So I walk sleepily into the lobby of a Southern California motel, looking for a free continental breakfast. Instead, I immediately focus my vision on the TV mounted on the wall, where President Obama says he’s ousted Rick Wagoner from GM.
WHAT!? Of course this happens while I’m on vacation, and I’m torn on how I feel about it. I’m a firm believer that Wagoner should be ousted as CEO… I even wrote a blog wondering why he hadn’t been fired yet. For that, I give the president props for making the hard decisions that need to be made.
What I’m not sure about is Obama’s plan to pay GM’s operating costs for 60 days and have the government back their warranties. I believe that’s a lot of additional expense I don’t think the government can afford.
Some think Obama went too far in ousting Wagoner… he didn’t. That move needed to be taken. What should’ve happened next is an immediate restructuring and bankruptcy, not a government takeover of the U.S. auto industry. I believe we need to keep the auto industry in the hands of the free market, even if that means it fails.
I hope the Obama administration can navigate this automotive crisis and begin a structured bankruptcy as soon as possible. It’s long overdue, and all the government is doing is stalling the inevitable.
Do you agree with the government taking on GM’s operating costs for 60 days?