I’ve gone over the Obama Administration’s plan to take over GM & Chrysler, and, based on his own words today, these are the things he’s said/promised/done:
- Sacked Rick Waggoner and several board members at GM (no sackings at unions)
- Government has given GM another 60 days to become what the government wants it to be
- Given Chrysler 30 days to merge with Fiat in order to get $6 billion carrot
- Promised GM and Chrysler they’ll go into reorg bankruptcy for ‘fresh start’
- Blames ‘lack of leadership’ in Detroit and Washington but doesn’t blame regulation
- Claims the government has a better business plan for Detroit–a business plan which includes making cars government wants them to make
- Claims the government will move faster than companies to get GM & Chrysler viable
- Government will back your car warranty and repair needs for companies’ cars
- Government will ‘accelerate’ its car buying program
- Government will give sales and excise tax rebates to those who bought cars from Feb 16 till end of year
- Government will buy your older car and give you money to buy a new one
Government has swallowed GM and Chrysler whole and using ‘saving the auto industry’ to facilitate its plan to force the industry into exclusively making cars only the government wants us to have. They’ll kill the industry. There’s never a there there with Obama; it’s always a where there.
Oh, and where’s the exit strategy for government to get out of the car business? There isn’t one.