The New GM: Have We Been Played?
Today GM emerged from bankruptcy and “has vowed to emerge as a leaner, more profitable company once freed from its burdensome debts” (emphasis mine).
Am I the only one who sees a problem with that statement?
Even since GM and the other auto makers started whining about how much trouble they’re in and how they were too big to fail they have been very explicit in saying that bankruptcy was not an option.
But let’s look a little closer at what GM was facing. First and foremost, their business model had failed horribly. They had put all their eggs in the most profitable basket by convincing the American public they everyone needs a big, expensive truck or SUV in their garage. Secondly, they had mountains of debt. Finally, they had archaic labor agreements and obligations – I’d sure love to get paid when there was nothing for me to do…wouldn’t you?
Given the economic climate lately that is one hell of a hole to dig yourself out of. On top of that the country was already livid about having to bail out banks (you know…the ones that should have known better) so the Obama administration wasn’t in the giving mood. At that point bankruptcy the old fashioned way would have been really painful (the way its supposed to be). So what was GM to do? They begged and pleaded for money and assistance, constantly reminding our elected officials how many people would be out of work, how no one would buy from a bankrupt GM, and how they were too big to fail.
Now that GM has emerged from its six weeks of bankruptcy, I think they got exactly what they wanted…and they played us all. No more debts…what happens to the jobs at the companies that GM owes owed money too? No more liabilities…people that have been injured or killed as a result of GM products are now on their own. Less dealers, factories, brands…wiped off the books. It all seems a little too convenient, doesn’t it?
They’ve managed to, in plain sight, use bankruptcy to fuck over the American tax payers. I don’t know about you, but my ass-hole hurts.
