(Reuters) GM, Chrysler rocked by Obama autos team hard line

[Eugene]

Source: Reuters

GM, Chrysler rocked by Obama autos team hard line
Mon Mar 30, 2009 6:50am EDT

By John Crawley and Helen Massy-Beresford

WASHINGTON/PARIS (Reuters) - The Obama
administration seized the wheel of the failing
U.S. auto industry on Monday, forcing out General
Motors Corp's CEO, pushing Chrysler LLC toward a
merger and threatening bankruptcy for both.

GM shares plunged around 20 percent in Frankfurt
after steps outlined by the White House autos
panel marked a stunning reversal for management
at both GM and private equity-owned Chrysler.

-snip-

The Obama administration pledged only to fund
GM's operations for the next 60 days while it
develops a sweeping restructuring plan, instead
of granting GM's request for up to a further
$16 billion in loans.

GM CEO Rick Wagoner, who had presided over the
company's rapid decline in the past five years
and had run the automaker since 2000, was
forced out at the request of the autos panel
headed by former investment banker Steve Rattner.
A majority of GM's board will also be replaced.

-snip-

Read more: http://www.reuters.com/article/GCA-autos/idUSTRE52S1VV20090330

[HereSince1628]

1. Not surprising, the plutocracy considers the nation post-industrial

Saving the invester class and making sure they have borrowed money to gamble with is way way more important than industrial jobs.

[natrat]

2. the big 0 needs more money to give to goldman sachs

[Pirate Smile]

3. I read last week that this was like a high stakes game of chicken with the bondholders

because they didn't think Obama would not save them.

This feels like a jolt to wake them the hell up. They need to seriously come up with a plan to viability and not assume Obama will just help them limp along with taxpayers money.

[AndyA]

4. Obama needs to do the same thing with the banks.

There's a double standard. If we're going to invest in these companies, we have a right to see to it that the best people are in place to run them going forward. GM's Wagoner has to step down, but the top brass at the banks don't? What's the difference? They've all run their companies into the ground. What's good for one should be good for the other.

[screembloodymurder]

5. I was looking at a Vibe ...

So I went to my local Pontiac dealer. It was Saturday, but the place was like a tomb. The Honda dealer, next door, was a bustling with activity. People were waiting in line for a salesman. Most were looking at the smaller cars ... like the Fit and the Civic.