GM Trades 30 Days More For It's Chairman ......
Let it be known.... If you intend to bargain with the government, you may get a lot more than you bargained for. Soon after taxing AIG to death for givign bonuses to the department that nearly brought it down, the Obama Administartion told both GM and Chrysler that it's reorganization plans were unsatisfactory, and demanded that 1) Chrysler merge with Italian automaker Fiat, and 2) That GM fire Chariman Rick Wagoner. Or else....
I'm a bit mixed over all this. I don't particularly like the Federal Government trying to run private businesses, but when those businesses have long term track records of stupidity and bad business models, then at least I'm glad that the government isn't just throwing the money away all willy nilly...
The messages sent to each were clear. GM hadn't gone far enough, and Wagoner has had five years at the helm to run GM into the ground. Everyone in the business knows that GM's share would be shrinking - except GM. My guess is their business plan still had them expecting to stay the US's Number One automaker. I'm sure there is another suit at GM who can run the company just as well - or as badly - as Wagoner. They can only do as bad or better. When you've hit bottom, you can only go up, right? Let's hope so.....
The message to Chrysler was not as encouraging. They called Chrysler's product line 'competitively inferior'..... Holy Shit, that's harsh.. But probably true. Aside from the 300, can you name a single Chrysler that DOESN'T look like a Jeep? They're all square, boxy, with noses that look like the old Ram Pickup. A little style here , fellas. There was a good reason Mercedes-Benz dumped them - and maybe America might too. That reminds me, what do they make Mercedes-Benz from anyway ????
So, if neither GM or Chrysler submit to the Obama Administration's demands, the gravy train ends. And someone will be shot every five minutes. Detroit, you are on the clock and you have been warned.....
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1 comment:
Let them go under.
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