Now GM can go back to producing inferior junk!

I know, since I worked at GM in the Oshawa car assembly plant.

This is not the way to fix an industry.....on a piece meal basis and without a comprehensive plan.

Think about it. You are GM and you're pressed for cash. Good parts are expensive. You need to cut costs. Cutting costs often can mean that quality suffers. But hey, what the heck, the Harper government is going to cover the costs of these mistakes. Now it can only help GM's bottom line by compromising on quality, since:


Ottawa jumps into the car warranty business
Government to spend up to $185-million to back warranties of new GM, Chrysler cars to prevent crisis from causing sales collapse

SHAWN MCCARTHY AND GREG KEENAN

April 8, 2009

OTTAWA, TORONTO -- The federal government says it wants to protect consumers and parts suppliers faced with a potential bankruptcy filing by General Motors of Canada or Chrysler Canada by backstopping their warranties on new car sales and bolstering support for the parts makers.

Worried that the companies' financial crisis will drive away customers and seal their fate, Industry Minister Tony Clement said Ottawa would insure the warranties of new GM and Chrysler vehicles sold between yesterday and the conclusion of their restructuring efforts.

The minister said he remains hopeful that General Motors Corp. and Chrysler LLC can complete restructuring efforts that will avoid the need for court-supervised bankruptcy protection under Chapter 11 in the United States and the Companies' Creditors Arrangement Act in Canada.

"But we have to ready ourselves for other options, including Chapter 11 in the U.S. and CCAA [Companies' Creditors Arrangement Act] here in Canada," he told reporters.