I want to start off by making one thing perfectly clear: I do not think the government’s involvement with the auto industry signals the beginning of socialism in the United States.  I think we are far from socialism, but right in the middle of what the Bush administration created/allowed and played a vital part in.  I don’t think enough blame is placed in Bush’s lap, especially by those looking to find every crack in the Obama administration – an administration that was backpeddling from day one.  Now back to cars.

Since the government is going to control 60% of General Motors, will Treasury Secretary Timothy Geithner, Energy Secretary Steven Chu or even President Obama make decisions on what cars may or may not be brought to market?  Could someone from the White House give the go ahead for the next truck from Chevy or the next Cadillac to hit showrooms?  For all of our sake, let’s hope the White House isn’t nearly as involved, but rather becomes Big Brother making sure GM really changes its ways.

One thing that worries me though is the attitude taken by President Obama.  He said, “GM will be run by a private board of directors with a track record in American manufacturing.”  Isn’t that what got us where we are today?  I could have been the vice president (of GM) and sent the company to bankruptcy in the same manner that Bob Lutz did.

Speaking of Bob Lutz, he said 50 mile-per-gallon econoboxes wouldn’t sell.  The sad part is he might be right.  I know that I have beat this dead horse over and over again, but we (Americans) need to fall out of love with big trucks and SUVs.  Similarly to how the car companies need to streamline, we need to streamline what we drive.  It would be a good idea if businesses who rent pickup trucks started popping up so we could have availability when we need to haul something and drive more economical cars the rest of the time.  The environment will ultimately be better for it and so will our wallets.

At least a few of those SUVs might not be American made in the future and I hope that turns Americans off.  If rumors pan out, GM – they are calling themselves the New GM - plans to sell Hummer.  It will be a unit of Sichuan Tengzhong Heavy Industrial Machinery of China.  Didn’t Hummer originate from a US military vehicle making it one of the most American of all car brands?  Hmm, something about Hummer being a Chinese automobile seems strange, but if it keeps them in the showroom I’m all for it.

Miraculously, GM reported an 11% sales increase from April to May.  Even better (really worse) the Cadillac Escalade sold more than the same time last year.  What is up with that?  Now this is one I really can’t believe in light of GM’s bankruptcy; GM’s sales (down 29%), compared to last year during the same period, haven’t dropped as much as the following:

Porsche -29%
GM -30%
Mercedes -33%
Toyota -38%
Honda -39%
Mazda -40%

Can someone say bad management?