Auto Focus

Jim Cramer Is a Blowhard

June 3, 2009

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Jim Cramer, host of CNBC's Mad Money, has a right to be a staunch capitalist and rant in an entertaining way to drum up viewers. He can even bash auto manufacturers.

But it's hard to dismiss Cramer's idiotic blathering as a guest on MSNBC's "Morning Joe" this morning.

On the show, Cramer calls General Motors "a $50 billion jobs program run by the union. It has nothing to do with making cars or a profit. It's just a jobs program, a WPA" (Works Progress Administration Program from the Depression).

"There's no need for GM," he says. "We have 9.9 million cars being sold. They have a failed model, but do you want to put all those people out of work? As soon as the unemployment problem goes away, GM goes away."

When asked if any auto factories can be retooled for this green economy, he replied "None whatsoever - these factories are irrelevant."

Joe Scarborough then asks him if Americans are incapable of cracking that [green manufacturing] code? "Just the opposite, I think GM is incapable," says Cramer.

(Listen further in the clip for more union bashing. And pay attention to his "white man" and "holy cow, they found a woman," comments.)

The thing that gets me is MSNBC had no counter voice to Cramer's idiotic comments. None of the show's personalities could come up with a successful unionized company in the U.S. How would Jack Welch have responded about GE?

Does Cramer have any clue as to GM's importance in commercial fleet, from the light- and medium-duty vehicles that are the workhorses of business to the (still) largest dealer network that services them?

Cramer's viewpoint exposes an appalling lack of knowledge of auto manufacturing, GM's business plan and its product portfolio. When that portfolio fails to meet American consumer and business needs, green or otherwise, GM could go away, as any manufacturer could. But GM is not in danger of doing so. And its factories, along with other OEMs' American plants, are producing green vehicles today and will in the future.

I'm not going to get into a "rah-rah" GM discussion or how GM's brand and products will continue to meet those needs. If you're reading this blog, you already know that.

It's just infuriating that someone such as Cramer, with his bully pulpit, can spout off uncontested regarding a topic on which he obviously has little knowledge.

Comments

  1. 1. TLS [ June 03, 2009 @ 02:50PM ]

    There have been many times when Jim Cramer has "denounced" what he's said on his show after his opinion has been challenged. We're in the industry, of course we have a little better idea of what's really happening there (or do we?) Maybe this "broad statement" will also receive some tweaking!!

  2. 2. Bill Forsythe [ June 04, 2009 @ 03:01PM ]

    Does anyone actually watch MSNBC ?? There is reason that Cramer is on NBC, nobody is watching ! Cramer has become the shock jock of wall street and his comments are strictly for entertainment value. Maybe he should get his own late night talk show ? Not that anyone would watch that either.

  3. 3. David Ruggles [ August 21, 2009 @ 10:40PM ]

    Actually, GM used to be a gigantic entitlement program operated for its retirees, not its stockholders. However, letting GM and/or Chrysler fail was NOT an option. Delphi alone dropped 6.2 billion of the federal pension guarantee system. Imagine if GM had folded. The ripple effect would have shut down ALL North American production. Imports would have been the only thing to buy and those who depended on U.S. parts suppliers would have been shut down as well. Many auto suppliers also supply the military and aerospace, so there were national security issues as well. Here's hoping the VERY FLAWED bailout program is successful and the government gets paid back quickly and the car companies are owned by private stockholders.

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Author Bio

Chris Brown

Executive Editor

Chris Brown is the executive editor of Business Fleet Magazine and Auto Rental News for Bobit Business Media. Through these publications, online newsletters, trade events and associations, Chris covers all aspects of the fleet world, including fleet management, manufacturer fleet activities, the fleet leasing industry, vehicle remarketing, rental industry news, car rental taxation and legislation as well as automotive environmental initiatives and trends.

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