July 24, 2009
What's an Obama promise worth?
Obama's March 30th promise of government backing of Chrysler and GM warranties lasted only four months. The Detroit Free Press reports:Ron Bloom, who heads the presidential auto task force, also said the administration had ended its program to guarantee warranties on GM and Chrysler vehicles while they were in bankruptcy, with $641 million that had been set aside for the program returned to the government with interest.I believe that is somewhat less time than George HW Bush's "Read my lips, no new taxes." pledge lasted.Just a question: why would anyone believe Obama on anything?Just one more: why would anyone buy a Chrysler or GM automobile? If either were to get into further trouble of what possible value would the warranties be? Just yesterday, Chrysler warned that legislation requiring restoration of its terminated dealers could force liquidation. (Read Full Post)