General Motors

Dear Victorious,

What do you think of the government basically nationalizing General Motors?

Edward C. - Dayton, OH

Dear Edward,

I don't think very much of it. I suppose it is no worse than the nationalization of so much of our banking system. But I think it has been much worse in that the government has taken unviable banks and allowed them to continue to operate in their basic business model. In the case of GM, however, the government has assumed it knows better how to run an auto industry. I wonder if that's really the case.

It seems to me that the government will force GM to build cars that people may not want. It also seems ironic to me that the UAW will own a substantial piece of GM. This is the same UAW that drove the company into bankruptcy with its chronic outrageous demands. I doubt very much that the UAW has GM's best interests at heart. I suspect the government will regret getting in bed with such an enemy as the UAW.

Finally, I am sad to see some brands go by the wayside. Pontiac had a rich legacy of classic cars. Who could forget the Pontiac Catalina of the 70's? Or the Grand Prix? The Bonneville was always a classic too. Even Saturn had been a breath of fresh air when it came on the market. It seems to me that GM already knows how to build good cars. But the business model that GM was stuck in needs to change. The question is whether or not what the government is forcing will really bring the change that GM needs. The truth is that none of us can really know.