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Great News From Our Union Run Car Company

May 30th, 2009 Posted in Economy

GM Announces Plans to Build Small Car in U.S.

  • GM to utilize and retool idled assembly and stamping facility for future production.
  • Additional production will help the company deliver outstanding new vehicles to the compact and small car markets and meet future fuel efficiency regulations.

DETROIT, Mich. — General Motors Corporation (NYSE:GM) announced today it plans to build a future small car in the United States utilizing an idled UAW-GM facility. This vehicle adds to GM’s growing portfolio of U.S.-built, highly fuel efficient cars including the Chevrolet Cruze and Volt.

“Small cars represent one of the fastest growing segments in both the U.S. and around the world,” said Fritz Henderson, General Motors President and CEO. “We believe this car will be a winner with our current and future customers in the U.S.”

The re-tooled plant will be capable of building 160,000 cars annually, which can be a combination of both small and compact vehicles. Selection of the site will be determined in the future.

“I would like to personally thank the UAW for agreeing to work with us to ensure our overall manufacturing competitiveness in the United States,” said Henderson. “This vehicle segment, while important today and expected to be more so in the future, is extremely challenging. It takes a special effort by everyone to bring a domestically produced small car to market in a cost-competitive and profitable way – but that is what we are going to do together.”

GM already has a strong manufacturing presence in the United States. Currently, about 67 percent of GM cars and trucks sold in the U.S. are built in the U.S. With this announcement, GM anticipates that U.S. production levels will increase beyond 70 percent by 2013, augmenting its already automotive industry-leading U.S. manufacturing footprint.

govt designed car

This will end badly. And we have history to prove it.

The last time the government got involved in steering the US car companies they created a decade of the worst made cars ever. From 1975 to 1985 there were no cars that stand out as anything but scrap metal.

Recent marvels:

Pontiac Aztec – the car Homer Simpson would have designed.

At least he admits it......

The Car That Saved Chrysler – and if you ask anyone that owned one, it was built to last exactly 60,000 miles.



Here’s a look back to the last time the car companies were forced to meet Government demands and build small fuel efficient vehicles:

Then we have the darling of the 70’s – the Ford Pinto. Ford redefined innovation and proved that after 1972 they were capable of producing utter crap. Honda, Datsun and Toyota were given an easy entry in North America as a result.

Ford Pinto

Great style, great color choices.


Next up, we have the last great American car company failure  – American Motors…

I actually knew someone that bought one of these pieces of crap.

My First New Car

And who could forget the Ford Escort that swept the globe:

Ford Escort Mk II 1.3L 1978

So now I’ve prompted your memory of the legendary crappy cars the American car companies tried to market to us, here’s what they are up against… one test drive in one of these cars and you won’t actually be able to sit in an American car.

Honda – Here’s the benchmark. Civic owns mileage class, Accord is the perfect car for the average family.


Acura – Take a step up and you have a tech and mechanical marvel.

2010 Acura TSX V-6


Or how about the Worlds #1 Car Company

The Camray is the base of Lexus and they cover the market with a few models.


BMW: My Favorite, and the last independent auto company standing – because they build the best cars.

Someday Canada will price BMW like the rest of the world (They are almost twice the price compared to US).

I can’t think of any US car that can even be compared to a 5 series.


The American car manufacturers are faced with an even more challenging market than in the 70-80s.

Starting the race in bankruptcy doesn’t hold much hope. Happy car shopping.

3 Responses to “Great News From Our Union Run Car Company”

  1. Kenny Says:

    Thanks, I was looking forward to buying a new car. Now I feel sick and don’t know what to do.

  2. machiavelli Says:

    Why is our left-plunging, big deficit Prime Minister continuing to squander billions of our tax dollars to buy the auto companies for the union members who refused to give up any substantial percentage of their opulent wages and/or benefits?.

    Canadians who make half the hourly wage of the avaricious, overpaid auto workers are paying their tax dollars so the unions can end up owning a large percentage of the companies and continue to make their preposterous hourly wages and still receive their incredible pensions.

    Any politician who insists on labeling these give-a-ways a “loan” does not deserve to continue representing his/her country. In the real world we know that the big time structural deficit producing government is simply pouring our tax dollars down a sewer so that they can buy votes from employees of the auto sector.

    Canadians need a genuine small-c conservative Prime Minister; and his name isn’t Harper!

  3. Durward Says:

    Canada needs a real large C fiscal Conservative government and the Libertarians are it.

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