Take Off The Party Hats

And put down the noisemakers.

IBD has something to say about that "successful" GM IPO.

Tax Cheat Geithner Endorsed GM's Fraudulent Claim

Two Congressman have written to the latest head of General Motors to inform him that the current ad campaign he stars in may constitute fraud. They advise him to cease claiming that GM has marked paid-in-full to their debt to the taxpayer. Of course, nothing could be further from the truth.

Pullin' A Fast One

When General Motors stood at the abyss Lord Obama gave them about $50 Billion to keep from being sold off for parts. Now GM has re-paid less than $7 Billion of the total relief package yet the latest of their revolving CEO's, Ed Whitacre, is writing newspaper columns called-- "The GM Bailout: Paid Back in Full" -- and strutting around in TV ads that promote the same idea.

Technically what he says may be true but the effect is totally misleading. And, I suspect, the consumers are buying it.

The details of GM calling their 14% payback "PAID IN FULL" are here.

UPDATE: Another look at the Government Motors "fast one" here.

That Thing Really Stinks

The Examiner looks at the ignored 2,000 pound whale stinking in the middle of the room during the shameful Toyota hearings yesterday.

Aboard The DC Death Star

As the show trial plays out in DC we read this insightful piece from IBD.

That success seems to be why Toyota is being singled out for loud hearings by two congressional panels for its recent recall of nearly 650,000 cars. "While Honda recalled 636,000 models last month and Ford recalled more than 4 million vehicles last year, neither company was subjected to a Congressional Hearing," noted Americans for Tax Reform in a statement.
Small wonder then that a Toyota internal memo declared the current climate in Washington is "not industry friendly." That's a fact.

For starters, Toyota employs over 200,000 Americans across the spectrum of the auto industry. Parts plants, assembly plants, dealerships and repair shops all owe their existence to Toyota.
Already plants are shutting down and employees are being laid off, beyond all proportion to the recall problem, because of the congressional effort to drag Toyota through the mud.
City governments take in significant revenues from these operations. Don't think they won't feel the impact of these hearings.
Yet there's more than a whiff of Saul Alinsky's community organizing principles in this noisy government campaign against Toyota — "Pick a target, personalize it, freeze it, polarize it."

So now Congressional committees are hauling in Toyota's president Akio Toyoda all the way from Tokyo to testify. It's a sorry spectacle because Toyota has tried to be a good corporate citizen.
Recall that the first complaint against Toyota in the 1970s was that it imported cars to the U.S. instead of built them here.
So, Toyota built plants here, employing some 30,000 U.S. citizens directly. In the process, it also subcontracted to American companies — such as the one that makes the pedals in question now — all to make the "Buy American" crowd happy.
--------------


Both FOX News Channel and FOX Business Network have treated this story the same way ABC, CBS, NBC, CNN, MSNBC & CNBC have. None have wrapped themselves in glory.

UPDATE: 355,500 Chrysler minivans recalled today for airbag issues. Will Congress call Obama, Biden, and LaHood in to testify about their auto company's problems.

That Trick Didn't Work

Not even a $4,500 bribe could get people to buy a car from Obama's car companies.

Ford, with no government ownership, did pretty well however.

In other news... FDR ate a turkey leg.

35% Support = Wildly Popular

Every article and TV report I see about DC's Cash4Clunkers debacle calls it WILDLY POPULAR. Rasmussen finds that 54% of Americans oppose using taxpayer money to buy up and destroy used cars. 35% think it's swell, and 12% said, "What did you call me? I'll see yo mama out on the porch!" or else they were undecided. One or the other.

This means that ("Get me re-write!") George W. Bush was WILDLY POPULAR in 2008. Who knew?

I have a perfectly good TV I was hoping to replace with a fairly small-- it has to fit in an armoire-- new HDTV. I was going to make this transaction this summer but now I'm holding off. I figure if a million others act like me we can stop HDTV sales dead and we'll get a "Cash4Clickers" program. My recommendation is a $500 rebate. I'll add a couple hundred bucks and be happy with my new TV.


Trust me, it will be wildly popular with everyone who gets $500. As for the rest of you people, who cares? Grow up. In the Age of Obama you have a claim on your neighbors' wealth. Don't be a chump! Get on board and demand more of the Top 1%er's dough for your family economy. Time's a-wastin'. We got the richies on the run. They owe you their money. Get yours now!

The Fed Gov In Action

A simple program costing $1 Billion.

Not a fifth of the entire US economy like health care.

Just a simple little (dumb) idea to use taxpayer money to buy up a couple hundred thousand working used cars before poor people can get them.

The result? Utter chaos. And quick action to increase the size of the program by 200%

Even the NYTimes has to say:

Things sound like a total mess in the showrooms.

“There is absolute frustration across the board. As of this morning, they’re not really confident about any deals, and no one can give them advice about what they should be telling their customers.”

One thing still not clear is how many older cars have actually been sold and scrapped with the original $1 billion, and how many more the new $2 billion will be able to cover. The government Web site where dealers are supposed to register their deals has been crashing, and the dealers haven’t been able to plug in their information.

So here is one question: With the program now on shaky ground, even with a new infusion of money, what consumer and what dealer will risk rendering an engine irretrievably unusable? Well, as it turns out, a lot of them are doing so, because unless the dealers can prove to the government that they have killed the engines and scrapped the cars, the government will not reimburse them for the $3,500 or $4,500 discount that they have given the customer on a new, more efficient vehicle.

The general manager of DCH Paramus Honda, told us he was owed more than $80,000, and he wondered if he would ever see it. The government has said it would take 10 days to reimburse the dealers, but that was before the program apparently ran out of money and devolved into chaos Thursday night.

“Oh my God, what a mess today,” Sally Ann Maggio, who co-owns Hackensack Auto Wreckers, also in New Jersey, said on Friday. Ms. Maggio said she generally makes her profit by reselling the engines, the most valuable parts of the cars she takes, but that’s not posible with the cars coming to her because of the cash for clunkers program, because they have been rendered unusable. That cuts down the salvage value of the cars — and the incentive for salvage yards and wreckers to take them — to almost nothing, considering the time and energy they must spend in going to the dealer, towing back the dead cars, removing the engines, crushing the bodies and shipping them to a metal scrap shredder and recycler.

Dealers are “hitting the panic button” today. “We have been overwhelmed with phone calls from the dealerships,” she said. They have already killed the engines, and want her to pick up the heaps. And on hearing the news that the government might be pumping more money into the program, she said, they are stepping up the process. “They’re worried that the new money might last only two days,” Ms. Maggio said. “But until it’s scrapped and the paperwork is done, it’s not a done deal,” she said. “They’re driving me crazy.”

Mr. Kurkin, the lawyer in Miami, said that many dealers are attaching clauses to their sales agreements, saying that if the government money does not come through, the customer will have to make up the difference.
“If a dealer doesn’t have a separate document addressing this possibility, the dealer will likely have to eat it,” Mr. Kurkin said. “I certainly see a lot of litigation over this.”

Clunk! The sound a billion dollars makes

In my youth a guy or gal would buy a new car with a three year loan. In the period between one day and six months after the final loan payment said vehicle would officially become a beater, to wit: a clunker. It was easy to tell it was a clunker because all of the metal below the glassline would rust away and be left in piles on the driveway. We used to think this was kind of a problem and longed for the day when our Kaiser, Ford, Chevy, or Plymouth would last forever. Or at least four years. It was during the Cold War and four years might be longer than forever, by the way.

In the import car era the vehicles last much longer. Market competition did that-- not government edicts. Loans are typically five years in length and cars easily hold up for ten years. Are we happy now?

No.

Cars apparently are too well made now. When people got worried about their financial futures last year they decided they could hang on to their older vehicles for a bit longer and new car sales fell to levels most observers believe is unsustainable in the long term. Enter Congress to solve this "problem" of cars being too durable. Cash For Clunkers was designed to take tax payer money and buy up $1 Billion worth of America's used cars. Those clunkers were, by law, destined to be crushed and shredded. Many of these vehicles are quite serviceable-- in fact, they had to be running and licensed/ insured to even qualify for the $4,500 government voucher. In a free marketplace without this government intrusion the cars and trucks would have been traded in for their market value at some point and re-sold to people with less ability or willingness to pay for a more expensive vehicle. At some future date they would have been salvaged for their reliable parts.

But in "DC World" where One Trillion Dollars is flipped like a nickel, a used car buyout costing $1 Billion isn't the end of the world. Certainly it has a better payoff than the "stimulus" pork project dollar for dollar. Still... can you imagine the Founders being told that somewhere in the US Constitution there was found a provision allowing the federal government levying taxes on the public in order to buy up used carriages and older horses so that the horse and carriage industry might be invigorated?

Of course, like the days of rusted out clunkers, those days where horsebleep was called horsebleep are way behind us. Cash For Clunkers shot through the billski in less than a week and is seen as a huge success that should be expanded.

Is there any limit to how DC will tinker in the once free market. Is there even a political party with the will to stop this craziness?

Congressional Motors

While we are on assignment looking for places on earth friendlier to capital than ObamAmerica, please enjoy this commercial for the autos of 2012 at Iowahawk.

Look Out Below?

When "Obamacare" reveals itself as rationing of healthcare... when "Closing Gitmo" means terrorists treated like American citizens in the US court system... when "Green Jobs" is seen as you paying a lot more for energy... that's when Lord Obama's poll numbers will plunge. Or so goes the theory at least.

Is the very unpopular UAW bailout and O's takeover of domestic auto companies (save Ford) one of those tipping points?

Byron York at The Examiner thinks it just might be:

In a Washington Post poll in late April, just 41 percent of those surveyed approved of Obama's handling of the automaker problem, compared to clear majorities who approved of the job he was doing in other areas. According to a detailed breakdown of a Gallup poll from the same time, people in virtually every demographic and political category looked askance at the continuing bailout of the automakers.
People of all age groups disapproved. People in every region of the country disapproved. Men disapproved. Women disapproved. People with graduate degrees disapproved. People with less than a high school degree disapproved. People who go to church a lot disapproved. People who don't go to church at all disapproved. People who make more than $75,000 a year disapproved. People who make less than $20,000 a year disapproved.
Among Republicans, 72 percent disapproved. Sixty-six percent of independents -- a group key to Obama's success -- disapproved. The only group to approve of continued bailouts to the automakers was Democrats, by 57 percent to 42 percent. On the auto issue, at least, Obama is playing to his party base and little else.

It's Coming To a Slow Boil

The Examiner's Mark Tapscott has noticed the Gangster Government aspect to the Chrysler dealership closing scandal. Read about it here. One day the legacy media will find out about this scandal. Not any time soon, of course, but some day.

James Taranto at WSJ Online is onto the story as well.

Nice Dealership Ya Got There. It'd Be a Shame If...

The UAW bailout has taken yet another interesting and ugly turn. A couple of weeks ago we pointed out that by having no clear rationale for closing some dealerships while leaving others open Lord Obama's auto task force was leaving itself open to allegations of an unseemly nature. Well, it looks like there was Chicago Machine Style politics involved in at least one instance: a dealership group of 6 Chrysler/Dodge/Jeep stores owned in part by Clintonista Mack McLarty and big Dem contributor Bob(cat) Johnson kept their dealerships while direct competitors were knocked out.

Obama and his auto minions can argue until the sky turns chartreuse that the auto task force didn't use political contributions and connections to determine the fate of these entrepreneurs but they can save their breath. Many of us will never believe it. The problem is in the involvement of the government in private business. They have created an enormous disaster by putting the White House in charge of Chrysler and GM. It will result in a bottomless money pit for the taxpayer, crappy "green" cars with premium prices that won't sell, and credible charges of government corruption in the "management" of the non-Ford US auto business. By the way, can Ford de-certify the UAW since the union is a major owner of their two US-based competitors? Just wonderin'.

Gateway Pundit has a round-up here of the McLarty/Bob(cat) Johnson scandal..

Buh Bye President Goodwrench

The fleet here at Monkeydarts Plantation includes a GM SUV assembled in Wisconsin and a Jeep built in Toledo, Ohio. In fact, along with some foreign-made vehicles I've always had at least one GM, Ford or Jeep vehicle in the garage since 1979. Now that the UAW will own 38% of GM and 55% of Chrysler I am done with those two companies.

When this bailout baloney started in the Bush administration I pointed out here that it would not be a Big 3 Bailout, or a Detroit 3 Bailout or any of the other things it was being called. It would be, under Lord Obama, a United Auto Workers bailout. I was right. I was a 30 year customer and I am done.

There are plenty of vehicles available made by American workers that aren't part of this debacle. I have an eye on a Texas-made Toyota pickup to replace the old GM wheels. Maybe a nice South Carolina made BMW when I jettison the Jeep.

ObamaMotors won't care but they lost this family this week. When Lordy O said yesterday that people who refused to go along with his plan and wouldn't take a subordinate position to the UAW in the bankruptcy were essentially dirtballs I did a Liz Edwards and threw up.

Capital is under attack from Washington DC. This will not end well. But when it does end I'll be driving my Lexus and a BMW, Toyota, or Hyundai before I sit behind the wheel of a Chevy or Charger.

UPDATE: Did the math. We've owned 3 GM's, 2 Fords, and 1 Jeep among our 12 vehicles. About 50% UAW. Future percentage? I'd say roughly, let's see, ahhh, ZERO now that the workers have secured the means of production in our new socialist dream state.

SC's BMW's

While the national press goes gaga over a motorized wheelchair some of my hard-working neighbors are busy building some amazingly good vehicles for people who actually love cars.

Every single BMW X5 and X6 sold anywhere in the world is built with tremendous pride here in South Carolina. The BMW production facilty near Greenville/ Spartanburg in Greer, SC is currently undergoing a huge expansion so more of BMW's vehicles can be built in America by American workers. No bailout money is going towards that expansion.

With the Auto Show arriving in New York some photos leaked of the new "M" versions of the X5 and X6. This morning an early look at an actual BMW X6M was unveiled in New York.

How the folks at BMW come up with such wonderful products without input from President ObamaPrompter Goodwrench is baffling.

Nice Car, Poindexter

Something tells me I'm not the target market for this:

After all, it's a 12 mile drive to the Post Office from here. I do like the idea of a bunch of nimrods in Manhattan using them. That's how they roll up there. Looks like one of those power chairs they hawk on cable. Will Medicare pick up the tab? Can you put snow tires on it? Can you imagine driving that in a Michigan blizzard?

Expect more brainstorms like this from the all new GM, President ObamaPrompter, prop.

Call President Goodwrench

Just when we were getting used to calling him Lord ObamaPrompter he gives himself a new name: President Goodwrench.



"Let me say it as plainly as I can. If you buy a car from Chrysler or General Motors you will be able to get your car serviced and repaired just like always. Your warranty will be safe. In fact it will be safer than it's ever been. Because starting today the United States will stand behind your warranty!"



Seriously. You really can't make this stuff up. But it did get me wondering, here on the plantation we have a Chevy Tahoe that is out of its warranty period. But, President Goodwrench says the warranty is better than ever before because he's behind it. (The State is Me.) So my question is, is my truck now back in warranty? Because, sir, I had to replace the ignition coil and the plug wires this weekend. We had 'em do an oil change too since it was in the shop anyway. The bill came to $468.09. Now do I send that to you? Or is this part of Slow Joe Biden's area? (Without his hairplugs Joe would look kinda like a mechanic. You, sir, not so much.) Hey, I can delete the oil/filter & lube part I guess. So let's see, you owe me $468.09 less $27.95 I reckon. That's $440.14. Make it an even $440-- close enough for government work! Am I right? Ha ha ha!



Now, in December I had to take a Jeep in to have a window regulator fixed, President Goodwrench. They did an OK job on that but, unfortunately, they broke the door panel putting it back on. They told me they'd call when the new part came in and install it for free but so far we haven't heard anything. It's been a while. Should I call them, Mr. President or will you handle that for me with the new and improved warranty program. Should I wait to hear from you or Joe? Can the Teleprompter handle it? He seems pretty efficient. Let me know, please.

Sunday In The South

A warm Sunday. Seems like a good time to motor around Asheville in an Italian sports car.

Now where did I put mine?

Not On My Lake You Don't

Many years ago we were in The Bahamas on a cruise paid for by the ad sales department of a Dallas radio station. (I had a big ad budget back then-- but it was nothing compared to what would come later. Some days I miss the 80's and 90's.) But, I digress.

We went on a cruise to The Bahamas. In Nassau we did the touristy thing: a guided trip in a glass-bottom boat. That diversion is now remembered mainly for the guide, a robust local chap, who would tell everyone as we gazed down through the glass, "All is nature. Nature is all." That was pretty much the extent of his snappy patter. I don't remember any of the fish, shells, or anything else except that we passed over an empty Bud can at one point as he was saying, "Nature is all." Ain't it funny what you remember.

In the news today I see we're taking the glass-bottom boat in a new direction and making a sports car with no roof that drives straight into the lake or ocean and turns into a submarine with no roof. Sure, everybody wants one of those. It's the Swiss-made sQuba by Rinspeed. (pictured above if the photo loads properly) Ever driven a Swiss-made car? I didn't think so. There's a reason for that you know.

At least the fella in charge of Rinspeed admits to what inspired him: "The Spy Who Loved Me" starring Roger Moore as the daring secret agent, Zer0-Zer0-7even. I admit, I've seen the movie despite the fact that I never bought Moore as James Bond. Not for a minute. Not even close. The Lotus Esprit Bond drives that turns into a mini-sub is a far better actor than Roger Moore and more memorable too. And, this is important for our discussion here, IT WAS A FAKE.

Barbara Bach is the Bond girl in this one. She can't act either, but Ringo didn't seem to care so why should I. That big character actor, Richard Kiel, gets fitted with "steel teeth" so he can play a bad guy named Jaws. Clever. Almost as clever as the Swiss guy naming his submarine car sQuba. "The Spy Who Loved Me" is one of those Roger Moore/ Bond films that causes you to say to yourself, "This would have been pretty good with Sean Connery in it." Other Roger Moore/ Bond films make you say, "That was really awful." (see: "The Man With The Golden Gun") So, hey, that's something.

Back to the sQuba. Here's the problem I have with this car/sub thing. I like cars. I like boats a little bit too and I think personal subs are really cool. We live on a lake. So, when you think about it, I just could be the market for this sQuba. But, our big ol' lake was made by damming a river that flows from the mountains of North Carolina. As this river flows through the Piedmont and on into South Carolina it gets dammed several times to make lakes. Ours is but one. Now, let's add in that the ground here is red clay. Very red. Red, red, red dirt. We're famous for our red dirt.

Slow water + red dirt= 1 muddy lake.

I'm tellin' ya, this sQuba thing could be sitting ten feet off the end of the docks down at T-Bones and, if it was covered by as little as 6 inches of water, you would never know it was there.

If you want to sell a car/boat thingy around here, Mr. Swiss fella, make sure it floats and that there is plenty of room for fishing rods, tackle boxes, and a large ice chest. And put a removable top on that thing-- it gets hot out there on the lake.