What does Obama want GM to do?

[Mac1337]

We keep hearing that GM has to do better, that their plan isn't good enough, that they got to do better. Well, what do you want? If you know what you want them to do why don't you tell them? What do you know about running a car company anyway and if you do what is it?

[cbelt3]

well, I would assume he's acting the same way any bank would act when asked for a loan.

1- "What are you gonna do with the money"
2- "Will I ever see it again ?"
3- "What guarantees do I have ?"
4- "Can I trust you ?"

The obvious answer to #4 was "no", so GM has to get someone the government can trust a bit better. GM still hasn't answered #1, #2, or #3. They just keep dragging their feet.

[ajakeski]

Why isn't AIG being held responsible the same way? They seem to be able to do what they want with our money and come back for more with hardle any questions asked.
Let them all go under.
Let their board's of directors starve.

[Acer]

Dakota wrote:
What do you know about running a car company anyway and if you do what is it?

Given the condition they are in, apparently GM hasn't had anybody who knew how to run a car company for some time.

I'm not sure Obama could do any worse. And I'm not sure a conservative would do any better. Case in point: George Will.

George Will knows what happened...the gubmint through CAFE standards forced the car companies to build hybrids, which nobody would buy and they had to sell at a loss, and would not let them build the SUV's which the people wanted.

Which explains elegantly why there's a waiting list for Priuses--you can't even negotiate the the price down from sticker--and the lots are full of unsold SUV's. GM spent most of its hybrid efforts on hybrid SUV's which missed the point entirely.

[BigGuynRusty]

Acer wrote:
[George Will knows what happened...the gubmint through CAFE standards forced the car companies to build hybrids, which nobody would buy and they had to sell at a loss, and would not let them build the SUV's which the people wanted.

Which explains elegantly why there's a waiting list for Priuses--you can't even negotiate the the price down from sticker--and the lots are full of unsold SUV's. GM spent most of its hybrid efforts on hybrid SUV's which missed the point entirely.

HUH?!?!
They are sitting in the car lots in SoCal.
Little info.:
"How bad are sales right now? "December's Prius sales were down almost 50% from July, when both gas prices and demand for hybrids were soaring," according to Edumnds.com. Toyota car sales in general were down 29% from January 2008 to January 2009, according to Motor Intelligence. And the automaker has told suppliers it will trim overall production in 2009 by 12% to address flagging demand."
http://www.informationweek.com/blog/main..._bigg.html

BGnR

[Mac1337]

Acer wrote:
[quote=Dakota]
What do you know about running a car company anyway and if you do what is it?

Given the condition they are in, apparently GM hasn't had anybody who knew how to run a car company for some time.

I'm not sure Obama could do any worse. And I'm not sure a conservative would do any better. Case in point: George Will.

George Will knows what happened...the gubmint through CAFE standards forced the car companies to build hybrids, which nobody would buy and they had to sell at a loss, and would not let them build the SUV's which the people wanted.

Which explains elegantly why there's a waiting list for Priuses--you can't even negotiate the the price down from sticker--and the lots are full of unsold SUV's. GM spent most of its hybrid efforts on hybrid SUV's which missed the point entirely.
I don't want to debate hybrids here but your information is from the $4 a gallon days. From what I have heard Priuses are NOT selling at all. Neither are small cars. But that aside...

I like to know what is Obama's authority, in law, in firing the CEO of a private company that still has a board of directors? This is banana republic stuff. The silliest part came when he said Washington is now going to honor your car's warranty.

[davester]

Dakota, the guy who NEVER gets his facts straight. Obama didn't fire anybody. He simply placed conditions on a loan, take it or leave it. No bank would ever lend money to a company that insisted on keeping in place the exact same governing body, with no real plans to change, that ran the place down the tubes in the first place. Wagoner has never done anything for GM except destroy it.

[cbelt3]

davester- in defense of our friend Dakota, the media is reporting it as "Obama Fired Wagoner". While the true facts are as noted, it must be pointed out that Wagoner has NOT 'been fired'. According to press releases, he has "agreed to resign" as part of the GM restructuring program. One must assume the GM Board is part and parcel of this entire discussion. As corporate governances go, I would assume that the Government is negotiating with the Board, not one CEO type dude.

And, as noted, it's entirely within the purview of any bank offering to make loans to question and request changes in the organization of the loan recipient as a contingency to the loan. The US is acting like a bank, pure and simple.

[swampy]

I read about Obama's car warranty plan. Talk about micro management! Government has no business dictating such policies to a corporation.

Why isn't Obama as concerned about the AW Union owning an exclusive private country club? Why isn't he telling them to sell it?

[kanesa]

swampy wrote:

Why isn't Obama as concerned about the AW Union owning an exclusive private country club? Why isn't he telling them to sell it?

Because the union is not getting a loan or a bailout from the government and the country club is probably bought with union members' dues. link about country club?