The Big Think

June 9, 2009

GM Woes

Filed under: Politics — jasony @ 9:54 am

Just 42% of current owners likely to buy a GM product again. Count me as one of them, Count me as one of the abstainers! (sorry about that, I got muddled while typing and only caught it just now). I currently own a Chevy S10 (1992 vintage) but will be replacing it with a Toyota Tacoma. Why? Partly because of the Taco’s good repair history, and partly because I don’t know if GM will even be around for the 10-15 years that I hope to own the car. Why would I spend thousands of dollars on a product if I didn’t think the company would be around over the life of the product to support it? I’m not alone.

And here’s the kicker. I could get a similar GM-made replacement to the Tacoma for several thousand dollars less than what I’ll be shelling out. So in this case voting with my dollars is costing me more, but I’m still doing it. I predict that the US government will continue to dump billions of taxpayer dollars into revivifying GM (the “sunk cost” fallacy) only to ultimately pull the plug.

Your government at work!

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