Tuesday, March 31, 2009

Is GM Headed For Bankruptcy Afterall?


Yesterday's big winner was a somewhat surprsed Rick Wagoner whose punishment for failure was a $20 million severance package. (I guess no one read yesterday's NY Times story by Mary Williams Walsh about how positively passe contracts with big payouts are nowadays.) Makes me feel just great that my taxes went to pay for that! Most of the Board of Directors is also going, but the new CEO is Fritz Henderson, Wagoner's #2. His first public statement was that maybe bankruptcy is the best alternative for GM. But what's GM? The product line? The workers? The shareholders? The bondholders? Management? The American automotive industry and GM's contextual place in American society?
Henderson told reporters that the company would still prefer to restructure outside of court, but the level of support Washington is offering would help the company quickly restructure through bankruptcy.

Henderson says GM  needs to work faster and go deeper to get more concessions from bondholders and the United Auto Workers union. President Obama has demanded that GM come up with a better restructuring plan in 60 days in order to qualify for more government aid.

As usual Republicans are confused and all over the map on this, without ideas or leadership. Every Republican has a different critique of Obama's plans, presumably because Limbaugh slept in late today and hasn't given them their marching orders yet.

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