General Motors filed for Chapter 11 bankruptcy protection Monday, June 1, 2009, as part of President Obama’s plan to shrink the automaker to a sustainable size and give a majority ownership stake to the federal government.
Obama’s plan is for the federal government to take a 60% ownership stake in the new GM (Government Motors?). The Canadian government would take 12.5% of the company. The United Auto Workers Union (UAW) would be granted a 17.5% share and unsecured bondholders receiving a mere 10% holding. All existing GM shareholders are expected to be wiped out and to lose all of their investments.
So Americans, under the rule of President Obama are now left with an important question:
Would You Buy A Car From This Man?
Of course I could say that the question was largely moot. Obama is set to take ownership of both GM and Chrysler through his control of their bankruptcy proceedings and his control over the US financial sector; American will be left with few choices except to purchase cars from Obama and his government agencies.
On the bright side though, GM and Chrysler - possibly to be combined into a single Government Motors, People’s Motors, or Obama Motors – will have the benefit of both the largest advertising budget in history and the consummate snake oils salesman / used car salesman in America’s history as their spokesman.