For its part, the automaker said it would eliminate or sell its Saab and Saturn brands, shrink its venerable Pontiac division to a few niche models, lay off tens of thousands of employees and put nearly 2,000 dealers out of business.
GM also said it would reduce pay 20% or more for four top executives and pay Chairman and Chief Executive Rick Wagoner a $1 annual salary.
[From GM says it could fail in a matter of weeks - Los Angeles Times]
Some kind of low-cost government loan, the $18 bil. Don't ask me. It does sound a little bit presumptuous, though, asking the public to subsidize all those layoffs. And then subsidize what little bit of help all those layoffees get after they are. (Somehow I don't think C&CE Ricky will be standing in the food stamp line any time soon.)
But here's the really good part. Apparently in an attempt to show contrition, this time the auto execs are driving, as opposed to flying in private jets, to Washington for this second round of pleading. Which has got to be the stupidest, most inefficient way they could possibly get there. Even if they are in the auto business, even at 20% off - even at a buck a year (yeah, right) - you really want to see these guys do something a little more productive than drive a car.
Still, it proves they've learned something: It's all about the smoke and mirrors, babe.
It really is.
2 comments:
What if only one of the three goes out of business, don't the remaining two stand to benefit? Pull straws.... The taxpayers would still subsidize the layoffs and the pensions from the one bankrupt automaker, but maybe that would be less than $18 bil?
Pretty interesting thought.
I wonder.
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