CEO Rick Waggoner is out… he was booted by the President of the United States. This is, of course, unsettling to see the government dictating over private sector business. This is some thing Hugo Chavez or Fidel Castro has done.
Sure, one could argue that they’re taking tax payer money in a bailout and that the government can step in since its their (our) money. Hold up…the auto makers were given a LOAN. To be repaid…
Think of it this way…you get a mortgage to buy a home. The bank then comes by and says, ya know you’re having some troubles and you want a line of credit. Cool… Tell you what, I’ll give you the money if you get rid of your spouse (CEO). He hasn’t been effective at managing the checking account and old debts (legacy costs). Oh, and that car (private jet), too fancy, too excessive. You should sell it and take a bus or cab (fly commercial). Oh, and don’t worry about the kids (UAW) and their allowances (benefits), they need those, its only fair. K, thanks…you’re loving lender (POTUS).
Dumb, huh?
What about the UAW boss, Ron Gettelfinger?
The UAW is the single largest line item expense for the auto makers. The Union deals have bankrupted GM and Chrylser, and the Big 3 let them. They have made them uncompetitive in the global economy. Look at Honda, Toyota, BMW, etc. All have assembly plants in the US…no union. Have you ever heard a single complaint about working conditions or benefits, the very things the unions represent? No, but the UAW complains to the Big 3…even with higher pay, better benefits, and legacy salaries.
So, the Big O needs to ask ol’ Ronnie to step down as well. The UAW is in the way by refusing to renegotiate their deals in a serious manner. If you want serious about being competitive, “eliminating waste and things that don’t work”…start here.
This will NOT happen… why?
The UAW gave Democrats $2,127,165 last year (compared to $12,000 for the GOP). Because our President took more PAC money than any other Senator or Representative.
Is Obama really serious about helping GM and Chrylser…or is he just on a power trip?
(by the way, love my Ford vehicles…..)
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If this doesn’t scare the hell out of you, there’s something wrong, really. No one that does not hold 50.1% of a companies shares should be making these types of decisions. Since when does a former community agitator and ambulance chaser know anything about running an actual business.
Plus, the argument that they’re taking a bailout of “our” tax dollars doesn’t hold water. Has anyone mentioned the fact that GM and their executives have also been some of the largest taxpayers in the US for at least the last 50 years? Sounds like they’re just getting some of their own money back!