President Obama and his team have ousted GM CEO Rick Wagoner. While Wagoner may be to blame for the faltering auto makers current condition, a President to demand a management change and a private company is unheard of until now.
The Obama administration auto task force rejected the turnaround plans of both General Motors and Chrysler and warned both could be put through bankruptcy to slash debts.
Instead of writing another fat check, the administration will provide only enough money to keep it going for the next 60 days while it develops an even more sweeping restructuring plan under new leadership.
Union workers and bond holders should be listening for a government knock at the door asking (or pretty much telling) them to give in to tough concessions.
While GM (Now Government Motors) seems likely to survive with the administration now at the wheel, Chrysler may not be so lucky. Chrysler, which is controlled by Cerberus Capital Management, was given 30 days to complete an alliance with Italy's Fiat or lose its government funding -- which could force it into bankruptcy.
My twisted theory here is since GM makes Cadillac (Look at the president's limo)they get to live. POTUS has to roll in style. But Chrysler, well the PT Cruiser just doesn't cut it. Maybe they should bring back the DeSoto.