From MarketWatch of 7 Dec 2008 in "Lawmakers close to deal on Big Three
Dodd says GM chief should resign, Shelby threatens filibuste"
Quote:
|
Meanwhile, Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee, voiced support for a rescue by added that GM Chief Executive Rick Wagoner should step down.
|
Were lawmakers so dumb as to not see this obvious problem? Well, Mulally may actually be good for Ford. Ford does not need the money. Ford, after eliminating the bean counter Jaques Nasser, finally designed some 70 Horsepower per liter engines - albeit 20 years too late. But finally, car guys were allowed to design something.
Both Nardelli and Wagoner have a history of running companies destructively. Nardelli did bad things to Home Depot and was paid $200million to go away. Wagoner created record losses in GM North America and was therefore rewarded with the top executive position. Highest auto profit margins are in North America - and Wagoner still created record losses.
Well, maybe the powers that be have been silent so that the number one problems make themselves obvious. Maybe waiting for the Board of Directors to finally eliminate the obvious problem. One could not be more dumb by blaming GM's entire problem on economic conditions. Wagoner said GM has a good products and productive factories. Hardly. Wagoner said GM's only problem is the economy. Ostrich mentality. Wagoner has no restructuring plans because Wagoner is an MBA - is that much divorced from reality. So maybe Congress is letting Wagoner and Nardelli simply hang themselves?
Unfortunately, the longer these problems exist without any solution planning, the more imperiled are the jobs of all Americans - especially auto workers. Neither GM nor Chrysler have any serious plans to fix themselves. In both cases, their #1 problem still remains in denial.
So what do dumb executives do? They again discuss a merger as if the myth - economies of scale - will solve everything. Another myth taugh in to business school graduates.