As many of you know, I am the son of a retired General Motors worker. Ironically, I am also a Conservative. No, I am not a Republican; or even a formal Libertarian. I am someone that believes that the less Governmental interference in my life, the better. However, there is a place, where my politics ends and a genuine concern for my family begins.
I see that General Motors is going to be taking more money from the Government, and is desperately trying to salvage what is left of that company:
Quote:
General Motors Corp. will get up to $5 billion and Chrysler LLC $500 million in short-term aid, according to a 250-page government report obtained Monday by The Detroit News.
The Detroit News reported Friday that GM would get about $5 billion and Chrysler $500 million, citing an Obama administration official, which prompted a denial from the White House.
The short-term aid figures are disclosed in the report from the Treasury Department’s Inspector General on the $700 billion Troubled Asset Relief Program.
The report was obtained from a congressional source late Monday.
Meanwhile General Motors is is doing its damnedest to rid itself of waste:
General Motors Corp. has started notifying about 1,600 white-collar workers — most of whom work in southeast Michigan — that they will lose their jobs this week as the cash-strapped automaker cuts costs that could help the automaker qualify for up to $16.6 billion in additional federal aid.
The announcement was made by GM North American President Troy Clarke in an e-mail sent to employees today, spokesperson Tom Wilkinson said.
“This is part of really restructuring the company to a smaller, leaner company, one that can, as the (Obama) administration requested, be profitable on an ongoing basis,” Wilkinson said.
While this might be a good thing, there are those out there that believe that this is too little too late:
It’s ironic enough that Italy’s Fiat Auto could end up being the savior for Chrysler. After all, former Chrysler President Bob Lutz once likened Fiat to a dead bride when his old boss, Lee Iacocca, wanted the company to join up with the Italian carmaker. Now, Lutz is at General Motors until he retires in December, and Fiat may help his current employer.
Yes, the Italian carmaker is reportedly in talks with GM about forming a partnership with its European and South American businesses, says Automotive News. How ironic is that? Well, in 2000, GM bought 20% of Fiat Auto for $2.4 billion. Back then, GM was healthy and Fiat was in serious financial trouble. The Italian company was wracked by quality issues. It was so bad that GM actually paid another $2 billion a few years later just to avoid a put option that would have made GM the sole owner of Fiat. GM’s board didn’t want that kind of headache.
But now, after Fiat CEO Sergio Marchionne has fixed the company, he could help save Chrysler in the U.S. and GM in Europe. GM lost $1.5 billion in the Olde World last year, with its Opel and Vauxhaul brands suffering mightily with too many factories. GM is actually doing very well in Latin America, where the auto giant earned $1.3 billion last year. Fiat is pretty strong there, too, so they could make a powerful pair down there. The only catch is that Fiat doesn’t have any cash either. But the alliances will help be getting each company jointly-engineered vehicles and sharing parts.
The bottom line: Fiat is not a great carmaker by any stretch. But Chrysler and GM are in so much trouble that anyone could help at this point. Even Fiat.
Which brings me to my point; have any of you really looked at your Father? I have. I see worry in his eyes. I see worry in both my parents eyes. The questions my parents are facing, as they enter into their golden years are unfathomable, for someone my age. Will my parents lose everything that my father worked hard to obtain? We are talking 31 years worth of blood, sweat, and tears. My Father earned every damned last penny. I dare some idiot beltway type to say otherwise.
I have been a critic of the Obama Administration for much, as of late. However, I will give him credit for one thing. The President is looking out my Father. I just hope he does not throw my Father under the bus, as he has many others in his short time in the White House.
Some of you might look at this posting and call me some sort of a hypocrite. That is your right as an American.
However, if you could only see my Father’s eyes; you might just might be able to understand.