Should the US bailout the big three automakers?

[VRM]

Originally Posted by Tom Kirkham

White House going to have GM's Wagoner walk the plank. If I were a CEO and took any bail out money I would be very nervous...

http://news.yahoo.com/s/ap/20090329/..._ge/gm_wagoner

Pontiac Aztek... born 2001- died 2005.

Any president and chief executive who allowed that thing (not to be confused with the VW Thing) to roam the streets needs to step down.

But a government hack will probably be far worse.

Steve

[Ron61]

Just saw this in the news. GM CEO is forced out by Govt. Not really sure if having the Govt. take over is any better but here is the link to the story.

http://www.reuters.com/article/busin...e=businessNews

Ron

[Tom Kirkham]

GM lost one quarter of its value today.

[Don]

Does anyone know the true facts, not speculation, was the ouster of Wagoner a condition of providing the initial funding ? What would have happened if Wagoner had said " NO "


AutoWeek: By DUTCH MANDEL

Article

General Motors CEO Rick Wagoner out, replaced by COO Fritz Henderson
President Obama's administration made history today with what some see as nothing short of government meddling in the affairs of big business.

What I see is something else: I see the administration showing that it is serious and raising the level of concern from yellow to orange.

Now there is a firm deadline and a message to bondholders, United Auto Worker union members and the American public: Do not be surprised if in the next 30 days--or even sooner-General Motors files for a controlled bankruptcy.

During the days of insolvent banks, insurance companies and other financial institutions, this message was loud and clear.

It's about showing force and instilling confidence. The people are looking for a leader, and for the past 70 days, that leader has said many things, yet few have resonated with those who got him elected. This message strikes right at his constituents: America.

Drastic measures, perhaps. But former GM chairman Rick Wagoner is a team player. He knew he had to take one for the team. And this was an enormous sacrifice, to leave the company he nurtured and developed.

His flaw is what helped GM get through its first 100 years: He was a conservative manager. But he managed and managed well. The pace of things, however, has increased, and it's all only gaining speed.

Rick did nothing wrong to earn this dismissal. He made necessary changes to GM. The company now has world-class products. The company is leaner and meaner. The company is tougher and better prepared to succeed. The company knows its costs better than it has ever known them. There is no better and no more difficult time for GM than now.

And unfortunately, Rick Wagoner is the scapegoat.

But what this country desperately needs is a consumer who is willing to spend money again. It needs a consumer who is not worried about losing his or her job, about refilling the 401(k) bucket, about losing his or her home.

The country needs consumer confidence. Perhaps that is what this president aimed to telegraph with a message heard loud and clear.

[Don]

A link to a number of AutoWeek articles on GM, Wagoner, etc., etc.

http://www.autoweek.com/article/2009...NEWS/903309997

[Cobrabill]

Originally Posted by VRM

Pontiac Aztek... born 2001- died 2005.

Any president and chief executive who allowed that thing (not to be confused with the VW Thing) to roam the streets needs to step down.

But a government hack will probably be far worse.

Steve

THe Aztek can make a train take a dirt road.THe problem is that no cars today are one mans vision(Shelby,DeLorean,Duntov).All cars are designed by committee.Wagoner is not the only one that needs to go.

[VRM]

Originally Posted by Cobrabill

THe Aztek can make a train take a dirt road.THe problem is that no cars today are one mans vision(Shelby,DeLorean,Duntov).All cars are designed by committee.Wagoner is not the only one that needs to go.

Even back in the 60's they were not all one mans vision. Shelby had AC, Delorean had Iacocca, Duntov had Shinoda. Iacocca was an industrial engineer who ended up running the company. He knows how to build stuff, and the rest were engineers or designers.

Wagoner is an economics major. Cars are often a passionate purchase, and I just think an accountant is usually just going to take the passion right out of whatever the engineers and designers do. A lot of GMs head honchos have been engineers who worked their way up. The ones that weren't (like Harlow Curtice) allowed guys like Harley Earl to play a large role.

Yep, lots of others need to go as well - the UAW is a problem, but they are not the biggest one.

Steve