Thursday, November 12, 2015

Obama's General Motors To Import Chinese Cars

Not long ago, American automaker General Motors (and Chrysler as well) was effectively bankrupt.  Fearing a standard restructuring bankruptcy legal process that would have preserved the company while negating all of its existing contracts, including those with labor unions, Obama and the liberals shouted the lie that a restructuring bankruptcy would spell the end of GM and all its factories and would open a void that would be filled by more foreign-made cars.  Instead, in the early heady days of his presidency, Obama strong-armed GM into a pre-packaged essentially fake bankruptcy process that preserved all the unreasonably rich and dysfunctional union labor contracts and effectively gave a piece of the company to the unions for free.  By the time the confiscation issue, specifically involving Chrysler, reached the Supreme Court years later, the Court effectively said that he process was wrong and illegal, but nevertheless accepted it as a fait accompli, just as Obama and the Democrats knew they would.  GM, now once again a public company, is still burdened with those union contracts.

Now the Wall Street Journal reports today:  "General Motors, fresh off agreeing to a new union contract that is expected to drive up its U.S. labor costs, plans to become the first major auto maker to sell Chinese-made cars in the U.S."

Schadenfreude:  "Pleasure derived from someone else's misfortune."  

R Balsamo

Click on the "Automobile Companies and Politics" link below to see all posts on this subject and previous commentary on Obama's confiscation of GM for benefit of the Democrat-controlled unions.

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