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Automotive Auction News:
Barrett-Jackson Auction Sells GM's Cars Despite Possible Obama Intervention
April 11, 2009

The National Highway Transportation and Safety Administration (NHTSA) called a halt to Barrett-Jackson auctioning off about 80 GM cars claiming that there were title issues with the cars. However, Barrett-Jackson details the status of the titles that the cars are sold with and disclaimers them according to their status. Plus, they've had no problem in the past with their sales of cars with special title statuses such as salvage and other special conditions that prevent regular use of the vehicles sold.

The fact that Barrett-Jackson and GM were disclosing the status of the titles before the auction then leaves it up to the winning bidders of the cars to understand what they've bought and the individual states that the winning bidders then attempt to register the cars to recognize the title status of the cars and deny registration of the cars. There should be no reason why these cars could not be auctioned off, which is probably why the NHTSA had to drop their objection to the auction.

Less than 24 hours after the NHTSA forced Barrett-Jackson from auctioning off the 80 or so cars they released word to Barrett-Jackson that the issue had been resolved and the Palm Beach event could include the vehicles in the auction.

A little background information on the GM bailout recovery plan submitted to the Obama administration. After about a month of evaluation of the plan, the Obama administration's Auto Task Force has rejected the plan saying, "it did not establish a credible path to viability." As a result, Rick Wagoner has stepped down as Chairman and CEO. Kent Kresa will serve as interim Chairman and current President Fritz Henderson will serve as CEO. As InTheTracks.com understands it, Henderson is one of the people who authored the plan that was rejected by Obama's Auto Task Force, yet he is the one chosen to lead the next 60 days to make even deeper cuts and agreements that he determined they couldn't do.

Obama said, "My administration will offer General Motors adequate working capital over the next 60 days. And during this time, my team will be working closely with GM to produce a better business plan."

Just what plan does Obama want to see in the next 60 days from GM? Well, he said it best. "But I'm confident that if each are willing to do their part, if all of us are doing our part, then this restructuring, as painful as it will be in the short term, will mark not an end, but a new beginning for a great American industry -- an auto industry that is once more out-competing the world; a 21st century auto industry that is creating new jobs, unleashing new prosperity, and manufacturing the fuel-efficient cars and trucks that will carry us towards an energy-independent future. I am absolutely committed to working with Congress and the auto companies to meet one goal: The United States of America will lead the world in building the next generation of clean cars."

Obama has just one goal. Get rid of SUVs, the Hummer line and any vehicle that doesn't meet his one goal. "building the next generation of clean cars."

InTheTracks Conclusion of the Auction Title Issue

Obama did say, "The United States government has no interest in running GM." However, how, if he doesn't run GM, does he plan on achieving his one goal? The consumers at the auction who are willing to pay top dollar for GM collectable cars that don't achieve Obama's one goal of "building the next generation of clean cars" will show just how much the consumers don't support that one goal. By saying the consumers do not support that one goal, I mean the consumers determine what cars they want, by buying what they want. Sure, some are buying hybrids to get tax deductions and so they can make a statement, but the majority of car owners don't want to make a statement with the car they buy. They buy what they want that fits their needs. If they have to take the family somewhere they aren't going to buy a small green car, they're going to get a SUV to take the kids and the luggage on vacation.

So, one could conclude that Obama would rather scrap the cars in the crusher rather than have the consumers prove that there's a demand for cars that don't meet his goal. So far there's no connection to Obama and the NHTSA attempting to stop the cars from being sold, but at the same time, this is the first Barrett-Jackson high profile auction during the Obama administration and with the Obama administration taking control of GM at the end of March the coincidences are too much to ignore.

However, a consignment contract that is done to the letter of the current law is tough to dissolve at the last minute, hence, the cars go across the stage and leave GM ownership down in Palm Beach.

 
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