Chrysler (i.e. the parts of the company that were not merged with Fiat, which are now known as Old Carco LLC) received $6.6 billion in US government financing, which as far as I know has never been repaid.

The 'new' Chrysler, now merged with Fiat, has indeed repaid the assistance it was given by the US government. However, repayments are still some $1.9 billion less than the amount given in aid by both the Bush and Obama administrations (over and above the amount written off by 'old Chrysler').

For more information, see:

Therefore, I submit that your comment is not only rude, but factually incorrect.

Fly To Your Dreams said...

While I agree with your opinion of the bailout, the Forbes article (which really only collected a bunch of Consumer Reports data) does strike me as a bit misleading. The trucks, SUVs, and off-roaders on the list all seemed to get low marks for things like fuel efficiency, rough rides, loud cabins, basically things that are common to trucks, SUVs, and off-roaders.

The only four I see on the list that really belong there would be the Escalade (although the typical Escalade driver deserves the vehicle he gets),
Dodge Avenger (terrible mid-sized, FWD car is terrible)
Jeep Compass (that's not a real Jeep!)
and the Smart ForTwo (38/32 MPG isn't wonderful, it's the same MPG you can get from a Honda or Toyota that costs less, carries more, and likely won't be used as a hockey puck by trucks).

Of course, even by my list that's still one GM, and two Chrysler products, but it's at least a more fair list, IMHO.