My New GM Car

[we vs us]

Good. Attention anyone, I am agreeing with Obama again.

Gah.  You are SUCH an Obama waistbander!

[guido911]

Gah.  You are SUCH an Obama waistbander!

[Gaspar]

Good. Attention anyone, I am agreeing with Obama again.

I wonder how many times we are going to throw billions of dollars at things only to realize that the free market does not respond well to tampering?  What a great lesson for the American people.

Again I am proud of our president.  This is not a surrender, or a policy defeat.  This is an honest evaluation of market conditions and an understanding that the right decision is the only decision worth making.  I believe this may signal an end to the campaigning of President Obama, and the start of a real Presidency.

Judgement should be held until we know this is the case though. 

If GM is allowed to file, it will be a painful, but from that pain, opportunity will sprout.  The failing company will likely be split up into several auto groups with fresh competitive philosophies, products, and market offerings creating ground floor investment opportunities, and innovations.

[Gaspar]

Just saw the speech President Obama made about half an hour ago.  Good decision for the most part.  Unfortunatly he attached a "one more chance" caviot that is not necessary, and a guarentee that the companies (GM, and Christler) would not be split up into functioning pieces.  I don't think the market will react well to that.

The smart rats have already jumped ship, and the unions will not bend any more, so the "one more chance" is a waste of time.  The government making a promise that the companies will not be exposed to the free market "chopping block" is a dangerous statement.  It implies that they will be propped up to continue as a whole.  It's difficult to cut out the cancer without surgery.

President Obama was so close to saying the right thing.  I'm glad he's at least getting closer.  We'll see how this plays, but I believe it's going to require another policy change before the free market gets over the indigestion.

Could be a negative 400 day for the market today.

[rwarn17588]

I think it's pretty obvious that Wagoner was told to step down because GM hadn't taken steps to streamline itself as Ford had several years ago.

Wagoner had been a GM bigwig for nearly a decade; he had a chance to steer the company in a new direction and didn't.

[Conan71]

I think it's pretty obvious that Wagoner was told to step down because GM hadn't taken steps to streamline itself as Ford had several years ago.

Wagoner had been a GM bigwig for nearly a decade; he had a chance to steer the company in a new direction and didn't.

I'm still not comfortable with the idea of the White House hiring and firing CEO's of companies, even if said company is presently on the government dole.  I may be making more of it than it really is, but a headline like "GM's Wagoner Steps Down At Request of White House" sounds a bit like GM's been nationalized.

[Gaspar]

I think it's pretty obvious that Wagoner was told to step down because GM hadn't taken steps to streamline itself as Ford had several years ago.

Wagoner had been a GM bigwig for nearly a decade; he had a chance to steer the company in a new direction and didn't.

I don't think he could have done anything to satisfy the wolves.  

Basically he was told to do the following:

1. Make cars that politicians can support, not SUVs, sedans or sportscars.
2. Reduce expenses without cutting employee pay or benefits.
3. Increase fuel efficiency with new technologies without spending money on new technologies or re-tooling.
4. Make a profit.

I bet today he feels like he won the lottery.  No one in their right mind will step up to that position now.

[Red Arrow]

1. Make cars that politicians can support, not SUVs, sedans or sportscars.

There is no guarantee that the public will buy vehicles that politicians will support. 

[Gaspar]

There is no guarantee that the public will buy vehicles that politicians will support. 

Exactly.

[rwarn17588]

I may be making more of it than it really is, but a headline like "GM's Wagoner Steps Down At Request of White House" sounds a bit like GM's been nationalized.

After billions of dollars in direct aid, what makes you think it hasn't? Taxpayers are essentially major stockholders now.

If GM didn't want oversight, it shouldn't have taken the money. It's not like it didn't know the possible downside of being on the dole of taxpayers.

[we vs us]

Basically he was told to do plan to do the following:

1. Make cars that politicians can support, not SUVs, sedans or sportscars.
2. Reduce expenses without cutting employee pay or benefits.
3. Increase fuel efficiency with new technologies without spending money on new technologies or re-tooling.
4. Make a profit.

Fixed that for you.

Gassy, have you ever heard of the Stockholm Syndrome?  Sometimes I wonder if that's why you're so completely focused on the general well-being of the top-most of the top tier. 

You know, occasionally they screw up too.

[guido911]

This is hilarious:

http://www.wjno.com/cc-common/news/sections/newsarticle.html?feed=244038&article=5233983

Gotta love it when GM's chickens come home to roost.

[Red Arrow]

A nationalized auto industry brings British Leyland to mind.

[dbacks fan]

A nationalized auto industry brings British Leyland to mind.

EEGAAD!!! I hadn't thought of that!!!!! If thats the case Lucas electrics and warm beer come to mind!

[Red Arrow]

EEGAAD!!! I hadn't thought of that!!!!! If thats the case Lucas electrics and warm beer come to mind!

EEGAAD and Lucas are an appropriate response.

"Warm" beer is actually about 50°F.  It is the proper temperature for many English Ales.  Ice cold and they lose their aroma and flavor until they warm up a bit.