• Jul 15, 2008
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]


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  • 66 Comments
      • 6 Years Ago
      I grow tired of your relentless Obama plugs.
      • 6 Years Ago
      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.
      • 6 Years Ago
      We aren't talking about people who don't have health insurance, we're talking about people who do have health insurance - provided by GM through prices charged to their customers - that you think should be provided by a third party (taxpayers) instead.

      So because I pick up the tab for some deadbeats now, in the interest of fairness I should pick up the tab for all other deadbeats and furthermore the law should codify this to encourage a greater number of people to not even make the attempt at paying their own way in the future?

      • 6 Years Ago
      How about offloading GM's healthcare costs to taxpayers?

      Great idea, if you're not a taxpayer.
      • 6 Years Ago
      Excellent work filling your pointless Obama "news" quota.
        • 6 Years Ago
        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.
        FEW
        • 6 Years Ago
        @ 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!!!
        FEW
        • 6 Years Ago
        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.
        • 6 Years Ago
        Laugh somberly as the Republicans continue their group slide into obscurity at their own handsÂ…
        • 6 Years Ago
        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.
        • 6 Years Ago
        "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.
        • 6 Years Ago
        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!
      • 6 Years Ago
      GM = Economy as a whole? Hmm.

      Mr. Obama will fix GM right up by endorsing a Toyota NASCAR team and rising the CAFE standards even higher just to kick GM when their down.

      What a true American this guy.
      • 6 Years Ago
      Understandable what Obama's trying to say, but GM's position in the market has far less to do with 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." Honda's up 14% in the ailing economy. The ugly-ass Ford Focus, despite what many of us originally thought, has shocked even Ford, selling VERY well off the lots. GM's position in the market has more to do with short-sighted profit making and poor domestic decision making altogether ($50,000 hybrid SUVs anyone?). Today's announcements only further confirms that. It's not just about the cars. There were other decisions made, but the choice in automobiles probably have quite a bit to do with it.
      • 6 Years Ago
      "I'm sorry to tell you that a county with a population of 300,000 is still rural."

      My behind!

      Rural is where I live, 2867 people 55 miles from the largest town. The two nearest towns are 16 and 17 miles away with about the same population. With 300,000 it's a self supporting big box town with a majority of services, hardly rural.
      • 6 Years Ago
      I live in Michigan and the economic mess current Governor Granholm took over from former Governor Engler would have curled your hair. Just another "conservative" supply sider who left this Great State bankrupt.

      Further, God himself could have been Governor of this State for the last decade and the jobs would still have left.
        • 6 Years Ago
        Because the government can't save you!

        It takes paying attention to market forces, making tough decisions and willingness to sacrifice to stay competitive. Lee Iacoca once sacrificed sticker price to gain market share. Guess what. He saved Chrysler.

        You don't sacrifice and someone from Tenessee or Kentucky or Indiana or India says they can do just as good a job for less. Guess what? The jobs leave. Ask your Dell tech support person.

        Period.

        This is all very, very simple.
      • 6 Years Ago
      Most ignore the inept management who assumed that the world stands still somewhere in the last century; the industry's market changed dramatically and management remained nailed to the office walls unable to get their heads out to look. It is what it is and it is irreparrable
      • 6 Years Ago
      "Still, Obama holds out hope that the right Federal policies could dig the industry out of the hole...."

      Would that include Obama's (since rejected) idea to sponsor a Toyota in NASCAR? Who's "hole" are we digging here?
        • 6 Years Ago
        Don't you know?

        Only the federal government is smart enough to figure this out and save all you stupid Americans from your ignorance.
      • 6 Years Ago
      the TRUTH that Obama won't tell you is that the reason gas and steel prices are high is because the Fed has devalued the dollar so much it's worthless. They have stolen money right out of our bank accounts by systematically inflating, and deflating the money. Now our money is worth almost nothing. Without inflation, gas would be around 80 dollars a barrel. That is a fact.
        • 6 Years Ago
        boog is correct.
        • 6 Years Ago
        You are so wrong. The federal government's inability to budget and live within its means is the reason the dollar has no value. The rest of the world is quickly growing tired of financing America's profligacy. That's not a Federal Reserve problem, it's a problem of the American psyche.

        If you think things are bad now, wait until the rest of the world decides to stop holding dollars as a reserve currency. If I were national banker I might be tempted to shift some of my dollar assets to Euros...
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