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GM Chief Booted in Bailout Deal

Posted on Mar 29, 2009
Flickr / Anatoli Axelrod

GM CEO Rick Wagoner resigned Sunday, apparently at the request of the Obama administration as part of a larger bailout agreement. The ouster of the man who gave us the Hummer wasn’t entirely unexpected. He spent the last eight years driving the world’s biggest car company into a ditch. Now if only we could apply this logic to the banking bailout.

The auto industry has now gotten the ugly-friend treatment from no less than two administrations. The relative pittance of an automotive bailout comes with strings attached, including concessions from the unions. So while the robber barons on Wall Street who tanked the global economy get to keep their jobs and retention bonuses, the line workers of Michigan have to make do with less, if they have jobs left at all.

Update: The Obama administration auto task force has sent both GM and Chrysler back to the drawing board, turning down requests for additional loans until they come up with more realistic restructuring plans.

New York Times:

The chairman and chief executive of General Motors, Rick Wagoner, resigned Sunday as part of a broad agreement with the Obama administration to funnel more government aid to the ailing auto giant, according to people close to the decision.

Mr. Wagoner, who has served as G.M.’s top executive since 2000, agreed to step down after it was requested by the president’s auto task force.

G.M. had no immediate comment on the stunning development, which happened on the eve of Mr. Obama’s announcement on Monday detailing his rescue plans for G.M., Chrysler, and the larger American auto industry.

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By AWM, March 30, 2009 at 8:28 am Link to this comment

It is likely that Wagoner was ousted by the Obama admin because he didn’t screw his workers enough, which is the real game at play here, This crisis was manufactured as it has in the past in other regions of the globe in order to bring wages down and consolidate the power base of the ruling elite.
Naomi Klein makes the case for this argument in her book the Shock Doctrine if you haven;t read this book I urge you to pick up a copy.
The link below is a lecture she gave on the topic

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By grumpynyker, March 30, 2009 at 8:09 am Link to this comment
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Where was Obama’s balls to demand the firings of any Wall Street execs who caused the financial meltdown?  Where are calls to return the TARP funds/bailout funds?  I guess because the Wall Street mafia isn’t unionized.  Lastly, why is Geithner, Summers, Frank, and Schumer still have jobs?

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By Purple Girl, March 30, 2009 at 7:21 am Link to this comment

Was the only solution that asshole came up with was the Union concessions, and if that wasn’t enough he’d go back for more?
These CEO’s have been playing this game for decades, the old ‘We’re going down because of the Unions’- The top brass and their legion of white collar paper pushers after been living off the fat of union labor for decades. Please don’t tell me they have the Best & Brightest ‘management skills’- when they have not only run the Co into the ditch several times- but have intentionally kept it there…We Knew we needed better fuel efficient cars and alternative fuels since the ‘70’s- Even/Odd Days anyone? Inthe ‘80’s they were handed a prototype of an eletric car and they buried it. It was no the line worker who insisted on building gas guzzlers and appeasing the Oil Corp Overlords. Sen it down the line- they’ll assemble it (including cabins for light rail trains too Mr. Boenher).
Lop the fat head off the top of these corps and let the rank and file do what thye have done best- produce. Get some real innovative engineers and scientist to come up with the enigine and let the workers build it. Cut out the layer and layers of Middle management- who DO NOTHING but collect a check afforded to them by the blood,sweat & tears of those who actually labor and put someone in charge at the top who has the desire to see these corps live on for futre generations. These assholes have allowed their own personal greed and egos to detroy the very foundation this country’s Economic wealth originate from- The working middle class.Screw the Worker, you are screwing the consumer and the taxpayor- We are One in the Same!

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By RdV, March 30, 2009 at 5:49 am Link to this comment

Meanwhile the deregulation engineers of the financial fallout are Obama’s handpicked team—to which he defends and defers.

  Don’t think for a moment we don’t notice the act for public consumption.

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By jackpine savage, March 30, 2009 at 5:18 am Link to this comment

Because Obama is Wall Street’s b#tch, that’s why.

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