In a shameful move by a shamefully & poorly managed US auto company, GM is now asking the government to completely take over the company so it doesn’t have to run itself – nor confront the unions it plans to phase out:
GM is living on $15.4 billion in government loans and faces a June 1 deadline to restructure and get more government money. If the restructuring doesn’t satisfy the government, the company could go into bankruptcy protection.
GM said in a news release that it will ask the government to take 50 percent of its common stock in exchange for canceling half the government loans to the company as of June 1.
If both are successful, the government and UAW health care trust would own 89 percent of the company’s stock, with the government holding over a 50 percent stake, Henderson said.
I would rather see GM go out of business or at least substantially reduce its product offerings (more than just slashing Pontiac; think much bigger – or smaller, as the case may be). The government should not be in the business of making cars for profit. And since the government will realize this soon too, taking over 50% of the company’s stock (read: operational & financial decisions) means we’re slowly getting on the path of government taking over all industry. It’s frightening for those of us who value good old fashioned hard work in our industry here in the States.
My only hope is that a strong state like Texas secedes from the union and shows the other 49 how it’s done. Only that type of action will finally convince people that a heavily centralized federal government, which should not be in the business of bailing out or taking over industries to the point where those companies are given a lifeline just long enough to BEG the government to put it out of its misery as an independent for-profit going concern, has no place in this country.
If this (or something like it) doesn’t happen? I fear the socialism bug that has infested too many countries in Europe, and spread all too easily via the EU.