Well, President Obama did it again. By the government’s action to put General Motors (GM) into bankruptcy and to seek and receive the resignation of Mr. Wagner, GM CEO, this administration has demonstrated its willingness to take action to do what is needed to correct problems.
Just the act of taking action in a positive way is very reassuring.
Before we jump to conclusions that are based on misinformation, whether intentional or unintentional, President Obama repeatedly said in his statement today that the government has no intention or desire to run the auto industry. It proved this with the interim CEO being someone that has auto industry experience. Furthermore, President Obama said that GM will be in the reorganization type of bankruptcy. To foster sales of GM brand vehicles while it is in bankruptcy, the government will loosen up credit for their purchase and back up the vehicle warranties.
To foster a successful result when GM emerges from bankruptcy, President Obama said that a new management team will preside over a leaner firm that manufacturers innovative vehicles for the 21st century just as it had produced for the 20th century. To accomplish this, President Obama said that all interested parties will have make concessions.
Even though this action is unsettling to the many people inside the auto industry and even to us not in that industry, it is obvious that the Obama administration has taken steps to help GM avoid being forced into the liquidation type of bankruptcy, found a way to keep our auto industry alive during its transition to a more lean, innovative firm that manufactures the types of new vehicles that will be required for a new century.