In practice this isn't that big of news: Obama just did what the market would have done if GM hadn't taken the govt. money. But theoretically this sets a pretty messed up precedent. This time the govt. had a good reason to "pressure the guy to retire" (fire) the CEO, but next time? I don't care which party is in power, the govt. usually doesn't give power back once it takes it nor does it back down from an opportunity to abuse power it already has.
The gov't set a bad precedent by bailing out these companies. Its too late for the gov't to start a bad precedent. They need to do this to the heads of AIG and CITI.
It was already pushing up against significant resistance before this news anyway and was overbought. The correction was overdue.
Why, are you throwing down the gauntlet and challenging The_Conquistador to a duel? It delights me to think of the multitude of ways that I would best you in such a challenge. Mentally, physically, and follically, The_Conquistador and his razor-sharp mind, sculpted physique, and incredible hair would make mince meat out of all comers.
If the government is willing to guarantee the warranties on GM's vehicles, then I don't see why they wouldn't consider bankruptcy a viable option. I really don't know why they didn't do that from the beginning. Chrysler on the other hand is a giant money pit, and they just need to liquidate, IMO. At least they didn't just hand out more money. I assumed they would get the money regardless, and they may still, as this could just be a gesture to the outrage of these rushed bailouts. We'll see what happens in 60 days.
I personally think the big 3 need to merge and compete with foreign cars. There is too much redundancy in the market. What would be nice to see is GM being strong armed for the next few years by the government and then watch Ford turn into a much more lean company. GM is history regardless.
I like there being 2 major American companies. They are very redundant though. If Chrysler and GM weren't such disasters, they would have already merged. I think they need to start killing off all of their sub-brands, and just have Ford and Chevrolet. I guess they could always merge like Hyundai and Kia. People don't even seem to notice they are the same company.
Ford-Lincoln-Mercury vs. Chevrolet-Cadillac-Buick sounds like the domestic sparring partners with both going against the world. Obama IMO overstepped his boundaries when he demanded Rick Wagoner's resignation. Obama claims he is not interested in running GM, but the facts indicate otherwise. Bingsha10 nailed it a few posts earlier. I'm glad I sold my company and went into semi-retirement. I'm glad I converted to gold. I'm glad I soon will be self-contained in a world far away from the food and money riots that are coming. I am enormously sad for the path our country has taken. BTW, Deckard, that's not tongue in cheek. That's cheek stained with tears.
It must really burn your ass that Jr ****ed up this country so bad, America was willing to elect that community organizer! LOL!!
Come midterms and re-elec, they gotta be able to say they "did everything they could" to save GM. I think we should just give up: let the old Axis make our cars, the Latin Americans grow our crops, then we can just stick to weapons manufacturing, blockbuster movies and printing money.
Fritz Henderson, former COO, is now CEO. This can only mean he is there for the interim. Why get rid of #1 for bad leadership, and bring in his top deputy to takeover, if you disagree with their previous direction? I would Obama is going for somebody that will be ruthless and layoff thousands more employee and makes lots of enemies. He has already picked an Autoworker Czar to deal with the massive layoffs that he plans. His replacement CEO can leave as quickly as he came.
Wow you are funny this post is not accurate Obama didn't fire anyone he just implement that they would not receave a bailout if they continue to run business as usual.
The moment an enterprise allows the government to become a major investor, it loses its ability to complain about the government using the power of the purse to demand a change in CEO.
