Obama’s ‘Victory Dance’ on Auto Bailouts Could Hurt Business, Industry Expert Warns

Friday, May 27, 2011
By Matt Cover


In this Nov. 29, 2010 photo, the logo for a GM dealership in Redwood City, Calif., is diplayed. (AP Photo/Paul Sakuma)

(CNSNews.com) – The Obama administration’s recent touting of its unpopular bailout of American automakers General Motors and Chrysler may actually end up hurting business at the two recovering firms, an industry expert tells CNSNews.com.

Speaking on condition of anonymity, the expert said that if the government really wants to ensure that it breaks even on its investment in GM and Chrysler, using the bailouts for political purposes will not help.

Market research indicated that the bailouts were unpopular and had a stigmatizing effect on automakers, added the expert.

“It the [government’s] interest at this point is to make sure that the taxpayer recovers the full amount of money that was invested in GM [and Chrysler] using GM to do a victory dance does not help that, because there is market research that shows that the bailout still remains a very unpopular decision. To continue to politicize the company, for good or for bad, does not help the company in the marketplace.â€