Rick Wagoner Steps Down...

[Joe K. 99 Zeee!!]

It's all over the news now. In other news Chrysler may be considered insolvent.

http://news.bbc.co.uk/2/hi/business/7971202.stm

[Jeff_in_Atl]

"GM CEO resigns at Obama's behest"

Actually I think that is good news. He hasn't done so well. They should have filed for bankruptcy not taken someone else's money to cover for their bad decisions.

[Al 96 Ram Air T/A]

Good...bad...not sure how I feel about Wagoner stepping down.


However, reading that he stepped down at the behest of the President....sent shivers down my spine. Is this what & why our ancestors died for...protecting our freedoms??? Socialism, folks, is here...

[Black97]

In Canada Chrysler is trying to come to an agreement with the unions to save money. If they can't agree, Chrysler is threatening to pull out of Canada!

Crazy automobile world

[markd79ta]

This whole exercise is pointless. GM needs to cut production, cut factories, cut divisions, and cut dealerships n(one) of which it can do with its current contracts. They need bankruptcy. if the unions aren't happy with being paid the same as the US Honda and Toyota workers, then they can stay at home unemployed.

[Al 96 Ram Air T/A]

You do realize bankruptcy does not negate a Union's contract, right? GM is and has been doing everything they can to reduce costs.

What irks me the most is how the White House can speak out of both sides of "it's" mouth. For example, the Automakers are being chastised for not cutting costs and inefficiencies enough to warrant a loan. However, Obama's solution to our economic trouble is to spend more. He touts the virtues of foreign plants, yet won't admit they are in dire straits as well (Toyota and Honda are begging for money from Japan, Hyundai and Kia are begging for money from Korea, Saab and Volvo asked are were told to stick-it, Puegot is asking France for help, etc.)

My point - no one could have predicted a swing in sales like we've seen - no one. To put the blame on Wagoner is shameless pontificating by the Liberals. Could GM have been more frugal - of course. Can they build tiny 4-cylinder, 150 hp engined cars that get 35 mpg - sure. (does the American public want those cars - not so much.) For at 100 years, GM built the vehicles we bought - plain and simple. As the new comers on the block, the Japanese automakers are getting caught as well, but because of lower labor costs in their home countries and a smaller retirement pool, they can hold fast for the time being and wait this out.

Without a doubt - the framers of the US Constitution never intended to allow a US President to dictate private enterprises. Putting conditions on a loan request (prior to defaulting on said loan) is paramount to government sponsored blackmail. If the American public fails to realize this, then we should be a Socialist state.

[Jeff_in_Atl]

You do realize bankruptcy does not negate a Union's contract, right?

My understanding is chapter 11 does allow you to renegotiate contracts. That includes contracts with suppliers and labor unions.

[3800_Firebird]

From CH11 Bankruptcy:

Executory contracts

Some contracts, known as executory contracts, may be rejected if canceling them would be financially favorable to the company and its creditors. Such contracts may include labor union contracts, supply or operating contracts (with both vendors and customers), and real estate leases. The standard feature of executory contracts is that each party to the contract has duties remaining under the contract. In the event of a rejection, the remaining parties to the contract become unsecured creditors of the debtor.

[Joshu]

My understanding is chapter 11 does allow you to renegotiate contracts. That includes contracts with suppliers and labor unions.

Actually it did with the airline unions. The pilots ended up taking the shaft (big time). However, their Union is jack compared to UAW.

[ChevelleSSLS6]

With the government controlling our traditionally capitalistic economy, aren't we a fascist/socialist country now? Who's to liberate us from this tyrany now?

[Al 96 Ram Air T/A]

Amen brother...

Quiz time:

Consider the following: What country comes to mind when you think: government owned banks, insurance companies, manufacturing sectors, automotive warranties, & (soon to be) health care?

Ya' ever thought the USA would be the answer???

[ChevelleSSLS6]

Amen brother...

Quiz time:

Consider the following: What country comes to mind when you think: government owned banks, insurance companies, manufacturing sectors, automotive warranties, & (soon to be) health care?

Ya' ever thought the USA would be the answer???

Heck no. I always though England or Canada or Cuba or the ex-USSR.

More info on GM and Mopar

[FroSSty]

Heck no. I always though England or Canada or Cuba or the ex-USSR.

More info on GM and Mopar

And he made clear that the government has no interest in running these companies.

I'll believe that when my sh!t turns purple and smells like ranbow sherbet.....Captain O'Hagan(Super Troopers)

OK, Barrry, whatever you say.

[Bananasaboutcars]

Whatever they have to do to save GM they should do, bankruptcy or not. I live next door to a Chevy dealer, and if they have to start selling Fords, I will have to move.

[gimp19]

What a freakin mess, alot of it steams from a half year of $4+ for a gallon of gas witch some how split in half over night. Thats just a dime in the bucket though if you add everything up, including the media bashing and public perception of American built autos, and the current state of the economy its an endless loop. Obama walked into this mess, there is really no right way to fix it.