I agree with the governemt ownership of GM.

After seeing how GM's own "PRIVATE" management ran the world's largest, highest gross income producing, most global auto company into the ground..... (and STILL run up debt TWELVE TIMES THE VALUE OF THE COMPANY......THEN EXPECTING TAXPAYERS TO THEN PUMP MONEY TO THEM INDEFINATELY!!!!)... and seeing that the government appointed board looking into both GM and Chrysler seem to have a far better grasp (not to mention something that resembles a far and away and better realistic clue of GM's problems and what it needs to do to recover)... there is no way to not feel better about government involvement in straightening up GM as long as we aren't continuing to pump tax dollars into them.

I disagree with your initial point about the UAW having part ownership at GM, but the 2nd part of your thought on the UAW I think nails the situation.

The unions have finally had a deal shoved down their throats that as the only alternative was to not only the end of the UAW (and CAW), but the wiping out of their assets via unfunded pensions and health care that would have come from both GM and Chrysler.

In return, as part owners of General Motors, the MUST make better cars, end ridiculous workplace rules that ban them from working in different areas as needed, and will be more inclined to take care of the "weak links"... the few guys that give the union their bad reputation.


There are going to be those people who will still take a negative position on all of this.

But once again, General Motors and every vehicle they have made since January 2009 would be non existent right now if the US government had not gotten involved. If my taxpayer money is going to save a company, I want to make sure that the people who ran the thing into oblivion are either gone or at the very least, their philosophy and business culture and philosophy are obliterated, and that people who have a stake (or even their very existence) solidly planted in the company turning around, I don't see a downside other than ideas based on a principle of political position.

Principles of political position have no place in running a company, and unless you're an activist, doesn't put money in the pocket or food on the table.

 

Guy, there is a fly in the ointment re: the government and UAW ownership of GM. As it turns out, there are strong rumors of GM shareholders readying class action lawsuits because the present owners of the stock have not been made an offer to sell their shares on the open market. Evidently, that is a violation of Delaware corporate law.

It matters not if the present management and board of GM has done a good job or not. the stockholders have rights that are guaranteed by law.

 

He should. Mine is just as fast as yours with 75 less rwhp.

 

Actually, the scariest thing is the bondholders wanting GM to fold... if the following article is accurate...

 

There's been some discussion of this over at GMI among people who understand finance.

Gist is that most of the legitimate bondholders have sold-out. The buyers were sharks that are willing to gamble on a $0.15/$1.00 investment. If these guys can get $0.30 on a dollar by parting out GM into a hundred little pieces, they will make out like kings. The government is trying to buy them off by giving them $0.25 (or whatever) and stock instead.

It sounds like the big institutional investors with CDSes have probably already written GM off and cashed them in. (Courtesy US Taxpayer.) I hope the Treasury does discloses this though, because we do need a total accounting of what it took to save the US auto industry.

 

Actually let me try that again in layman's terms. Our 401Ks, pension funds, etc. foolishly loaned money (bonds) to the General Motors Corporation so that they could build money-losing Pontiac Grand Ams and Saturn Ions and pretend they were still on top of the auto industry.

Some of these funds were smart and bought insurance on their investment (called CDSes). Unfortunately the company selling these CDSes was a shyster (AIG). When the the house of cards started to collapse the government realized that everyone's retirement was at stake and essentially took over AIG's obligations. (Upshot: more free money to GM courtesy of the taxpayer.)

Most of these funds rode their investment in GM bonds down to almost worthless (15 cents on the dollar) before selling out. The people who bought them don't give a rat's *** about a viable American auto industry or long-term investment return and just want to get as much money out as possible. (As is their legal right, under normal conditions.)

The government, on the other hand, wants to save jobs and a strategic industry. So they have to convince the bondholders to take a deal that has lower short-term payback in return for something that might payback over the long term. (Stock in the new GM.)

Anyway, that's how I understand the issue. If you want to believe that the President fired Rick Wagoner and shut down Pontiac, that's fine, you're wrong. It was all part of negotiations with the people who GM owes money in order to keep the company alive.

 

Give me a set of drag tires (which, based on your 60' time, you obviously have) and some time to practice with them, and I'll blow your time out of the water.

 

Well in that case I would finally press the tiny red button that says armed.