In and outs of the political campaigns, focusing on Michigan and Lansing, Tim Skubick will report regularly throughout the primary and then general election campaigns.
Monday, April 27, 2009
Enough already with the GM plant closings, layoffs, downsizing, and all the other machinations this company has put Michigan through. For the 21,000 soon to be ex-GM workers it's another black and bleak day in the sordid history of this once auto giant now gasping for air to stay alive. The Obama administration wanted Draconian action and this latest announcement should produce smiles in the White House but certainly not on the auto assembly lines. But there is a silver lining in all the pain, if this is the end; if this is the bottom of the barrel and from here on out, GM will begin its long comeback. However Michigan0Aeconomist Patrick Anderson reports, "This doesn't mean that we have bottomed out. And it doesn't mean GM can avoid bankruptcy." Unless consumer confidence in the auto sector makes a significant comeback, Anderson figures no amount of federal assistance can save GM from its possible doomsday. He blames the Obama folks for sabotaging that confidence, which he argues, has left buyers "sitting on their hands" and wallets we might add. However in a brief note of optimism, Anderson says this latest move could signal more help is on the way from the feds. "The manner in which the announcement was made, implies that the (U.S.) Treasury Department's team and the GM management are on the same page. If that's the case, it's definitely a positive…" Tell that to the Pontiac worker in Oakland County.