GM Inside News Forum banner
1 - 20 of 63 Posts

·
Premium Member
Joined
·
8,812 Posts
Discussion Starter · #1 ·
NYT: "The top executives of the car companies should be required to step down."

Link: www.NYT.com (Subscription required)

The following is an EDITORIAL from today's New York Times:

The specific request by General Motors and Cerberus Capital Management, the private equity firm that controls Chrysler, is preposterous: billions to help pay for a merger of dubious value. Neither automaker has been able to produce cars that consumers want to buy. Both are losing money hand over fist. Gluing them together would not change this dynamic. Still, there are two plausible arguments to support a general government bailout of Detroit’s lumbering car companies.

First, it is not unreasonable to believe that they might survive as self-sustaining companies if government money can get them over the credit crunch and deep recession that is expected in 2009.

In 2010, they are expected to offload responsibility for their retirees’ health care onto a new fund. It would cost them some $40 billion but would get the problem off their books and stop the hemorrhaging of money. They have negotiated new contracts with the auto workers’ union that eliminate retiree health care and allow for lower wages for new hires. They are slashing the production of gas-guzzlers. Some analysts believe they finally have a promising lineup of fuel-efficient cars.

The second argument may be the more powerful: even if Detroit’s car companies do not manage to survive in the longer term, it may still be worthwhile to keep them from going bankrupt next year. The economy and the job market will have their hands full dealing with the fallout from the near-collapse of the financial system.

Detroit’s three automakers employ hundreds of thousands of workers and support several million jobs in related industries like auto-part manufacturing and car sales. Major job losses in the auto sector would not only cause enormous economic and social distress around the country but would be extremely costly to the government. In particular, the government’s pension guarantee corporation would have to pick up some of the tab for hundreds of thousands of retirees.

The auto workers suggest that the companies could use another $25 billion in low-cost loans to pay into the retiree health care fund (they already got $25 billion in subsidized loans to retool their plants to make fuel-efficient cars). Detroit might need more just to make up for the markets’ collapse that has cut its access to credit.

But if the government is going to hand out billions to Detroit’s Sorry Three, there need to be serious conditions. For starters, Cerberus has to open up Chrysler’s books and the rest of its finances to government inspection to make sure taxpayer money isn’t just funneled elsewhere in the opaque private equity firm. Ford and General Motors don’t pay dividends these days. We don’t know if Chrysler does. They should all be barred from paying dividends until they repay any taxpayer money they get.

The money should also come with limits on executive pay and golden parachutes. The top executives of the car companies should be required to step down; taxpayer money should not be used to underwrite proven managerial incompetence.

We realize that helping Detroit involves big risks. After bailing out the financial system, it will encourage other companies to seek sustenance at Washington’s trough. Washington will have to learn to say no. But at this juncture, Detroit is too big to allow it to fail. And who knows? It may learn to survive.

Full article can be found at link.
 

·
Premium Member
Joined
·
8,812 Posts
Discussion Starter · #2 ·
Re: NYT: "The top executives of the car companies should be required to step down."

The top executives of the car companies should be required to step down; taxpayer money should not be used to underwrite proven managerial incompetence.
Buickman - Doing a little editorial writing for the Times?
 

·
Registered
Joined
·
170 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

Agreed, both GM management and Chrysler management have proven to be incompetent. Only people that should be retained is Lutz and Press.
Agreed :yup:
 

·
Banned
Joined
·
423 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

I agree. Why give more money to the same people that destroyed gm. What do you think they will do with money from gov. They will spend it on stupid things and be broke again. Remember gm had cash before but management spent it all. If you ask me they need to tell gm and chrysler. IF you cant make it, sell parts of your company to raise cash. Gm can sell opel, holden, saab and hummer and raise cash. Why should i give them my money?
 

·
Registered
Joined
·
3,438 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

Right, because what will really help now is wholesale change in management. If everyone in charge has no idea what's happening then things will go very smoothly. :rolleyes:

I support the limits in pay. The golden parachute matters less because clearly Wagoner isn't going anywhere. For the team running GM, their legacies and their hearts are tied to GM, otherwise they would have left long ago.

Now reality:

Clearly GM is going through the biggest challanges they have ever faced, and they have virtually no one and nothing on their side; not the economy, not gas prices, not perception, not the media, not the gov't, not consumers, not enthusiasts (we rip them every chance we get), and not the dealers (Buickman).

We know their recent products have been well produced and well received. And we know that a lot of new (and good) stuff is coming out starting in 2010, and we know the labor contract savings will kick in as well. GM has bet the farm that those products and the UAW savings will turn things around. If they're wrong, then GM will collapse. The bet has already been placed. No one can do anything any faster then 2010, so bringing in new people won't change anything.

GM has no money. Virtually every car and update is on hold. The only job that Wagoner & Co. have is to stay in business until 2010. If you brought someone else in, they would do they exact same things.

We will continue to read and gasp at every market twist and turn between now and 2010. But realize that nothing can happen to turn GM around before then. It's 2010 or bust.

I, for one, hope they make it.
 

·
Registered
Joined
·
508 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

The Times managment should lead by example and resign for ruining that paper. Typical of the press, do as we say not as we do.....
 

·
Registered
Joined
·
207 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

Right, because what will really help now is wholesale change in management. If everyone in charge has no idea what's happening then things will go very smoothly. :rolleyes:

I support the limits in pay. The golden parachute matters less because clearly Wagoner isn't going anywhere. For the team running GM, their legacies and their hearts are tied to GM, otherwise they would have left long ago.

Now reality:

Clearly GM is going through the biggest challanges they have ever faced, and they have virtually no one and nothing on their side; not the economy, not gas prices, not perception, not the media, not the gov't, not consumers, not enthusiasts (we rip them every chance we get), and not the dealers (Buickman).

We know their recent products have been well produced and well received. And we know that a lot of new (and good) stuff is coming out starting in 2010, and we know the labor contract savings will kick in as well. GM has bet the farm that those products and the UAW savings will turn things around. If they're wrong, then GM will collapse. The bet has already been placed. No one can do anything any faster then 2010, so bringing in new people won't change anything.

GM has no money. Virtually every car and update is on hold. The only job that Wagoner & Co. have is to stay in business until 2010. If you brought someone else in, they would do they exact same things.

We will continue to read and gasp at every market twist and turn between now and 2010. But realize that nothing can happen to turn GM around before then. It's 2010 or bust.

I, for one, hope they make it.
+1, well said.
 

·
Registered
Joined
·
586 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

Link: www.NYT.com (Subscription required)

Neither automaker has been able to produce cars that consumers want to buy.

I beg to differ, GM, Ford and Chrysler sold a ton of trucks ans SUV's. That was what people wanted to buy at the time. Even Porsche made an SUV to compete.
 

·
Registered
Joined
·
3,994 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

Today's automotive CEOs are easy targets, but the real blame lies with the automotive CEOs from the '60s, '70's and '80s for the arrogant way they ignored the threat of imported vehicles and believed that they had an 'everlasting customer'.

When GM had tens of billions in cash sitting around, it should have invested in advanced powertrains and technologies to ensure that its vehicles were market leading in all segments. Instead, it ignored its core products, buying EDS, Hughes, and creating Saturn.
 

·
Registered
Joined
·
202 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

I used to think Wagoner was different than the typical CEO, but I'm beginning to doubt. Time for Lutz to take top job.
 

·
Banned
Joined
·
6,540 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

This editorial is factually inaccurate.

First, there have been no federal loans given to the automakers. Not one penny has reached the automakers; in fact, the loans have been pushed off until at least next year.

Second, the article assumes the management that caused the problems with the automakers is the same management in power now. The only automaker that has the same incompetent managers now as it did in the last five years is GM. Ford underwent massive management restructuring 2 years ago and Cerebus has its own people in for less than that I believe. Hence, the broad brush of the typical leftist media is painting is woefully inaccurate in this case.

Third, the automakers WERE making EXACTLY the vehicles that people WANTED TO BUY. Perhaps the editorialist should remember that trucks and SUV's were what people were buying by the millions (total market) and not Priuses. Collectively trucks and SUV's sold more vehicles than cars up until I believe last year.

Fourth, the nitwit editorialist seems to think vehicles have a gestation period shorter than a human fetus and that automakers can just simply FIAT an answer on the moment. I'm not surprised the editorialist is stupid - that is what liberals do - they don't think - they emote.

Overall, it is with these caveats that the whole editorial must implode upon itself. Factual errors of this nature should have been caught by some on with authority. Perhaps this passed the liberal smell test, but once again facts trump leftists every time.
 

·
Banned
Joined
·
6,540 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

I used to think Wagoner was different than the typical CEO, but I'm beginning to doubt. Time for Lutz to take top job.
You can't be serious! The only achievement the Yutz has had is taking plastic body cladding off Pontiacs. His achievement in product planning has been a disaster. Look at the top two Buicks - LaCrosse and Lucerne - those are his babies - he admits to that - they tanked in the marketplace. Yutz wouldn't even allow comparison of the first and last ever Pontiac G6 with the Grand Am it replaced.... why? Because the G6 sold worse than the model it replaced - same with the Chevrolet Cobore. And the only reason the Malibu looks like a success is because it is being compared to a rental queen which even rental car companies had an aversion to.

Let's face it - there are two reasons GM sucks now - The Yutz and his ego and stupidity and The Hair Piece for being as innovative as a rock and being just incompetent at prioritizing operational issues. This is the very team that sank over $5 billion in failed acquistions and strike resolutions and not once has any of these two twits come clean on admitting they are simply out of touch.

The Yutz isn't the answer unless you want to drive GM into bankruptcy.
 

·
Premium Member
Joined
·
2,461 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

Sure all the car CEO's can go after all the Wall Street execs have a thorough cleaning out, they led us all into this mess with all sorts of gambles and it blew up big time and we are bailing them out for their excesses.

The NYT is barking up the wrong tree...
- GM is producing better quality vehicles than they have done so in recent memory
- they have agreements with the Unions to reduce legacy costs
- they have cut their work forces to reduce excess labor
- they have closed factories
- they have scaled production on most vehicles, most especially in the SUV dept.
- they invested in future technologies that meet/exceed environmental requirements

They have not taken excessive and highly risky gambles on sub prime mortgages, 2nd mortgages etc etc which has caused a credit freeze that is impacting almost all of the economies... hell most of the world economies.
 

·
Registered
Joined
·
8,904 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

If everyone in charge has no idea what's happening then things will go very smoothly. :rolleyes:
I think that quote nicely describes GM's current executive.
 

·
Registered
Joined
·
7,418 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

I used to think Wagoner was different than the typical CEO, but I'm beginning to doubt. Time for Lutz to take top job.
Hire Roger Penske as CEO and watch the stock price double.
I would agree to having to fire Wagoner and Nardelli, but Mullaley is doing a very good job and I would keep him.
 

·
Registered
Joined
·
1,913 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

I beg to differ, GM, Ford and Chrysler sold a ton of trucks ans SUV's. That was what people wanted to buy at the time. Even Porsche made an SUV to compete.
More that Toyota's growth in the US during the 90's to current wasn't itty bitty fuel sippers, it was trucks and SUV's, but you'd never know that by this editorial or many around here.
 

·
Registered
2015 Cadillac XTS Platinum, 1989 Merkur XR4Ti, 1989 Merkur Scorpio
Joined
·
11,300 Posts
Re: NYT: "The top executives of the car companies should be required to step down."

Is the NYT calling for the heads of Wall Street executives?

Not only are they not stepping down, but they're still collecting huge bonuses.... something Senator Pig Nose just figured out yesterday.

I'll do my part to get rid of incompetants... by voting to dismiss all imcumbents.
 
1 - 20 of 63 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top