When the CEOs of General Motors Corp. (NYSE: GM), Ford Motor Company (NYSE: F) and Chrysler again take the steps up to the U.S Congress tomorrow, they will again try to convince U.S. lawmakers that a $25 billion injection into all three companies will somehow stave off their collective death along with over a million U.S. jobs that would be lost if the three automakers cease to exist.GM's Rick Wagoner, Ford's Alan Mulally and Chrysler's Bob Nardelli -- all of whom flew to the last meeting with Congress on expensive private jets -- will be back in action tomorrow to try for the second time to siphon $25 billion from the federal government. Oops, I mean, the U.S. taxpayer. A few weeks ago, the trio were labeled as unprepared and failed to convince the majority of Congress that $25 billion would allow all three companies to somehow retool their complete efforts pretty fast.
If Wagoner, Mulally and Nardelli can't make their vision compelling with facts, future plans, some kind of competitive strategy and a five-year layout on changes they will make, along with being held accountable to each of them, then the end of the American auto manufacturing triumvirate as we all know it may be the end.
Of course, like many pundits, I sincerely believe that this is all for show and that a structured bankruptcy is the "way out" for at least Ford and GM at this point.
Speaking of leaders, Ford's Mulally -- who has shown some excellent chops at trying to rescue Ford in his two plus years there -- may be the only CEO that needs to stay. Wagoner needs to go (actually, years ago), and why on earth Chrysler nabbed Home Depot shenanigan master Nardelli is beyond comprehension.
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Reader Comments (Page 1 of 1)
12-01-2008 @ 12:27PM
jlbbisn said...
the big 3 are truely amazing...they sent most of their operations overseas and to mexico,shutting down plant after plant..they say that it was labor ect driving up the cost..when actually it was all the ceo's, presidents,and what ever names they used for the main office to secure very nice bonuses and stock bonuses and of course multi-million dollar salaries for all the executives....it didnt seem to bother the executives of the BIG# to lay off dedicated workers and move the biggest part of their industries overseas to line their pockets...i say that congress tell the BIG 3 the same thing the BIG 3 told their employee's " if you want a job go to mexico and compete with their wages" well BIG 3....."GO TO THE COUNTRIES WHERE YOUR MAJOR PLANTS ARE NOW AND BEG THE MONEY FROM THEM" thats more of a chance you gave the american workers when you moved...THEY GOT GALL DONT THEY
12-01-2008 @ 1:13PM
contrariansite said...
The government is printing money so fast that even cash isn’t a safe bet any more. And even though gold has slumped during this crisis, the long-term outlook for gold investing remains attractive. Once institutional investors stop dumping gold holdings and the US dollar rally stalls, gold will zoom back up to $1,000 an ounce and beyond.
http://www.contrarianprofits.com/articles/why-gold-wont-disappoint-for-much-longer/9127
12-01-2008 @ 1:15PM
contrariansite said...
The temporary economic issues of allowing General Motors to fail is better than propping up a lost cause with public money. Its time to let GM go and allow the process of creative destruction to work freely.
http://www.contrarianprofits.com/articles/why-its-time-to-let-general-motors-gm-fail/8633
12-01-2008 @ 7:27PM
joe said...
IF CHRYSLER IS OWEND BY A GERMAN COMPANY,WHY ARE THEY LOOKING FOR A U.S BAILOUT?
12-02-2008 @ 2:56PM
Pat said...
Sir,
You say Wagoner should have departed a long time ago.
Ehat about the managers below him that he described as the BEST TEAM to pull this off?
If he is responsible of appointing them and goes, it follows the ones he brought up in th elast 10 years need to be ejected too !
Otherwise it will be Business as Usual!
12-03-2008 @ 11:41PM
Neil said...
To: ALL AMERICAN'S
It is inportant for each of us to contact our Congressmen & women TODAY and tell them -
DO NOT US OUR TAX DOLLARS TO BAIL OUT AMERICAN CAR MAKERS!!
They need to go reorganize like any other busineses.
They MUST CUT THE OUTRAGIOUS WHITE COLLAR & UNION WAGES!!!
UNIONS ARE DESTROYING AMERICA" ability to compete in the golbal markets!!!
IT IS NOW OR NEVER - AMERICA
12-05-2008 @ 3:19PM
Lou T. said...
I wanna say fuck the greedy bastards, but it's tough because of all the people that will lose their jobs in the process.
CEO's and top execs should CUT THEIR FUCKIN' PAY. maybe they won't be in such restraints.
Pricks.
12-05-2008 @ 4:08PM
zeze said...
These so called big 3 should get their bail out money from the countries they out sourced to. Additionally, giving them billions of dollars is money down the drain because American families who have lost their jobs and homes are not thinking about buying a car or can even afford to buy a car. Let them fall. The cars made are a worthless piece of junk anyway.
12-06-2008 @ 7:11AM
kevn said...
Congress is telling the big three to retool your line build dfferent vehicles that are fuel effcient. I think this theroy is is a little to late. Now that gas may go back to near a dollar a gallon people will be able to drive there gas guzzlers again and we all know americans want the biggest and the best . Now they are going to build small cars that no one is going to want. They are always behind the eight ball. no wonder they are going bankrupt and this time congress is going to push them into another wrong decision and do what congress wants because they are in desperation mode to get money from them to survive. I'm a little guy who sees this why can't all these intelligent people at the top see what a little dummy like me sees at the bottom.
12-06-2008 @ 8:35AM
beverly said...
jlbbisn...said it ALL..that is how we americans believe..thanks for saying it like it is...
12-06-2008 @ 1:15PM
Glen said...
jibbisn said it all,,untill the greed stops at the top,this reccession will never end,,how can companies justify rewarding these F****** CEO's when they run companies into the ground,,,bonus are for doing a good job!,,,,the little guy always get screwed,,,and for all those wanting to blame the unions,,,you are so wrong,, union workers are the biggest "buyers" in the country,you don't see union workers misusing "your" money! Blame major company CEO's for high price's!!
12-20-2008 @ 9:30PM
Eriot said...
Big-3’s effort of technology improvement is inferior to other forgin company,especialy in the field of manufacturing technology.
In japan,cars body are made from more high tensile strength steel.Tradeoff between lightening and toughness is solved.So car weigh becomes lighter about 15% for vehicle fuel efficiency.
But forming cost of high tensile steel costs much when leaving just as it is,because damage of stamping die for body forming becomes very much.So more durable tool steel for cold stamping die use is developed by Hitachi Metals.
It is thought that there is also a cause which bankruptcy of big-3 may occures in the accumulation of a peripheral
technology in USA.