The overclass is arranging one last big profit-suck from cars-first transportation.
Part of that arrangement is a drive to restrict price competition by “consolidating” the number of car dealerships in the country.
Ford, for instance, is taking advantage of the recent crisis in the automotive industrial complex to slash the number of Ford sales outlets by 50 percent.
As reported by Automotive News, the motive is clear and classic:
With industry sales volumes forecast to rebound slowly, Ford and other automakers want to rationalize and improve the profitability of their sales networks by consolidating dealerships.
In plain language, this means Joe and Jane Sixpack will be facing higher prices in the future than they otherwise would have, sans “consolidation.”
Nobody hates competition like a capitalist.
The state-capitalist firm General Motors has been running a marketing campaign with the tagline “Everyone Deserves Excellence.” A standard piece of product differentiation, the campaign is designed to promote the false notion that GM is doing something new in making and pushing wildly expensive petroleum-guzzling death machines. It is not, of course.
But now the other shoe is dropping. Turns out the new tagline is also a set-up for this:
NEW YORK (Reuters) — General Motors Co. is in talks with JPMorgan Chase and Wells Fargo on deals aimed at providing improved access to consumers for auto loans at its U.S. dealerships.
The negotiations with JPMorgan and Wells Fargo are intended to broaden the availability of auto financing — particularly to subprime borrowers and for leases. Such a move would remove a potential investor concern around GM ahead of a planned initial public offering, according to the sources.
So, the “excellence” that even the “subprime” deserve turns out to be yet another high-interest loan on a lemon product.
And the atrocious Obama Administration is performing its unwavering role. Saying it knows it “can’t win every fight,”* it will accede to exempting car dealerships from the purview of the Potemkin Village it is now setting up to provide the illusion of “consumer protection.”
This overclass has nothing left but bubbles.
*Translation: “We don’t actually fight any fights.”