GM – Government Motors … President Obama Asserts Unprecedented Government control over Auto Industry


Will there be a backlash to the Obama power grab …

GM – Government Motors


GM and Chrysler get ultimatum from Barack Obama. Is it a President’s job, let alone his authority, to dictate business policy to a corporation? Did America elect a President or a dictator? Is this the change you bargained for? In an unprecedented move, the Obama administration forced the departure of Rick Wagoner as CEO of General Motors over the weekend, and implicit in Obama’s remarks was that the government holds the ability to pull the plug on that company or Chrysler. As stated earlier, sound a bit more like mob extortion that the US Government.

President Obama asserted unprecedented government control over the auto industry Monday, rejecting turnaround plans from General Motors and Chrysler and raising the prospect of controlled bankruptcy for either ailing auto giant.


Car Czar and Chief

Eager to reassure consumers, Obama also announced the federal government would immediately begin backing the warranties that new car buyers receive _ a step designed to signal that it is safe to purchase U.S.-made autos and trucks despite the distress of the industry.

Let this be a lesson to all companies that dare think of taking bailout money from this administration. Not only are their strings attached, they will own you.

Bankruptcy Leads Possible Plans for GM, Chrysler

Now the President is for bankruptcy? He was not for bankruptcy in the past now, was he. Isn’t that what many of us said that should have occurred before you gave them billions? Interestingly enough, AIG was too big to fail and banks were given trillions. Suddenly, Obama is singing a different tune to the auto industry and the union workers that he wooed during the 2008 Presidential election.

Union auto worker backlash against Barack Obama as workers say Obama treated autos worse than Wall Street.

“It’s the age-old Wall Street vs. Main Street smackdown again,” said Brian Fredline, president of UAW Local 602 at a plant near Lansing. “You have all kinds of funding available to banks that are apparently too big to fail, but they’re also too big to be responsible.”

“But when it comes to auto manufacturing and middle-class jobs and people that don’t matter on Wall Street, there are certainly different standards that we have to meet — higher standards — than the financials. That is a double standard that exists and it’s unfair,” Fredline said.

Many workers — not generally known for their affection toward executives — even sympathized with Rick Wagoner, who was forced to step down as chief executive of General Motors Corp. He was by turns called a “sacrificial lamb,” “scapegoat” and “fall guy.”

Let this be a lesson to all who bought into “change you can believe in”. Are you still believing?

UPDATE I: What’s Good for the Goose is Good for the Gander … Why Didn’t Union Heads lose Their’s?

If Obama wanted change and a fresh start for GM, why were not all the “usual suspects” shown the door? Why is union leader Gettlefenagler allowed to keep his job? If Obama was consistent in his message, would not have that been the right call? After all, if you are going to interfere and play human resources with an industry, you might as well go all the way.

With GM’s Wagoner Ousted, Should Union Head Have Met the Same Fate?
Even though UAW President Ron Gettelfinger argues that his workers have made significant concessions in recent years, analysts say the offerings were too little, too late. 

In forcing the resignation of General Motors CEO Rick Wagoner, President Obama said he was seeking a fresh start, a “new vision and new direction,” for the beleaguered automaker.

But some critics are questioning why the president of the United Auto Workers union didn’t meet the same fate, to signal a fresh start on the other side of the bargaining table.

If you liked this post, you may also like these:

  • GM (Government Motors) Chairman Edward E. Whitacre Jr Admits He Knows Nothing about Cars … Good Grief
  • Obama Makes GM CEO an Offer he Cannot Refuse … GM CEO Rick Wagoner Resigns at Obama’s Order … What is this The God Father?
  • WOW … GM, Obama’s Government Motors Sells Just 603 Volts in January 2012
  • GM, Government Motors, Buying Back Chevrolet Volts
  • White House & GWB Announced Federal Aid Low Interest Loans to Auto Industry … Free Markets Be Damned

  • Comments

    33 Responses to “GM – Government Motors … President Obama Asserts Unprecedented Government control over Auto Industry”

    1. super dave on March 31st, 2009 1:03 pm

      too bad a majority of these union workers voted for this dick weasel.

    2. chitown lady on March 31st, 2009 1:03 pm

      The CEO of GM should have left long ago…..And No…the US should NOT be in the car building business…..They were given ample time to clean up their act, and they didn’t…..Does GM and the other cars makers really think its fair that we the people keep bailing them out? NO ! As far as GM goes, the haven’t changed for years. Their lack luster cars prove that point. No one wants to drive their dads Buick. Obama had every right to ask this CEO to go away…..He wouldn’ have on his own. Bottom line ! Let them file BANKRUPTCY! They will be better off in the long run. I might add that until they turn around the housing mess BIGTIME, nothing sad to say is going to change. people need t get back to work inorder to buy goods, cars and housing. Why oh why can’t people realize that. HOUSING started this whole mess under the not so watchful eyes of Washington. Frank and Dodd ran Freddie and Fannie into the ground. Regulations were put into place for a reason people….Too bad Frank and Dodd removed them.GET AMERICA back to work and the rest will follow…..
      Barney Frank and Dodd should be in jail for what they perpetrate on the US. They are no different than the CEO … they should have been booted.

      They all should have had to file bankruptcy, not just the auto makers. The fact that Obama is selectively choosing his pets is a dangerous game.

      So why does Obama allow Franks & Dodd to continue?

    3. rightknight on March 31st, 2009 2:02 pm

      People that jog can get a nice reward in the
      form of dopamine. Eating food leaches dopamine
      into the body. Constantly increasing amounts
      of narcotics can release dopamine. Dopamine is
      the body’s way of rewarding actions that support
      the persistence of life. A sense of power can release
      dopamine which in turn requires more sense of
      power to continue the release. We may have nothing
      more than a dopamine addict ‘working for us’.

      Bad taxpayer: no dopamine for you!

    4. kim russell van marter on March 31st, 2009 3:26 pm

      I think this is another mistake that is being made. Is our president just after total power or is he nuts……..

    5. Carpe on March 31st, 2009 3:38 pm

      I knew the United States was over when the

      President actually said in a speech…

      “and there has never been a better time to
      buy a brand new car then RIGHT NOW!”

      I couldn’t help but giggle. (the nervous kind)

    6. HOPE on March 31st, 2009 6:05 pm

      I, still, don’t get it…

      Why didn’t the government give the bail-out money to us? We could have paid off our mortgages and bought a new American-manufactured car… thereby jump-starting the economy from the bottom up. The banks would have their money, the car manufacturers would be busy producing product, all the homeless people who have suffered as a result of storms would be happy and no one would have been the wiser. Instead, we get another bail-out for the people who don’t need it… the rich and an unemployment line that is ever-growing. None of it makes sense to me. But, mind you, the bail out was not Obama’s idea; it was a recommendation of the Bush Administration.

      Go Figure….

    7. HOPE on March 31st, 2009 6:07 pm

      rightknight #3:

      Nice post!

    8. Michelle Smith on March 31st, 2009 7:51 pm

      #6 What are you smoking? These bailouts are coming directly from Obama’s administration. You really need to put the pipe down and open your eyes.

    9. Scared Monkeys on March 31st, 2009 8:39 pm

      #2, Sorry Keelbler … U B wrong.

      No President has the right to force a CEO to step down even if there was bailout $’s.

      This is not the mob.

      If that’s the case … can I ask Obama to step down? Will he please go away?

      Liberals went mental when GWB asked for surveillance on terrorists as people thought their rights might be violated.

      Obama is over stepping his authority and you people act like its ok.


    10. HOPE on March 31st, 2009 8:55 pm

      Excuse me #8:

      I don’t smoke.

      But, it seems I remember a little pow-wow
      in the White House… before the elections.


    11. katablog on March 31st, 2009 9:17 pm

      Hope – you haven’t changed. You still believe what the liberals tell you instead of actually checking the facts.

      Yes indeed there was a little pow wow at the White House (you got one right), but it was AFTER the election (Nov. 11th) and it was O who asked Bush to bail out the automakers. Here’s your reference

      President-elect Barack Obama urged President Bush in a meeting at the White House to support immediate emergency aid.

    12. katablog on March 31st, 2009 9:29 pm

      #9 Red: Boy have you got that right and it’s exactly what total dismays me. These freedom lovers who were so sure GWB was trying to over step the Constitution by listening to a few phone calls originated overseas, suddenly have no problem at all that not only is the Constitution being tread on, it’s being outright ignored!

      Geither wants control of all businesses, change their business plan, break legally binding contracts or decide if they jeopardize the economy.

      Congress wants to set salaries for all businesses and all their employees that have received bailout money – even though some were forced to take it, others want to give it back but the govt has not set up a way to give back the money yet.

      OweBama wants to tell companies who they may/may not employ and break legally binding contracts. He has not problem forcing Americans to pay for companies he and his minions decide to bail out, no problem telling us whose mortgages we are going to pay.

      Do Liberals not see these items as huge losses of freedom? Is it because they don’t own businesses or pay taxes and so they don’t understand businesses and taxpayers are made up of real people? Notice that business are not threatening American lives and only a few businesses are guilty of threatening peoples’ financial well being. GWB was fighting a war on terror. OweBama is fighting a war on businesses and taxpayers.

    13. m on March 31st, 2009 10:03 pm

      The Government is acting to capitalize GM. They should have every right that a bank or private equity firm would have in doing so. This includes requiring a management change. To deny the government the ability to negotiate the terms on which it is willing to extend credit is anti-capitalist.

      Furthermore, it is appropriate that executive heads role. If not, then the incentives are skewed to encourage excessive risk taking.

    14. Phil Staudt on March 31st, 2009 10:11 pm

      The firing of Wagner was a timed event to keep everybody from paying attention to the budget and those negotiations.

      Wouldn’t two losing American car companies be better than three?

      Too bad. GM used to be my favorite car company. I have owned 3 Caddies, a Corvette, two Bonneville’s, a Delta 88, and a host of old Chevy’s. GM could have used the GTO name to compete with the new Mustang and new Charger, but instead then designed an Aussie car that looks like a Neon. GM has lost it.

    15. HOPE on March 31st, 2009 11:03 pm


      Thank you so much for that correction regarding the auto industry… but, I was talking about the bail-out as a whole.

      Don’t get me wrong, I think it sucks, too.

    16. ANewGirl on March 31st, 2009 11:55 pm

      Subject: Ask God

      A little boy wanted $100.00 very badly and prayed for weeks, but nothing happened.

      Then he decided to write God a letter requesting the $100.00.

      When The postal authorities received the letter to God , USA ,they decided to send it to the President.

      The president was so amused that he instructed his secretary to send the little boy a $ 5.00 bill.

      The president thought this would appear to be a lot of money to a little boy.

      The little boy was delighted with the $5.00 bill and sat down to write a thank-you note to God, which read:

      Dear God: Thank you very much for sending the money. However, I noticed that for some reason you sent it through Washington, D.C. and those assholes took $95.00 in taxes.

    17. Dolf on April 1st, 2009 2:39 am


      good joke!!

    18. Carpe on April 1st, 2009 2:41 am

      ROFL New Girl!!! Too funnny.

      Unfortunately, that’s probably what would happen
      in AMERIKA 2009.

    19. PA Mom on April 1st, 2009 7:07 am

      Every day Obama and this congress are in office is another day that our constitutional rights are in jeopardy. I agree with #14. These outrageous things are being done to distract us from the real damage being done to the American people. This is gonna be a long 4 years.

    20. Rusty Bridges on April 1st, 2009 7:12 am

      In Amerika 2009 everything will be going through Washington.

      What do you call it when everything is controlled by the Fed?

      2010 is fast approaching, Repubs need your support to turn the tide on the brown (chit) menace. Now is the time for all patriots to get in on a grass roots campaign and show Washington who they work for. For love of God and country. Too many people have died for this country just to hand it over to the lazy and whoever just showed up looking for a hand out. Tea party!

    21. katablog on April 1st, 2009 9:05 am

      Hope: The TARP bailout was approved by a Democrat congress. Yes, GWB appointed Paulson who ran around saying it was an emergency and the sky was falling and we just had to give him unfettered access to $700 billion to give to his buddies on wall street.

      Conservatives begged and pleaded with congress not to approve this generational theft but congress did it anyway. Is the GOP partially responsible? Yes, anyone who voted for it IS responsible.

    22. Sweet_Thang on April 1st, 2009 11:39 am

      The new GM CEO has direct orders from the -0- abomination, er, I mean administration to develop a new business plan using Amtrak as the business model.

      Yes, Amtrak. You know, that entity that will never turn a profit, is Federally subsidized, and will continue to lose millions in perpetuity.

      Yup, welcome to Trainwreck Motors!

    23. Don Symank on April 1st, 2009 12:49 pm

      Surely Obama knows we have been down this road before.

      On April 8, 1952, President Harry Truman ordered Commerce Secretary Charles Sawyer to seize and take over operation of most of the country’s steel mills. Truman cited no legislative authority for his actions. Instead, he cited the Korean War. Truman claimed there was a national emergency and his presidential war powers were all the authority he needed to nationalize the steel industry. The steel companies fought back, and in the landmark case Youngstown Sheet & Tube Co. v. Sawyer the Supreme Court found Truman’s actions to be unconstitutional.

    24. Sweet_Thang on April 1st, 2009 12:57 pm

      Followup to Trainwreck Motors post (#22)

      This will be the first billboard in the advertising campaign:

    25. scott on April 1st, 2009 1:50 pm

      Anybody can see Wagner was forced to step down because he voted Republican. Why hasn’t Obama forced the UAW leader to step down? Because he voted Democrat and holds the socialist vision Obama does.

    26. Dolf on April 2nd, 2009 3:32 am

      ofcourse scott

      bad bad liberals

      The ceo’s of GM and Chrysler should have steps down a few months ago by themselfs.

      they went to the gov. for money and aid, not the other way around.

    27. Dolf on April 2nd, 2009 3:33 am

      strange with the liberal economic view that the US has.

    28. Avinash Machado on April 2nd, 2009 6:34 am

      What about Bob Nardelli?

    29. Michelle Smith on April 2nd, 2009 9:40 am

      Strange that Dolf keeps sticking his nose in our business and posting about things that do not concern him. You are not an American so stay out of our business.

    30. scott on April 2nd, 2009 12:00 pm

      Dolf is a moron. So because they went for bailout money that gives the government the right to remove you? You have no clue about the workings of the entire auto industry and the UAW’s role in the these car companies losing money. Go do some research on how the UAW was also a major cause of auto companies losing money and get back to me. That way we can have a semi-intelligent conversation instead of you looking like the Dutch BUFFOON that you are!

    31. Dolf on April 3rd, 2009 1:32 am


      scott, see that you haven’t lost your swearing touch (intelligent conversations don’t involve swearing)

      the qworking of the auto industry: considering the fact they are on the verge of bankruptcy….

      but I understand your thinking…UAW is a union, wich is a socialist thing…so bad mkay

      ergo: everything is there fault

      and it does concern me.
      US is our no.3 trading partner…
      this is a global crisis, you might wanna look over the fence and see what kind of sollutions other nations have. You might learn something.

    32. ANewGirl on April 6th, 2009 12:14 am

      Dolf—your Dutch Lover Boy Friend Joran Van Der Sloot called……since we as Americans are tired of bending over and taking it up the butt—he was wondering if you’d take our place and help him out?

      I also disagree about your theory on swearing. A little bit of colorful language never hurt anyone as long as it’s used appropriately. (i.e, Shut the #@!% up, Dolf.) How do you like them apples?

    33. Dolf on April 8th, 2009 1:53 am

      NewGirl, (edit) going?

      Joran doesn’t visit NL anymore, those lynchmobs scared him.

      btw. collorfull language is something different then calling ppl names.
      As you can see above its very ease to start throwing insults

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