That back firing you hear is Obama's auto design

Politico:

The Obama administration's harsh treatment of the auto industry is backfiring with some auto state politicians despite a concerted effort to build support for the federal crackdown on General Motors and Chrysler.

Skeptical Republicans who warned last fall against the auto bailout had a different reaction: "I told you so."

“This is a major power grab by the White House on the heels of another power grab from Secretary Geithner who asked last week for the freedom to decide on his own which companies are ‘systemically’ important to our country and worthy of taxpayer investment and which are not,” said Tennessee Republican Sen. Bob Corker, whose state is home to Volkswagen and Nissan plants. “This is a marked departure from the past, truly breathtaking, and should send a chill through all Americans who believe in free enterprise.”

Late Sunday evening, the White House held an hour-long conference call with a half-dozen lawmakers who represent auto industry states, laying out a "tough love" scenario in which GM will get 60 days of working capital, while Chrysler has only 30 days to cut a deal with Italian automaker Fiat if they are to survive.

But lawmakers from auto manufacturing states are wondering why their industry gets such tough treatment and a heavy hand from the Obama administration while Wall Street bailout recipients haven't had nearly as much intervention. They defended GM’s Rick Wagoner, arguing that the administration's decision to ask the GM’s to resign was driven more by politics than economic concerns.

...

“Firing Rick Wagoner is a sideshow to distract us from the fact that the administration has no progress to announce today,” said Corker. “The administration is hoping the media and the public will stay focused on Wagoner and fail to notice that negotiations have not progressed since December.

Michigan Gov. Jennifer Granholm, a Democrat, said on MSNBC Monday morning that GM CEO Rick Wagoner was a "sacrificial lamb" for a country that has bailout fatigue.

...
Why didn't he ask for the resignation of the head of the UAW? They have as much or more to do with GM's problems as the CEO. With the Obama team in charge, I don't think I would consider cars from any company they are in charge of. They may be making some good autos, but it is hard to see how things will get better with Obama in charge. He has no business experience nor does he have anyone on his staff with business experience.

Comments

  1. Hopeless: Fights are breaking out over Michigan in response to layoffs spurned by Obama's choice for bankruptcy above all other options. Watch video:

    http://tinyurl.com/hopelessobama

    ReplyDelete

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