Obama Makes GM CEO an Offer he Cannot Refuse … GM CEO Rick Wagoner Resigns at Obama’s Order … What is this The God Father?
Socialism you can believe in, now Obama is telling companies who should leave.
General Motors Corporation Chairman and CEO Rick Wagoner will step down immediately at the request of Barack Obama. This is frightening. We now have a government that is not only selectively bailing out failed companies, they are now making personnel decisions as to who stays and who goes.
Obama now making offers that Auto Company CEO’s Can’t Refuse
DETROIT – General Motors Corp. Chairman and CEO Rick Wagoner will step down immediately at the request of the White House, administration officials said Sunday. The news comes as President Obama prepares to unveil additional restructuring efforts designed to save the domestic auto industry.
The officials asked not to be identified because details of the restructuring plan have not yet been made public. On Monday, Obama is to announce plans to restructure GM and Chrysler LLC in exchange for additional government loans. The companies have been living on $17.4 billion in government aid and have requested $21.6 billion more.
What a coincidence that Wagoner resigns without reason except for the fact that it was at the White House’s behest the night before Barack Obama is set to announce his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler.
The Obama administration asked Rick Wagoner, the chairman and CEO of General Motors, to step down and he agreed, a White House official said.
On Monday, President Barack Obama is to unveil his plans for the auto industry, including a response to a request for additional funds by GM and Chrysler. The plan is based on recommendations from the Presidential Task Force on the Auto Industry, headed by the Treasury Department.
The White House confirmed Wagoner was leaving at the government’s behest after The Associated Press reported his immediate departure, without giving a reason.
The Obama Administration now seems to be acting more like the Corleone Family making people an offer that they cannot refuse, take the bailout and and you are forever beholden to us. What a complete cluster. As Wizbang aptly states, “General Motors would be better off declaring bankruptcy than accepting any plan by this inept, incompetent White House. For Pete’s sake, this administration can’t even distribute the tickets to the White House Easter Egg Roll competently”. How can a free market economy survive with this type of Presidential Executive interference?
UPDATE I: Hot Air is dead on with their exit question.
Exit question: Ever get the feeling that Obama’s not quite the centrist pragmatist Christopher Buckley thought he’d be?
Really? What a shocker! Were not responsible free market people saying this before Obama gave them the first round of billions of dollars? So in the end it would have been better to have had these auto companies declare bankruptcy months ago and cut to the chase. Is there an echo? That was exactly what was said when individuals thought the first auto bailout was a waste of time, energy and the tax payer’s money.
Henderson, who was GM’s president and chief operating officer, was named the new CEO after the government forced the resignation of CEO Rick Wagoner on Sunday. GM’s board is also being restructured.
Henderson told reporters that the company would still prefer to restructure outside of court, but the level of support Washington is offering would help the company quickly restructure through bankruptcy.
UPDATE III: GM, Chrysler face bailout ultimatum
Shouldn’t it frighten people that the auto industries future is being decided by a government task force and White House with not a single person with any auto experience on it? Food for thought, do we really think Obama, a Democrat that needs union votes, will let this fail or is it just window dressing?