Bailout Watch 147: Cerberus' Snow Job

Robert Farago
by Robert Farago
bailout watch 147 cerberus snow job

John Snow was the U.S. Treasury Secretary under President George W. Bush, from 2003 to 2006. Snow is now drawing a paycheck– the size of which dwarfs all but GM CEO Rick Wagoner’s imagination– for shaking-down Uncle Sam on behalf of Cerberus’ Chrysler play. As you’d expect, Snow is wasting no time in pursuit of your tax money. “Cerberus Capital Management LP Chairman John Snow said Wednesday that president-elect Barack Obama and his treasury secretary need a bipartisan plan to counter the worst economic downturn in about 50 years. ‘What we need is to make sure that a vital industry like autos… which is such a big part of the overall economy, doesn’t lead us into a deeper and harsher downturn,’ Snow said in an interview on the CNBC cable channel. ‘The collapse of the auto industry at this time would be devastating for a new president.'” Note: president. Not American workers. And I’d like to take this opportunity to remind TTAC’s Best and Brightest that Cerberus claims income of over $100b per year from its various businesses. OK, right. Where were we? Changing the subject slightly, how about GM’s “welcome” to the new prez?

GM, in a statement issued Wednesday, said it welcomes Obama’s pledge to support the domestic auto industry and efforts to develop new technology. “This support comes at an especially critical time as our industry confronts one of the most difficult economic periods in our nation’s history, caused by the global financial crisis,” the statement said. “This support will enable a competitive U.S. industry to contribute significantly to our nation’s economic revival.” So where is this competitive U.S. industry then? Let’s ask Honda, shall we? [thanks to polishdon for the link]

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  • Willman Willman on Nov 06, 2008

    That GM statement is interesting; -all except the "Caused by..." part. :P Re: Volvo-Saab. Couldn't Ingvar Kamprad just go ahead and buy both of them with the spare change he has rolling around in his pockets?

  • Voice of Sweden Voice of Sweden on Nov 06, 2008
    willman : Re: Volvo-Saab. Couldn’t Ingvar Kamprad just go ahead and buy both of them with the spare change he has rolling around in his pockets? If he wanted, he could. But because of the bad tax regmise in Sweden back in the 1980's (now it's much better) Ingvar Kamprad now "lives" and pays tax in Switzerland, though spending much time in Sweden, and the entire IKEA konglomerat is owned by a foundation in the Netherlands. As I said it is much better in Sweden now, but Obama could see this as a warning what happens if you try to "punish the rich".
  • Kat Laneaux Wonder if they will be able to be hacked into (the license plates) and then you get pulled over for invalid license plates or better yet, someone steal your car and transpose numbers to show that they are the owners. Just a food for thought.
  • Tassos Government cheese for millionaires, while idiot Joe biden adds trillions to the debt.What a country (IT ONCE WAS!)
  • Tassos screw the fat cat incompetents. Let them rot. No deal.
  • MaintenanceCosts I think if there's one thing we can be sure of given Toyota's recent decisions it's that the strongest version of the next Camry will be a hybrid. Sadly, the buttery V6 is toast.A Camry with the Highlander/Sienna PSD powertrain would be basically competitive in the sedan market, with the slow death of V6 and big-turbo options. But for whatever reason it seems like that powertrain is capacity challenged. Not sure why, as there's nothing exotic in it.A Camry with the Hybrid Max powertrain would be bonkers, easily the fastest thing in segment. It would likewise be easy to build; again, there's nothing exotic in the Hybrid Max powertrain. (And Hybrid Max products don't seem to be all that constrained, so far.)
  • Analoggrotto The readers of TTAC deserve better than a bunch of Kia shills posing as journalists.