Quote:
Originally Posted by JaysonAych
Don't see what the big deal is. If I get a car loan, the finance company dictates to me the minimum amount of insurance coverage I have to get, the maximums of any deductibles, and who the loss payee is (them). Because it's their money and they want to be sure they get it all back if something goes wrong with the loan.
It's not like the US Government put a gun to the heads of GM executives and said, "HERE TAKE THIS MONEY OR ELSE SO WE CAN OWN YOUR COMPANY HAHAHAHA." GM went to Washington begging for the money and they knew there would be stipulations to be sure that the taxpayers would get their money back and that the money would be used to make real changes at GM. If that's not getting done and they still want more government money (again, taxpayer money GM's asking for of their own accord), then I have no problem with the government telling them what they need to do differently to get that money so we don't end up shoveling it into a big hole.
That being said, Wagoner stepping down isn't going to fix anything. Henderson isn't going to turn the company around any better or faster than Wagoner. It's just a big PR spin on both sides of the table. A new round of loans is just delaying the inevitable.
|
Thing is the government shares responsibility for GM's financial woes. Political pressures (particularly from Democrafts) have made it more difficult for GM to get sensible terms from the UAW. There's also the CAFE regulations that have been yet another hurdle for GM to deal with. I'm not saying the government is the most responsible party but to act like they haven't played a significant part in the auto industries problems or the problems of the economy as a whole just isn't realistic.
Putting conditions on loans is fine, but for the government to get involved in staffing decisions like this at any level is should disturb everyone in the country. Especially since GM has made serious improvements compared to the downward spiral they were in. I have no idea how much of that was Wagoner, but if not for the economy crapping out GM would be in a much better place.