Shocker: Politicians Playing Politics with Their New Car Companies

The latest conspiracy theory making its way around the Internet is that the Obama administration is punishing Republican leaning car dealerships. Specifically, those identified to be closed as the result of the reorganizations of Chrysler and GM tend to be aligned with the Republican party.

Clusterstock has done a good job of covering the story without falling into either partisan camp. You can visit their post today for background and also the pretty sober assessment that there may be something going on but there’s no way to prove it.

I think that you can pretty well count on the fact that there is something to this story and I would suggest that anyone that’s surprised by that probably needs some serious therapy. Politicians reward their friends and punish their enemies — that’s the game, it’s hardball. Get used to dealing with it.

This isn’t even batting practice. When the game gets going for real look out. You don’t buy votes with a single payment. In politics it’s always what have you done for me lately and we’re all about to see how that operates when the politicians control a large slice of a major sector of the economy.

The loneliest man in Detroit right now has to be Alan Mulally, Ford’s CEO. He’s been around the block with the government many times and knows what’s coming down the road. The chances he runs a private company competing head-to-head with government owned enterprises successfully have to be close to nil. I don’t know what his end game might be but I hope it’s one that wrings some value out of the franchise for the shareholders when the politicians come calling.

About Tom Lindmark 401 Articles

I’m not sure that credentials mean much when it comes to writing about things but people seem to want to see them, so briefly here are mine. I have an undergraduate degree in economics from an undistinguished Midwestern university and masters in international business from an equally undistinguished Southwestern University. I spent a number of years working for large banks lending to lots of different industries. For the past few years, I’ve been engaged in real estate finance – primarily for commercial projects. Like a lot of other finance guys, I’m looking for a job at this point in time.

Given all of that, I suggest that you take what I write with the appropriate grain of salt. I try and figure out what’s behind the news but suspect that I’m often delusional. Nevertheless, I keep throwing things out there and occasionally it sticks. I do read the comments that readers leave and to the extent I can reply to them. I also reply to all emails so feel free to contact me if you want to discuss something at more length. Oh, I also have a very thick skin, so if you disagree feel free to say so.

Enjoy what I write and let me know when I’m off base – I probably won’t agree with you but don’t be shy.

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