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Obama calls GM a "sobering reminder" of U.S. economy woes
A quick glance at today's announcements from America's largest automaker is an easy indicator that the U.S. auto market, at the very least, is under as strong as recession as could be imagined. According to Presidential hopeful Barack Obama, the entire industry as a whole is facing a "perfect storm" of "record gas prices, rising steel prices, a credit market contraction that has made it more difficult for consumers to purchase autos, and a weakening economy that has shed jobs for six straight months."As the auto industry goes, so go the livelihoods of countless workers -- both directly employed by the Detroit 3 and indirectly supported by suppliers, dealers and the like -- making today's announcements from GM a "sobering reminder" of the current state of the U.S. economy. Still, Obama holds out hope that the right Federal policies could dig the industry out of the hole it currently finds itself in. What it likely doesn't mean, though, is a bailout, according to Obama's likely opponent, John McCain, and U.S. Secretary of Commerce Carlos Gutierrez.
[Sources: The Detroit Free Press, The Detroit News]
Reader Comments (Page 1 of 5)
SayWhat? 5:09PM (7/15/2008)
"Sobering," is an understatement. Now, let's all go get a drink!
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cFoo 7:18PM (7/15/2008)
To add to that. GM's problems has nothing to do with the U.S. economy. Try poorly ran and UAW.
Dylan 2:39AM (7/16/2008)
Gm's fall from grace may have nothing to do with the us's economy's current predicament but it is a huge moniker for alot of people. GM is American muscle, its a major tool (as seen by the public) in the fight against imported products, it may not actually be a large company in its field in terms of sales anymore but by saying its a "sobering reminder" of the US's economy woes, he's effectively saying that the idea of a strong, eagle tipped, muscle strapped economy of our fathers is no longer and neither is the ideals that went along with it. The US is no longer a feared master power, they're a questioned country at the butt of everyone's jokes and its time for a change. Whether thats obama is of personal opinion but its certainly not a right wing'r by the world's opinion.
Noidor 5:09PM (7/15/2008)
US market is definitely not GMs first priority right now, and I understand why. Typical GM customer right now is probably too broke to afford their product right now, or shopping for other makes instead. I think GM must pursue aggressively expansion in Russia, China, India, and EU.
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Stanton 5:13PM (7/15/2008)
Excellent work filling your pointless Obama "news" quota.
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Frank 6:06PM (7/15/2008)
yea really, stop w/ the obama crap. im on here for car news not to hear some mindless moron's opinion.
Scott Eaton 6:11PM (7/15/2008)
Laugh somberly as the Republicans continue their group slide into obscurity at their own hands
BOB 6:50PM (7/15/2008)
IT WAS CAR NEWS because the next Pres made a statement about the industry. A little part of me wishes that his admin. will treat people like you the way this one treats people like me
-- but I can manage to be bigger than that. Try it!
Frank 7:10PM (7/15/2008)
Future president? Correction: Presidential hopeful. Also, its not new its political posturing. become educated and maybe ull see the light and the difference between a political plug and news.
TwinTurboVR4 7:58PM (7/15/2008)
it's not news because he's just saying sh!t everyone already knows. If he want's peoples votes, why doesnt he try telling up what he would plan to do about the problem, rather than just pointing fingers to the right.
Thats the problem with the whole democratic party. They spend all their time pointing fingers and slinging mud to try and get the vote, rather than actually proposing solutions. Then again, obama is a lawyer, so i guess thats about par for the course.
J M C 3 8:23PM (7/15/2008)
...and the democratic congress approval is like 7% ,all they need is a leader who contradicts his policies every month or so.
Leo M. 8:25PM (7/15/2008)
@ Frank
You're seriously calling Obama a mindless moron? Come on now. He might not be your guy but he's far from mindless. He is one the most intelligent and definitely intellectually intelligent people to run for office. You can call him sly or a liar or whatever other insults you can think up...but he's no mindless moron, you have to give him credit for that. Arguing about his intelligence? Not even McCain does that.
Artie Lange 8:55PM (7/15/2008)
"We've traveled to every corner of the United States. I've been to 57 States, and I have one to go"
Barak Obama, Beaverton Oregon, May 2008
"ALLS (sic) WES (sic) can say is "Merci Beucoup"
Barak Obama, July 9, 2008
Yeah, he sure sounds like a real rocket scientist. And before you role out Obama's resume, remember that George Bush went to Yale and Harvard as well, so spare me the, "but he's a Harvard graduate!" defense.
Frank 9:20PM (7/15/2008)
@ leo ...
Yes, I consider anyone who changes key points of their platform for their own political advantage mindless and ignorant. Say what you mean and mean what you say.
Anyway, i just want car news not political news on here b/c no one on here will win the fight, we are all equally hard headed, no question about it. Anyway no more on this subject.
AUTOBLOG start posting CAR STUFF w/o the politics!!!
why not the LS2LS7? 10:12PM (7/15/2008)
Artie Lange:
Everyone makes mistakes. If you're waiting for someone who never makes mistakes to select your candidate for President, you're gonna be waiting a long time.
notYou 10:05PM (7/15/2008)
"Still, Obama holds out hope that the right Federal policies could dig the industry out of the hole it currently finds itself in."
Well, of course he thinks more government policies are the answer!
Liberalism: The Problem for every Solution.
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GROM 5:17PM (7/15/2008)
Bailout.
Instead having them fail like they should no let’s all chip in and continue this travesty called American automotive industry.
This is a Free market Economy. If you made your bet and you lost you have to pay for it. I don't see small guy going out of business getting bailout by gov.
These bail outs are like you going to a casino, making bets winning $ but then when you start losing you say "Uh can I have my $ that I lost back, I want to keep playing". If you say that in a casino plp will look at you like you are crazy but when GM does it plp say "Yeah that make sense we have to do this, we can't make them fail"
HUH!!!
Bailout is the worst possible thing to do.
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Miguel 5:40PM (7/15/2008)
Actually, when you say that in a casino, the casino offers you a line of credit at obscene interest rates to get even more of your money.
And this is not a free market economy. Not even close. GM has no leeway into the Japanese Domestic Market, and our politicians are too blind to make the playing field equal here. Not fair, equal, as in favor US automakers the way foreign governments favor their automakers. I'm not saying the Big 2.5 didn't f*ck up big time, but they are not helped along by a) ignorant consumers and b) even more ignorant politicians.
Should they then be bailed out? No. But there are other ways to protect domestic market share and growth. For one, they could slap the foreign makes with WTO complaints or even obscene import taxes and manufacturing restraints, since Japan is not part of NAFTA (and how could they be, seeing as they're not in NA).
The Other Bob 6:20PM (7/15/2008)
Miguel
"And this is not a free market economy. Not even close. GM has no leeway into the Japanese Domestic Market, and our politicians are too blind to make the playing field equal here. Not fair, equal, as in favor US automakers the way foreign governments favor their automakers. "
You rock. I completely agree.
Val 7:00PM (7/15/2008)
Well, the US can blame only itself and its righteous free econoy principles for not protecting its auto industry the way it protected its truck industry (the reason Nissan and Toyota trucks were made in the US it seems). But besides that, what does GM or Ford have to sway the japanese customer? They are losing to the Camry and Civic, and Corolla and Altima on their home turf, what do they have to offer to the japanese? F-150 and Ram?