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Tag Archive: Automotive Bailout

Financial Bailout: Do Interests of Automakers and Members Diverge?


Reading the restructuring plan that General Motors put together makes me wonder whether, in a broad sense, there isn't an insuperable conflict of interest between members of Congress and the automakers. Consider just one aspect of the plan:

...the number of GM retailers is expected to decline to 4,700 by 2012. This will occur primarily in metropolitan and suburban areas where GM has too many dealers to serve the market. In the Plan, it is projected these dealers will be reduced by 35%, increasing annual throughput for the remaining outlets to a more competitive level with other high-volume ...

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