General Motors and Chrysler are both nearing bankruptcy. People continue to buy their vehicles. New and certified used vehicles have limited warranty protection. If one of these companies, or both, should happen to go bankrupt your warranty is still covered. So, how does this work? Well, Industry Minister, Tony Clement has it covered. He has announced $185 million to cover warranties and an additional $700 million guarantee to parts manufacturers. This, apparently, will enable them to continue to provide the parts required to satisfy warranty claims if either GM or Chrysler should fail. So if you make a warranty claim on your GM or Chrysler if they are no longer in business the claim simply gets sent to the Government of Canada. Wow, what a plan!
Here is my take on all this. First, why would you buy anything from a company that is flirting with closing business due to bad management and a failing economy? As a consumer you have choices. Use them! My government never asked me if I wanted to pay for the warranty claim my neighbor might make on a failed company. If they had, I would have said no.
Why are Canadian taxpayers being forced to bail out banks, auto companies and auto parts companies with an array of guarantees and loans? Business is a gamble and big business is a big gamble. Will the government bail out those who have lost millions on their life savings that were invested for their retirement? Not likely!
If you lose it all due to bad management, a failing economy or just bad luck then you will have to start all over again on your own. That is the best restructuring plan available and you won’t need my tax dollars to get back on your feet. The government is dragging us all into bankruptcy with their actions. How is that fair?
Many Canadians believe their government should not be in business to make money or provide a service at cost. If so, then why would you support your government bailing out failed businesses? How are we “going forward” on this one?