I am still surprised and disappointed that corporate America has been painfully silent as the government usurps more and more authority at General Motors.
The White House and the Treasury Department fired the CEO and appointed an "interim" CEO and an "interim" nonexecutive chairman. They decided that the UAW will have a large block of the stock in whatever company emerges and have told the bondholders exactly how many billions of dollars they will lose.
All this from folks who have never run a manufacturing company. They are mostly politicians and regulators with a smattering of Wall Street financial types.
This scenario should never have happened. There has hardly been a peep from anyone that perhaps this is a formula for disaster.
The UAW is made up of good people, but the idea that the government and the UAW will make any decisions about an auto company is ludicrous.
Regardless of what the White House says, the French government has owned Renault for 65 years and today still owns about 15 percent. A state in Germany owns 20 percent of Volkswagen and has no intention of selling any of its stake.
Now the U.S. government will own and be involved in the decision making of Government Motors, aka GM, for at least as long as the current administration is in office.
It is absurd that the federal government will be dictating GM's business plan. If the White House is going to decide on future models for GM, we probably can write off the rest of GM now.
There is a huge chasm between what the government would dictate GM should manufacture and what the public would like to buy.
It may well be that Pontiac will die because the White House decided the brand represents everything bad about Detroit since Pontiac was the father of the muscle car and still represents GM's performance aspirations. I hope it was simply that GM didn't sell enough Pontiacs.
Sadly, GM seems to be rapidly morphing into Government Motors without anyone raising an eyebrow. That's a tragedy.
Meanwhile, Chrysler was told its fate some time ago by the White House.