Does General Motors Still Equal General Value?
Earlier this morning, General Motors posted a 4Q loss of $9.6 billion, culminating a dismal 2008 that saw the Detroit automaker lose $58,789.95 for every minute of every hour of every day last year. Conditions are abysmal in the markets writ large, but America’s Big Three carmakers face an especially tough task in justifying continued government financing to stave off bankruptcy. Bellum is as patriotic as the next guy, and we would be more than willing to entertain the idea of short-term “buy American” provisions to save a valuable industry with manufacturing pedigree. That said, clear evidence shows that on a “domestic content” basis, many of those cars to which we grant the “USA” stamp are indeed less American than perennial “import enemies” (who would have thought that a Toyota Tundra is 10% more American by parts and manufacturing than the Ford Mustang?). Added to this are further production inefficiencies best seen in the relative costs that go into each automobile—Way back in 200
