GM Returns To Bailout Trough

Today (Tuesday) is the day that General Motors Corp. (GM) gives its viability plan to the Government that will enable it to continue to receive aid. The plan must be finalized by March 31. So far, the company has received $9.4 billion, with $4.0 billion more due shortly.

What is known is that progress along this plan has been partial and limited. CEO pay has been cut, and the job bank for employees has been eliminated. Plans to lower and reduce debt levels as well as change or alter healthcare funding have met with resistance from lenders and the UAW. Nearly 10,000 salaries jobs have been cut. A buyout offer to 22,000 salaries workers has had little interest.

Ultimately, GM needs the following medicine:

• The company should file for bankruptcy to rid itself of unions, pension & healthcare issues
• Separate dealerships from the rest of the company
• Management should be purged and outsiders brought in
• Tariffs and quotas should be implemented for imported vehicles from overseas
• Consumers should be allowed to deduct their automotive interest
• Global alliances should be forged among producers in North America, Europe and Asia.

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