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jwr747 |
bail out |
Lead | |
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just saw an ad from GM telling why they need our tax $$ to keep going.I wonder what would happen if Colt,S&W,Taurus,Browning,ect.ask for some of our $$?
jwr
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eagle7 |
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Actually there have been cases of the US government bailing out an American arms manufacturer. One example is the M4 carbine contract that Colt got in the
early 1990s. In the late 1980s FN underbid Colt for the new M16A2 contract. Colt went crying to Senator Dodd. Colt claimed that loss of that contract would
force them into bankrupcy, thereby putting their New Haven CT employees out of work. Dodd and the military wrote a new requirement for a shortened M16A2, and
Colt produced their M4 carbine to get the contract.
Other case also involved senatorial interference, but the domestic gun manufacturers did not win. There was a big controversy in the selection of a new 9mm service pistol in the late 1970s - early 1980s. The SigSauer P226 came in first in the handgun trials, followed by the Beretta 92. Colt and S&W threw a fit because their pistols were rejected and got their home state senators, Dodd of CT and Kennedy of MA, to stifle the selection process. Both American companies claimed economic hardship due to the loss of the contract. The US government added so many conditions on the contract that Sig refused to participate. There was another round of pistol trials and Beretta eventually won.
Last Edited By: eagle7
11/18/08 04:32 PM.
Edited 1 times.
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dangson |
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Remington and Westinghouse were bailed out during WW1 after the Russians defalted on their contract. We have computer companies in the area that are
continually given preferential treatment over foreign companies to keep them afloat. I think there are more "bail outs" than you will read about on
the front page. I don't like it but why should the auto companies be any different? Foreign automakers have been subsidized by their respective
governments at different times. We practically rebuilt the industies in Germany, France, Japan, Korea after wars so they could later compete with our
industry. Capitalism in its more pure form hasn't existed since before WW1.
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high speed cruise |
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I don't expect any "help" to the gun industry in the coming months. None at all. Possibly a "Congressional Impact" in 2010 due to
that change, but even that I wouldn't bank on. Not these days.
GREG |
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eagle7 |
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The American automakers have been subsidized too. Military contracts to keep them afloat were the order of the day in the late 1970s - mid-1980s. Anyone with
military experience from that era remembers the Dodge pickup trucks in military use.....the trucks with the tops of the fenders rotted away from rust. Former
MPs will also remember Chrysler K-car police cruisers - the patrol cars that couldn't get out of their own way. GM also got federal charity with the
infamous "CUTVEEs", the Chevy Broncos with the camoflauge paint job and the burgundy vinyl interiors. They were supposed to be tactical vehicles for
support units, but unfortunately they had a reputation for getting stuck, even on wet grass. Their breakdown rate was terrible, since they were engineered for
occasional offroad use by civilians, not constant crosscountry use. The GSA has always been a dumping ground for cars that the automakers couldn't sell to
the public. Throughout the 1990s the GSA lots were full of big Ford Econoline vans, Plymouth Breezes and Chevy Corsicas that nobody wanted.
Let's be honest. The Big Three automakers are in trouble today for two reasons; extravagant benefits for both union employees and upper management and the failure to maintain a technological edge on the foreign competition. The average cost of employing a union worker at GM is $73 per hour when all the benefits and pension package are considered. On the other hand Toyota of America has a hourly employee cost of $47. American industry as a whole has a hourly overhead cost per employee of $26, IIRC. As far as technology, quality control, and sensing market trends go, Detroit has been down this road before in the mid/late 1970s. I worked in the automobile business back then and I remember the reaction by Detroit, or more properly, the inaction to the oil embargo of 1973 - 74. The "lead sleds" continued to be produced up to 1977. The smaller cars introduced by Detroit in the 1970s were trash; the Vega, the Pinto, Chevy Citation, Cadillac Cimmaron,the AMC Gremlin and Chrysler Corp Aspens and Volares all come to mind. Because of the labor turbulence in the industry in the late 1970s, quality control suffered. Due to poor employee morale after the auto strike of 1978-79, GM had serious problems with indifferent quality control for years. The US automakers started to get it right in the 1980s, but they got fat and complacent in the 1990s/early 21st century. The American firearms and ammunition industry will not get any special treatment...at least not the kind of "special treatment" they would want. I fully expect more marketing restrictions, increased product liability (by the way of frivolous lawsuits), and exponential increases in federal taxes on firearms and ammo. The argument will be made that guns and ammo are "health hazards" and the industry will be taxed to help fund nationalized health care. Perhaps government lawyers will go after the gun industry as it went after "Big Tobacco". |
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NC Cruffler |
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I received an email today from GM ( I recently purchased a 2009 HHR) and in it they stated that they weren't asking for free money. Rather, that they would
like a "loan" to get them through the present crisis. Looked good on paper.
Hope things get better because I'd like to think my warranty was worth something. Dave
Dave Green, NRA Life Member since 1973
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eagle7 |
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Yeah, the warranties are an issue with potential buyers. Will there be a dealership to perform warranty work a year from now? Will there be repair parts
available two years from now? Scary questions indeed.
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