(GM CEO Fritz) Henderson said during the conference call that GM is on track to meet cash flow and cost-reduction targets, though he didn’t elaborate. GM will release third-quarter financial results in mid-November, he said. Also on schedule are plans to shrink GM’s U.S. dealership network. (On the financials, we’ll see, and it’s about freaking time.)
GM has about 10,000 more U.S. workers than it plans to have by the end of 2009 after buyout programs for hourly and salaried programs fell short. GM aims to have 64,000 workers and isn’t as far along toward that goal as it expected by this point. (That means the company is blowing through $500 million of cash a month for wages and benefits beyond what’s necessary not even 90 days after supposedly flushing out all of its past problems in bankruptcy.)
Chrysler …. (its chairman, Fiat’s Sergio Marchionne) insisted, is already pulling itself out of the mud, only five months after Fiat took a 20% stake and full management control of the company. “I can see us making money in the next 24 months,” he predicted. (These guys also went through a bankruptcy that was supposed to set the company back on course, and they MIGHT be making money in TWO YEARS?!!.)
In each case, it looks like the bankruptcy plan really consisted of the following:
- “Let’s steal as much as we can from disfavored stakeholders.” In Chrysler’s case, with the help of government intimidation, first-lien non-TARP lenders were fleeced.” At GM, it happened to the unsecured bondholders.
- “Let’s cut things back just enough to make us look like we’re serious, but not enough to be able to emerge profitably.
- “Let’s hope for a miracle in the marketplace.”
This, America, is “your” $81 billion (at least) government “investment.”
It is really sad that so many employees and other presumably good people are caught up in these two messes. But the fact remains that anyone who buys vehicles from these two companies in full knowledge of what has transpired in the past year betrays capitalism, freedom, the rule of law, and their fellow citizens.
That statement will surely offend some readers, but stealing roughly $700 from every household in America, an amount that is going to have to be paid for somehow (in taxes, inflation, or interest on funds borrowed by the government), deeply offends me and millions of others. If you’re not offended by and deeply concerned about what’s happening, you’re not paying attention.
Math-Is-Fun Update: The at-least $65 billion spent to prop up GM thus far is $1,015,625 per job allegedly to be saved.
I’m sorry, this is just creepy (“School Kids Sing For Health Care Reform On Set Of CNN”).
From BigGovernment.com — “Durbin Amendment Calls for Review, Audit of ACORN and Affiliates.” As explained here a couple of weeks ago, this is not good enough, unless the Comptroller General brings in the big guns from one of the Big Four accounting firms, lets them run the show, allows them to go wherever the evidence takes them, and allows FBI agents free of Eric Holder’s influence to come in on anything criminal.
Beyond that, there’s no reason anyone should trust a senator who voted against defunding ACORN mere weeks ago to come up with something that has teeth.
Durbin’s proposal is useful as a backhanded admission that ACORN’s selection of Democrat Scott Harshbarger to do its internal “review” is completely inadequate at best, and nothing but grandstanding at worst.
Here’s a term that needs to catch on, and a problem that really needs to be addressed: “Overcriminalization.” Go here and see why. Another example has to do with the rules that have been thrown at those who hold yard sales.