What the Hell…?
The Washington Post and the Washington Times are both reporting that the Obama Administration used federal bailout money to coherce the CEO of General Motors to resign. First the Post;
The Obama administration has forced the longtime head of General Motors to resign and said yesterday that it would withhold additional federal aid to the auto industry unless the ailing companies undertake changes they so far have been unwilling or unable to make.
The administration effectively rejected as untenable the business plans that GM and Chrysler had submitted to restructure their companies, saying that neither had fulfilled the terms of the federal loans the companies received in December.
The president is expected to announce today that both companies may still win additional federal aid but under stricter terms.
And the Times;
The Obama administration has determined that neither Chrysler LLC nor General Motors Corp. can survive without dramatic changes in their businesses, and given them only weeks to completely restructure on a fast schedule that could involve a quick “dip” into bankruptcy, senior administration officials said Sunday.
The restructuring began right away Sunday, the eve of Mr. Obama’s public layout of his plan for the U.S. auto industry, with the White House asking longtime GM Chief Executive Officer Rick Wagoner to step down and be replaced by Fritz Henderson, GM’s current chief operating officer.
While Mr. Obama’s team has judged that GM could become viable with major sacrifices, it decided that Chrysler cannot survive as a stand-alone company, a senior administration official said.
And the Administration arrived at these decisions how? From the same people who’ve brought us the US Postal Service – arguably a business run by the government that is currently hemorrhaging cash? How many people in the administration have even a modicum of experience running a car company? How many union bosses are they going to force from their positions for corruption and poor judgement?
I’ll tell ya, if you weren’t worried about this administration before, ya hafta be worried now.
Category: Barack Obama/Joe Biden, Economy, Liberals suck, Politics, Usual Suspects
Yup, the folks who brought us the Post Office and Public Housing know better how to run a car company? Will Ron Gettelfinger have to go, because the UAW caused most of the problems for GM and Chrysler?
Send a message buy a Ford. At least they haven’t taken any bailouts and have tried to position themselves to survive without help.
Think Amtrak. Horrible service, prices that aren’t remotely competitive with other modes of transportation, and puking tax dollars from every orifice. So much for buying a new Jeep, it’s too bad Ford can’t figure out how to do a decent small SUV a la XJ/KJ. What the hell ever happened to manual transmissions, anyway?
HE SHOULD HAVE CHEATED ON HIS TAXES!!!
You really should stick to things you know. The Postal Service is having a terrible time because of Congress. It is the only Federal, State or Local agency required to prefund their retirees health costs To the tune of 6 Billion
dollars a year. No other private of governmental agency has been stuck with that. If they only had to fund their retirees health costs instead of future retirees they would save 4 Billion a year. I’m tired of the Postal Service bearing the brunt of jokes and idiotic claims of people who know nothing. It is amazing that they have done as well as they have considering the restraints that Congress has put upon the Postal Service.