Rick Wagoner to Step down as GM CEO, at Obama's Request.He could be heard shouting in the parking lot, "A sedan, a sedan, my kingdom for a well built, fuel efficient sedan!"
One day before unveiling his rescue plan for GM and Chrysler, President Obama asked Wagoner to step down.
"Mr. Wagoner was asked, and agreed to, step down as part of G.M.'s restructuring agreement with the Obama administration, according to an administration official who spoke on condition of anonymity because a formal announcement has not been made yet.No word, yet, on the color of Mr. Wagoner's parachute. My guess it'll require another bailout on top of the second bailout they were asking for.
The unexpected move by Mr. Wagoner, who has been at the helm of G.M. for eight years, was not confirmed by the company. A statement about Mr. Wagoner's future will be issued after the president's comments, which is expected to be Monday morning."
My take on all this - It's time for GM to be carefully spun off and sold to their competitors. I'm sure that Ford wouldn't mind taking Jeep, and I'm sure that Kia would love all the empty GM dealerships. Perhaps Dodge and Cadillac could survive on their own?
Oh, GM where did you go wrong? Let me count the ways.
Among GM's many problems, I think their worst failure was losing the Gen X and the following Gen Y (whatever you want to call them) crowd. There was never the kind of dialog or loyalty given to these customers, nor was it returned the way it was with previous generations of Americans.
Second largest mistake was to practically concede the sedan to their competition in favor of the more profitable truck and SUV, and GM luxury vehicles. Citation? Ford isn't asking for bail out money, are they?
Third, their business model assumes you're going to purchase another vehicle in three years. Seeing the repair bills and number of recalls a typical GM car gets, this seems to be designed - not a great strategy when your competitors even "seems" or pulls off the Quality issue to the consumer.
Four, their designs focused more on exterior than interior... really, have you been in a GM vehicle - there are gaps and strange things going inside because the engineers took cost cutting inside, not the exterior...
and Five, they were too big to change the ship back to sedans when gas went to $4.
What's your take on this America?
A link?
ReplyDeleteDow Drops 254 Points; S. & P. 500 Down 3.4%
Stocks slumped on Monday after the Obama administration gave
ultimatums to Chrysler and General Motors to overhaul their
operations, perhaps including a bankruptcy filing, or be
denied further federal aid. The Dow Jones industrial average
closed down 254.16 points or 3.2 percent to 7,522.02; the
Standard & Poor's 500-stock index was down 3.4 percent or
28.41 points to 787.53; and the Nasdaq was down 2.8 percent
or 43.40 points, to 1,501.80.
There has always been a line, ladies and gentlemen, which no president would cross, with respect to the distinction between the public and private sectors. Obama has now crossed that line. There is no limit to government's destruction of private activity or control over it.
ReplyDeleteUm. Dudes?
ReplyDeleteThe private sector came crawling to the government pleading for help.
GM & other auto industry players came to DC hat in hand just like any other welfare mom looking for a hand out.
After years of saying that they would be protected by the great gods of the market, they finally recanted their apostasy and prayed to the almighty Government for salvation.
Am not a huge fan of an over-bearing government, but I also do not believe in welfare at any level, be it personal or corporate.
How come when Bush fires an Attorney or two - it's pandamonium?
ReplyDeleteWhen Obama fires someone outside the government, in the private sector, hardly anyone says boo?
Maybe Americans like apples much more than oranges.
ReplyDeleteAsking eight people to resign because of a conflict that leads to a controversy http://en.wikipedia.org/wiki/Alberto_Gonzales#Dismissal_of_U.S._attorneys
it is a different matter than a company saying "Help us" & then being told that it needs new management.
And the fact that we're discussing the issue obviates your question about no one saying anything.