Big news from Washington and Detroit over the weekend. The Detroit News reported on Sunday.
General Motors Corp. Chairman and Chief Executive Officer Rick Wagoner is stepping down after being asked by the Obama administration to relinquish his position at the helm of the largest American automaker, people familiar with the situation said Sunday.
Wagoner is going to walk away with a $20 Million retirement though. I’m just waiting to see if Congress will try to impose a 90% tax on it like they did the AIG bonuses.
Not only that the Obama administration instructed Chrysler to form a partnership with the Italian automaker Fiat within 30 days as a condition for receiving more government aid. Then President Obama in his remarks today said that the U.S. Government will guarantee all GM warranties.
It is my hope that the steps I am announcing today will go a long way towards answering many of the questions people may have about the future of GM and Chrysler. But just in case there are still nagging doubts, let me say it as plainly as I can — if you buy a car from Chrysler or General Motors, you will be able to get your car serviced and repaired, just like always. Your warrantee (sic) will be safe.
In fact, it will be safer than it’s ever been. Because starting today, the United States government will stand behind your warrantee. (emphasis mine)
The nine scariest words in the English language have now been amended. And hey wow, the taxpayers get to guarantee their own warranties. Thanks. I’m just curious when
the teleprompter President Obama says “let me be clear” that it negates the actions he’s taking that seem contrary to the rhetoric we hear come from his mouth?
Let me be clear: the United States government has no interest or intention of running GM. What we are interested in is giving GM an opportunity to finally make those much-needed changes that will let them emerge from this crisis a stronger and more competitive company.
Well that just makes me feel all better. Now I understand that when you ask for government money that you shouldn’t not expect government involvement. They say they don’t want to run GM and Chrysler, but doesn’t essentially firing a CEO, directing a merger, and basically directing their restructure basically mean they are running GM?
What do you think about this?
Update: Mel mentioned in the comments that “they have torn up the Constitution in DC.” To follow up that… blogging Diva extraordinaire, Tabitha Hale, the Pink Elephant Pundit asks… how is this not socialism?
Will all of you who are so convinced this administration is NOT heading toward socialism please explain to me how this isn’t socialism? Anyone? Because I’m pretty positive that this is the government controlling production, buying up the private sector, etc. Which is the definition of socialism.
Yes Tabitha that ship has sailed.
2nd Update: The obvious result of this move by the Obama administration.
LOL, thanks Rick, it’s nice to find something funny about this.