Well, this is breaking news coming out of Detroit and Washington, D.C. right now. An anonymous White House official has told members of the press that the Obama administration asked General Motors Chief Executive Officer Rick Wagoner to resign, and that Wagoner agreed. It is expected that GM’s Chief Operating Officer, Fritz Henderson, will take Wagoner’s place as CEO.
This comes as a surprise, since on March 19th, Wagoner had said that he was not planning on resigning. This all comes the night before President Obama will reveal his plan for GM and Chrysler.
Chrysler’s CEO, Bob Nardelli, is not anticipating the same fate as Wagoner; however, Chrysler will be told to go through with a partnership with the Italian automaker Fiat within 30 days.
I’ll analyze the President’s full plan when it comes out, but already, I can tell that I’m not going to like it. This alone is too much government intrusion. Heck, it might not even help. Even my liberal roommate has just said, “Let them fail.”
And the sad thing is, even after ALL of this MONEY that the government has spent on them, it still may not help.
According to the New York Times, “[T]wo senior officials, offering a preview on condition of anonymity, made clear that some form of bankruptcy – a quick, court-supervised restructuring, as they described it – could still be an option for one or both companies.”
So, we may have spent billions of dollars just to let them go into bankruptcy, something I (and many others) advocated months ago? It’s ridiculous. It’s absolutely ridiculous. Folks, I have money invested in the auto industry. I have 2,500 shares of Delphi stock. If GM rebounds, so would Delphi, and I seek to gain tens of thousands of dollars. But I STILL advocate for letting them fail if that’s what has to happen. I’d rather lose my money than use taxpayer dollars to help the auto industry recover. Additionally, if one fails, the other 2 will rebound (which is why I plan on buying some Ford stock in the near future).
We have to stop this government intrusion of the private business sector, or we’re going to find the government running everything.