Wednesday, June 3, 2009

Salvation Comes to GM

I wonder if anyone else noticed. A couple days ago, the man who currently occupies the White House; the new CEO of Government Motors Corporation announced the GM bankruptcy restructuring. In His speech He made this comment about similar actions He took in the bankruptcy of the Chrysler Corporation:
"...many experts said that a quick, surgical bankruptcy was impossible. They were wrong. Others predicted that Chrysler's decision to enter bankruptcy would lead to an immediate collapse in consumer confidence that would send car sales over a cliff. They were wrong, as well. In fact, Chrysler sold more cars in May than it did in April, in part because consumers were comforted by our extraordinary commitment to stand behind a quick bankruptcy process. All in all, it's a dramatic -- an outcome dramatically better than what appeared likely when this process began." (emphasis mine)

Did you see that? He is taking credit for more car sales in May than in April. Isn't it a little early to gloat?

When my brother, Greg, heard that, he postulated that auto sales might ordinarily increase in April over May regardless of any divine intervention from the new savior of the world. I thought his reasoning was plausible; he suggested that there might be several factors to account for the increase. In April many people are concerned about paying their income taxes but, by May, they are looking forward to graduations, Father's Day, and Summer vacations - all of which may be occasions when people might shop for new cars.

He tested that. He called several Ford, Chrysler, and GM auto dealers all over the State of Washington and asked them if sales typically increase in May and June. The answers he got all confirmed his suspicions. One salesman said, "...yeah, that's called the Spring Market. And typically sales increase in May, June, and July by as much as 50%."

So, did Chrysler's sales increase as a result of the bankruptcy or was this little bump far less than what would be normally expected without Obama's intervention? This kind of spin is reminiscent of the economic "good news" we heard just a couple weeks ago which, properly interpreted means, "the economy isn't slowing as fast as it has been.


Jayson Finley in Lacos said...

I am struggling with the question of whether Obama is a complete idiot or if he is an evil man with a plan to destroy our country by destroying the economy. Maybe it is both. It really doesn't matter, because the result will be the same.

Roger Gilstrap said...

I remember that Alfred E. Neuman used to run for president every four years. Back in the days when I read Mad Magazine, I never dreamed that he would actually get elected.

Ralph M. Petersen-Always Right; Sometimes Wrong! said...


That's an insult to Alfred E. Newman.