General Motors Obama Wagoner
They're calling it "tough love." President Obama has given General Motors sixty days to clean up its act and present a plan for the future, or we're cuttin' it off. He demanded the head of its CEO, Rick Wagoner, as part of the price of government aid.
Of course, Mr. Wagoner isn't the only one to blame. Sure, his company built big, fat profit-rich SUVs, but we--the American consumer--happily snapped them up. Then, being fickle, we abandoned them when the price of fuel rose. Now, nobody's buying anything, even small cars. Is that his fault?
Let's not forget the unions. I just heard that they get five weeks of vacation, 15 paid holidays a year, and Cadillac health insurance, for which they do not have to pay. Pretty hard to be competitive with the Japanese when so much fat is built into the cost of every car.
Why didn't Obama sack the big financial types? I heard it was because they're the only ones who know enough about the Byzantine system they created to unravel it. Wagoner's big weakness is that he runs a big industrial concern, and there are a lot of people who can do that, certainly as well or as poorly as he did.
It may or may not have been the best move, from a businees standpoint, for Obama to reach in and make breathtaking personnel decisions, but it was certainly politically astute. It looks dramatic, and in this climate, it gives people a warm feeling to see some bigwig's head rolling around on the assembly line floor.POSTED IN: None