Tuesday, June 02, 2009

All hail Government Motors

As this Register editorial notes, they don't have to change the logo. GM can stand for "Government Motors" quite nicely, thank you. We also mentioned briefly what has been since teased out in more detail by others -- that the agreement will present a major trade problem, in that forcing GM to build more cars in the U.S. and preventing it from importing European models it already makes is a protectionist measure and probably in violation of WTO treaty obligations.

The administration says it just wants to nurture GM back to profitability, but as I also pointed out yesterday, decisions will inevitably be politicized in ways that undermine much hope of profitability. Ah, what wonders there are in this Brave New World.


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