You may file this under he can't be serious. Looking in The New York Times business section, I notice that GM CEO Rick Wagoner skipped on over to Washington with his hat in his hand. It seems that Mr. Wagoner has discovered that the bailout legislation has been written in a manner that would allow him to get some money for his flailing company, General Motors Corp. (NYSE: GM). The funniness starts when you realize that Rick wants some money from the government (read that, us, the taxpayers) so he can finish totally wrecking his company by merging it with Chrysler. Really, the idea is almost too funny to laugh at. It makes me glad that my dad dumped his GM holdings when he did.
The Times' article states: "If G.M. or Chrysler were to go under, tens of thousands of people would be thrown out of work." That may be true in a fashion, but I have news for the Times and Mr. Rick Wagoner: if this merger happens, about 40% of those people now employed by the two companies will probably be out of work anyway. On the other hand, a merger of this sort would effectively pitch the UAW into the street, pretty much for good. Oh, I bet our friend Rick already thought about that.
If anyone who reads this has a chance to talk with GM's CEO Rick Wagoner before he pillages the public coffers to assure his income for a few more quarters, he/she might want to offer him this one little gem of wisdom:
An attractive, quality product, in keeping with the times, would really get your rear out of a jam, Rick.
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Reader Comments (Page 1 of 1)
10-28-2008 @ 12:15PM
Scott said...
Allen, you are absolutely correct.
10-28-2008 @ 12:16PM
Guy said...
If GM gives Uncle Sam $3B in preferred stock in return for $10B in aid, isn't that de facto nationalization of GM? Will the feds agressively enforce safety, mileage and securities regulations of a company it now partially owns? Are we really ready to take this unprecedented step?
10-28-2008 @ 12:32PM
Allen said...
I am glad to see that someone else shares my views (or I share his) that Rick Wagoner has wrecked General Motors, all the while that he is getting wealthier. Quite frankly, both he and Bob Nardelli of Chrysler have proven their gross incompetence as mangers. Of course, Nardelli was known to be unqualified when he was hired, having just trashed Home Depot and having no auto industry experience. (At the time, I made the observation that Cerberus hired him for the sole purpose of dismantling Chrysler, as the parts were more valuable than the whole and their product line is pure junk!)
The notion that tax dollars should be poured down the General Motors/Chrysler sewer is absurd! Really, who needs them? They are dinosaurs, awaiting ultimate extinction!
10-29-2008 @ 12:24AM
Pat said...
All things siad and done...to save Detroit the Govt. ( We the tax payers) must demand:
Mangaement: Top 10 % of managers take a 60 % cut in their salary, pay for thier health care & cars, get only one pension, in other words live like us poor people until they turn it around !
Unions: Just drop the Job Bank NOW, accept health care that the average US workers get, allow factories to shut down where required.
Taxpayers: Time we took a serious look
at Detroit cars. They are not as bad as the media tells us. Buy American to save your job, no matter what industry.
10-29-2008 @ 4:16PM
dave said...
People get real. If we as acountry are going to come out of this current economic and financial crisis the big guys like GM, GE ,FORD ,CHRYSLER have to survive. We are not only talking about the big guys by themselves but thousands of small feeder companies that supply everything from headlights to seatbelt latchs. If the big ones fail then so do all the little suppliers. Lets lend the cash needed. LEE Iacco proved years go that payback of loans can happen.
11-01-2008 @ 8:11AM
Paul said...
Wagoner should be replaced.This merger would cost 2.5 million people their jobs.
12-17-2008 @ 12:20AM
David Brock said...
With govenrment bailout approaching and announcemnt of Plan by Wednesday, stocks are reportedly going to rise significantly in days following. Is it confidence or speculators again entering the fray. It won't last long according to insiders, but it will be a positive for GM and hopefully some added movement of other stocks.
Wait and see what the next couple of weeks hold, with OPEC meeting this week, the Federal Gov't. bailout (Loan) it will be another wild ride for Wall Street.
David Brock
Private Market Analyst