GM: Making Moves
Originally Posted on 4/12/06
Well, you can't fault GM CEO, Rick Wagner for trying to rock the boat. Buy out of 100 thousand plus employee positions, majority stake sale of GMAC, etc. Personally I think the union buy out option was brilliant and much needed. These workers have been getting paid for essentially doing nothing and the companies been drowning because of it. At an administrative tune of roughly 100k per year. Painful. Not to say this is all of GM's problems but it does play a major part in their dilemma.
What I do question is the sale of GM's most profitable business, GMAC. I understand they need the liquidity (Project $14 billion dollar sales price) to get things moving, but seems kind of risky to be selling off such a successful business. Shareholders and board members are beginning to feel the same way with recent public statements demanding Mr. Wagner be ousted.
His moves may be questionable but action is needed one way or another. If Wagner does get the boot, I'm very curious to see what anyone else can do to fix this sinking ship.
Well, you can't fault GM CEO, Rick Wagner for trying to rock the boat. Buy out of 100 thousand plus employee positions, majority stake sale of GMAC, etc. Personally I think the union buy out option was brilliant and much needed. These workers have been getting paid for essentially doing nothing and the companies been drowning because of it. At an administrative tune of roughly 100k per year. Painful. Not to say this is all of GM's problems but it does play a major part in their dilemma.
What I do question is the sale of GM's most profitable business, GMAC. I understand they need the liquidity (Project $14 billion dollar sales price) to get things moving, but seems kind of risky to be selling off such a successful business. Shareholders and board members are beginning to feel the same way with recent public statements demanding Mr. Wagner be ousted.
His moves may be questionable but action is needed one way or another. If Wagner does get the boot, I'm very curious to see what anyone else can do to fix this sinking ship.
Labels: Automotive, General Motors
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