GM Stands For Government Motors (from Hoosier Access)
The Politico is reporting today that President Obama (or “the Administration”) has requested that GM CEO Rick Wagoner resign in order to qualify for the next round of government loans.
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.
On one hand this is GM’s fault. They should not have been going to the government, hat in hand, to beg for money. When you have to get money of this amount, the lender is going to set the conditions for which they will make the loan. If that means replacing the CEO, then so be it.
On the other hand, it is pure audacity that would cause the government–particularly the Treasury Department–to decide that they know any better than the GM Board of Directors who should be running the company.
This is awful news. Now we have the government not only bailing out companies and industries, but we have them making key business decisions. This is just dipping their toes in the water. Every day seems to be bringing us more news of the Obama Administration becoming more “Statist” (or insert your other totalitarian, large, controlling government term here).
