President Obama Tells Automakers Their Viability Plans Are Lemons
If the viability plans that General Motors and Chrysler submitted to the Obama administration in February were cars, they would be — at least as far as the president is concerned — Edsels.
In order to receive $21.5 billion more in loans from the U.S. government, GM and Chrysler — which have already received $17.4 billion in loans ($13.4 billion for GM and $4 billion for Chrysler) — were required to come up with viability plans detailing their restructuring plans and ways they would compete in a marketplace where their sales are slumping and products are berated as anachronistic.
Senior administration officials say that the GM plan, in its current form, "is not viable and will need to be restructured substantially."
The first step in that restructuring: leaders of President Obama’s auto task force on Friday told chairman and CEO Rick Wagoner to tender his resignation. He did.
GM needed to turn a new page, a senior administration official explained.
"Having a change in leadership would assist with that fresh start and be consistent with this clean sheet approach," the official said.
Another official insisted there was no quid pro quo requiring Wagoner to leave if the company wanted further government support.
In addition to Wagoner’s departure, GM will start the process of replacing a majority of its board in the next few months.
"We are very confident that General Motors can survive and thrive as a company," a senior official says. "We believe it has many, many assets including its global brand; its R&D has made a lot of progress" in making cars "more attuned to marketplace."
That said, the administration found GM’s viability plan too passive about its debt and underperforming brands and dealers, and too unrealistic about how much sales are going downhill. The Obama administration will provide capital as the new CEO develops a new plan; GM officials have 60 days to create a "leaner, more conservative but in some ways more aggressive business plan."
The news for Chrysler is far more dire: essentially, merge or die.
"The Chrysler plan is not likely to lead to viability on a standalone basis," the Obama administration officials say, encouraging the company to aggressively pursue the merger deal with Fiat. Assailing "the inferior quality of its existing product portfolio" and its over-reliance on trucks, the administration says "Chrysler must seek a partner in order to achieve the scale and other important attributes it needs to be successful in the global automotive industry."
Chrysler has 30 days to work it out. The administration will offer capital to the company. If Chrysler and Fiat are able to reach an agreement, the administration will consider loaning up to $6 billion to Chrysler. If they are not, the administration will not consider lending Chrysler any money.
In neither instance — GM or Chrysler – would the administration specify how much capital it might entail to keep the companies going for another 30-60 days.
For both companies, the Obama team says bankruptcy is possible.
"Their best chance at success may well require utilizing the bankruptcy code in a quick and surgical way," an official says, explaining that a structured bankruptcy process could make it easier for GM and Chrysler "to clear away old liabilities so they can get on a path to success while they keep making cars and providing jobs in our economy."
Obama will make two other announcements Monday.
One, the president will announce a new government-backed warranty program for all new GM and Chrysler vehicles purchased during this restructuring period. A fund will be set up equal to 125 percent of the total cost to pay for warranty service. The auto makers will contribute 15 percent while the government will provide 110 percent, with the money coming from the economic stabilization funds, the gift that keeps on giving. A separate company will hold the funds and pay the claims even if one of the auto manufacturers goes into bankruptcy or out of business.
The president will also name a Director of Recovery for Auto Workers and Communities. Edward Montgomery, labor economist and former Deputy Secretary of Labor, will serve in the role, helping autoworkers, communities, and regions adversely impacted by the failure of the automakers find new jobs, businesses, and industries.
– Jake Tapper and Charles Herman
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It’s time for the same kind of realistic talk about AIG, Citi, and Bof A. NO MORE BAILOUT MONEY FOR CORPORATE GREED AND MALFEASANCE. I’m dissapointed in our new Pres. Of course, he hasn’t tortured anyone or started a war based on lies.
Posted by: B. Bear | March 30, 2009, 12:11 am 12:11 am
Chrysler needs to die. The only brand they have of any value is Jeep. They can sell that. GM should be reduced to Chevrolet/Cadillac and Ford to Ford/Lincoln. Maybe a couple truck divisions. Buick and Mercury need to go the way of Pontiac and Oldsmobile. The Big 3 are actually making half-decent cars now but a reputation for quality takes years to build. They don’t have the time.
Posted by: Skeptic | March 30, 2009, 12:17 am 12:17 am
No war? Just class war. And he’s in the upper class, make no mistake about that.
Posted by: al | March 30, 2009, 12:19 am 12:19 am
Director of Recovery? how much more communist can one sound? I feel like I am a 50s movie.
Posted by: al | March 30, 2009, 12:20 am 12:20 am
Chrysler is weak, no doubt. Only reason to keep it afloat is to help the suppliers. The Jeep brandname is the only thing that will survive.
Posted by: 1percenter | March 30, 2009, 12:22 am 12:22 am
Hope they’ll do the same wiyh financial and insureance companies!!!
Posted by: as if | March 30, 2009, 12:28 am 12:28 am
This is good. Responsibility shifted from Mr. Wagner to Government. I was surprised last time when their lousy plan got billions of dollars. Even start up companies offers much better business plan than what all automakers presented last time. They were just dragging the heavy loads of UAW, dealership mess they created.
Posted by: Tim | March 30, 2009, 12:29 am 12:29 am
Why wasn’t Obama this forceful with Wall Street and the banks?
Its okay for financial CEO’s to rake in huge bonuses after accepting billion more in bailout money.. but for the auto industry, he forces its CEO out… really doesn’t make sense.
There should be no more bailouts at all…. if these companies couldn’t restructure at the beginning of their collapse, then they need to face the music.
Why should taxpayers have to save their jobs, when they should have been doing their jobs the right way from the onstart of this economic decline.
Posted by: lm | March 30, 2009, 12:33 am 12:33 am
I ask the question..
Is this the beginning of Dictatorship Rule?
Posted by: Barnabas Ron | March 30, 2009, 12:35 am 12:35 am
So, now will Rick Wagner will own a bowling alley as GM founder William Crapo Duran did. Rick Wagner used to joke about it.
Posted by: Tim | March 30, 2009, 12:38 am 12:38 am
Tough love for the auto industry and auto workers, more restriction-free handouts to AIG and banks and Wall Streeters.
Posted by: ICDogg | March 30, 2009, 12:39 am 12:39 am
I went to sleep in America in 2009 and woke up in a 1970′s USSR. Why is the govt., running companies now?
Posted by: Zeuss | March 30, 2009, 12:40 am 12:40 am
Excuse me. Sounds like to me we now have too much government oversight. This is not what I voted for and my senators and congressmen had better pay close attention to their voters. AIG should fold first. Shame.
Posted by: Steve | March 30, 2009, 12:43 am 12:43 am
The governments of the United States have denied millions & millions of citizens the right to drive for ZILLIONS of reasons THAT HAVE NOTHING TO DO WITH DRIVING! Boy have you guys messed up big time; you’re tanking and I’m laughing my *** off! SEE ‘ER LATTER! The soup kitchen is that way.
Posted by: August | March 30, 2009, 12:45 am 12:45 am
Yes this is the beginning of dictatorship rule. It is becoming very obvious to me that Obama is a tyrant. He wants to take over all Americans lives and tell us how to live, eat, how to work, and what temp we can our house environements at. If I were GM and Chrysler, I would go bankrupt instead of getting in bed with Obama’s government. Americans are really going to suffer and lose our rights under this tyrant, Obama.
Posted by: Sandy | March 30, 2009, 12:48 am 12:48 am
It is surprise to see tax payer’s shouting about bonuses mishandling their tax money by government and also the same taxpayer do not want to government to stop bleeding to protect tax payer money
Posted by: Tim | March 30, 2009, 12:48 am 12:48 am
Obama needs to get tough with the banks as he has with GM and Chrysler.
Posted by: Sara | March 30, 2009, 12:56 am 12:56 am
We have always bought Toyotas in our household and never had any problems with them. One year we decided to purchase a minivan and got a Chrysler. It looked nice and was roomy and we felt great about buying an American made vehicle. We wanted to support American companies and their workers. Unfortunately, this was just about the worst purchase of our lives! This van was a LEMON and we brought it to the shop numerous times for repairs even during the first 2 years. I can’t tell you how many times that thing left me stranded with my young children. I did not trust it and felt it was unsafe and very unreliable. The day we turned it in for a new Toyota minivan was such a happy day for me. Such a relief to unload that piece of junk. The dealer only offered me 1,000 dollars for it though it was only 5 years old and not too many miles on it. They laughed and said I should donate my coffee mug that they saw in the van too and I said I would! I was thrilled to drive off in my new Toyota and wave goodbye to that dreadful Lemon. “Good Riddance”, I yelled happily! If Dodge and Chrysler and GM want to have more successful businesses they need to start making well-made, reliable, non-gas-guzzling vehicles. That is the simple formula for success. Americans want to support American companies, but not at the expense of safe dependable transportation for our families!!!
Posted by: make lemonade | March 30, 2009, 12:57 am 12:57 am
Here, Here, Sandy! Agree with you 100%!
Posted by: sticky wish | March 30, 2009, 12:57 am 12:57 am
Finally – just say NO – some realistic action, “we the people” have said for months to let GM & Chrysler die – chapter 11 please and maybe a few assets can survive, and don’t forget to cook the unions thank you!
Posted by: californiagirl | March 30, 2009, 1:06 am 1:06 am
Jake, other *sources* are saying this was a primer for an announcement tomorrow that there will be no more GM/Chrysler bailouts. I have seen 4 stories, all with anonymous *sources*, all with differing outcomes. Bring us the truth, when you can.
Posted by: sybilll | March 30, 2009, 1:18 am 1:18 am
It should be fun to watch Rick Santelli and Sean Hannity drool all over themselves for the next week screaming about “communism” this and “socialism” that. And the reality? The CEO and entire board of GM SHOULD be fired. They’ve done a terrible job. Bush should have thrown them out last fall; but apparently he didn’t have the spine to do the job. Well done Obama.
Posted by: Reality Check | March 30, 2009, 1:27 am 1:27 am
I own a 93 Pontiac and a 00 Dodge and have never had a problem with them and if they are still around a will buy another Dodge. The problems with the American Auto Industry is not so much the quality but it is
1. The unions
2. Foreign auto makers, when they can import freely and it almost takes an act of God to export, plus all of the foreign plants that have opened in the States in the last decade how in the world can they compete.
And about Obama, Well I tried to warn everyone.
Posted by: Robert | March 30, 2009, 1:30 am 1:30 am
Obama get tuff with banks, after all the money he has gotten from them? Obama is giving us lip service about doing anything to help.
Posted by: PresGov | March 30, 2009, 1:31 am 1:31 am
I voted for Obama but I disagreed with him and his people in bailing out those greedy AIG, BOA, CitiBank and other financial institutes. The latters should be allowed to die naturally in due courses. It’s better cut off you rotten limb than keep it and let it kills you. There is no equality in our law when the average American and their future generations have to pay for the wrong doing of the privilege few.
Posted by: grouper88 | March 30, 2009, 1:36 am 1:36 am
This is for Reality Check: The last time I checked GM was a privately owned company and the Government does not have the right to say who should stay or go that my friend is what communism is.
Posted by: Robert | March 30, 2009, 1:42 am 1:42 am
The carmakers need to beg for their bailout money to the oil industry. It is the one making a profit, thanks to the gas guzzlers from GM and Chrysler.
Exxon is pretty quiet right now. They all want to keep their cash among themselves.
Posted by: hebegebe | March 30, 2009, 1:44 am 1:44 am
“This is for Reality Check: The last time I checked GM was a privately owned company and the Government does not have the right to say who should stay or go that my friend is what communism is.”
Reality Check… GM is surviving purely on tax dollars from day to day. The government owns a 35% stake in Chrysler. The government sure does have a right to say how these companies are run. In fact, they have an obligation to the taxpayer to get their money back.
If you are a company and don’t want government interference, don’t ask for a government handout. Simple!
Posted by: Mike | March 30, 2009, 1:49 am 1:49 am
It’s time for the same kind of realistic talk about AIG, Citi, and Bof A. NO MORE BAILOUT MONEY FOR CORPORATE GREED AND MALFEASANCE. I’m dissapointed in our new Pres. >>>>> Seems like the only companies paying a price hire everyday people. Brokers that pull down 6 figures salaries are not your average people.
Posted by: ChicagoBob | March 30, 2009, 1:53 am 1:53 am
Realitycheck – The government is not your savior. They have no business throwing anyone out. Obama doesn’t now and Bush def. didn’t then. They should file for bankruptcy and wipe the slate clean. Eliminate the unions, that’s first and foremost act 1. Then hire the best and brightest of the youth to innovate and create the newest and best American made autos for the global market. Something tells me #1 this would easily atleast put them on a proper track to profit AND MORE IMPORTANTLY #2 there is big BIG money standing in the way of this happening.
Posted by: um? | March 30, 2009, 1:58 am 1:58 am
thats nice he got tough with the ceo of GM. If he had ever run a manufacturing company he would know he now needs some one more capable than that man to protect the shareholders and the US investment. Promising money IF a plan is in place is all well and good but It will be interesting getting a plan without a CEO. he should have thought about this after the first meeting. Nothing has changed. Now they will be put even farther behind the eight ball. I am no fan of Wagoneer but any forced blood letting should have been done before the first money was loaned.
as a manufacturer who deals with the auto industry i can assure you companies like mine like will be putting gm on the COD list for invoices. this will further worsen the situation and cash burn. this could have been averted by prudent intervention. once again the president shows he is not knowledgebale enough to handle the problem properly. he doesnt even know what is going to happen because he doesnt understand manufacturing. Wait till gm and chrysler go down and 2 million plus jobs are lost across the board in a 60 day period.
Posted by: gb | March 30, 2009, 2:00 am 2:00 am
That’s the way Big-O – A major controversy per week so you can keep everyone stirred up while your other agenda is being worked behind the scenes…
Posted by: Jon | March 30, 2009, 2:05 am 2:05 am
“I went to sleep in America in 2009 and woke up in a 1970′s USSR.”
Give me a break.
Posted by: Okie | March 30, 2009, 2:09 am 2:09 am
“This is for Reality Check: The last time I checked GM was a privately owned company and the Government does not have the right to say who should stay or go that my friend is what communism is.”
Reality Check… GM is surviving purely on tax dollars from day to day. The government owns a 35% stake in Chrysler. The government sure does have a right to say how these companies are run. In fact, they have an obligation to the taxpayer to get their money back.
If you are a company and don’t want government interference, don’t ask for a government handout. Simple!
Yes they have a 35% stake but that does not make a majority so, no they should not be able to say who goes or stays they can suggest. I agree with you on not taking handouts from the goverment.
Posted by: Robert | March 30, 2009, 2:17 am 2:17 am
What U.S. auto industry ? I have not bought a U.S. make car for the last 30 years. I believe my next car will be a Korean make. This is low tech stuff. The U.S. just cannot and would not want to compete. This administration is taking us to the abyss.
Posted by: Swiftlearner | March 30, 2009, 2:26 am 2:26 am
“I went to sleep in America in 2009 and woke up in a 1970′s USSR.”
That is funny I just said the other day we need to change our name from the U.S.A. to the U.S.S.A.
Posted by: Robert | March 30, 2009, 2:26 am 2:26 am
I’m not buying any American car; see ‘er latter!
Posted by: August | March 30, 2009, 2:31 am 2:31 am
A change in leadership is good at this point. Difficult and chaotic but will allow the companies to take a step in a new direction. Clean slate.
Posted by: Steve Mahoney | March 30, 2009, 2:32 am 2:32 am
I admire the tough “make it so” stance with the Big 3 auto manufacturers. So, when’s the government going to get tough on the banking and insurance industries? If any industry needs a good spanking, it’s those two!
Posted by: As I See It | March 30, 2009, 2:36 am 2:36 am
American Cars are Garbage!
Posted by: matsui yakamoto | March 30, 2009, 3:09 am 3:09 am
THIS USED TO BE A HELL OF A GOOD COUNTRY!
Posted by: Uncle Sam | March 30, 2009, 3:11 am 3:11 am
“None of the car makers have a clue. Ford seems to be moving in the right directions by selling off non-core companies. GM however is drowning in their own vomit and don’t even know it. The unions HAVE to go! Period. No more discussion. Unions unfortunately have a strangle hold on management’s and politician’s balls. ”
Funny… Ford has unions… yet, you praised them… perhaps, it’s not the autoworkers but management? My goodness… that can’t be… it would violate your right wing philosophy!
Posted by: Mike | March 30, 2009, 3:23 am 3:23 am
“Promising money IF a plan is in place is all well and good but It will be interesting getting a plan without a CEO. ” blah… The new CEO is the guy who handled the restructuring, so they aren’t losing anything. The auto team does have manufacturing guys in the team, not just finance guys… and the government is guaranteeing operations, so no need for COD. More details are coming out, and it’s not as “ignorant” as you want it to be…
Posted by: Mike | March 30, 2009, 3:30 am 3:30 am
I read the “viability plans” that General Motors and Chrysler submitted, and they were nothing more than smoke, mirrors, and pipe dreams. Nothing in them showed any change in true direction that would ultimately make either GM or Chrysler a viable company.
American car manufacturers had absolutely no reason for not seeing what was coming. For literally decades now, the government has been trying to get tighter restrictions on fuel economy as well as emissions. Foreign cars have made the great strides in market share in the US that they have, because those were the cars that got better gas mileage. (You didn’t see many Toyota, Honda or Datsun/Nissan cars on the roads before the gas crisis of the 70′s.) Yet the “Beg-3″ continued to ignore all that and kept attempting to foist their big, polluting, gas-guzzlers off on us for many, many years. Their “excuse” for dragging their heels? “It would cost too much to re-tool.”
Rick Wagoner was at GM for over 8 years. He COULD have tried to lead GM in the right direction, yet he continued to take the company right down the road to ultimate failure. And the “viability plan” he showed up in Washington with a few months ago just continues to show how he still doesn’t “get it.” That he still thinks GM can continue just like they’ve always done and will just keep getting the American taxpayer to bail them out. He, as well as “majority of [GM's] board” need to clear out.
Now if Obama would just take that same attitude to the CEO’s and execs of the failing Wall Street firms……
Posted by: Jaylah | March 30, 2009, 3:40 am 3:40 am
go to this page i havnt done much research i read the article a minute and a half ago. and something soundes wierd so i typed in “fiat and its subsidiaries” to google and this is the first thing i came across….interesting that the president would recomend partnering with fiat………this article is from the department of justice……not paying attention are we…..
FOR IMMEDIATE RELEASE
Fiat Agrees to $7 Million Fine in Connection with Payment of $4.4 Million in Kickbacks by Three Subsidiaries Under the U.N. Oil for Food Program
WASHINGTON – Fiat S.p.A. (Fiat), an Italian corporation based in Turin, Italy, has agreed to a $7 million penalty for illegal kickbacks paid to officials of the former Iraqi government by three of its subsidiaries, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division announced today. Fiat agreed to pay the fine as part of a deferred prosecution agreement with the Department. The matter is part of the Justice Department’s ongoing investigation into the U.N. Oil for Food program.
Criminal informations were filed today against three Fiat subsidiaries in U.S. District Court for the District of Columbia. Iveco S.p.A. (Iveco) and CNH Italia S.p.A. (CNH Italia) were each charged with one count of conspiracy to commit wire fraud and to violate the books and records provisions of the Foreign Corrupt Practices Act (FCPA). CNH France S.A. (CNH France) was charged with conspiracy to commit wire fraud.
Fiat has acknowledged responsibility for the actions of its three subsidiaries, Iveco, CNH Italia and CNH France, whose employees and agents made improper payments to the former Iraqi government in order to obtain contracts with Iraqi ministries to provide industrial pumps, gears and other equipment. The agreement requires the company and its subsidiaries to cooperate fully with the Justice Department’s ongoing Oil for Food investigation.
According to the agreement and the informations filed today, between 2000 and 2002, Iveco, CNH Italia and CNH France paid a total of approximately $4.4 million to the Iraqi government by inflating the price of contracts by 10 percent before submitting the contracts to the United Nations for approval, and concealed from the United Nations the fact that the price contained a kickback to the Iraqi government. Iveco and CNH Italia also inaccurately recorded the kickback payments as “commissions” and “service fees” for its agents in its books and records.
In recognition of Fiat’s thorough review of the illicit payments and its implementation of enhanced compliance policies and procedures, the Department has agreed to defer prosecution of criminal charges against Fiat and its three subsidiaries for a period of three years. If Fiat abides by the terms of the agreement, at the end of the three-year period the Department will dismiss the criminal informations against the subsidiaries.
The Oil for Food Program was established by the United Nations to enable Iraq to sell its oil for humanitarian purposes, in the context of an extensive international sanctions regime. The Oil for Food Program mandated that the proceeds of oil sales be deposited in a United Nations bank account and that those proceeds be used by the Iraqi government only to purchase humanitarian goods and services, such a food and medicine, approved by the United Nations. Beginning in 2000, the Iraqi government began requiring companies wishing to sell humanitarian goods to government ministries to pay a kickback, often mischaracterized as an “after sales services fee,” to the government in order to be granted a contract. The amount of that fee was usually 10 percent of the contract price. Such payments were not permitted under the Oil for Food Program or other sanction regimes then in place.
In a related matter, Fiat reached a settlement today with the U.S. Securities and Exchange Commission (SEC) on a complaint and agreed to pay $3.6 million in civil penalties and $7,209,142 in disgorgement of profits, including pre-judgment interest, in connection with contracts for which its subsidiaries paid kickbacks to the Iraqi government.
The investigation of Iveco, CNH Italia and CNH France, and of other humanitarian goods suppliers involved with the Oil for Food Program, is being conducted by the Criminal Division’s Fraud Section and the FBI’s Washington Field Office. This case is being prosecuted by Fraud Section Trial Attorney Lori Weinstein.
To date, more than $24 million in penalties have been levied by the Department of Justice in cases involving the suppliers of humanitarian goods under the U.N. Oil for Food program.
The Department acknowledges and expresses its appreciation of the significant assistance provided by the staff of SEC’s Enforcement Division in the ongoing Oil for Food investigation.
Fiat Information
Fiat Deferred prosecution agreement
Fiat France Information
Fiat Italy Information
###
08-1140
Posted by: andrew | March 30, 2009, 3:44 am 3:44 am
Hey CHANGE guy or gal, Rush Limbaugh already has the job making glib statements, trying (unsuccessfully for the most part) to be a comedian and run the country all at the same time. Do you have even the tiniest useful suggestion on how to keep down job losses or make our nation more competitive?……….thought so…..
Posted by: libertyjustice33 | March 30, 2009, 5:49 am 5:49 am
AMERICAN CAR MAKERS CAN NOT COMPETE WITH $.50/DAY CHILD LABOR. FACT! THEY ALREADY HAVE UNSKILLED LABOR DOWN TO ABOUT 1-2 $ ABOVE MIN, WAGE. WITH MIN BENEFITS. TARIFF TAX IS A NECESSITY, NOT AN OPTION.
Posted by: drwfll | March 30, 2009, 6:21 am 6:21 am
It’s time these companies give Obama the middle finger salute and file bankruptcy
and come out of it a leaner better company.
Posted by: hkdakota | March 30, 2009, 6:34 am 6:34 am
I wonder if the UAW and leadership and their lapdog Congressman Dingbat and Michigan Senators all would vote for Obama now. They praised the messiah and now he is pulling the rug out from under them, too bad you greedy s.o.b.’s.
Posted by: jim 234 | March 30, 2009, 6:38 am 6:38 am
obama must stop spending good taxpayer money after bad. GM and Chrysler should file bankruptcy, should be made to file bankruptcy. both companies, along with the UAW, have failed to make deep, serious spending cuts. they have all failed to drastically change/upgrade their business model and performing more like non-profit organizations that depend on donations. enough! make the file bankruptcy for the good of american taxpayers across the nation.
Posted by: Lawrence | March 30, 2009, 6:46 am 6:46 am
Many of us would love to buy American made vehicles but we wont because they are poorly designed and are constantly in need of repair. You cannot afford to buy one basically -the upkeep is tremendous. The auto industry is to blame…They should have started to wake up 30 years ago but they just pushed their junk and their gas guzzling suv’s !!! Even offering big rebates to americans to buy bigger and bigger trucks and Suv’s. Totally out of touch with reality and gas prices etc …. Never concerned about conservation or the environment at all. Now they will pay dearly for their obstinence. We will keep buying Hyundai, Honda, Nissan etc because they are well made and fuel efficient.
Posted by: jimbo | March 30, 2009, 6:49 am 6:49 am
Let us NOT forget the HUMAN side of GM and it’s employees! And remember these facts!
GM employs nearly as many Americans as all foreign automakers combined.
Nearly 3 million U.S. jobs depend on automakers. For every one auto employee; nine more U.S. jobs are supported in surrounding communities.
Buying one GM vehicle supports 78 jobs per car, (including the U.S. supplier base); vs. 34 jobs that are supported by the foreign car manufacturers.
GM vehicles contain 75 percent domestic parts vs. 33 percent domestic parts in foreign automobiles.
Auto parts suppliers are the largest employer in five states, and a top five employer in 11 other states.
When buying your next car….If you buy foreign..go live foreign!
Just wanted to share these facts with you.
Posted by: Nikki | March 30, 2009, 6:53 am 6:53 am
Government response , no we dont like that plan . No we dont like that plan either . No we dont like that plan either .
If the government knows how to turn things around , then tell them what you want and they will either tell them that it can be done or no it cant be done and how to do it .
What the government should do is place an order for something like ten to twenty thousand Volt type of cars and advance payment for them . The company GM , should make a commitment to only make cars that use the Volt technology (Chevy Volt , Cadillac Converj , and Buick Electra ) and conventional vehicles that are all Series Hybrid and high mileage with a factory or two to make commercial puck up trucks for business.
No cushy plush pickup trucks for anybody , and no big ugly SUV’s for anybody including the government . Maximum engine displacement at 2 liters . ( good for 200 horse power )
Chrysler should commit to making only the highest possible fuel efficient cars and commercial vehicles , Series Hybrids and Pure Electric vehicles and conventional Work type of trucks and vans , but no luxury SUV’s either .
Ford has already stated that it plans to go Hybrid and Pure Electric with its production in the coming years .
It would be good for the American automobile industry to make the change to high mileage Series Hybrids and Pure Electric vehicles now and lead the world in this technology for years to come .
If the government wants to help , let them place and pay for orders of the new technology and leave the management look after the research , development and production of them .
If I am running a factory that makes cars with V6 engines that get 24 miles per gallon and a customer wants a 4 cylinder Series Hybrid that gets 50 miles per gallon and is willing to pay up front for them , damn it , I will make as many as they want . If the price of fuel is high enough so that the cars are attractive to the general public I will even increase the supply by adding another shift to the production line . After all one client is good , but many clients is a lot better and makes more profit for my company .
An adjustment on the retail price of gas and a known price would help too so I can forecast what my production numbers will be .
Dont blame Rick for this , the blame has to be shared by the government for not setting a price for fuel like they have in Europe . ( $3. would be a good starting price )
It is the American way , dont take the blame for anything , blame somebody else if you can .
Posted by: GeneralPublic | March 30, 2009, 6:56 am 6:56 am
I can see GM going back to the original 4 divisions. I do not know who would build the Hummer and other brands they have. My only concern is how the President of the United states was able to get a car company CEO fired. That seems like a huge invasion of a company. The government needs to look at the UNIONS as well, they have had a big hand in the downfall of GM, Chrysler, and Ford. But the bottom line is there should be NO MORE BAILOUT MONEY!!! Allow the bankruptcy courts to work out a plan that will save the company.
Posted by: Lara | March 30, 2009, 7:01 am 7:01 am
Absolutely amazing! No concessions from the UAW, so obviously no matter what solution is worked out, without these concessions from the UAW it’s game over for GM and Chrysler.
How in the world can Obama now become a dictator to AmeriKan companies, no matter if they took the freely given taxpayer dollars or not? And if Odumba can become a corproate dictator he can become an AmeriKan dictator as well. I simply don’t like what I am seeing here.
Posted by: TxBoB | March 30, 2009, 7:12 am 7:12 am
I think that many of the people on here are unaware of the facts. JD Power just released it’s reliability report. Buick was #1 and way ahead of Honda and Toyota. The 3 car companies are too important to this country and the thousands of workers it affects. Next time you need a car, check out the American choices.
Posted by: pt | March 30, 2009, 7:12 am 7:12 am
What a joke. Everyone who wants union to go are the ones who never worked for them. They like working for the good old boy network. If you suck up and kiss butt you can get ahead. Unions are not perfect but they did not cause this mess. Stop and think about the investment. If a American auto worker makes 26.00 per hour and they build 75 trucks per hour at a selling price of 20,000 per vehicle that is a very good return on the investment. The plant has 2500 employees equals 650000.00 per day and they are putting out 1200 trucks in 2 eight hour shifts that is 1200000.00 worth of goods. Now the average worker at Wal-Mart or any other company does not come close to those kind of figures. I know there are other costs such as insurance and retirees are getting a pension. But retirees are not a direct cost on the production. Unions have taken over the insurance for the auto workers funded by a negotiated plan with the big 3.
Also do not forget who was there when the foreign countries fought us in WW2 auto plants turned to making war equipment.I do not think it was American workers who bombed Pearl Harbor. Who was there after 9-11. It surely was not Honda Toyota or the foreign companies.
Funny how everyone wants to kill the auto company and the work force when times are tough but they are the first ones tapped when it is a boom economy.
I think it can and will turn around and they are not asking to get a gift it is a loan. Times have been tough before.
I think the president is jumping in over his head. he was given all kinds of help when he needed an education. I supported him and voted for him now I am not so sure. He has changed his tune. Maybe if he decided to tell all the foreign companies to go home and bought back the American jobs over seas we could fix this, What wrong with America first. The foreign car plants could be retooled to build AMERICAN items.
There is mouch more to this than most american workers understand. Hatered for unions was fed by mis led executives telling stories and exagurating the facts against unions.
Sam Walton did not get to be one of the richest people in the world by treating his employees fairly.
Work needs to be done but if the auto industry reduces pay and cuts benefitS. Then Wal Mart and McDonalds will also reduce to reflect the current structure.
I am all for reducing if it will be across the board. Lets go back to .25 cent a gallon gas, houses for 10,000 etc.
When this country was settled the states gave people land to come and set up homesteads maybe we need to get back to that system and just start over. The current $15.00 per week in tax cuts does nothing.
It will be worked out but it is going to take time and killing the American auto industry is not the answer.
Posted by: B Miller | March 30, 2009, 7:17 am 7:17 am
TxBob needs to get the facts there have been plenty of give aways by the auto worker. Pay for new employees has been cut almost in half negotiated bonus that was paid to hourly and retirees at Christmas time has been taken away. Cost of living is no longer in effect. I think you need to know your facts before you shoot off.
Posted by: B. Miller | March 30, 2009, 7:21 am 7:21 am
Yeah, Unions ARE the cause of this mess. Do you see Toyota in trouble? And how scary is it that O’Bama asks the CEO to resign – can you imagine cars being built by the government??? Oh boy, we’re in REAL trouble now!!
Posted by: M. Smith | March 30, 2009, 7:25 am 7:25 am
I think it’s time that GM and Chrysler, along with the rest of us, decide whether our glorious politicians are worth saving!
Posted by: Tired of it! | March 30, 2009, 7:27 am 7:27 am
I believe that I’ll hang on to my crappy, poorly constructed Chrysler as it may become a collectors item with Chrysler going under. —— I really don’t understand why Obama did not require AIG, the banks, Wall Street,etc. to “restructure” as well. Must of been all those “campaign contributions”.
Posted by: Fay | March 30, 2009, 7:27 am 7:27 am
President Obama and the White House is in violation of the U.S. Constitution by behesting the GM Chief to resign.
According to Article II – Section 4 of the U.S. Constitution, it clearly states, “The President, Vice President and all civil Officers of the United States, shall be removed from Office on Impeachment for, and Conviction of, Treason, Bribery, or other high Crimes and Misdemeanors.”
In this case, he is in violation of Bribery, because the definition of Bribery also means, “Something that serves to induce or influence.”
President Obama’s influence in this matter is an impeachable offense.
President Obama is abusing his power to “influence” free enterprise and exchange.
Posted by: knowdalaw | March 30, 2009, 7:28 am 7:28 am
I totally agree with the Govt’s decision to force an uncompetent CEO to step down. The Govt has to make sure taxpayer money is being used wisely. GM and Chrysler knew the consequence when they took the bailout money. Bankruptcy will be the way out.
Posted by: Really? | March 30, 2009, 7:33 am 7:33 am
“Really” says that this is a good thing.
I hope “Really” is doing a REALLY good job at whatever they do, because this is saying that it’s okay for the government to swoop in and take over. GM should tell Obama where to stick his stimulous, declare bankruptcy, and start over on their own terms.
Or did I miss the part where doofus Reid and the horrible Pelosi created and sold all those great cars back in the day?
THEY will be deciding nwhere the auto industry goes now?
We are so screwed.
I mean, they all did such a great job so far…by the way…I thought this TARP was supposed to immediately start saving the world?
Last I heard, unemployment is still going UP….
This administration is filled with egotistical morons.
I pray (yes, Chris Matthews, PRAY) for this country.
Posted by: Jackie | March 30, 2009, 7:45 am 7:45 am
Amazing that a man who is not a naturalized citizen of the U.S. and who has never ran a lemonade stand in his life has the audacity to give marching orders to a major corporation.
But Obama drones wanted hope and change – they’re going to get it, in spades.
Posted by: Brian | March 30, 2009, 7:46 am 7:46 am
Corporate greed, economic failure, and a government that doesn’t have the brains to allow ignorant businesses to fail; throwing good money after bad.
I hear the distant drums of civil unrest…
Posted by: Billy | March 30, 2009, 7:48 am 7:48 am
I say put Axelrod in charge. What is needed here first is some sales. Axelrod was able to sell America on the Obamamobile. Surely he call sell a few cars.
Posted by: N'erdowell | March 30, 2009, 7:49 am 7:49 am
A perfect example of the mindset of the domestic auto makers is the latest models they have introduced. In the last few months Japanese maker Toyota has introduced a model called the Venza. Basically a stylish modern day station wagon, but they will sell a million of these things because it is aimed at the middle income family that needs a car with room for kids and is fuel efficient. At the same time, what have the domestics come out with? A new Dodge Challenger and Chevy Camaro. Two cars that are long on style and vroom-vroom, and short on practicality and need.
FOLKS, THE DOMESTICS DO NOT GET IT !!!!!
What kind of morons would build a sports car when their company is in financial trouble? These companies are clueless.
Posted by: Timothy | March 30, 2009, 7:50 am 7:50 am
Fay wrote “I think it’s time that GM and Chrysler, along with the rest of us, decide whether our glorious politicians are worth saving!”
Really Fay? Who went knocking on who’s door for money?
Posted by: Captn | March 30, 2009, 7:50 am 7:50 am
“Obama the dictator”? “Why does he think he can run a car company”? I’ll bet a dollar that the people that are screaming about this are the same people that were screaming that the auto execs should be (insert form of torture here) a couple of months ago.
What’s wrong with Obama? He is doing a great job. Do we agree with everything he’s doing? Of course not. And some of what he’s doing tastes like bad medicine.
“Obama” is not trying to run auto companies. GM and Chrysler are broke, insolvent, bankrupt, and applying for a multi-billion dollar loan. A committee set up by the Obama administration has reviewed the loan requests and decided that they are not likely to be able to return the loan. What’s the matter with you people? AIG is a different story – unfortunately. AIG has us over a barrel, and can prove it by recounting what happened when Lehman brothers failed. But – watch what happens in a couple of months if the newest TARP plan doesn’t work, I’ll guarantee that AIG’s CEO and board will be replaced, and AIG will officially be owned by the real owners – us.
That’s what I really love about this administration – instead of forcing the auto companies into bankruptcy 2 months ago as a number of people were screaming about, instead of taking the irrevocable step of nationalizing the big banks, they are actually trying to take the time to sort out facts.
Unfortunately for a lot of people, this research into what’s really going on isn’t fitting with your pre-conceived notions – like evolution, climate change, and other ideas that don’t fit in with how you think the universe should behave. The last guys did that – ignore “inconvenient” facts, such as “the people actually looking for WMD in Iraq aren’t finding any, so maybe we should wait a tad before we go charging in there”. Or, “95% of the scientists actually studying the issue agree that global warming is real and caused by human activity”.
Give me the “Obama way”. I’ll try to be a little more patient, too.
Posted by: Steve From NH | March 30, 2009, 7:50 am 7:50 am
Does anyone realize that liberal wacko environmental policies like CAFE standards and not drilling for oil here, combined with the highest corporate taxes in the world, combined with workers who bite the very hand that feeds them with ridiculous demands, and a car company with bloated middle management that spends too much on advertising and not enough on design have all created a perfect storm for GM? GM *should* have declared bankruptcy 10 years ago, moved out of Detroit, and built new plants in right-to-work states and they would be #1 right now.
Posted by: Stacy | March 30, 2009, 7:52 am 7:52 am
This is very scary–the government is now telling businesses who to employ. Just “hope” this is change you can believe in unless of course they decide you need to leave your job next.
Posted by: whathappened08 | March 30, 2009, 7:55 am 7:55 am
I think I will keep my old 1992 Subrue with way over 120.00 miles it runs good, do not need no new GM, or chryster.
Posted by: AP | March 30, 2009, 8:01 am 8:01 am
Now it comes out that BO won’t require repayment of the bailout funds already received by GM or Chrysler but will provide more working capital for both. Just another free money gift from taxpayers compliments of BO is my guess.
Posted by: Pepper | March 30, 2009, 8:03 am 8:03 am
Government Motors=Death Spiral->>>>>>>>>
Posted by: kevin mcmahan | March 30, 2009, 8:06 am 8:06 am
Even the elderly in my area aren’t buying American cars anymore. They are all buying Toyota Avalons and Honda Accords.
When the older “Buick and Chrysler” crowd are abandoning you, you know you’re in trouble.
Posted by: Texas Tea | March 30, 2009, 8:06 am 8:06 am
LET THEM GO OUT OF BUSINESS!!! We don’t need cars anymore. I catch the bus. Let’s go back to wonderful horses or something.
Posted by: Mockingbird | March 30, 2009, 8:07 am 8:07 am
You morons complaining abt Obama firing Waggoner didn’t complain when Bush fired head of AIG & replaced him with Liddy to get TARP funds.
Posted by: Gh | March 30, 2009, 8:11 am 8:11 am
Omigosh! The government is going to take over the automakers and hand-pick it’s board and CEO! This is socialism alright!
Posted by: Mockingbird | March 30, 2009, 8:15 am 8:15 am
Obama knows nothing about running a profitable business. All he knows is how to spend money he doesn’t have. It is absurd for Obama to make any judgements about business, nobody would hire him to run a small business.
Posted by: brian | March 30, 2009, 8:17 am 8:17 am
Obama is stating the obvious. The American public has know this for a long time. The automakers should never have received the bail out. Producing cars for which there is a limited demand is not capitalism. It is time to reconfigure America based on the current demands and not on what was relevant 30 years ago.
Posted by: gjkotw01 | March 30, 2009, 8:23 am 8:23 am
This has nothing to do with knowing how to run a business. This has to do with knowing what you can and can’t do. GM came back to the board with lines intact they said they were going to axe, and asked for more money. They had the option years ago to restructure and be profitable today, instead they spat in Ros Perot’s face and told him he didn’t know how the industry ran. Guess not only would he have made a good President, but he could have saved GM too had they listened. Now they have got to trim off anything that won’t make a profit, doesn’t matter if they like it or not.
Posted by: Alvincool | March 30, 2009, 8:23 am 8:23 am
Another Obama show. Last week he was “outraged” at AIG for the bonus, but behind closed doors he appointed Martin Feldstein to The Task Force On Tax Reform. Mr. Feldstein is on the Board of Directors at AIG. Is he going to appoint Mr. Wagoner to a White House position too?
Obama is a joke.!!
Posted by: CW | March 30, 2009, 8:24 am 8:24 am
Let me get this right…car makers make cars, banks and Wall Street make virtual papers. One you can drive, hold, feel, touch, and even enjoy or use to go to work. The other you can use to…hmmm, can’t drive it, can’t eat it, can’t really do anything with it because it is not real. Banking and Wall Street products are not real products, they only have an artificial value. Yet, the SOB CEOs and Banking Executives are called into the WH for a “chat”, none are fired, none are told sorry, no more money, while they continue to enjoy the luxuries of their mismanagement. If the GM CEO is told to take a walk, then so should the CEO of Citibank, Bank of America, AIG, and all these other lowlifes that took this country down the tubes. They should be the first to go down. At least the car makers make something, a real product. These other bastards make nothing.
Posted by: jake | March 30, 2009, 8:26 am 8:26 am
For all of the people who are saying President Obama is no businessman, are any of you actually involved in the decision making process within the White House? Do any of you actually know who is tapped for their experience and knowledge in these types of situations? I think not…
Best thing for you all to do is take a step back and get your heads out of your own asses for one second. President Obama in no way has ever claimed to be a businessman, and it’s pretty obvious that he has individuals he taps for their knowledge in this situation. Idiots…
Posted by: Seriously? | March 30, 2009, 8:28 am 8:28 am
UAW wins. No concessions and more billions of taxpayers money. I guess their donations to Obama’s campaign paid off.
Obama is using Wagoner as a scapegoat.
This is OUTRAGEOUS.!!!
Posted by: CW | March 30, 2009, 8:30 am 8:30 am
I know many foreign auto makers now provide jobs here in America but as deep throat said follow the money, when it’s all said and done where do the final profits go? A bank in Japan or Germany or whatever, not the USA. Also I have a hard time believing foreign vehicles are superior. I’ve owned Dodge, Ford, and currently drive a Pontiac Vibe and have never had to do more then routine maintanence. perhaps I was just lucky but I don’t think so. And I’ve driven these vehicles well over 100,000 miles before trading them. So to me foreign vehicles being better is a myth.
Posted by: hkdakota | March 30, 2009, 8:32 am 8:32 am
Most all of us agree there should be NO more bailouts for anyone- whether its Citi, AIG, BOA, GM, or whomever. Aside from a new person at AIG, I am not aware of any other bailed out company that has been forced -as they should have been -to replace the bad management that got them and us into this mess. Does seem that Wagoner was thrown under the bus, while the many on Wall Street that contributed so much to this crisis are still there and collecting their millions in bonuses. Also, all of these bailed out companies just keep laying off thousands upon thousands of workers. The only result from spending a trillion dollars seems to be a continued job and a bonus for those fat cats on Wall Street so they can keep contributing thousands in campaign contributions to those in DC.
Posted by: Angela | March 30, 2009, 8:34 am 8:34 am
I have been shopping for a new car. We are wanting to buy American products but they are just not competative in gas milage, dependability, price and options. I felt GM models were quit a bit more pricy comparibly. I don’t get it why doesn’t GM try lowering their price,..when products don’t sell isn’t that what producers are supposed to do. We seriously shopped for American and the dealer was not interested in leasing options and he ridiculed us about wanting good milage by saying its only a couple of MPG difference. We also wanted special options and was discouraged by their disinterest which was probably inability to provide them. I think American auto makers have just thought we would always buy from them by playing the patriotic card, even if they failed to keep up with the world market, its a globel economy and they have had their arrogant heads in the sand. If you snooze you loose and they woke up too late. In these hard economic times the average American needs to fend for themselves and get the best bang for their buck . We have been leasing a Honda for the last 3 years and decided to purchase at lease end with our 401K, before it totaly went into the crapper.
Posted by: 1ifbyland2ifbysea | March 30, 2009, 8:39 am 8:39 am
Many of the car companies and declining cities should reinvent themselves. Some of these ideas may or may not be doable to retool the car manufacturing plants. The car companies should diversify and build items not in the car industry per se.
1) Baby boomers are aging. Many will need the following services. They will need driving services to doctor’s offices, pharmacy stores, grocery stores, and perhaps to church. We need to build many small buses to transport retirees to these places. Perhaps small buses could also be used to transport people to major bus stops. Large buses could transport people to greater distances with fewer stops like places of employment or to health care specialists. Perhaps the car companies and declining cities could retool some of the empty car plants to make these new small and large buses.
2) Create new industries for items that will be needed for the aging baby boomers. Everything from small wind turbines for power to perhaps small computers to help people remember to take their medicine could be created in these declining cities. Perhaps car plants could be radically retooled to manufacture such items.
3) Import and assemble fitness equipment like stationary bikes and walking treadmills for people to use in their homes, places of employment and at schools. Presently, some of these fitness equipment go for as little as $100-$300.
4) Convert empty shipping cargo containers to mobile classrooms with windows and easy access doors to be used for schools. These new mobile classrooms could be set up at schools all over this great nation. The fitness equipment could be assembled in these new mobile classrooms for students to use. Studies have shown exercise is the best remedy for better test scores and lesser disciplinary problems.
Many successful companies have diversified outside their industry. For example selling groceries as part of a few discount retailers store stock they sell. The car companies and declining cities should diversify the items they make as well. They could help to build, assemble and transport some of these new items that will be in great demand for the new 21st century. In conclusion, diversify, diversify, diversify – of what you make and sell…
Posted by: dave in des moines | March 30, 2009, 8:40 am 8:40 am
This is both right and wrong at the same time.
While companies, even giant companies, can and do typically emerge from a chapter 11 filing leaner, stronger and a much more efficient company than when they entered. And the fact that from a elementary level, the executive management @ most of these large/huge corporations have been collectively tone deaf for years with respect management 101, and watched there competition move light years ahead of them in just about every area of there business.
Additionally, these businesses, at this level, (just barely below that of AIG in scope) and there intrinsic connectivity throughout there own segment(s) as well as touching many other business segments can and do have the ability to act/effect many others like domino’s, both upward, positively, as well as downwardly, can drive (take down) many other “good standing” businesses with them.
The checks and balances of our free market system have been perverted by these same individuals to distract/reflect/redirect any accountability at all………and here we are! Adding there relative size/scope of influence within there respective peer group and the potential systemic harm they could cause to many ancillary business segments collectively, it is prudent not to restructure as typically would scrub the balance sheets into a viable competing business.
So, to have a restructuring at these companies executive levels is absolutely necessary/required, and while we are at it, get to the root, common denominator, the boards & “compensation committees” that have laid the foundation for this entitlement these “executive managers” have stood on to rape there very companies as well as the rest of us.
That said, the government is inherently a very poor judge of how to manage anything in the free market environment. So we all need to make sure/demand that if and when these extraordinary steps are taken to correct the ships course’s that any stipulated insertion is short lived (one qtr or less) and singular in scope.
Take a step back for a minute.
Obama is nothing if not calculating, and he has surrounded himself with some of the brightest people in and out of DC.
He also knows that he take a much larger risk loosing more than gaining and a roughly 50/50 chance of this move producing positive results, but he does it anyway. Why? Because he knows that it is what is needed, both to accelerate bringing about the type of change that is desperately needed in this specific case but also sending several messages to the rest of the business community.
Posted by: DB | March 30, 2009, 8:43 am 8:43 am
What’s good for General Bullmoose is good for the U.S.A. …
Posted by: DontGet818OnMeNow | March 30, 2009, 8:57 am 8:57 am
Will Obama now fire the head of the UAW too, now that he’s fired the CEO of GM?
Posted by: Sigmond | March 30, 2009, 9:04 am 9:04 am
The head of the UAW is retiring next year.
Posted by: DontGet818OnMeNow | March 30, 2009, 9:20 am 9:20 am
GM: USA
CHRYSLER: USA
SOUNDS GOOD TO ME….
NATIONALIZE THE AUTO MAKERS…
MAKE THE FUEL EFFICIENT CARS TO LEAD THE NATION AND THE WORLD ONCE MORE…
INNOVATIONS IN CARS STARTS HERE, NOT OVERSEAS.
Posted by: O. | March 30, 2009, 9:26 am 9:26 am
Nobody want these cars. The UAW, Management, the whole shebang, is a dead company walking. These are zombie companies. Americans don’t want their under-quality, over-priced products. Interest rates could be zero and people just are not going to over-pay for stuff any more. Bankruptcy is a second chance. It’s got to happen.
Posted by: Robert | March 30, 2009, 9:26 am 9:26 am
The shock troops are out in force in this thread!
Posted by: vinman | March 30, 2009, 9:54 am 9:54 am
Quote from previous post: “I know many foreign auto makers now provide jobs here in America but as deep throat said follow the money, when it’s all said and done where do the final profits go?” Well, we KNOW where the profits have been going for the American Auto Makers. In the pockets of the executives! (Private Jets, Parties, Huge Salaries) If they had managed their money better and put it back into the company and not wasted it all by being so excesive, they would not be in the fix that they are. I used to think that buying “American” was good for our country but as it turns out it has only been good for certain individuals.
Posted by: LetsKeepItReal | March 30, 2009, 9:57 am 9:57 am
Even you libs have to be frightened by the sight of our President firing the head of a private company, no? Yes, we gave them money, and yes, we deserve some say in things, but this goes too far! Bad idea, and it will be tough to get off this slippery slope we just went down ….
Posted by: Obama, the second coming | March 30, 2009, 9:57 am 9:57 am
Just let them die. The UAW deserves it. I feel for the workers, but they supported these crooks, so be it.
Posted by: ctmom | March 30, 2009, 10:02 am 10:02 am
What does Granholm have to say about this?
Posted by: ctmom | March 30, 2009, 10:04 am 10:04 am
So, Obama’s review board didn’t rubber-stamp the viability plan and hand over the cash. And the team told Wagoner that, since he’s clearly too invested in the old structure to do what has to be done, there needs to be a change in leadership before government money gets handed out. So, people are upset about…what, again? No, this isn’t “socialism”–it’s simply a term of any potential loan. The UAW had to make certain concessions as a prerequisite to any loan, which I didn’t see any of the Red Scare crowd fret over–why should top management be exempt from having to make any changes? Wagoner’s demonstrated that he’s darn near oblivious to the problems with his company’s business model. Why lend money to a company that’s pretty much guaranteed not to make any changes under his leadership? Want the money? The Obama team didn’t say who should be put in charge–it just said that it shouldn’t be Wagoner if GM wants a loan.
Posted by: Hil | March 30, 2009, 10:08 am 10:08 am
Obama is so crafty, as always. Asking for this CEO’s, will certainly steer the American focus away from the incompetent WH administration! How lucky is Obama? He doesn’t give a hoot about our auto industry, he just enjoys doing this, as I said, to take the unfavorable American impression of his horrible White House picks and HIS lackluster performance. Even President Bush would have handled this auto CEO better and with compassion.
Posted by: Pat H. | March 30, 2009, 10:09 am 10:09 am
King Obama has gone to far. He is inexperienced, and now he wants to run American Business. He lied to us saying not one person making less than $250,000 dollars would see their taxes go up and now he places an add on tax of over 25% of cigarettes, thus he lied to us. Where is my $1,000 he promised, once again he lied to us. He took Airforce One to California to be on a TV show, Pelosi takes a Military Plane to California every week or two and yet they tell the Auto Makers they are being wasteful? Are you kidding. Then there are those on here that think the Government taking over is great. To those I say you need to move the hell of the country, but it appears that King Obama may not allow that either.
Posted by: msskt | March 30, 2009, 10:14 am 10:14 am
And where are the cuts and sacrifices for the Union workers in the Obama plan?
Posted by: Will Stanton | March 30, 2009, 10:27 am 10:27 am
Hugo Chavez of Venezuela could not have fired the head of GM any better.
Since when can the US government oppress a private company to fire its CEO?
Obama = The ruin of the United States.
Posted by: Sally J. | March 30, 2009, 10:30 am 10:30 am
When the Big 3 carries an $11/hr retiree load and others producing cars in this country only carry $4/hr, the playing field isn’t level. The $7/hr difference is too great an obstacle to overcome. Obama could, with a single stroke of his pen, create a pool for all NA direct retirees to be supported equally, based on unit sales.
Problem solved!
Posted by: Don Webb | March 30, 2009, 10:34 am 10:34 am
When my grandfather, who flew in the Pacific theater during WW2 and hated the Japanese with a passion as a result, started buying Mazdas and Hondas, it was clear that the US automakers were finished.
Posted by: Robin | March 30, 2009, 10:36 am 10:36 am
European leaders have already told Obama that he is leading Americans down the road to hell. They also told him they really don’t want his economic advice, period! And now American businesses are being controlled by him??? I have little confidence in his ability to direct anything. Wake up America!!!
Posted by: Linda | March 30, 2009, 10:50 am 10:50 am
It is high time that someone quit throwing good $ after bad $. If GM and Crysler cannot come up with a viable plan, NO MORE FEDERAL TAX $$$$$! Way to go, President Obama.
Posted by: William J. LePetomane | March 30, 2009, 11:16 am 11:16 am
1) Only business can run business!
2) Government is evil!
3) Governement can’t even run wars!
4) Only business can run wars!
5) Let the businessmen run the wars!
Posted by: Paul M. Sark | March 30, 2009, 2:33 pm 2:33 pm
I agree that the big three have made terrible decisions, and the fact that union workers and management are at odds as they are at the big 3 is ridiculous and needs to change. The fact they didn’t prepare for a day when americans wouldn’t drive really big vehicles, never mind there non-existant mpg rating (or at least appearance there of).
However, on a broader scale, America needs to MAKE things. A state without industrialization is a slave to the rest of the world, If we only begin o consume and have raw materials, then we are no better than most 3rd world countries. We may not make cars in the future, but we dang well start creating more factories and less loft apartments.
Posted by: chris h. | March 30, 2009, 2:38 pm 2:38 pm
European leaders have already told Obama that he is leading Americans down the road to hell”
One European leader said that, Mirek Topolanek.
And he said it 1 day after his center right coalition government was dissolved via a no confidence vote.
Posted by: Ryan C | March 30, 2009, 2:39 pm 2:39 pm
Actually Bear, Obama has started a war…..just the media don’t talk much about it. New leader of Pakistan is also the Vice President of Socialist International. Obama has been using our military to go after this guy’s enemies so as Biden and Hilliary warned while the dems where still chosing who they wanted, Pakistans miscellaneous terrorists factions have united (instead of killing one another as before) and now are focused on taking us out. Obama is both corrupt and stupid—two very bad characteristics.
Posted by: PresGov | March 30, 2009, 2:50 pm 2:50 pm
OMG, we have an idiot for a leader. Seriously, this guy is even dumber than Carter…………..he must go.
Posted by: PresGov | March 30, 2009, 2:52 pm 2:52 pm
“Actually Bear, Obama has started a war…..just the media don’t talk much about it. New leader of Pakistan is also the Vice President of Socialist International. Obama has been using our military to go after this guy’s enemies so as Biden and Hilliary warned while the dems where still chosing who they wanted”
I love this amnesia experienced by right wingers!
We’ve been running operations into Pakistan and killing terrorists since at least Oct 2007.
Posted by: Ryan C | March 30, 2009, 3:04 pm 3:04 pm
Big business and highly paid executives had their chance at running this country. Their greed and complete lack of regard for the well-being of this country were their doom. Is Obama over-stepping? Maybe a bit. However, for all those who mistrust gov’t involvement, I for one would prefer the gov’t looking out for my interests than any large corporation who could give two hoots about me.
Posted by: Jim | March 30, 2009, 3:34 pm 3:34 pm
China v US money market funds
Posted on Thursday, March 26th, 2009
By bsetser
This Nation was [Bankrupt] Long Before President Obama’s Swearing in and he’s Stuck with having to make this Economy Better, After…
[[8 Years Of George W.Bush]]
—————-
China’s purchases of US Treasuries in 2008 (Setser/ Pandey estimate): $245 billion
US money market funds purchases of US Treasuries in 2008, from the flow of funds: just under $400 billion
China’s purchases of US Agencies in 2008 (Setser/ Pandey estimate): $38 billion. That reflects $85 billion in purchases through July, and $47 billion in sales since then …
US money market fund purchases of US Agency bonds: $542 billion
China’s purchases of Treasuries and Agencies in 2008: $283 billion
US money market funds’ purchase of Treasuries and Agencies in 2008: $942b
I am waiting for a round of stories pondering whether money market funds will continue to buy Treasuries and Agencies at their 2008 pace!
US money market funds holdings of Treasuries and Agencies rose by close to 350% in 2008, as their combined Treasury / Agency portfolio rose from from $392b to $1334b. That pace of growth of growth won’t be sustained. The large rise came from a low base.
But money market funds did hold more Treasuries and Agencies ($1357b) at the end of 2008 than China ($1233b) did.
Posted by: O. | March 30, 2009, 3:37 pm 3:37 pm
Oh My god! Now I can see why only 5 people out of every 100 can actually support themselves after they retire. Don’t get the idea that most who make comments here are very educated, they are perhaps, just angry. I bet if many here would just take an English writing class or two, they might become more able to understand the world and also to better express themselves.
Anger and hate are elements of childhood and youth. I think that everyone here on this site who make comments might be older but, maybe not beyond this period (youth or childhood) in their lives.
If we look at ourselves, in truth, “please try and sere it” we may all find that your complaints are a tiny part of all of America and its problems. In other words, you caused it, I caused it and together, we caused it.
Any man who has the ability to go to the top in this country and attempt to fix anything, puts his life on the line without a flak jacket or weapon.
Anyone out there who hate that person should consider having to make all of these decisions that Obama, and before him, Bush have and had to make on a daily basis before they critize.
Posted by: James Felder | March 30, 2009, 4:07 pm 4:07 pm
No more SUV lemons. Give us high mileage hybrids NOW!
Posted by: 33Greeper | March 30, 2009, 4:45 pm 4:45 pm
Great decision, Mr. President.
Posted by: 33Greeper | March 30, 2009, 4:47 pm 4:47 pm
“Anger and hate are elements of childhood and youth. I think that everyone here on this site who make comments might be older but, maybe not beyond this period (youth or childhood) in their lives. ‘
I haven’t seen any “hate or anger”, as you say, – just disagreement and opinions from different posters. You are the only poster to mention hate and anger, as far as I can tell.
Posted by: Sigmond | March 30, 2009, 4:58 pm 4:58 pm
The president is again trying to prove that he can and should control every aspect of our fading free country. But he should lead by example and by the same communist standards. Do I see the president and all his security people courting around in a Prius or Civic? Doubt it. Do I see the president putting force where force should have been placed first? The wall street crooks. I doubt it. The president keeps pumping more and more money into a lost cause: people that overspent beyond their means and banks that took advantage of people who didn’t have enough common sense to check out what an ARM loan was before falling into the trap of “if it looks too good to be true, it probably is”. My wife and I have lost 50% of our retirement funds because of greedy pigs and I feel no remorse for any CEO that gets canned or for any auto maker that puts out sub-standard vehicles or any homeowner who spent beyond their means. Let’s get back to American standards of hard work, high morals and character that doesn’t and shouldn’t have to be questioned. That includes all of our employees in Washington D.C. that we pay for with our tax dollars on a daily basis. To this point the president has been all talk and all spend. The day that the stock market rises and keeps rising is the day that confidence will be instilled in America. How can a president expect me to go out and stimulate the economy when half my life savings are gone and he has just put another trillion or two out the door for our kids to inherit and who are going to have to survive this mess. Let the auto companies fail, let the big banks fail (the bank in our small town is blossoming), and let the people fail that spent beyond their means. Then and only then will be get back on our feet. We don’t need a 3 trillion dollar welfare system on top of what we already have.
Posted by: Like it is | March 30, 2009, 5:49 pm 5:49 pm
People. This is scary, its never happened before and everyone is rightfully nervous. All I can say is at least someone is doing something and lets see what happens. BTW I work at Ford in Oakville Canada and am very interested in what happens.
Posted by: miltonmike | March 30, 2009, 7:10 pm 7:10 pm
Quote from Don Webb:
=================
Since when can the US government oppress a private company to fire its CEO?
Obama = The ruin of the United States.
=================
Answer: Since these private[sic...these are public companies, whose falling stock are bankrupting pension plans], are asking for billions upon billions of $ from the government.
Obama = The salvation of the United States from failed Reagonomics.
Posted by: SueInSC | March 30, 2009, 10:39 pm 10:39 pm
With all the Tax Payer Billions Invested to keep the American Zombie Car Makers Alive and Breathing…
Barely that is ?
—————-
Here’s the Irony…
1. Most of You Own a Japanese Car or German Car.
2. Most of You Would Not Buy a Used GM or Chrysler Car.
3. Most of You will Jump at the Chance to Attack The Government or President Obama…
Yet had little or Nothing to say about George W. Bush for the past [[8 Years]] of Economic Devestation. …
“Destroying this Country’s Wealth ,as well as the Un-Regulated Greedy, Corporate CEO’s and Wall Street Heavies, who had and are still having a Ball with Your Tax Pay Monies…
Note: You, the Tax Payer are the New Owners of …
GM:USA
and
Chrysler:USA
Spare me, Your Whining & Moaning…
Bush, Obama and the Congress saved BOTH Car Giants from being Down and Done for, with Tax Payers Money !!
You Contraries.
———–
GM and Chrysler are not…
[[Private Companies]] Any More..
They Cease to be Private, when Billions of Tax Payers Dollars…
Your and My Tax Dollars were Heavily Invested in them, to keep them in Business…
You Ding Dongs !!
Posted by: O. | March 31, 2009, 8:23 am 8:23 am
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Joannah
Posted by: Joannah | April 2, 2009, 3:02 am 3:02 am