General Motors Corp. Chairman and CEO Rick Wagoner will step down immediately at the request of the White House. I find it incredible disturbing when the President of the United States asks a CEO to step down. Granted that the United States government has given billions of dollars to GM but I don’t think that is enough to ask for his head. We didn’t ask for heads of any other company. Wagoner has been criticized by the business geniuses that run our government aka Congress and the President for “years of missteps, mistakes and arrogance by the Detroit Three automakers.”
We all know that if we had pursued alternate fuels we would be much better off. BULL… People who understand the free market understand that the path of least resistance is the path the market takes. So if alternative fuels had been more viable then business would have pursued them. It doesn’t take an MBA from the Wharton School of Business to realize this but for some reason the Democrats think that alternative fuels will solve our financial crises.
The auto industry struggles for a number of reasons especially lately.
When gas shot up to almost $5 a gallon it killed the auto industry’s golden goose, SUV’s and trucks. The big three haven’t been exactly great at producing fuel efficient cars but SUV’s have been their bread and butter. Also Chevy has more fuel efficient cars than ever before. Their development cycle needs to be faster and more streamlined but I also understand that developing a car in 2009 requires much more engineering.
The UAW has been killing the auto industry for years and soon to be Ex-CEO Wagoner has been able to get more concessions from the Unions than any other sitting President of any auto company. Foreign car companies don’t have the unions or if they do they have more of their countries government subsidies giving them unfair market advantage.
Doesn’t the government deserve some of the blame for creating unrealistic demands on cars and trucks. Fuel economy that may or may not be reachable especially with all the safety mandates that add hundreds of pounds to new cars and trucks.
I think it is bad for America and bad for business when the government gets involved by forcing its will. The bounds have been broken and where does it now end? In the last 6 months I have seen some seriously disturbing moves by our government. Bailing out worthless companies, removal of business leaders and extreme taxation used as a weapon. These new unprecedented moves gives Government more power than ever. I fear for my country more than ever.