Money and Politics

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Obama About To Put The Government Into The Auto Warranty Business

By Rob on March 30, 2009 at 07:01 am Why not?  General Motors has become Government Motors, so it’s just natural that we’d have the government running warranties too right?

Obama will make two other announcements Monday.

One, the president will announce a new government-backed warranty program for all new GM and Chrysler vehicles purchased during this restructuring period. A fund will be set up equal to 125 percent of the total cost to pay for warranty service.  The auto makers will contribute 15 percent while the government will provide 110 percent, with the money coming from the economic stabilization funds, the gift that keeps on giving. A separate company will hold the funds and pay the claims even if one of the auto manufacturers goes into bankruptcy or out of business.

The president will also name a Director of Recovery for Auto Workers and Communities. Edward Montgomery, labor economist and former Deputy Secretary of Labor, will serve in the role, helping autoworkers, communities, and regions adversely impacted by the failure of the automakers find new jobs, businesses, and industries.

Owners of GM and Chrysler vehicles can expect the same level of customer service and responsiveness they get from the DMV.

Frankly, this will probably be a big selling point for Toyota, Honda, Kia and other foreign auto manufacturers.  At least until Obama drives them out of the country with protectionist, anti-foreign business policies in order to eliminate their competition with our new nationalized domestic auto industry.

Obama About To Put The Government Into The Auto Warranty Business | Say Anything: North Dakota’s Most Popular Political Blog