Now that Steve Rattner has surrendered his position as head of The Presidential Task Force on Automobiles (to attend to a federal bribery investigation into his old crew), Ron Bloom is the man running two of America’s three domestic carmakers. I’m sorry? Did I say “running?” I mean to say, “passively protecting.” ‘Cause Ron says his twenty-four member mob—responsible for guarding taxpayers’ $50 billion “investment” in Chrysler and GM—is backing off from hands-on management (e.g., capping GM CEO Rick Wagoner’s ass). They’re only going to step in on “core governance issues” and “major corporate events or transactions.” Did all those quote marks tip you off? It’s true: this makes no sense at all. Didn’t when the checks were cut. Still doesn’t. Anyway, the Detroit News reveals that Big Ron II’s continuing to stretch the bounds of linguistics and credulity to the event horizon. Yesterday, Bloom told the congressional panel in charge of overseeing the overseers that “the best way to get out as quickly as possible is not to commit to a defined schedule.”
The statement makes Bloom the perfect man to run both Chrysler and GM—into the ground. It’s got to be said: Again. Still. Chrysler and GM’s abject inability to set targets and achieve them led directly to their dissolution. The auto execs’ concomitant and complete lack of accountability also mirrors Bloom’s current position. At the end of the day, like any good politician, the jefe’s future depends not a whit on anything as prosaic as securing a return on investment for U.S. taxpayers. It’s all about the spin.
Meanwhile, Ford:
Bloom was asked if the federal government’s financial support for GM and Chrysler could leave Ford at a disadvantage.
“It does pose a dilemma,” Bloom said, though he noted that Ford supported the bailout of its cross-town rivals and was invited to ask for money, too.
That’s his answer? Sucking the oxygen out of the room that privately-owned (though DOE-supported) Ford needs to survive is OK because sign here and Uncle Sam will nationalize your ass too? I’m a pretty creative guy, but this bailout misegos always turns out worse than I can imagine.
Does anybody actually believe this guy and his uncredible comments. I read his ‘testimony’ and was amazed at what he said.
I also read the “testimony” of GM’s Treasurer Borst and boy did he do a good job of taking up time and not saying much….at least he was taught the GM way.
the best way to get out as quickly as possible is not to commit to a defined schedule
Hey, it’s working for Iraq.
@ RF
I’m a pretty creative guy, but this bailout misegos always turns out worse than I can imagine.
Why? It’s an ordered wind-down of the failures that are GM and Chrysler, masquerading as a circus, without impaling unemployment on the slide ever downward.
An (eventual) Ch7 for GM and Fiatsco for Chrysler.
Maybe the Keynesian expansionists pumping money in at the top of these disastrous companies will keep the worst ravages of structural unemployment at bay for another 12-18months.
The GFC seems to be easing in many countries (apparently).
No target, no deadlines… ummm, they are calling themselves leader, right?
Is that what leadership is about?
*rolleyes*
Sucking the oxygen out of the room that privately-owned (though DOE-supported) Ford needs to survive is OK because sign here and Uncle Sam will nationalize your ass too?
I think what Bloom was saying was that Ford had their chance but declined, and they didn’t (publicly) object to their competitors’ moves, so they’ve made their bed . . . . Though it does put the PTFOA in an awkward position. If Ford fails, the chorus of “How could you (Bloom/govt/Goldman Sachs) let this happen?!” will be thick and vicious.
I believe that Ford believes that UAW-/govt-run GM and Chrysler are weaker competitors. Some consumer sentiment (i.e., “I’ll never buy a socialist-made car. Ford for me.”) bears this out. The fact that Ford uses UAW labor seems beside the point, but I digress.
I’m cool with no defined schedule as long as he’s then talking about what metrics need to be achieved and a ballpark timeframe for when said metrics will be reached.
Ex. We will exit the daily operations portion of GM when they break even. We expect this to happen in 2025.
We can then debate the merits of that plan.
Instead, we have yet another confirmation that GM’s corporate culture is quite similar to how our Fed. government functions.
Ex. We will exit the daily operations portion of GM when they break even. We expect this to happen in 2025.
The truth is that GM and likely chrysler will either die or at least be reduced to very weak and small representations of their former selves. The majority of our money is already gone into the cleanup of the giant mess left behind by decades of marginal incompetence.
But unfortunately the plebs can’t handle the truth, so this charade continues as scheduled.
I mean, look at the congressional testimony of their ceo’s back before the bankruptcy. They were all saying the same BS.