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March 31, 2009

GM CEO’s resignation

Capitalism is now dead in the U.S.A. The final nail in its coffin was the decision by the Obama administration to ask for the resignation of Rick Wagoner, CEO of GM. Actions like this were usually reserved for places like Cuba, Venezuela and the old Soviet Union. Comrade Obama has certainly shown his true colors.

Having owned only American nameplates, I will now have to rethink my future auto purchases. Of the Big Three auto manufacturers, only Ford has managed to not sell its soul to the U.S. government. It will probably only be a matter of time until the Obama administration decides that Ford must also be brought under the umbrella of the “car czar.”

God help America when the government decides what cars should be made.

Gregg Barr
Lenexa

Comments

NoMoreMrNiceGuy

Of course union thuggery, higher corporate taxation, higher income taxation, and profir confiscation will surely allow Americans to prosper. It seems many just want a job working for the government.
I think every UAW worker should be required to thank non-union workers that PAY TAXES so these whiners can skate.

whispering_to_kc

Here's the list of Mexico's retaliatory tariffs ...

http://dof.gob.mx/nota_detalle_popup.php?codigo=5084119

My Spanish is rusty but I see Christmas trees. Onions ( I assume these are the same onions grown around McAllen, TX and worked by ... Mexicans). Almonds (see previous but substitute Merced, CA for McAllen). Cherries. Copy paper. Pencils. Coffee pots.

10-20% punitive tariffs. Ouch. That's gonna hurt.

whispering_to_kc

"How dare a company pay slightly MORE than the prevailing wage in the area they are operating?"

The prevailing wage for factory employment down South is similar to what a JoCo McDonald's pays. It's not a living wage. It's a poverty wage paid to the working poor. Factory employment in Texas, Mississippi or Georgia only pays $10/hr ... or less.

"How dare a company" influence our elected representatives to craft legislation intended to pad their pockets at the expense of the rest of us all while trying to convince us "it's for all our own good, trust us!!"

NAFTA went into effect in Jan94. For 1993 the US had a $1.6 billion trade surplus with Mexico. For 2008 the US had a $64 billion trade deficit with Mexico. The trend is unsustainable and in/outsourcing American truck driving jobs is only going to make things worse ... for most of us. And that's not to say anything about non-trucker Americans forced to share American roads with Mexican truckers.

http://www.census.gov/foreign-trade/balance/c2010.html

Is it Michael Savage who's always talking about "the enemy within"? That would be "you". You're the enemy within.

Marctnts

"...is moving to pay its people only a little over the going regional factory rate."

How dare a company pay slightly MORE than the prevailing wage in the area they are operating?

Marctnts

"Opening up American roads to Mexican truckers is a give-away to big business,.."

Actually, it's a requirement of the NAFTA agreement that Clinton signed. The teamsters have been fighting this provision of the agreement since it passed, and with the help of congress, have been successful to date.

We agreed to open up the roads when we signed NAFTA. If we don't honor our agreement, Mexico is fully within it's rights to impose the import tariffs that have the Obama administration scared.

NoMoreMrNiceGuy

So government should dictate the costs of products and services? Wages?
Fascism.

Kate

Reuters is reporting that Obama has decided bankruptcy is the best course for GM to take. http://uk.reuters.com/article/motoringAutoNews/idUKSP48811620090401

You lost me with your notion that the “Federal govt bails out banks = I’m a Commie”.

whispering_to_kc

I never said "Obama has it out for the unions" but some of his policy decisions lately hardly seem tailored for the working mans' best interests while he's just as compliant to Wall Street as BushCo ever was.

Opening up American roads to Mexican truckers is a give-away to big business, the US Chamber of Commerce and Wall Street. American truckers are anything but overpaid today and introducing Mexicans to the workforce will only force American trucking wages down further.

Bankruptcy for GM tosses the UAW on the street with hundreds of thousands of their current and retired employees. The US taxpayer will get stuck with much of the bill for that when the newly destitute GM people go looking for public assistance and pension guarantees. Free of the union/wage pressure from "up North", the Asian tranplants in the deep South will have room to lower their wages.

Meanwhile, the administration is defending Wall Street's bonus programs even as markets collapse and $trillions of taxpayer dollars are delivered unaccounted for to prop up the fatcats.

The only winner is ... Wall Street. I guess "some animals are more equal than others." Which, oddly, makes you the communist.

Kate

Last fall, one of the reasons we were told the auto makers couldn’t file bankruptcy was that people would be afraid to buy cars from a company in bankruptcy – what would become of their warranties. But now that President Goodwrench has put the full faith of the Federal Government behind those warranties, people no longer have to worry. And now with the creation the Directorate of Recovery for Auto Workers and Communities, we’re already taking care of autoworkers and communities.

The kind of reorganization the auto companies need is what Bankruptcy Court is for. We’ve already wasted billions. We don’t need to throw any more money down this rat hole.

On the other hand, whispering, your suggestion that Obama has it out for the unions some of your best satire to date.

whispering_to_kc

If GM goes "bankrupt", half their facilities will close and several hundred thousand of their unemployed, retirees and their dependents will suddenly become wards of the state (PBGC/Medicare/unemployment). That won't be inexpensive for the taxpayer.

One of the Asian transplants (Toyota or Honda) has already announced they'll, in the future, pay their mfg personnel less. The transplants have always paid their people just enough to keep the union threat at bay. As the UAW threat fades, they're now apparently becoming free to pay as little as possible. Whichever company it was (Toyota or Honda) is moving to pay its people only a little over the going regional factory rate. That typical pay across the deep South is around $10/hr. Working for only $10/hr, none of these transplant mfg people will be able to afford one of the vehicles they're building.

Obama recently said he'll revisit the recent closing up of the Bush Mexican trucker program, to open American truck drivers up to Mexican competition and put wage pressure on the Teamsters and independent drivers.

We're advancing further into sad times. Business is the only winner, but only in the short term.

The Houston oil business also thought they had it good as oil hit $150/bbl but that didn't last long either. The party was fun while it lasted but the only lasting effect was a hangover.

Kate

JHO, I hate those bottomfeeding elitists. They always manage to get a leg up in the public eye.

Pub 17

Nice Guy sho'ly can turn a phrase, can't he? He's now invented the bottomfeeder elitist. Good one, ESL Boy.

Kate

"My vanilla soy milk tasted funny this morning."

Sorry to hear that, Sol. But the Feds are all over that soy milk problem. http://nymag.com/daily/intel/2009/02/obama_chocolate_milk_available.html

red rover

Alas, Gregg, the government has been building cars for decades. Ever heard of seat belts, safety glass, air bags, emission standards, mileage requirements,etc? Do you think the auto companies did all of that out of the goodness of their hearts?
Always good to see nice guys standard anti UAW rant!!

NoMoreMrNiceGuy

If GM files bankruptcy, EVERY AMERICAN TAXPAYER should march on Washington and demand the CEO of America resign. First the clown hands out monopoly money like he just hit the lottery rarher than allowing the failed businesses to fail or reorganize.
What can we expect from a an ultra-liberal ambulance chaser? Honesty, integrity, moral compass? Never happen with these bottomfeeder socialist elitists.

solomon

My vanilla soy milk tasted funny this morning.

Damn that Obama!

Thank you
solomon

Kansasdog

stock price when Wagoner takes the reins, $90/share. stock price when Obama shows him the door $3/share.

Obama made the decision that the GM Board of Directors should have made years ago.

Kate

I thought we were told the Federal Government took “non-voting stock” in the companies they bailed out. But now that he’s replaced GM’s CEO, Obama wants to replace the board. And GM’s new CEO thinks bankruptcy looks pretty good right now – which is what they should have done months ago.

I don’t think President Goodwrench did Chrysler any favors, either, by ordering them to merge with Fiat within a month. . . or else. Fiat’s first offer must have been something like two large pizzas and a cannoli.

Kate

Personally, I think the President is taking on too much. I heard that the other G-20 leaders were a little ticked off yesterday because he kept stepping out of the room to answer On-Star calls.

And take a look at this poor man’s experience with the White House Auto Warranty Department.
http://reddotinaredstate.com/2009/03/31/a-call-to-the-white-house-auto-warranty-department/

 
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