It's Not GM Chairman Rick Wagoner Who Should Go, But Senator Chris Dodd
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Dodd (Left) and Wagoner (Right)
Sen. Chris Dodd, D-Connecticut, has unmitigated gall to demand the resignation of GM Chairman Rick Wagoner as a condition of further government aid to the embattled automaker.
It was only a few weeks ago that Sen. Dodd messed up the AIG (American International Group) bonus deal, saying it was OK that the insurance firm executives got huge bonuses.
That boo-boo caused a huge mess in Washington, leading to potentially unconstitutional tax penalties against the greedy executives who retained the bonuses. (Although some wisely gave up the windfalls.)
Actually, the taxpayers (if they are awake at all) should demand the recall of Sen. Dodd, a posturing mandarin of Washington if there ever was one.
Sunday it was reported Wagoner is stepping down from his post with GM under pressure from the government. The deal was laid at the feet of President Obama, but insiders said Dodd was the driver.
Does it really make sense to ax an auto CEO on the eve of giving the firm billions in bailout money?
And, bring in somebody new?
Is this just change for the sake of change?
Sure, the Washington pols got their noses out of joint when Wagoner and the other Detroit dunces climbed down from their private jets with tin cups in hand a few months ago.
Actually, Wagoner has masterminded the Chevy Volt and has helped make massive improvements in GM cars during his tenure at the helm of the car-maker that once was the world's leading corporation.
Check out the Chevy Malibu, the Saturn and some high end Cadillacs. They're pretty good and, according to the United Auto Workers, mostly made with domestic content and assembled by Americans.
Wagoner slashed expenses $9 billion a year and closed 12 assembly plants while shifting GM from big trucks and SUVs to smaller, more fuel efficient cars.
But this brainless activity proves that Detroit does not have a monopoly on stupidity; Washington really has shown leadership in that category.
We see this latest move, dumping Wagoner midstream, as another example of why conservatives want to keep government out of private business. Politics, after all, is not calculated to make a profit. Unless you are getting donations to your campaign committee.
For the record, here are the top donors to Dodd's campaign over the past five years: Citigroup Inc $316,494; United Technologies $264,400; SAC Capital Partners $248,500; American International Group $223,478; Royal Bank of Scotland $218,500. Those figures are courtesy of the Center for Responsive Politics.
Dodd also apparently had a sweetheart deal with Countrywide Mortgage that threatened to bring on federal prosecution. So, his skirts are definitely not clean.
By the time you read this harangue Monday morning, Obama will be speaking on television about the U.S. automotive industry. A task force is slated to offer recommendations to Obama on how to deal with the automakers.
GM seeks more than $16 billion in additional government funds as it tries to survive the economic crisis. GM and Chrysler have already received billions from Congress and most of it is already frittered away.
Of course you can't blame the automakers for the market downturn, and it's disingenuous to blame Wagoner for the financial mess that was caused mainly by the mortgage industry and banks.
But, obviously, Sen. Dodd is finding a scapegoat and, sadly, the President is going along with him. Obama no doubt is under the gun to retain support from key Democratic senators like Dodd, chair of the powerful Banking Committee.
Wagoner is under fire from Congressional crows for being too slow to restructure GM before the financial downturn spiked last fall. He also took heat, justifiably so, for flying to Washington for congressional hearings in a luxurious corporate jet with other Detroit CEOs.
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sorensen.janice Says:
On March 30, 2009
at 09:03 PM
Dear Editor,
I am a Flint girl - born and raised. My great grandfather was a carriage maker in the 1880's and was brought to Flint from Columbus, Ohio, by Billy Durant. My great grandfather worked with Mr. Durant making carriages and was considered his right-hand man. Then he went on to make Buick's and Chevrolet's. Also, my grandfather, mother and sister worked at GM and retired. And, I too worked as a contract worker with my "brothers" at the GM Powertrain in Bay City. So I feel passionate about the company because it's been so good to our family. When the powers that be - whomever they were - decided it was best to move out of Flint - the birthplace of General Motors and buy the Ren Cen - of all things I became incensed. They already had a "GM" building on Grand Boulevard! We didn't need another one; especially one built by Henry Ford, the Duce! I feel that GM should have put all the money that was spent on the Ren Cen back into Flint - rebuilt the plants - other than just the Engine plant on Van Slyke Road; created Flint's version of the "Durant-Dort" Museum" - like the "Henry Ford Museum". They could have brought the neighborhood around Fifth Avenue and the downtown areas where the red bricks are and captured that whole place as "historical"; complete with horse-drawn "Durant" and "Paterson" carriages, blacksmith shops, paint shops, concession stands, etc., etc.. The money would have been better spent, kept the jobs in Flint and beautified the area! But, no... they had to move all the engineers, etc. to the Ren Cen. And, now, they also want to do away with the names: "Oldsmobile" and "Buick", etc. ... I'm getting sick of watching the company going down the drain. And, when they sing a song about the great spots in Michigan - where is the mention of Flint being the "Vehicle City"? It's no where to be found! GM needs to remember it's roots much better than it has and remember the people who made it a viable company. So, if any of the decision - to move out of Flint was made by Wagoner and his cohorts - then, I think it's way overdue that he be ousted. What a bone-headed move it was to leave Flint in the first place! To me, it's like a slap in the face. Since then, it's just gone downhill from there. Consider me as, not happy with GM Management, Janice |
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ebmspang Says:
On March 31, 2009
at 01:09 AM
Isn't this what you wanted?
If I remember correctly, you were all for big government bailouts to auto manufacturers and other corporations to save their industries even as you referred to these people as court jesters, bishops, evil princes, etc. And now that they have their grubby little fingers on the corporate controls, Emperor Oblama and his underlings, Chris Dudd, Blarney Frank and Nasty Bulosi, can dictate who and how they will be run! And now, you complain about how they had no right to oust someone of Wagoner's stature and "so-called" leadership from a publicly traded corporation founded on such great American entrepreneurial foundations! Why do you have a problem with that? Seems contradictory to me! You want cake and a fork too? Which side of the fence are you on? LOL - what did you expect from "corporate takeovers" by the Federal Government? That miraculously, the industry would get huge amounts of tax payer money to spend it responsibly...without over-site from politicians? That would never fly within Americorp! The probable truth is that these "pols" and their money-changer friends, wanted the industry to take bailouts to ensure that they could take control of it for their plans for nationalization! The same thing is currently happening in the UK, Australia, France, most Eastern Bloc countries and many, many others all over the world, simultaneously! Just Google their news sources about it, the proof's there! In fact, as we have all witnessed recently, the same holds true with the banks! The FED forced them to take the bailout money, even when many initially refused it! Now many of those very banks want to return the money and wrest control back from the pervasive FED but the FED will have nothing to do with it! And do I need to go into AIG and the insurance industry? Granted, the Auto industry wasn't forced to take the money. They didn't need to be forced...they were pleading for it! Another fact is that these "pols" are moving our money around with the skill of a Three Card Monty dealer while God fearing, well-intentioned, patriotic (but at the same time, uninformed, disinterested and/or distracted) Americans sit by, stunned and dumbstruck, staring blankly ahead, like deer caught in a car's headlights! Lastly, it is also a fact that these auto companies are already bankrupt and are being falsely propped up with the help of wasted tax payer dollars! And now that 30 more billion has dropped into the abyss, all Americans are now even poorer for it. We have been duped people...AGAIN! I'm just wondering how much more of this we, and our country, can stand! Instead of sitting around arguing over which party is better or the finer details about bailouts and who should or shouldn't get what, we ought to be millions, linked arm in arm with pitch forks and torches, at the doors of our elected officials, demanding they abolish the private and secretive Federal Reserve Bank, prosecute greedy, corrupt officials and start doing the will or their constituents again...as the Constitution dictates they do! After all, if they really knew what was best for US, we'd never be in this predicament in the first place! Wake up America! It is only fitting that I close with these profound words of wisdom...be careful what you wish for! |
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Anonymous Says:
On April 08, 2009
at 09:56 AM
Concerning the MBC Buzz Comments... Maybe it should have limits ...I mean... at what length does a 'comment' .. becomes a story... Or maybe they should consider becoming a columnist.
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Dave Rogers |
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