Why Booting Wagoner Won’t Solve GM’s Woes

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On June 1st, General Motors announced their intention of reducing its pension plan liability by an estimated 26 billion dollars. The plan allows an option for select U.S. GM retirees to accept a lump-sum offer, while other GM retirees continue their monthly pension plan payment. This website offers a helpful guide that outlines the new plan details: http://www.gm-pension-buyout.com. Because of the complexities that a lump-sum buyout offers, it is suggested to meet with a qualified financial advisor before the plan deadline of July 20, 2012.

Jennifar of AL 2:56AM June 16, 2012

So the President and the country want GM workers to give up jobs that permitted a decent living but doesn't ask a penny's reduction in the obscene salaries of the financial folks who brought us to this pretty place?
The country and the President should feel the same shame they are engendering in the rest of thoughtful America.

Bob Benfer of MO 3:56PM April 09, 2009

The AKA (Barry Soetoro) commonly know as Barack Obama had to produce a fall guy. But the real culprit is the Labor Union. It will take BANKRUPTCY to gut the outlandish Union Contracts to get GM competitive again. All that could be done without Obama's bailout of GM with taxpayer $. The new GM will be called Government Motors Corp.

whs806 of TX 6:46AM April 01, 2009

Economic history is famous for its unsympathetic dismissal of businesses which fail to innovate and maintian competitive viability. Chrysler has always been a second-rate contender with few prospects; taxpayers should not bail out the fools who bought it from the fools who owned it before. GM built itself into a giant with the help of world war then slid down the slippery slope of complacency and mediocrity; when peril was finally recognized the hard-nosed measures needed were not taken. GM should have sought bankruptcy protection in early 2008; it either would have been sold for parts or emerged obligation-free, lean and hungry. Management, workers, suppliers, and investors all suffer in business failure, that is the risk of capitalism. We don't hear folks complaining about all the money they are making in good times and we shouldn't hear their crying when capitalism shows its hard side.

Ed Newton of IN 5:29PM March 31, 2009

What disturbs me is that NO ONE appears to give a damn about the individual stockholder in this, many of whom have their life savings or a good portion invested in GM stock. Not everyone is a manipulative SOB which appears to be the manner in which our government perceives all of us. NO comments have been made about OUR fate, our dreams, our future in all this. What's especially interesting, as thankfully touched on even lightly in the article, is that GM's success in courting the unions, the bondholders, and everyone else is the prospect of ensuring their fates by an eventual recovery in GM's stock price. Rather than only threats of bankruptcy from our government, Obama (who I remain convinced is the right person at the right time) should be addressing the desire to protect present and future stockholder's and grow the current value of its stock. Since, clearly and reasonably, that is the stumbling block to getting every bondholder and union on board.

Albert C Moeller, Jr of FL 12:39PM March 31, 2009

GM may have it's HQ in the US, but it is also a global company. That means that not every dollar it makes stays here, because people, institutions and organizations all over the world own GM stock and their bonds. When dividends are paid out to shareholders, it goes GLOBAL.
The same goes for Toyota, Honda, BMW, Daimler, etc.
To say that it is just American is a misnomer and keep in mind that many multinational are their countries of origin in HISTORY and registration only.

casualsuede of MO 10:22AM March 31, 2009

GM has and still is a great company. GM also known as generous motors , because they always were very good to their employes. Rick Wagoner had done every thing possible to turn things around and from that respect he did a great job. These changes probably should have taken place years ago before foreign competitors got tax incentivites and were coaxed by the US to build plants here. Remember GM is an American Company and the profits still stay here. This is not so with our foreign competitors...all the profit goes to their home land. Replacing Rick Wagoner makes things no different. The Goverment can't take care of its own problems...and for all practical reasons is in worse financial shape then GM. Read the book why GM matters....they helped make the middle class. Now we have Wall Mart @ $8.00 an hour that is larger then GM where are headed?
I hope this goverment intervention....works....God Bless GM and all its employes!

Al Pachyn of IL 9:43AM March 31, 2009

Since when in the USA does OUR government have the right to say who runs a private Corporation. This is a horrible precedent of things to come if "we the people" do not show our outrage. Our favorite JR Senator has never started, run or even worked in any private business in his life. Let's see, for that matter he's never run a State, City, Town or Hamlet either. Making payroll or operating within a budget? Nope.
What were you people thinking?

Chris Petty of GA 9:42AM March 31, 2009

I have owned many GM cars and many Toyota cars. Today, the GM cars are not that different in quality and lower in cost. My 1993 LeSabre just got resold to a third buyer with 250,000 miles, and he was happy to get it. My 2004 LeSabre is running well. So is my Toyota Camry hybrid. But every time I see a BMW, Mercedes, I see dollars leaving the US, and a lot of them. If people bought US made cars (made by whomever) our economy would be much better. Americans turn most things into commodities, wanting low prices, or else want exotic foreign cars where the dollars leave the US. We need to think about buying American, something Obama and Washington don't seem willing to say. Dollars that stay in the US become over $10 of GDP. Dollars that leave are a trade deficit. You don't need to be an economist to figure it out.

Art of OH 9:36AM March 31, 2009