GM CEO Resigns At Obama's Behest!!!???

General Motors CEO to step down...at President Barack Obama's Behest!?

General Morors has lost about $82 billion since 2005, and has been kept afloat beginning in 2009 with $13.4 billion in emergency loans from the U.S. Treasury. GM is now seeking another 16.6 million in aid.
This is just insane...now we have the Government involved in the private sector to many levels, even extending aid to the suppliers of GM...and the POTUS is running the show???
Anyone else see a problem with this???
Related: GM to Feds, Bail or or we BK

The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.

On Monday, President Barack Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler. The plan is based on recommendations from the Presidential Task Force on the Auto Industry, headed by the Treasury Department.

The White House confirmed Wagoner was leaving at the government's behest after The Associated Press reported his immediate departure, without giving a reason.

General Motors issued a vague statement Sunday night that did not officially confirm Wagoner's departure.

www.politico.com...



[edit]bts 3-29-09

[edit on 29-3-2009 by burntheships]

reply to post by burntheships


Yes -
I see a problem with this.
A big problem.

Just let them fail. Capitalism at it's best. That's what's supposed to happen. Amazes me that we're footing the bill for this bloated dying animal. Just let it die already and get it off life support.

If the government had not involved itself in these companies in the past I have to wonder if they would even be in the situation where they need aid. The housing re-investment act and union benefits (if your left wing parties are anything like ours the democrats have strong links to unions and give them support, if i'm wrong correct me) played no small part in putting these companies in their current situation.

reply to post by burntheships


Well not to big of a loss for him, he only made $1. Hells, he will probably make a good severance for having the Leader take his job away.

We all know the Gov will pretend they don't want to give them money. The Leader will stand up and say oh, it sucks, I don't want to give em money but I have to, you understand. Then we all grumble, oh that sucks, wish we could do something, but the Leader said we HAVE to save them, we have no choice. They will get the money, change nothing, ship more jobs to Mexico and continue shutting factories in America down with tax payer funds provided from the ever reluctant Leader.

Then, after all this, we foolish citizens will wonder and complain how our country got flushed down the tubes, and we will look for the next political figure head to tell us pretty lies and make us feel all warm and cozy, while selling what's left of our country to the lowest bidder.

This is the America I have come to know..

When the politician start picking CEO's, etc, or making them resign, we are in deep male bovine manure.

I can't see how this is good.

Roper

reply to post by Rockpuck


Star for you and your pessimistic view on everything. Man Rock your just so......negative....

Obama has soooooo much business experience.

I hope like hell he is not going to pick the replacement, they will be selling all the cars for cash out the back door to avoid taxes.

Great posts so far but this thread is duplicated Here

Maybe the mods can merge them?

This is Global Meltdown...

As I expressed my views earlier...this is insane. GM must replace most of it's board??? And mustplace greater influence on more fuel-efficient vehicles?
Any one everyone who has ever hoped for or dreamed of or banked on private enterprise will kiss that goodbye!

General Motors Corp. and Chrysler LLC must overhaul their recovery plans with deeper concessions to justify further taxpayer aid, and bankruptcy may ultimately be their best chance, an Obama administration official said.

The administration asked GM Chief Executive Officer Rick Wagoner to step down, and he will be replaced by Fritz Henderson, the company’s chief operating officer. GM will also replace most of its board and must place greater reliance on producing more fuel-efficient vehicles, under findings to be announced today at the White House by President Barack Obama.

www.bloomberg.com...



[edit on 30-3-2009 by burntheships]

Are fuel efficent cars really going to be the best market strategy in the current environment with low fuel prices? Cap and trade carbon tax and too much spending fuel efficent products might not be such a great idea right now. I'm not against a cleaner greener earth, who is? I just think that getting out of this recession and possible depression should be priority right now. Anyway the more money a company makes the more it can allocate to research.

When a President can FIRE a CEO of an American company, thats exactly when you say "Welcome to the United States of Dictatorship"
WTF is going on in this country of ours?? Can you people imagine what would have happen if Bush did this?? Obama is working his way to becoming a Dictator, and our rights and freedoms are being trashed by the wayside, and all who have fought for our freedoms and DIED for them are being spit on. And the really disgusting, sad, pathetic part of all that Obama and his socialists have passed, since they took office, is that "We The People" SAT by, did NOTHING, to stop them..Nothing...
We have become a nation of slugs, who stand by, and let our so called leaders, pour salt on our backs.. Pathetic....


[edit on 30-3-2009 by MissysWorld]

This was a business decision. They're open to lending the automakers more money, but not if Wagoner was still in charge.

And I've got news for the anti-union, anti-outsourcing crowd:

The Detroit automakers have their sights set on building new factories in the USA if they can break free of their union contracts; but they're going to be heavily automated factories, with a huge reduction in workers.

As soon as the .gov pulls the plug, those jobs go *poof.* It's an obsolete profession. That's life.

On the one side, I think they have not only the right but probably the moral obligation to do exactly what they did. This company has been in the toilet for a long while now, this guy hasn't done a thing for them. They've loaned them billions of dollars. They should have some say. After all, it's OUR money ultimately, and I don't want some hack running it into the ground even further.

On the other side, I think it's a very bad sign that the government is getting involved like this, in the private sector. This could have major repercussions.

And no, I don't think all of our auto manufacturing should be be 'allowed' to fail.

Great comments and insights from everyone so far!

Here is the text of Barack Obama's comments today...

President Obama's remarks on U.S. car industry
03-30-2009

Now, I know that when people even hear the word "bankruptcy" it can be a bit unsettling, so let me explain what I mean. What I am talking about is using our existing legal structure as a tool that, with the backing of the U.S. government, can make it easier for General Motors and Chrysler to quickly clear away old debts that are weighing them down so they can get back on their feet and onto a path to success; a tool that we can use, even as workers are staying on the job building cars that are being sold.

What I am not talking about is a process where a company is broken up, sold off, and no longer exists. And what I am not talking about is having a company stuck in court for years, unable to get out.

GOVERNMENT WARRANTY

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 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.

Di you all get that part at the end...the Government is now backing the warrantee's???

I am in the twilight zone...just blown away by this!!!

I disagree with any politician forcing a private individual to resign. IMO, this is just too much. If anything, Obamie should be telling people in Congress to resign for not protecting our auto industry in the first place. Yes, GM and Chrysler are to blame for many things, but so are many of the laws and regulations out of Congress.

Personally, I think GM should tell the government to get lost, file for bankruptcy, and let the cards fall where they fall.

I wonder what Obama expression will be once he sees all them people on unemployment and welfare.

reply to post by jam321


Yes I wonder too...only thing is I have a nagging suspicioun that somewhere someone wants all of those folks out of a job...a systematic destruction of private enerprise...

If geithner and obama have their way, we'll be seeing a lot more of this. Government control of all businesses is what they're after and extortion through bailouts is the first step.


TheAssociate

Some bankers should resign too.
Just my humble opinion.

Dictatorship. Control freak. Watch his speeches.

I have two Government Motors (GM) vehicles. Now I'll have to schedule an oil change with the DMV. Wonder who's following me through my On*Star tracking system.

Maybe the government owned On*Star is feeding my driving habits into the government owned AIG insurance risk management systems.

Wonder what my government owned Citibank account is tracking.

Maybe payments to a government owned mortgage.

If I say the wrong thing, will the government owned employer lay me off?

Why should I worry? If I'm laid off, and I can't make my mortgage and car payments, it'll be withheld from your government owned paycheck