Re-privatization
The Liberation of General Motors
By STEVEN RATTNER, NYT
Like Willy the whale, General Motors has finally been freed - or nearly so.
Today's announcement that the Treasury Department had agreed on a process to extricate the government from its ownership stake in G.M., the world's largest automaker, is welcome news.
For General Motors, the separation will conclusively remove the appellation of "government motors," a stigma that the company had argued affected the buying decisions of a meaningful segment of consumers.
The divorce will ultimately also liberate G.M. from a number of government-imposed restrictions, importantly including those relating to executive compensation. These restrictions adversely affected G.M.'s ability to recruit and retain talent. Now, compensation decisions will be made by the company's board of directors, just as they are in every other public company in America.
From Washington's point of view, divesting its remaining shares will end an uncomfortable and distinctly un-American period of government ownership in a major industrial company.
(More here.)
By STEVEN RATTNER, NYT
Like Willy the whale, General Motors has finally been freed - or nearly so.
Today's announcement that the Treasury Department had agreed on a process to extricate the government from its ownership stake in G.M., the world's largest automaker, is welcome news.
For General Motors, the separation will conclusively remove the appellation of "government motors," a stigma that the company had argued affected the buying decisions of a meaningful segment of consumers.
The divorce will ultimately also liberate G.M. from a number of government-imposed restrictions, importantly including those relating to executive compensation. These restrictions adversely affected G.M.'s ability to recruit and retain talent. Now, compensation decisions will be made by the company's board of directors, just as they are in every other public company in America.
From Washington's point of view, divesting its remaining shares will end an uncomfortable and distinctly un-American period of government ownership in a major industrial company.
(More here.)
Powered by Blogger
2 Comments:
A better headline would be the liberation of the auto unions and the robbery of the American taxpayer. There was and is an answer for failing companies and it is called bankruptcy. The Obama administration seems to be associated with a number of failed companies. Treating the UAW differently than other GM shareholders is simply wrong. Would be asking to much for the NYT’s and NPR to give some attention to these issues?
GM wants rid of the government because no one is buying the junk GM is manufacturing at the behest of the Obama Administration.
GM wants to be free of the government heavy hand, but the taxpayers paid a heavy price to keep GM in business. The taxpayers will take 50% loss of the bailout when the government sells its stake in GM.
And, since our government is no longer in the bailout business, should GM re-enter bankruptcy, let's hope we have the balls to let GM die.
Post a Comment
<< Home