GM to become property of the American taxpayer on clarkhoward.com

CLARKONOMICS: Are you ready to own what used to be the largest company in the world? That's the situation American taxpayers find themselves in as they prepare to take a 55 or 60 percent ownership stake in General Motors as part of the auto industry bailout.

Meanwhile, the federal government is close to a final deal on Chrysler that will allow for their likely takeover by Fiat.

Clark doesn't understand how the General Motors scenario could be good for the country. What message does it send about success and failure? That if you're big enough, the government will step in to ensure that you survive no matter what?!

Remember, in capitalism, we have a procedure if you fail in the marketplace. It's called bankruptcy.

As a practical matter, Clark's been fielding questions about the viability of buying "orphaned" GM brands such as Pontiac, Hummer and Saturn.

Buying a Pontiac is not a good idea, according to the consumer champ. Orphan sub-brands lose their resale value in the marketplace once their parent folds. Only consider buying one if you intend to run the car into the ground and keep it for a minimum of 10 years.

What others are saying

Ownership Stake?
When should I expect to receive my GM stock certificates to confirm my ownership as a taxpayer? Stop with this nonsense Clark! The Federal Reserve Bank and its global parent corporations own GM. GM will be resurrected and will continue produce vehicles in other nations.
By Michael @ 06/15/09 01:10:16 PMreport abuse
40% Off????
since i have a 60% stake in gm does that mean that i only have to pay 40% of the price on a new camaro?????
By Taxpayer/Shareholder @ 06/01/09 11:23:57 PMreport abuse
Detriot did it to themselves
my father purchased a brand new '84 camaro fresh off the lot at our local chevy dealer. the transmission was replaced three times in one year. the car was so bad that the same dealership basically gave my dad a brand new '85 blazer so he would not sue under the lemon law. but since we were hard headed good americans my mother purchased a brand new '87 cadillas el dorado three years later. after 4 years of expensive maintenance issue my mom had enough. the breaking point came when the mechaninc that she paid top dollar every 3-4 months for repairs begged her to sell the car b/c the only thing of value on it was the rims. she took the overpriced underperforming detroit built lemon to the closest toyota dealership, took a lose on the trade in, and purchased a brand new '91 toyota cressida. were as two brand gm's could not lasdt for a combined total of 6 years, my mom drove her toyota for 13 and 300,000 + miles.
screw gm. they made a living of reipping of the american consumer with substandard overpriced cars. banruptcy was inevitable. i just hate that they took $50 billion of our tax dollars down the drain with them.
By Taxpayer/Shareholder @ 06/01/09 11:14:13 PMreport abuse
If I'm going to bailout GM, I want a new Camaro, loaded, on the house with the biggest V8 they can stick in that thang with a 6 speed tranny.----------

Don't forgot about the rag top. For $50 Billion of my tax dollars thats the least they can do.
By Taxpayer/Shareholder @ 06/01/09 11:02:28 PMreport abuse
Honda
I am also going to tell you Honda may be afloat but they are making crappy cars too-maybe not as often but take for instance-06 odyessy-a/c just goes out-explain that? Then every little plastic piece in the van starts breaking and falling apart-so Hondas don't last-NO CAR lasts unless you are very lucky!
By Stimpie @ 04/30/09 07:20:30 AMreport abuse
buy toyota
im sick and tired of paying some guy 75 dollars an hour to push a broom in a gm plant while the rest of america making 5 dollars an hour is allowed to lose there jobs there house and live on the street gm and chrysler cant make the same quality as toyota because the unions are rapping them

ps

read consumer reports and believe it
By kenny @ 04/29/09 07:53:14 PMreport abuse
auto makers
Am not buying anything the government subsidises.
By duane @ 04/29/09 05:10:35 PMreport abuse
GM I did my part
I did my part this year and bought a Chevy Tahoe. I also paid quite a bit of taxes when I bought it to local, state and federal. So in reality, I helped GM and the GOV'T. So now you want to take my money and other tax payers money and "buy" GM. GM, BAIL YOURSELF OUT!
By oldvw @ 04/29/09 04:02:00 PMreport abuse
Gimme a Camaro
If I'm going to bailout GM, I want a new Camaro, loaded, on the house with the biggest V8 they can stick in that thang with a 6 speed tranny.
By Sgt. Havoc @ 04/29/09 12:40:51 PMreport abuse
Warranty
But what about the warranty on these orphan brands. Who supports them and where are they going to get parts?
By jill @ 04/29/09 11:01:18 AMreport abuse
i think clark howard knows what hes talking about. keep it up clark
By james oliver @ 04/29/09 10:40:07 AMreport abuse
WELFARE!
Look at the USPS for a model on how GM will be run. No one can be fired form the USPS except for going postal and Congress tells them that they must be provide residential mail delivery 6 days a week even though it is bankrupting the company. GM will become yet another welfare company, providing a taxpayer-supported and subsidized shoddy product, just like in Russia. And just like in Russia, the workers will pretend to work, except here, they'll actually get paid.
By Jimmy @ 04/29/09 10:34:25 AMreport abuse
not sure what to think
the gov't has enough problems: prisoners, deadbeat dads, Medicaid, etc.
Why now spread our [thinly avaialbe] dollars out more?

Crazy world we live in...and getting crazier by the minute!
By stacey @ 04/29/09 10:28:42 AMreport abuse
Answer
It was i Little Abner comic strip many year's ago, What's good for Bull Moose(GM) is good for the country. But the Best one is from the possum in the swamp when I was a baby is " We have met the Enemy and it is ourselves". Yea I'm an ole FART.
By Grandpa Gene @ 04/29/09 02:03:35 AMreport abuse
General Motors
Who was it who said "what's good for General Motors is good for America?"

The death of yet another US industry is symbolic of the direction the whole country is taking. We are nothing more than a society of service people, be it lawyers, bankers, or radio talk show hosts. The whole economy is based on consuming cheap plastic taco holders manufactured in China. The whole thing is going to collapse around us and we'll all be speaking Mandarin in no time.
By Bubba @ 04/29/09 01:13:34 AMreport abuse
Taxpayer Ownership?!?!?
GM will NOT become the property of taxpayers. Yes, they are taking our money and using it to prop up GM, but we will not own it.
Those with positions of power in the government will control and own it along with the UAW.
I'll believe we own it when I'm issued stock that is real, has actual worth and can be sold for profit or yield dividends. When will that happen? Think flying swine and snowballs in Hades.
By Alice @ 04/28/09 10:04:35 PMreport abuse
The Japanese make great cars
I'd be happier if the US Govt bailed out Honda or Toyota, at least I wouldn't mind spending my hard earn money on something I know will last until I decide to change cars, not the other way around.

Honda built a plant in Indiana and my family said the good jobs are really helping out their local economy.
By Mike @ 04/28/09 06:34:26 PMreport abuse
Saving GM
Surveys show that up to 80 per cent of Americans don't want the gov't to bail out GM. Yet Obama and the boys are going to do it anyway. They don't care. The reason they don't care is because they are not bailing out GM. They are bailing out the UAW. For years the UAW has carried water for the democrats. Obama and the dems will use our tax money to take care of their friends. This is corruption at its worst. Obama learned well from Blagoyavich and the Daley crew in Chicago.
By Buzz G @ 04/28/09 05:31:38 PMreport abuse
G.M
As usual Clark, you continue to tear apart the American Car Co.s. You don't think the Japanese would bail out their car co.s if they were in trouble? You stink.
By southie @ 04/28/09 04:45:08 PMreport abuse

Ownership Stake?

When should I expect to receive my GM stock certificates to confirm my ownership as a taxpayer? Stop with this nonsense Clark! The Federal Reserve Bank and its global parent corporations own GM. GM will be resurrected and will continue produce vehicles in other nations.

By Michael @ 06/15/09 01:10:16 PMreport abuse

40% Off????

since i have a 60% stake in gm does that mean that i only have to pay 40% of the price on a new camaro?????

By Taxpayer/Shareholder @ 06/01/09 11:23:57 PMreport abuse

Detriot did it to themselves

my father purchased a brand new '84 camaro fresh off the lot at our local chevy dealer. the transmission was replaced three times in one year. the car was so bad that the same dealership basically gave my dad a brand new '85 blazer so he would not sue under the lemon law. but since we were hard headed good americans my mother purchased a brand new '87 cadillas el dorado three years later. after 4 years of expensive maintenance issue my mom had enough. the breaking point came when the mechaninc that she paid top dollar every 3-4 months for repairs begged her to sell the car b/c the only thing of value on it was the rims. she took the overpriced underperforming detroit built lemon to the closest toyota dealership, took a lose on the trade in, and purchased a brand new '91 toyota cressida. were as two brand gm's could not lasdt for a combined total of 6 years, my mom drove her toyota for 13 and 300,000 + miles.
screw gm. they made a living of reipping of the american consumer with substandard overpriced cars. banruptcy was inevitable. i just hate that they took $50 billion of our tax dollars down the drain with them.

By Taxpayer/Shareholder @ 06/01/09 11:14:13 PMreport abuse

If I'm going to bailout GM, I want a new Camaro, loaded, on the house with the biggest V8 they can stick in that thang with a 6 speed tranny.----------

Don't forgot about the rag top. For $50 Billion of my tax dollars thats the least they can do.

By Taxpayer/Shareholder @ 06/01/09 11:02:28 PMreport abuse

Honda

I am also going to tell you Honda may be afloat but they are making crappy cars too-maybe not as often but take for instance-06 odyessy-a/c just goes out-explain that? Then every little plastic piece in the van starts breaking and falling apart-so Hondas don't last-NO CAR lasts unless you are very lucky!

By Stimpie @ 04/30/09 07:20:30 AMreport abuse

buy toyota

im sick and tired of paying some guy 75 dollars an hour to push a broom in a gm plant while the rest of america making 5 dollars an hour is allowed to lose there jobs there house and live on the street gm and chrysler cant make the same quality as toyota because the unions are rapping them

ps

read consumer reports and believe it

By kenny @ 04/29/09 07:53:14 PMreport abuse

auto makers

Am not buying anything the government subsidises.

By duane @ 04/29/09 05:10:35 PMreport abuse

GM I did my part

I did my part this year and bought a Chevy Tahoe. I also paid quite a bit of taxes when I bought it to local, state and federal. So in reality, I helped GM and the GOV'T. So now you want to take my money and other tax payers money and "buy" GM. GM, BAIL YOURSELF OUT!

By oldvw @ 04/29/09 04:02:00 PMreport abuse

Gimme a Camaro

If I'm going to bailout GM, I want a new Camaro, loaded, on the house with the biggest V8 they can stick in that thang with a 6 speed tranny.

By Sgt. Havoc @ 04/29/09 12:40:51 PMreport abuse

Warranty

But what about the warranty on these orphan brands. Who supports them and where are they going to get parts?

By jill @ 04/29/09 11:01:18 AMreport abuse

i think clark howard knows what hes talking about. keep it up clark

By james oliver @ 04/29/09 10:40:07 AMreport abuse

WELFARE!

Look at the USPS for a model on how GM will be run. No one can be fired form the USPS except for going postal and Congress tells them that they must be provide residential mail delivery 6 days a week even though it is bankrupting the company. GM will become yet another welfare company, providing a taxpayer-supported and subsidized shoddy product, just like in Russia. And just like in Russia, the workers will pretend to work, except here, they'll actually get paid.

By Jimmy @ 04/29/09 10:34:25 AMreport abuse

not sure what to think

the gov't has enough problems: prisoners, deadbeat dads, Medicaid, etc.
Why now spread our [thinly avaialbe] dollars out more?

Crazy world we live in...and getting crazier by the minute!

By stacey @ 04/29/09 10:28:42 AMreport abuse

Answer

It was i Little Abner comic strip many year's ago, What's good for Bull Moose(GM) is good for the country. But the Best one is from the possum in the swamp when I was a baby is " We have met the Enemy and it is ourselves". Yea I'm an ole FART.

By Grandpa Gene @ 04/29/09 02:03:35 AMreport abuse

General Motors

Who was it who said "what's good for General Motors is good for America?"

The death of yet another US industry is symbolic of the direction the whole country is taking. We are nothing more than a society of service people, be it lawyers, bankers, or radio talk show hosts. The whole economy is based on consuming cheap plastic taco holders manufactured in China. The whole thing is going to collapse around us and we'll all be speaking Mandarin in no time.

By Bubba @ 04/29/09 01:13:34 AMreport abuse

Taxpayer Ownership?!?!?

GM will NOT become the property of taxpayers. Yes, they are taking our money and using it to prop up GM, but we will not own it.
Those with positions of power in the government will control and own it along with the UAW.
I'll believe we own it when I'm issued stock that is real, has actual worth and can be sold for profit or yield dividends. When will that happen? Think flying swine and snowballs in Hades.

By Alice @ 04/28/09 10:04:35 PMreport abuse

The Japanese make great cars

I'd be happier if the US Govt bailed out Honda or Toyota, at least I wouldn't mind spending my hard earn money on something I know will last until I decide to change cars, not the other way around.

Honda built a plant in Indiana and my family said the good jobs are really helping out their local economy.

By Mike @ 04/28/09 06:34:26 PMreport abuse

Saving GM

Surveys show that up to 80 per cent of Americans don't want the gov't to bail out GM. Yet Obama and the boys are going to do it anyway. They don't care. The reason they don't care is because they are not bailing out GM. They are bailing out the UAW. For years the UAW has carried water for the democrats. Obama and the dems will use our tax money to take care of their friends. This is corruption at its worst. Obama learned well from Blagoyavich and the Daley crew in Chicago.

By Buzz G @ 04/28/09 05:31:38 PMreport abuse

G.M

As usual Clark, you continue to tear apart the American Car Co.s. You don't think the Japanese would bail out their car co.s if they were in trouble? You stink.

By southie @ 04/28/09 04:45:08 PMreport abuse

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Apr 28, 2009 -- GM to become property of the American taxpayer

What others are saying