GM can't even beg properly

Wall Street Journal http://atu.ca/65ee2

Pity the poor one million General Motors shareholders.

GM shares now trade at less than three bucks — they’re
almost certainly worth zero. And the company can’t even
produce a CEO who knows how to properly beg for Washington
bailout money.

The testimony of GM boss Rick Wagoner before the Senate
banking committee came across as defensive and arrogant. In
the Wagoner-ian universe, everything was just fine at GM
before this nasty recession came along.

Of course, it would be a small miracle if Wagoner wasn’t
delusional. He’s been at GM since 1977.

But in truth, yesterday’s testimony from the Big Three CEOs
probably didn’t much matter. The $25 billion emergency
bailout for Detroit was dead on arrival even before the
hearing. The Republicans can block it — and Bush would veto
it.

But interestingly, the case made by the Big Three to tap
the TARP was so weak, that even some Democrats may now be
thinking that bankruptcy is the only sensible endgame for
Motown.

How weak was it?

Well, every taxpayer should watch the Senate testimony from
yesterday and decide for himself. You can watch it on
www.cspan.org. It’s four hours long, but actually pretty
riveting. Okay, parts of it are riveting.

Wagoner, Ford’s Alan Mulally, Chrysler’s Bob Nardelli and
United Autoworkers honcho Ron Gettelfinger rehash their
well-rehearsed arguments. As they put it, millions and
millions of jobs are on the line. The future of American
manufacturing is at stake. All apparently because Americans
with lousy credit — who shouldn’t buy on credit — can’t buy
on credit.

There are the inconvenient facts of decades of declining
Big Three market share and grotesque overcapacity. Only in
the World of Wagoner could the industry be making
“tremendous progress.”

If pressed for time, skip to the hearing’s third hour when
Democratic Sen. Bob Menendez uncovers the “big lie” of a
Detroit bailout. The $25 billion number is a fudge. It
would only plug the hole for a few months. Mendendez was
blunt. Detroit will soon be back hat in hand.

And Menendez is a sympathetic voice. Ouch. Next comes, Bob
Corker, Republican from Tennessee and a no nonsense
businessman. He is brutal. “GM is spiraling downward.”
Chrysler has “barely a heartbeat.” “Which of the three
should survive and which shouldn’t?”

Corker dares to point out what everybody knows but nobody
will say. The entire American car industry is already
bankrupt. One and maybe two companies will have to go.
Industrial triage is inevitable. That’s the way business
works.

Corker’s brilliant maneuver is to have the “impartial”
Gettelfinger — whose UAW has fleeced all three — rank them
by viability. Gettelfinger’s answer: Ford, then Chrysler,
then last, GM.

Minutes later, Wagoner’s detached statesmanlike composure
finally gives way. His face grows red. His voice rises.
It’s clear just how desperate GM has become.

Chrysler CEO Bob Nardelli and Ford boss Alan Mullaly at
least know how to grovel properly. Of course, they don’t
carry the emotional baggage of a longtime Motowner like
Wagoner.

Nardelli has been at Chrysler for just over a year. He
knows Chrysler’s days are numbered and looks like a man who
just wants out. Every time he has the floor, he reminds
lawmakers of Chrysler’s “fragile” position. Oddly, for
someone who took home hundreds of millions in a disastrous
stint as Home Depot’s CEO, Nardelli can still elicit
sympathy. That’s good salesmanship. He should be on a
Chrysler lot.

As for Mullally, he makes it clear numerous times that Ford
doesn’t even have to be in Washington asking for money.
It’s the troubled, ne’er -do-well Rick Wagoner at the end
of the table that’s bringing him there. “I’m here because
GM is here,” Mullaly intones with aw-shucks brotherly love.

That, of course, is disingenuous. Mulally concedes that by
2010, without an upturn in the U.S. economy, even Ford will
run out of money. Nor does he mention that Ford’s share
price closed the day at less than two bucks.

Luckily for the Big Three, the Detroit bailout will be
resurrected early next year when a new Congress and Barack
Obama are sworn in.

Mulally and Nardelli will have a few months to brush up on
their performances.

Wagoner may not be as lucky. His board can put up with a
failure to turn a profit, but it probably won’t stand for
his failure to bring money back from Washington. If this is
GM’s best salesman, no wonder the company can’t move cars.

 

Actually that isn't entirely true. The GOP has said it would be more
than happy, if not thrilled to their very core, to let the Big Three
have the $25 B that has already been allocated to the B3 for
re-engineering, etc.
They just get upset about any additional at this time. If the Dems were
really serious, they could change the law and let the B3 have THAT $25 B
tomorrow. Then when Obama comes in, revisit it for more.

 

You dont quite understand the politics here. The Republican president is
still
in power. There is no immediate Democratic majority.

If the Dems piss away money without thought to the feelings of the
taxpayers,
they can be in a heap of shit.

Pouco a pouco

 

The Dems have the majority in both houses of Congress and have had
for a couple of years now. Current seems fairly immediate to me, anyway.
Then give them the money already allocated and when the Republican
president is no longer in power give them more.

 

Of course he is, and so are all other politicians with European and
Japanese car plants located in their state.

 

It is not that simple. A simple majority doesnt count...And if the bill
passes
and the President says VETO, then nothing counts.

All the ducks are not in line.

 

I doubt 25b would change the fate of either of the big three; but give
1b or 2b to tesla, in 10 years almost everyone driving in na would
have one or simlar and the states would be free of foriegn oil

 

the man is stuck in his toddler tantrum.

this is what happens to children raised with belts, spoons, hairbrushes and
blood for breakfast ... they stay immature.

they grow up, they go to school, they learn a job, present well, raise up
the ladder ... and then they get caught.

Like OJ ... he is a little boy.

Or Bubble Boy or Commander In Thief ...he lies, cheat and steals like out of
the cookie jar ... just more smooth about it.

If you have the mind for it ... you can see people in their toddler tantrum
all over the place with their judgement, expectation, justification,
invalidation and magical thinking of being right and you wrong.

It is in front of you all the time in plain sight.

sumbuddie wear blind sea

 

I heard part of it today (while driving in my GM truck) -

Some Senator: Mr. Wagoner, how much of the $25 billion would you need to run
through April?

Wagoner: <insert gobblygook doublespeek about the economy and whatnot>

Senator: Mr Wagoner, I must be dumb, because I didn't understand a damn
thing you said. Tell me, how much of the $25 billion would you need through
April?

Wagoner: <more doublespeak>

Senator: I fail to see why you cannot answer the question...


It was laughable and very very sad.

 

The GOP and the President has said numerous times that the $25B in
retooling money already allocated could be used for cash flow purposes
instead the very second the Dem-controlled Congress votes in the
affirmative to the needed changes. No veto is being threatened unless
the ADDITIONAL $25B comes out of TARP.
All those ducks are nicely arranged in a very straight line
The Dems are caught between two of their biggest contributors (Unions
and environmentalists) and don't want to piss off the unions by
abandoning the UAW and they don't want to piss off the environmental
lobby because the retooling money is supposed to be used exclusively for
development of greener cars.
So, instead of strapping on the Congressional Cajones and actually
making a stand, they punt and blame the intransigence of the GOP. Sorta
like their reneging on their Iraqui war promises in the Midterm.
BTW: With the settling of the Alaska Senatorial race, the Dems are
only two votes short of veto and filibuster proof. If they can't peal
off two auto-state Republicans on this bill, they are way doomed.

 

Well, 22 months.

And you need 60 votes in the Senate to do almost anything. Plus Bush
can still veto.

 

Both Michigan Senators are Democrats. Ditto both from Illinois. One
from Ohio. One from Pennsylvania.

Most Republicans are from the South and Mountain states these days.

 

So what?

 

Non-union states. Less protectionist. Now the minority party.

But then the more liberal party has ALWAYS been more corru^H^H^H^H^H^
pro-union.

;-)

 

Well, 22 months.

And you need 60 votes in the Senate to do almost anything. Plus Bush
can still veto.
=====================================================

Bush should not be able to do anything he can not spell.

 

Rather limits him, doesnt it;>)

 

That's the point ;-)