It was inevitable, so there is no surprise that GM is tanking under the “oversight” of the government. What can the government operate when it tanked its very own cafeteria?
The company needs to change its name to GOVERNMENT MOTORS, the new name for the acronym, GM.
Just imagine what a car designed by the government would look like…????? See above.
We were against the type of forced loans foisted upon this company late last year, since all we saw was in effect a bailout of the union benefits, and we saw no benefit to the company or its stockholders.
It was such nonsense to believe that this company could survive by getting loans, and then it was to have a magical plan for its success that was to be presented in a few months?
Part of the problem was that this was a failed company to begin with.
The Board of Directors of this firm should all be sued and hung out to dry since they have violated their fiduciary responsibilities, and thus maybe the stockholders can recover though their director liability insurance polices, the money lost under the inept leadership of, Nosferatu-aka, Rick Wagoner.
Mr. Nosferatu, came on board in 2000. The GM stock was trading at $70 a share.
This year it hit $1.27. Would you as a board keep the guy responsible?
The GM Board has got to be the dumbest group in history.
Since 2004, the company has not made a profit, and since then has recorded a staggering loss of $82 BILLION.
When would have this inept leader be terminated by a still more inept Board?
One year of losses, two, maybe three? No, they still had no plans to terminate Nosferatu after 5 years of the staggering losses of $82 BILLION!
So, at least he is gone, but so is the company.
It is naive to think that any restructuring other than a total re-make of the employee contracts, as well as the redesign of its cars and a shrinking of the entire business model can accomplish a “turnaround”.
If the normal free market forces were allowed to work their usual magic, the company would have entered into a reorganization, it could have changes its contracts, and possibly re-emerged as a new slimmer and healthy business.
There is no way that it can now…unless it takes the steps immediately.
Or it is too late?
With government running the company, mandating what cars to build and at what prices, and with what contracts, will we see a competitive business ready to survive on its own, or just another ZOMBIE, headed by another Nosferatu, the living dead?
Also, it is fair competition for other car makers to have to compete on uneven terms with this out of date dinosaur?
The US government is now standing behind their warranties issued on the sold cars, it is standing behind its sales contracts, and it is forcing the company to build cars that nobody wants to buy, such a tiny dangerous hybrids or cars to be operating using technology that is not yet invented.
PLEASE SOMEBODY STOP THE GOVERNMENT FROM INVESTING OUR MONEY INTO MONEY LOSING ENTERPRISES AND HELP THE FEW PROFITABLE BUSINESSES TO SURVIVE INSTEAD.
Business needs tax incentives, lower taxes and all the tax breaks possible in order to jump start the economy.
Government Motors, needs to make it on its own using the “system” that was designed for that purpose: the Bankrupcy Law.
No investor would ever consider investing in or much less providing a loan to a business as troubled as GM. Common sense says that one invests or gives loans only to a well run profitable business, not a “dog with fleas”.
So far, against every known common sense ideology, our government had instead, ONLY given loans or grants or handouts solely to BAD businesses-businesses that would never be granted loans in the free marketplace.
GENERAL MOTORS, CHRYSLER-ZOMBIE COMPANIES ATTACK AGAIN
February 18, 2009
The ZOMBIE companies are back for more money, their life line. Without this money they are DEAD…well not really, they will go into a debtor’s “heaven”, called bankruptcy reorganization.
The leader of GM, Rick Wagoner (also known as NOSFERATU), was back with his Zombie plan to keep the Zombie company alive another few months….and with him, as the me too Zombie, Jr., -Chrysler…the “minnie me” Zombie.
These are true Zombies, Zombie companies, truly the walking dead!
They are back looking for $39 BILLION now!
Why do WE have to feed the Zombies ?
GM and Chrysler do nothing to help us the consumer….nothing. Let me correct that, they raise prices on automobiles beyond the ability of the average Joe to afford them, and they artificially cause wages and benefits to exist for work that is not at a competitive rate.
If people do not want to buy a car because it is too expensive, or lacks the expected standards of workmanship, why do we or our government have to keep them propped up, on life support ?
Why does the government think that it needs to support an unaffordable product…?
Why would this company be able to pull out a miracle by just borrowing more money that it can NOT repay?
That thinking does not make any sense…..lending more money to a company that is in a death spiral due to costs that are out of line and will continue to be so?
Both GM and Chrysler need to get their costs in line though a new employee contract that brings wages and benefits to the new reality….not a fantasy!
If the companies are allowed to reorganize, they will become viable…they will never be viable as ZOMBIES…do we need this many auto companies to begin with????/
The entire auto industry worldwide has the capacity to produce 90 million vehicles (1500 different models)….yet this year it would not likely produce 60 million.
If we lose a name or two, or if they offer less vehicles, so what!
Maybe they can merge, maybe they can get more creative etc….maybe they can make cars people want to buy NOW.
Do not feed the Zombies, they will eventually take over it you do, as is clarly the case with these two Zombie companies.
Worst of all, the government is providing funding to BAD companies, to losers that will never pay back the loans, and it is cutting off credit to worthy companies that are making it that are providing jobs and a future for their employees and stockholders.
Go figure…in the “real” world, not the fantasy world of political agendas, the good companies get the loans…..not the one’s that will not repay them.
Sterling Cooper Inc 