The cars are really getting nice . . . ’bout damn time . . . Might be way too late!

The LA Times writes today, GM earns $865 million in first quarter for its first profit in nearly three years.

Sustained profits are seen as crucial for GM’s ability to float a stock offering to repay some of the $52 billion the federal government has poured into the company over the last year. The bailout made the government GM’s biggest shareholder, owning 61% of the automaker’s stock. The company exited from a bankruptcy reorganization July 10.

“There is a political aspect that the government wants to get out of its GM stake as quick as it can, especially if it can recoup somewhere near the dollars invested,” said Kenneth Elias, an auto industry analyst and partner at Maryann Keller & Associates.

But GM’s still-recovering finances and tenuous capital markets could still leave taxpayers far from a way out.

Will our government ever get itself disentangled from GM and Chrysler? Probably not as long as Obama is the Auto-CEO-in-Chief . . . dude LOVES runnin’ the big show! Of course, true Progressives HATE the automobile — provides far too much autonomy of movement to the clattering masses don’t ya know. Here is the solution to that from David Lazarus, one o’ the LAT’s Lefty Business-Opinion writer: Punish those of us that drive and reward those that take the bus.

Yeah, like that works out here in “45,000 square miles” of La La Land.

Dude — Subway this!

As GM and Chrysler struggle through their respective bankruptcies and attempt to survive as government-owned industries, the private sector is striking back in Louisiana. Yesterday LA Governor Bobby Jindal (R) announced that a brand new, non-government-owned automotive company will be coming to his state with a new factory located in Monroe. Workers there will earn $40,000 a year — which will go a looooong way in northern part of the Big Easy state.

San Diego’s V-Vehicle Co is that company, and it was said that it would be building high-milage gas powered vehicles. Venture capital company Kleiner Perkins Caufield & Byers, already a major player in Fisker Automobile, along with T. Boone Pickens and — wait a sec, I gotta take a deep one here — Al Gore, via Generation Investment Management. Mr. Global Warming his own wacky self is gonna be a partner in a gasoline-powered car company. The irony hangs heavy like the moss in New Orleans’ Garden District. Still, with Gore on board, the MSM will be giving these guys all the positive press they can muster.

But, back to V-VC. Tom Matano, father of the Mazda Miata (savior of the small, front-engined sports car!) and designer for Mazda for 19 years is staffing the place. The vehicle itself hasn’t been announced as yet, but with Matano in charge it should look good and be fun to drive. With an achieving of their stated goals of high-mileage to boot, what more can one want from an American-made small car? V-Vehicle Co. founder, former Oracle exec. Frank Varasano, said yesterday, “We’ve designed and engineered this car from start to finish to give the U.S. consumer a quality car with great value made right here in America.” They are projecting start of production in 18 months. Here are some video interviews..

Gotta be makin’ them g’vment lackeys back in Detroit a bit nervous, no?

General Motors announced yesterday that it will be selling its Saturn division to Penske Automotive Group, the Roger Penske owned company that has over 300 dealer franchises mostly here in the US and in the UK. Penske already is the US distributor for the MCC Smart vehicles and the new Saturn would be operated in a similar manner. This is good news for the 13,000 folks working in the 350 Saturn dealerships, who would have been SOL if the General had not found a buyer and asked the bankruptcy court to allow them to break those contracts and just shut the whole thing down. It also saves jobs at GM, as a plant that was scheduled to close will now stay open at least another two years as it continues to make three of the existing models for the Penske owned company.

Hummer is going through the same type of deal, if the Chinese allow it, and that will also keep some GM workers working, as they continue to assemble vehicles for the new Chinese-owner Hummer company.

The next big hurdle for Saturn will be to find a new manufacturer to replace GM when it stops making Saturn product in two years. That’s not enough time to design and develop a single model, let alone a vehicle line, so shopping for appropriate existing products to restyle and badge will be the main focus of this new group or it will easily run out of time. One could ask the question of why not continue making for Saturn if the deal is profitable for GM? Funny business, this car business. There are safety and CAFE (corporate average fuel economy) regulations far into the future that must be met in order to sell here, and when models are originally designed and engineered to meet/exceed the regs for a span of time, when that time span is done a significant re-engineering effort is required and that takes mucho bucks! Enter the Koreans and the Chinese for new Saturn products.

So, is this what the auto industry is about to become? Will it lead to more, or less diversity of products for us to consider? One thing is certain though, with the Democrats firmly in control, and with the intense hatred of cars by the D.C. elite, as shown every time these jokers regain power, there’s gonna more, not less, regulation and meddling from Uncle Sam. Especially now that he’s (we’re) the majority stake owner in GM. Hey, Prez Barry O’s appointed a 31-year-old college dropout to be the Car Czar and run this deal.

What could possibly go wrong?

Boy, seems like only a few months ago that we were bailing out the banks and big insurance companies with TARP funds, and then we had to step up and loan General Motors and Chrysler BILLIONS of tax payer dollars because, well, uh, “they are too big to fail.” Well, Chrysler failed and went into chapter 13, and now the General has joined them with Monday’s largest industrial bankruptcy evah! Guess we’re all supposed to be placated by US, the taxpayers, ending up owning at least 60% of the New GM.

The implications and repercussions of GM being torn asunder with the toxic assets becoming Old GM — to be thrown under the liquidation bus and afterwards Cadillac, Chevy, Buick & GMC soldiering on as the New GM with little to no debt and parity with Toyota & Honda in wage costs — are staggering! The local fallout of 42% of existing GM dealers losing their franchises is mind boggling! What could go wrong?

Well, imagine the government providing incentives for US to buy government-owned GM cars and trucks via tax breaks — gotta make it work, we ALL own it, right? Imaging the government punishing Ford, Honda, Toyota et all because, well, they aren’t “government owned” and therefore are in direct competition with the government’s best interest. Imagine if the Obama administration decides to force those dealers to close that didn’t support Obama in last fall’s election and make sure that those that did get competition-free zones! Never happen you say? Laer at Cheat-Seeking Missiles lets up know that it might already have.

When I first read of Dealergate in a “Red Alert” post by Doug Ross – the supposed effort by the Obama admin to close Chrysler dealerships whose owners are big GOP donors – I decided not to write about it because a key question was unanswered: How many Chrysler dealers are big Obama supporters?

Seemingly, car dealership owners, as entrepreneurs in a business that’s under odious regulation and ongoing threats to its survival by Dem pontificators, would be overwhelmingly Republican, so dealerships forced to close by a Dem admin would be overwhelmingly Republican. I’m not sure that question has yet to be answered, but the story is getting some very sticky traction (at least on the right side of the blogosphere), so it’s officially an Obama Drama.

In Ross’ newest post, he’s been putting dealership locations and political contributions and finding a pattern of GOP-contributing dealerships being closed to the benefit of nearby Obama-supporting dealerships. Here’s one example of many, many presented:

It’s the Chicago way, don’t ya know? Michelle Malkin has it pegged about that and the total silence from the MSM. Imagine if a Republican administration had been doing something like this.

As I’ve stated from the beginning, there is still much to be researched on this issue. Given Obama’s Chicago gangland propensities, anything corrupt is possible.

Some professional journalists, however, have shown obstinate unwilligness to get to the bottom of the decision-making process.

Visit Laer’s site for the specifics and links to the primary data and to Doug Ross’ blog. Me? I’m gonna go off into a corner and twiddle my thumbs and celebrate owning 2, count ‘em, TWO car companies.

Not really . . .

Howdy! If anyone is still out there to read this . . . I see that it was Mother’s Day, 12 days ago since I posted. That has to be some kind of record for me. It’s certainly not that there hasn’t been a lot to write about, a lot to complain about, a hell of a lot to be worried about — but gee folks, clients came out of the woodwork with a vengeance and one would be a fool to complain about being busy in this current economy!

Speaking of said economy, I see on Drudge that the feces have hit the wind machine big time — the Fed Chairman “promising” that inflation will increase, all but six states had job losses last month with this lovely granola state ‘winning’ the biggest loser contest, the Feds may force GM into bankruptcy even though it has made a tentative ‘deal’ with the UAW, (funny how those pesky bondholders can be so picky about the terms of their haircuts — gee, ya think that a secured lender is supposed to get preference over the Unions’ unsecured debt or somethin’?) The US dollar has hit a new multi-month low vs euro, pound and yen. Sweet! Anymore good economic news?

Oh yeah, Treasury Sec. Tax-dodger Tim is ‘concerned’ about U.S. creditworthiness, which is being flushed down the toilet Internationally so he’s now ‘promising’ to cut the budget deficit, like right damn now! With all the spending this administration has planned, and the stimulus package and TARP plus the impending Carbon Cap & Trade legislation that is being railroaded through Congress without opposition comment — where are they gonna come up with the moolah? Once they drain that upper 5% income bracket, better bend over ’cause they’re gonna come after yours and mine!

One last item before I’m off for a client lunch. Nancy Pelosi is now finished saying anything more about her accusations of lying by the CIA. Guess that hole’s been dug deep enough!

More when I can . . .

Tell me it’s only a dream . . .

“Hello, this is Obama, uh, ummm, urr, OnStar — Stay tuned for an important message about your vehicle.”

“Uh, Mr. Okie — we noticed that you voted FOR California’s Proposition 8, the anti-same-sex marriage amendment to the CA constitution and that you also voted for John McCain and that obnoxious moose-shooting abortion-hating-cretin, Sarah Palin — that type of behavior simply will not do.

Your vehicle will be deactivated for the next 60 days so that you can experience the trials and tribulations of your less fortunate brethren as you ride the bus. Maybe next time you’ll make better choices. Have a great day!

In the upcoming “deal” that will keep General Motors afloat, at least for awhile longer, the federal government will “own” 50% of GM’s stock. I’m betting that it will be at least 51%, gotta have that undeniable control don’t ya know? Along with Cadillac, GMC, Buick and Chevrolet, the feds will be getting control of OnStar — that little ditty of a “communications” package that has been installed in most GM vehicles in the past decade. So what? Well, consider this:

“The Truth About Cars” wrote that “OnStar’s computer knows where you were, when you were there, and how fast you went. It knows if and when you applied the brakes, if and when the air bags deployed, and what speed you were going at the time. It knows if and when your car was serviced. OnStar operators can determine if you have a passenger in the front seat (airbag detection). … under certain conditions, OnStar can switch on your GM car’s microphone remotely and record any and all sounds within the vehicle (i.e. conversations).”[8]

{…}

Voice-monitoring capability is marketed as OnStar Hands-Free Calling.[9] The use of this type of capability by law enforcement is subject to legal debate and some technical impediments.[10] OnStar maintains that it is unable to “listen to, view, or record the content of calls”.[11] However, a 2003 lawsuit revealed that systems such as OnStar can be used for eavesdropping on passenger conversations.[12]

Also, it’s possible for them to deactivate your vehicle — What? You thought that they could only unlock the doors?

Police will be able to remotely halt high-speed pursuits with technology being unveiled Tuesday that aims to cut chase-related deaths.

General Motors GM plans to equip 1.7 million of its 2009 model vehicles with the system that allows pursuing officers to request that engines of stolen cars be remotely switched off through the OnStar mobile communications system.

The system, scheduled to be demonstrated Tuesday in Washington, D.C., marks a big move toward reducing what GM says are as many as 9,600 pursuits around the country every year. Up to 400 people die in accidents involving chases, according PursuitWatch.org, an activist group.

“Anytime you have the ability to shut down a dangerous pursuit, that’s a win for everyone,” says Geoffrey Alpert, criminology professor at the University of South Carolina.

Because of a built-in global-tracking device, OnStar already allows police to find stolen vehicles. Now, with permission of the owner, they’ll have the ability to have the engine turned off.

Police will only be allowed to ask for a shutdown when they have a vehicle in sight. An OnStar operator will inform fleeing suspects that the engine is about to stopped, which can then occur in seconds. Brakes and power steering will still function, says OnStar President Chet Huber.

“This isn’t a science project. We are broadly deploying this technology,” he says.

{…}

Such a system has been talked about for years, but law enforcement experts want all manufacturers to participate.

Awww, “want all manufacturers to participate” — no kidding!

Now, there are some stringent privacy provisions in the Onstar contracts, and so far it still takes a court order to use the most egregious tactics against drivers and owners — and we all know that our federal government, our new President and Saviour Bestest-Buddy-Evah! and his Chicago boys would never change the terms of a deal or strong arm anyone, like the Chairman of General Motors, one of Chrysler’s creditors or a Joe the Plumber, right?

Uh Oh! Houston — we got a problem . . .