President Obama – or his administration, if that makes difference – has just “fired” the CEO of General Motors (GM). In an act of direct governmental control over a private American corporation Obama has required that that Rick Wagoner, the chairman and CEO of General Motors step down.
The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.
Wagoner’s departure is one of the remarkable strings attached to a new aid package the administration plans to offer GM.
The White House confirmed Wagoner was leaving at the government’s behest after The Associated Press reported his immediate departure, without giving a reason.
On Monday, President Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler.
Industry sources had said the White House planned very tough medicine, which turned out to be an understatement. And it went to the very top. The measures to be imposed by the government will have a dramatic effect on workers, unions, suppliers, retirees and the communities where plants are located, the sources said.
I can’t really say that this is other than a very, very bad sign that President Obama is fully prepared to use whatever means are at his disposal to enable the federal government to “take charge” of any portion of America that they can manage to get a hold of.
It has to be said though that President Bush willfully and foolishly set this up when he sidestepped Congress in order to bail-out the Big Three American automobile manufacturers.
This is the problem with accepting money from the government; you’re then beholden to them and they can – in the Liberals’ case they will – start exercising direct control over your actions. This is especially true for large and/or important industries and ones that the current party controlling the administration don’t favor.
And, of course, removing GM’s CEO is just the beginning of the “Change” to be wrought in the coming months.
We are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement.
— GM Spokesman
Rick Wagoner had been CEO for 8 years and at GM for more than 30. At the time of this post it is unclear if Wagoner will be replaced or if GM will be directly controlled by the US government from this point forward. President Obama’s Presidential Task Force on the Auto Industry has clarified what their ongoing role is going to be or how involved they’ll be in the operations of GM, Ford and Chrysler.
Once again, it has to said that President Bush provided the precursor for this when, in September 2008, he had AIG CEO Robert Willumstad step down as part of an $85 billion bailout.
Automotive industry sources say that the measures to be imposed by the government upon the US auto industry will have a profound effect on workers, unions, suppliers, bondholders, shareholders, retirees and the communities where plants are located. Whether or not those profound effects are positive or negative remains to be seen.
Well, shortly Americans will find out – though too late to make a difference – if they still have an American Automotive Industry or if they have the People’s Automotive Collective – managed in their name by the government of course. 😉