Quote:
Originally Posted by Joe Wicked
I especially liked the comment about how the former head of GM was a step in the right direction since he knows how a car company should perform. Ummm....... Didn't GM go bankrupt?
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It is interesting how the automobile market is bouncing back now with Ford and even Toyota seeing increasing sales each month now.
Ford had recently refinanced it's short term credit prior to the financial meltdown, but GM and Chrysler got caught in a bind with their short term financing with the banks in their mess. With the banks screwed up, GM turned to the Government to borrow money (much like Toyota went to the Japanese government to borrow at the same time). It seems to me that GM wanted to borrow money to weather the financial storm, figuring that the automobile market would bounce back (just like it is doing now). But the executive branch of our government found a young man fresh out of finishing his MBA and sent him to GM to look at the situation. GM and it's shareholders did not want a bankruptcy. But the government thought that was a good idea. The government forced out the GM CEO who did not want the bankruptcy. Then it seems to me that the government stole the GM from its shareholders and kept part of it for itself and gave a large share to the UAW.
I suppose the fine fresh out of MBA school fellow who never worked in the auto industry would be a good choice to send over to Tata motors. I think I might go with the veteran auto industry exec...