Why Booting Wagoner Won’t Solve GM’s Woes

GM's ex Wagoner

The AKA (Barry Soetoro) commonly know as Barack Obama had to produce a fall guy. But the real culprit is the Labor Union. It will take BANKRUPTCY to gut the outlandish Union Contracts to get GM competitive again. All that could be done without Obama's bailout of GM with taxpayer $. The new GM will be called Government Motors Corp.

whs806 of TX @ Apr 01, 2009 06:46:21 AM

GM matters?

Economic history is famous for its unsympathetic dismissal of businesses which fail to innovate and maintian competitive viability. Chrysler has always been a second-rate contender with few prospects; taxpayers should not bail out the fools who bought it from the fools who owned it before. GM built itself into a giant with the help of world war then slid down the slippery slope of complacency and mediocrity; when peril was finally recognized the hard-nosed measures needed were not taken. GM should have sought bankruptcy protection in early 2008; it either would have been sold for parts or emerged obligation-free, lean and hungry. Management, workers, suppliers, and investors all suffer in business failure, that is the risk of capitalism. We don't hear folks complaining about all the money they are making in good times and we shouldn't hear their crying when capitalism shows its hard side.

Ed Newton of IN @ Mar 31, 2009 17:29:09 PM

Why GM Matters

What disturbs me is that NO ONE appears to give a damn about the individual stockholder in this, many of whom have their life savings or a good portion invested in GM stock. Not everyone is a manipulative SOB which appears to be the manner in which our government perceives all of us. NO comments have been made about OUR fate, our dreams, our future in all this. What's especially interesting, as thankfully touched on even lightly in the article, is that GM's success in courting the unions, the bondholders, and everyone else is the prospect of ensuring their fates by an eventual recovery in GM's stock price. Rather than only threats of bankruptcy from our government, Obama (who I remain convinced is the right person at the right time) should be addressing the desire to protect present and future stockholder's and grow the current value of its stock. Since, clearly and reasonably, that is the stumbling block to getting every bondholder and union on board.

Albert C Moeller, Jr of FL @ Mar 31, 2009 12:39:11 PM

Re: Why GM matters

GM may have it's HQ in the US, but it is also a global company. That means that not every dollar it makes stays here, because people, institutions and organizations all over the world own GM stock and their bonds. When dividends are paid out to shareholders, it goes GLOBAL.

The same goes for Toyota, Honda, BMW, Daimler, etc.

To say that it is just American is a misnomer and keep in mind that many multinational are their countries of origin in HISTORY and registration only.

casualsuede of MO @ Mar 31, 2009 10:22:25 AM

Why GM matters

GM has and still is a great company. GM also known as generous motors , because they always were very good to their employes. Rick Wagoner had done every thing possible to turn things around and from that respect he did a great job. These changes probably should have taken place years ago before foreign competitors got tax incentivites and were coaxed by the US to build plants here. Remember GM is an American Company and the profits still stay here. This is not so with our foreign competitors...all the profit goes to their home land. Replacing Rick Wagoner makes things no different. The Goverment can't take care of its own problems...and for all practical reasons is in worse financial shape then GM. Read the book why GM matters....they helped make the middle class. Now we have Wall Mart @ $8.00 an hour that is larger then GM where are headed?

I hope this goverment intervention....works....God Bless GM and all its employes!

Al Pachyn of IL @ Mar 31, 2009 09:43:37 AM

Since when in the USA?

Since when in the USA does OUR government have the right to say who runs a private Corporation. This is a horrible precedent of things to come if "we the people" do not show our outrage. Our favorite JR Senator has never started, run or even worked in any private business in his life. Let's see, for that matter he's never run a State, City, Town or Hamlet either. Making payroll or operating within a budget? Nope.

What were you people thinking?

Chris Petty of GA @ Mar 31, 2009 09:42:59 AM

We are the problem

I have owned many GM cars and many Toyota cars. Today, the GM cars are not that different in quality and lower in cost. My 1993 LeSabre just got resold to a third buyer with 250,000 miles, and he was happy to get it. My 2004 LeSabre is running well. So is my Toyota Camry hybrid. But every time I see a BMW, Mercedes, I see dollars leaving the US, and a lot of them. If people bought US made cars (made by whomever) our economy would be much better. Americans turn most things into commodities, wanting low prices, or else want exotic foreign cars where the dollars leave the US. We need to think about buying American, something Obama and Washington don't seem willing to say. Dollars that stay in the US become over $10 of GDP. Dollars that leave are a trade deficit. You don't need to be an economist to figure it out.

Art of OH @ Mar 31, 2009 09:36:31 AM

stupidity is the mother of invention.

The big three reap whay they sow.

Ralph Perna of TX @ Mar 31, 2009 08:47:09 AM