Well, now we know why Wagoner is out. Say goodbye to GM in its current form. I can imagine what the stock will do tomorrow. The government warranty deal was a fairly clear tell on this. The question is, how will the UAW fair? I expect it will still do pretty well somehow.
In a taped interview to be aired tonight on NBC Nightly News, Fritz Henderson said that because of greater demands from the Obama administration to restructure, GM [GM 2.70 -0.92 (-25.41%) ] is considering the bankruptcy option. The auto giant previously had ruled out such a move, saying it would discourage people from buying GM cars.
I'm not being snarky, I really don't know. Isn't the point of the bankruptcy to void the union contracts. Isn't the administration just screwing them in slow motion? Or will the super-fast bankruptcy option fix all that?
Posted by: Just Asking | Tuesday, March 31, 2009 at 12:29 AM
"to void the union contracts"
I think the WSJ or someone dealt with this. Bond and stock holders will get creamed. That doesn't mean the UAW will necessarily. I would note Obama hasn't villified them for their refusal to re-negotiate on benefits, which is the real issue beyond salary alignment.Some work rule changes, etc, aren't much of a fix. And they will ave a seat at the table, probably a powerful one.
Posted by: Dan Riehl | Tuesday, March 31, 2009 at 01:07 AM
hmmm...
grammar mistake v. 13.4 billion dollar bailout mistake?
blame bush?
I'd point to its democratic congressional support, along with the "President Elect's" urging. If he wanted the title, it sounds like he wanted some responsiblity.
aboma's plan was to throw 13.4 billion at gm, only to let it fail a month later?
at least he didn't make a grammar mistake.
Posted by: mark l. | Tuesday, March 31, 2009 at 02:11 AM
Listening to some financial pundits, it appears that Obamateur is going to kill the profitable lines of vehicles from GM, because they are trucks. Putting politics over sound financial decisions.
Instead, they will surely make rice burners that will compete in the lawn mower olympics. Which Obama will probably denigrate soon, too. And no one will buy the cars.
Posted by: William Teach | Tuesday, March 31, 2009 at 09:13 AM
Nothing Obama and the government can do can make Americans buy American made cars. Bottom line. Perios. Case closed. Goodbye American Automobile Manufacturers and good ridance. You make lousy cars and nobody wants them anymore. The Japanese cars will put you out of business no matter what you do. Between bad management and cut throat UAW demands you have killed the goose that laid the golden egg. You have no one to blame but yourselves.
This has been inevitable since Honda and Toyota and the rest of the Japanese first came into this country. Quality beats junk every time.
Posted by: joeb | Tuesday, March 31, 2009 at 10:34 AM
"But now, in a little-noticed move, the House Financial Services Committee, led by chairman Barney Frank, has approved a measure that would, in some key ways, go beyond the most draconian features of the original AIG bill. The new legislation, the "Pay for Performance Act of 2009," would impose government controls on the pay of all employees -- not just top executives -- of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place. And it would give Treasury Secretary Timothy Geithner extraordinary power to determine the pay of thousands of employees of American companies."
This ought to make lots of friends in the UAW as "Turbo-Tax" Timmy sets their pay.
Posted by: Neo | Tuesday, March 31, 2009 at 11:07 AM
If you believe CNBC... I don't trust drive-by news sources.
Posted by: james | Thursday, April 02, 2009 at 02:05 AM