Bailout Watch 229: GM CEO: "Our Bailout Plan's Ready"
Just hours after Washington legislators told Rick Wagoner to come-up with a more compelling case for bailout billions, GM’s CEO assured The Detroit News that he’s ready to submit his new new new new new turnaround plan. “We’ve got the plans and are ready to go,” Wagoner told the hometown paper. “We’re not starting from ground zero here.” A rather unfortunate metaphor, and a less than compelling assertion. After all, if Red Ink Rick was ready to rock and roll, why wasn’t he a bit more, uh, forthcoming at the Senate hearing? [Needless to say, the DetN was not impolite enough to pop that particular question, simply stating that “He did not offer any details on what GM’s plan might entail.”] Meanwhile, displaying characteristic sympathy for the working man, Wagoner said that the delay caused by the Congressional recall “will be a bit nerve-wracking for us… But it’s the reality we face.” Note to Rick: it’s the reality you don’t face that kills you. More interestingly, it appears that the CEO’s anti-C11 rhetoric has softened slightly. Not. “Why would you take that risk at a time the economy is teetering on the brink. We need to do everything we can to get the business structured to get through a tough time and onto the future.” I think Mr. Wagoner just answered his own question.
More by Robert Farago
Comments
Join the conversation
I had a chance to watch some of Tuesdays hearings and the only one competent out of the group is Mulally who Congress couldn't even pronounce his name. My guess is Wagoner will recite the same BS he did on Tues only with better numbers. Look at the capacity we took out, look at the union concessions, and look at the 3 models out of 60 that have won awards and are competitive. Look at the hydrogen cars we are testing and look at the Volt. If we can only get to 2010 we will be profitable. Congress needs to ask "When are you going to stabilize market share?" "How do you intend to win back the confidence of the American people?" "When do you intend to finally be able to sell cars without steep discounts?" "How can $10 billion actually get you to 2010 when you are burning through 3-5 billion per month?"
I like Dr. No's plan but would add: Step 8: Offer a warranty like Hyundai, if anything breaks within 10 years just fix it, no questions asked. Its easy to come up with a "plan" when its just the same BS the Big 2.8 have been dishing out for the last few years. They'll just update the dates from magical 2010 to 2012 (14? 16? 18?) in order to prove this new, new, new, V2.0 plan is based on long term goals. More of the same = same results, no shock there. So they are just delaying things a few more years but using OUR money to do it! It would take a huge set of round-ish hanging things to admit the REAL problems (as RF has been doing for 3 years on this very site). And we all know that's never going to happen with these morons at the (learjet) controls.
Any truth to the story that Oil Companies have been paying the government to keep US Auto Manufacturers from building fuel efficient models?