Posted by the912project on March 31, 2009 · 236 Comments
And one more thing, President Obama says the government will back GM’s cars.
http://www.reuters.com/article/privateEquity/idUSN3034710420090330
http://online.wsj.com/article/SB123841609048669495.html
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236 Responses to “GM CEO Steps Down, White House Backs Bankrupcy and Buyers Incentives”
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So not only has contract law been ruled void by this Administration, but actual Corporate law? Was the board of directors consulted at all? Maybe Waggoner was not fired, but he was asked by the White House to step down. His answer should have been flat out no. Not only do the executives who had to return their bonuses have cause to sue for breach of contract, but I also believe the shareholders can sue the board of directors for and possibly the U.S. government for allowing Waggoner to leave.
President Obama made an oath to defend our Constitution. He has clearly done nothing but violate his oath.
Obama says that the government will back your warranty? As a former retail automotive executive, this would be probably laughable if it wasn't so myopic. First, if there is no manufacturer, there would be no parts to repair the vehicle. Second, if there was no manufacturer there would be no service facility. Third, the reimbursement of warranty repairs is a complicated process where the dealer (repair facility) and the manufacturer are often at odds as to what is called the three "C's" – complaint, cause and correction of a consumer's repair issue. Fourth, automotive technicians receive most of their training by the manufacturer. (Vehicles in service for a number of years often have new repair technology that must be disseminated and taught). I could go on, but I am sure you get the idea.
The surest way our American auto manufacturers will never recover is to have the idiot lawyers in Washington dictate management decisions. Just because they drive a car, doesn't make them auto business executives anymore than me eating a McDonald's hamburger makes me a cattle rancher.
It's my understanding that they have changed fleet fuel economies again today. I'm being told that they raised it to just over 30 miles per gallon. How in the world does Obama think they GM or Chrysler is going to be able to achieve an mpg like that and still manufacture an affordable vehicle? They continually change the standards to force people to own cars that they do not want! The price of the GM volt is right around $40,000. That is not a cheap automobile. I look at the hybrids that are out there and for the things that I do, the only thing that would work for me is a GM Tahoe hybrid or if they came out with a Pickup hybrid. But the mileage is not there. So these vehicles do not meet the requirements. I guess that means back to the old drawing board. And that means higher cost for more R & D. Or, I won't be able to have the vehicle I choose because they say that I can't. WOW, now they're trying to control my hobbies and interests. This is digging into my personal life and that's someplace where the federal government has absolutely no business.
I'll stick to F350.
I absolutely agree with you! We should be boycotting GM and Chrysler for the very fact that their sniveling, inept execs would toss every vestige of free enterprise capitalism out the window to save their own sorry asses. To watch who are supposed to be our most powerful corporate executives panhandling in front of congress was absolutely nauseating. I would have rather seen them go down with the bankruptcy ship, heave-ho the union contracts with the UAW and reemerge as competitive companies. They've had 30 years to deal with the bloodsuckers from the UAW and get themselves competitive, but each time a new contract came up these morons gave them what they wanted….with what as the end game? Eventually sucking up to the government to pay the union what they could no longer afford to pay them? Time to boycott GMC (Government Made Crap)!
THE CEO OF GM HAS STEPPED DOWN OR WAS FIRED BY OBAMA WHATEVER! HAS ANYONE FOUND OUT HOW MUCH THIS PERSON GETS WHEN HE LEAVES THAT POSITION.THEY ARE USUALLY GUARANTEED A SEVERENCE BONUS IN THE MULTI-MILLIONS PLUS STOCK OPTIONS.IT IS BEING KEPT QUIET.WHY?DOES OBAMA WANT TO COVER UP THE FACT THAT HE PROBABLY SCREWED UP AGAIN. SOMEBODY PLEASE FIND OUT SO THE POBLIC WILL KNOW.
How much he gets when he steps down is immaterial and nothing more than a distraction to the real issue.
The president of the United States over reached his constitutional powers and had a PRIVATE CITIZEN FIRED FROM HIS JOB.
It will start with the CEO's, but now that this precedent (and so many others now) has been set, no one is safe. Welcome to the Fascist States of America.
<DIV>you are right greed is an incentive. Thanks for the info
Sorry to disagree with you. As an small business owner of 48 years the number one priority of any business is to make a PROFIT. Everything flows from that. If you don' t have a profit there is no business, thus no employees. I value my employees and consider them my number one asset after the profits are made…
Until it takes us a basket of dollar bills to buy a loaf of bread. Study your history….
Unfortunately, I think you are probably right. A month ago I would have said that such a thing would be impossible in this country, but I also would have laughed at you if you had told me that the president would fire a private sector employee. Times they are a changing,
DOES THE WORD HINDENBERG mean anything to you???
Classy huh.
I just can't in good conscience buy a GM in future. It has nothing to do with boycotting. I just want a car that works well and everything the government touches tends to break… This all is so infuriating. Thank heaven for the 9-12 project proving that common sense hasn't died completely and many Americans want values to reign, not socialism. God bless!
QUESTIONS??? – As Obama motors begins to call the shots regarding warranties etc. what are the legal ramifications for suites brought against GM in the future? Does the government ownership of GM give them legal immunities?
Does the goverment get to approve their own mergers as well?
How does a guy who never ran anything in his life know, spewing "absolutes," that a business plan will or/ will not work?
I suggest you take your concerns to his complaint department- ACORN. Then with a kick in the ass, a punch to the face from your local brown-shirt you'll be on your way with a new outlook.
When any organization spreads itself thin to cover the broadest possible audience, then its focus and efficiency decrease. This happens with churches, with businesses, and it has been happening with our government for way longer than I have been around. If I want to buy a really nice guitar, I am not going to go to Walmart where they sell guitars, but rather to a guitar shop. If I need surgery, you won't find me at a university just because there are a bunch of folks running around with 'Dr.' in front of their name. Why can't our government allow auto makers to make autos and the healthcare industry to care for the health of people? The government needs to know its purpose and stick with it. The thinner it spreads itself, the more inefficient it becomes. I liked the recent comment by 'Larry the Cable Guy' on your show Glenn. I would way rather get a redneck to work on my vehicle than a suit up in Washington who probably doesn't even drive him/herself around. Government car repair/ government healthcare…just doesn't add up.
Thanks for the story on cross pens. I own a jewelry store and you are 100% right. They are manufacturing them in China. We used to sell lots of AMERICAN made Cross pens. Now I rarley order one, its a shame, they used to make a good product for a decent price. Now the price is higher than it has ever been and the pens are (at least they seem to be) of lessor quality. Whats going on here?
OMG Obama gave Queen Elizabeth an IPOD – these people are clueless
He is just thinking like a boy from the hood!!! It would have to be an ipod or a cell phone or maybe some DVD's of old movies stolen in the U.S and sent to England where they can't be played on the DVD players
i now see BooBama is going to take an active role in naming the BOD for GM – there is only one thing we can do now – Boycott GM (I hate to say that) Boycott anything the Government has anything to do with.
The governmment has no right telling a U.S. Corp who they can Hire or who they can fire. If you want to boycott G.M. do it for the right reason. It's called U.AW. They are the ones responsible for wrecking G.M.
As good as GM products are, I'm afraid this is too little too late. GM is the first American giant to have been successfully strangled by unions and governmental regulations. It's frustrating, yes, but perhaps a part of GM can be revived under the leadership of people who can move the company to–oh, I don't know–Arkansas, keep the unions in their place, reject goverment offers to "help" and continue making these high quality products without interference. I know, I am a "glass is half full" kind of person.
Fannie, Freddie and the rest aren't unionized. That is why he won't take them over (well, the USPS is unionized, but taking over the USPS would make it look like gov't failed and we can't have that!).
Here is the plan – Obama takes over GM, is looking a Chrysler and you can bet there is a plan for Ford. Once the big three are handled you will see union officials seated on the boards of directors for these companies thus returning the companies to their "rightful" owners, the workers.
And, about that $20 per week tax cut? I understand that the tax tables have not changed, so you will not only be paing it all back, you will be taxed on it as well!
As much as I disagree with these large bonuses for execs that drive a company to bankruptcy, it is more distasteful to have the government strong capitalism and freemarkets. I hope the execs sue to keep their contracted bonuses to prove the point. Sad that it has come to this.
Please get this straight, the CEO's did not drive their companies to failure. The government with it's rules and regulations did.
Detroit automakers and UAW have been failing for decades. Blaming the government and expecting to government to be responsible and fix things is living in denial, looking for the easy way out.
I appreciate this fabulous article: How to Think About Regulations by Daniel Oliver
He suggests suggest three rules to remember when thinking about regulations and I quote:
Obama is not CEO of automakers and has no right meddling. Of course his backing of the warranty makes me want to run out an buy a Deroit auto – NOT! Detroit and UAW have been in denial and miss managing for years. If they can not succeed on their own, bankruptcy awaits. The government should not be in the picture. No one is too big to fail. Obama is simply spinning things for his benefit and our demise.
GOD BLESS YOU!!! Someone out there gets the message correct….
Like any other form of government-run business- The bottomless pockets of the taxpayer will keep them running. Talk about unfair competition.
Obama has NEVER ran anything yet somehow over half of those who voted (counting the fraud votes from Acorn and others)….half the nation somehow thought he could run the country. What we need to do is educate the 30 % of those who voted for Obama, the others are lost causes….how anyone could vote for ANY person who never ran anything is laughable. And that is why we are where we are at now we have this socialist leader who lies day after day to us running our nation…Now SUPER Obama knows how to run GM? it would be funny if it wasnt so sad.
How about the Chicago Housing Projects??? That's got to be a success story isn't it??? Tiime for meds…
I have an idea of one way to show Obama how we feel about his takeover of General Motors. To begin with I want to state that I wish no emotional and economic harm or stress to current employees of the General Motors Corp., but the time has come that we have to make our voices heard. I am proposing a national boycott of GM products and services in protest to the new government controled company. You do not have to own or buy a GM vehicle to participate. General Motors manufactures more products than just cars and pickups. AC Delco (Parts & Accessories), GMAC (finance company), and all GM brand products are produced by General Motors.
Barack Obama is a problem! First he declares CEO Wagner is out, then appoints Henderson the new CEO in charge of cleaning up GM. What does Obama think he is? He has taken over control of the private car makers, demanding what will be done. He has become Baby Hitler! His declaration that Chrysler most merge with Fiat, a company that is next to declaring bankruptcy itself. A foriegn company from Italy? where does he think he received all this power by becoming President? Does he think he will become the world leader of a world economy? Lets arise, and cut him down to size, for the benefit of all!
I though we were doing all this stimulus and bailout to prevent bankrupcy and now after we have sunk millions and billions of dollers into this the gov't is saying that GM will have to use bankrupcy laws to reorganize?!?!? I dont know about you guys but that sounds like bankrupcy to me! In the end I guess to no real suprise this was just another way to get gov't fingers into another industry. Im just waiting for the compleat power grab and General Moters to become Government Moters. After that Im sure laws will be passed making it impossiable to either make, purchase or afford cars produced by any other company. That way we will all be driving our little hybrid and eco-friendly gov't sanctioned pice of junk. One of the keys to true freedom is mobility, the ability to travel more than 200 miles without stoping to recharge. Once mobility is limited we become easier to control and more dependent on gov't.
Sic Semper Evello Mortem Tyrannus
Are you really sure we have enough controls? If we do then why are we in this financial crisis? Isn't the point of controls to prevent the natural greed inherent in capitalism from damaging people's lives? While its nice to say that free market capitalism is the answer, lets be honest, it has brought a lot of bad with the good. Ask the workers in Andrew Carnegie's steel mills, or those who worked in the meat packing facilities of Chicago at the turn of the century. I'm sure they would tell you that free market capitalism is nothing short of terrible. It is for this reason that we have regulation, to prevent something like a communist revolution.
True Marxists hate regulation, because regulation quiets the masses and prevents what they see as the inevitable revolution from happening. Yes, regulation does hamper business, but sometimes business needs to be hampered. Why? Because it has been proven time and time again not to be trust worthy. Yes there are thousands of fantastic businesses out there that do the right thing. But there are also those that are run nothing short of immorally. This is what regulation is there to take care of.
Humans are imperfect creatures, and the purpose of government is to prevent us from hurting and killing each other. In the realm of economics, the government must also prevent us from hurting each other, hence regulation.
I wish humans were perfect and we didn't need regulation. I wish we could fully unleash the economic potential of this country. But lets be honest, when that has happened historically, people have been hurt.
You are missing a key issue related to the current finanical crisis. It was the GOVERNMENT controlled Freddie and Fannie who were loaning monies to people who could not afford the homes they were purchasing. This was due to the fact that the GOVERNMENT was pushing financial institutions to loan to everyone! Our Country has been heading in the wrong direction since the 90s. Organizations like ACORN feel that every American deserves to own a home. Unfortunately, this is a false concept. GOVERNMENT is the problem, not the solution.
The Bilderberg Group, Bilderberg conference, or Bilderberg Club is an unofficial annual invitation-only conference of around 130 guests, most of whom are persons of influence in the fields of politics, business and banking. Ever wonder who is pulling the strings behind congress or any politicians? You asked for the information and here it is. I disagree with it I think I am more powerful then any of these guys simply being an American with principles and concerns and my vote counts. I hope our tax money isn't really pushing for special interest, but so far my hopes are frailed by reality. Well here is the report you all asked for: http://www.theidolworld.com/blog/blog
This is too bad. I was going to buy a GM car soon but now I'll have to buy from another company. I will not support this garbage.
Watch your backs people. If Obama can not only force out the head of a private business but gain the praise of the whole left and most of the uninformed right, he can do it to any one.
Wonder how long it will take us to become a 3rd world country. Obama printing money as fast as the presses can run and now in England talking of a New World Order and a currency other than the DOLLAR..
I have been explaining to my sons, they are 1 and 3 years old, that they are likely to have to fix the mess we are making. The one thing I can tell them is that Dad always bought a Ford! No "Government Motors" in the driveway. What a terrible end to a great manufacturer.
I suppose that all the new "smart" cars Berry's company will punch out will be all the rage in the next few years, but what if their not? hmmm.
Question – Would you see your cousin punished for your actions?
You openly admitted in your comment that regulation hurts some businesses that are already operating in a way you view to be moral. Punish the innocent because others are guilty?
Let me guess, you support gun bans too huh? Regulation in the name of safety, right? Indeed, let's be honest. More control isn't needed, more freedom is!
Wonder how long it will take us to become a 3rd world country. Obama printing money as fast as the presses can run and now in England talking of a New World Order and a currency other than the DOLLAR..
The "UNITED NATIONS" attacking our Constitution and attacking America the Beautiful.
Oh Boy — How do we get out of this mess???
Remember last year during the campaign, he was asked about the high gas prices. At the time it was around $4 a gallon, his response was that it didn't bother him, he just wished it hadn't gone up so fast. Now with him as the new CEO of GM Pelosi with her ties to PIckens and his wind farm, I think we'll be lucky is gas is only $4 a gallon.