Government Motors

In an overdue blog on the state of the American auto industry (I've not blogged about things since Carmageddon '09), and in the long running saga that is the auto industry's GFC related woes, GM finally went into bankruptcy as long predicted.

Their bankruptcy, as ranked by total assets, is the fourth-largest in U.S. history, following Lehman Brothers Holdings Inc., Washington Mutual and WorldCom Inc.

They are quickly selling off Saab and Hummer as part of the Chapter 11 process, but as you'd expect from an attempt for a rapid Chapter 11 process, there is already concern over flaunting long-standing rules & regulations. Furthermore, American taxpayers should be concerned that in financing the new GM, they may not have saved American jobs as hoped for if plant closures continue in the US whilst investment in China increases.

Recently, GM named Edward Whitacre Jr, a former chairman of the board and chief executive officer of AT&T, as chairman. He is scheduled to take the position when the automaker emerges from bankruptcy proceedings.

Interestingly, Whitacre isn't a "car guy" as Bloomberg reported. To quote:
I don’t know anything about cars,” Whitacre, 67, said yesterday in an interview after his appointment. “A business is a business, and I think I can learn about cars. I’m not that old, and I think the business principles are the same.

I sincerely hope that the news that the Holden built Pontiac G8 might survive as Buick, is true. Holden produce a great car and have done some smart things around their business locally as I blogged in Where all think alike, no one thinks very much, so having this car continue in the US would be great for Australian jobs.

Again, I'll leave Jon Stewart to provide you a laugh:

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posted by Lee Gale @ 2:07 AM,

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