There's an interesting column by Tom Walsh in today's Detroit Free Press that talks about Ed Whitacre, the man President Obama appointed to lead GM's new board of directors.
Apparently, Whitacre is earning a reputation for being direct, even blunt, in meeting with General Motors' salaried staff and has told GM executives in no uncertain terms that he expects to see all kinds of change over the next 12 weeks. He has evidently even gone so far to say that jobs will be on the line if there isn't significant, rapid progress in vehicle sales, market share and profitability.
This makes sense, Walsh observes, given the U.S. government's desire to dispense with its ownership stake by mid-2010 -- "but no investors will put a dime into GM stock if they think it's 'business as usual' for the embattled automaker."
flicmod says:
08:52 AM, 09/ 4/09
And there are actually people that think the government doesn't want to control the daily happenings in GM. Open your eyes.
estreka says:
09:41 AM, 09/ 4/09
If, as a taxpayer, I am a major shareholder in GM, I want to have some say in how the company is run as well.
Also, having such a voice on the board will only reinforce any company to get Congress out of their boardroom. In other words, if you want government help, be prepared to pay for it, starting with that 7-figure paycheck you're getting.
mckman says:
09:54 AM, 09/ 4/09
Isn't the government doing exactly what a large investor in a company should be doing? Set clear goals for upper management and if thet are not met, bring in another team.
greenpony says:
10:38 AM, 09/ 4/09
Looks like Big Government might be doing something productive for a change. I, for one, want my tax dollar investment paid back
flicmod says:
12:16 PM, 09/ 4/09
@ mckman: That's EXACTLY what's happening. The only difference is that they're using "limitless" sources of money to fund it all, AKA our tax dollars.
For that reason alone, government shouldn't have a part in any business. Because when that business is failing, they can just take more taxes to pay for it all.
cwc1 says:
05:56 PM, 09/ 4/09
NO taxpayers are shareholders of GM and have a say about how it's run. That's a myth.
The Obama comrades are the ones who do. If they really cared about taxpayers and the earnings they confiscate from them, they wouldn't have taken over so many private industries and wouldn't be doing the fascist things they're doing now.
roadburner says:
06:47 PM, 09/ 4/09
http://www.rossputin.com/blog/media/gm.jpg
inlinesix says:
07:48 PM, 09/ 4/09
The government doesn't want to hold a major stake in a single auto manufacturer in the U.S. Whats the point?
No we are not, as taxpayers, shareholders in the company.
I, for one, do want to see the company run by competent execs. I don't believe they have gotten away from "business as usual" this soon. I think a GM competitor to the 3-series is an exciting move for the company.
gearhead99 says:
06:08 PM, 09/ 5/09
Sounds promising to me. Interesting that the role of corporate boards has received little attention in the economic meltdown. It's about time a board chairman is pressing for results. I'm no fan of a government role in most things, especially industry, but perhaps for once our political leaders will set a positive example for the private sector by releasing the hounds on GM's stodgy management.
Let's face it; Fritz looks like he could move a few Buicks off the lot but CEO of a major corporation? I'm not seeing it. Fritz and his cronies are playing survivor. If they had any self respect they would have resigned to make way for fresh blood.
ribbonspeakers says:
07:03 PM, 09/ 7/09
I could not agree more w/ Michael Moore's recent quote concerning the GM bailout, which went something along the lines of, "Let's get one thing perfectly clear, erase all doubt from your mind that GM will immediately flush every cent of those billions of dollars right down the toilet..." Read "Reason" magaizine recent edition documenting/proving that the entire auto bailout & is/was purely criminal, money stolen from TARP (troubled asset relief program) as payoff to the criminal UAW gang friends of the Dems (PS I hate both major parties & believe Bush belongs in prison).