Will America blow yet another chance to strengthen her hand against her adversaries, or maintain a self-imposed implosion of her economic and military prowess? Detroit’s General Motors recently announced plans to slash production in Russia and yank its mass market Opel brand completely in the face of shrinking sales through the economically troubled land of the ruble. As Russia’s auto market continues to shrivel up, mainstream GM brands like Chevrolet are losing Russian auto-market sales to the tune of 74 percent. The Opel brand has suffered an even greater loss of 86 percent.
By years end, Opel vehicles will no longer be sold in Russia, with Chevrolet officials cutting production significantly. They will focus high end models such as the Corvette and the Tahoe SUV, both of which are imported into Russia from the United States. CNS News reports that GM President Dan Anmann noted that “this change in our business model in Russia is part of our global strategy to insure long term sustainability in markets where we operate.” “ This decision avoids significant investment into a market that has very challenging long term prospects.”
General Motors Saint Petersburg factory will no longer be operational by June or July 2015. There are no plans to restart production in the foreseeable future or beyond. According to GM spokesman Dave Roman, production of Chevrolets under license by Russian firm GAZ will also end this year, while General Motors joint venture with Russia’s Avtovaz producing the Chevrolet Niva basic SUV will continue. The GM pull out of Russia is supposed to preserve the auto maker’s strong cash position by avoiding another drain on its capitol.
According to CNS News, at the end of last year GM was sitting on 25.2 billion in cash, but earlier the company agreed to a $5 billion stock buyback. The US Justice Department may soon be extracting a sizeable civil penalty out of GM for concealing a deadly ignition switch problem. Amongst other predicaments, Russia’s central bank recently predicted that Russia’s economy will contract between 3.5 and 4 % this year. The weak and droopy ruble has resulted in a 38% downward spiral in overall auto sales from two years ago. In addition the ruble has lost almost half its value against the US dollar since the start of 2014 according to CNS News.
Despite Russia’s economic traumas she continues to be ruled by officials who are dramatically increasing he military might. Conversely, the United States with a corrupt regime has set out to endanger our republic’s physical well-being, by reducing our military might dramatically. Russia is also being punished for not being politically correct. Because she remains patriotic or nationalist oriented as opposed to a more globalist focus. So the question remains will America blow yet another chance to strengthen her hand against her adversaries, or maintain a self-imposed implosion of her economic and military prowess?
Right now, our republic turned mob ruled democracy is awash in her own specified twenty trillion dollar deficit. The so called economic recovery is at best a pause in the overall decline of our economy and standard of living. Special interest groups and many in the progressive media can sometimes find a racist cop behind every telephone pole rather than to seek genuine economic policies or opportunities to help Americans work their way towards a better life. Hopefully the Republican leadership will follow through on its promise to repeal Obamacare which is designed to destroy both high quality healthcare and the economy.
The world is witnessing Iran seeking to assume nuclear power status. Russia and China are rapidly expanding their militaries. So I pray that congress will stand up against the Obama regime’s effort to thwart our nation’s ability to defeat our enemies through military reductions. Our restrictive tax rates and burdensome regulations must be substantially reduced along with wasteful deficit spending. If not, America will blow yet another chance to strengthen her hand against her adversaries, both foreign and domestic. That my fellow Americans will be most troublesome, not only for the United States, but for the world at large.