Opinion Desk: GM As A Hostage Taker?
While playing the American President in the movie Air Force One, Harrison Ford delivers a speech declaring that America will not negotiate with terrorists. When Russian terrorists high jack the supposedly impregnable aircraft, threatening the safety of his family, he retreats from his previous position. The terrorists want the President to release their destabilizing leader, the deposed former military leader of Russia. The President agrees, but when he asks that the terrorists release his family, they refuse, saying, “We have many more uses for you now that we know that you are willing to negotiate.” According to Forbes International Affairs writer Jens Laurson, and 1996 Presidential-hopeful Bob Dole’s former economic advisor George Pieler, this movie moment explains perfectly what The General is attempting to do to European governments, particularly Germany. (more…)
Bob Lutz Expresses Woes Of GM Executives
Speaking at the annual National Automobiles Dealers Association (NADA), Bob Lutz declared his belief that the top 25 executives at General Motors are underpaid. Because GM is one of the companies that received billions in federal bailout money, Treasury officials are reviewing the company’s executive pay packages. It is probably not a coincidence then that Lutz chose this time to make his remarks regarding the matter of executive pay.
While Lutz does think that the 25 executives at GM deserve more compensation because of “the rigors of the job and demands and the accountability,” it is important to note that his exact quote says that the executives “are being paid way, way, way below market.” The distinction here is that Lutz is pointing out that they are being paid below market and not simply that they are underpaid. He even acknowledges that a company such as GM, which has recently emerged from chapter 11 bankrupcty, can not expect to have the same levels of executive compensation as similar companies that have not been through the grim process. (more…)
US Treasury To End Supplier Guarantees By April
Come April, the U.S. Treasury will end an assistance program to automotive suppliers. Last March, the government used $5 billion to smooth credit transactions across the auto industry. Neil Barofsky, a special government inspector supervising the financial and auto bailout money, reported to Congress that the arrangement is “scheduled to terminate in April.” Since its inception last year, the program has been reduced from $5 billion to $3.5 billion, including $1 billion for Chrysler’s suppliers and $2.5 billion for those of The General. (more…)
GM To Pay Back Canadian and U.S. Loans By June, No Saab Deal (Yet)
by
Alex Luft
Posted January 25th, 2010 at 1:09 pm
During this morning’s press conference, GM CEO and Chairman Ed Whitacre announced plans to repay the company’s U.S. and Canadian government loans as early as June 2010. The General received $6.7 billion from the U.S. federal government last year.
Whitacre was very optimistic about The General’s future, citing a stabilized market share even after cutting its brand portfolio in half last summer. He also told reporters that GM is “well ahead of metrics outlined in our viability plan,” something that “makes all of us happy.”
After announcing his permanent appointment to the position of CEO, Whitacre gave a very succinct update on Saab, saying that talks with Spyker Cars are ongoing, but the two companies have no deal to announce as of this morning. Whitacre added that “as of today, we have not changed the direction on the wind-down of the operation.”
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