You Owe Big Auto an Apology!

So the whole world is pissed at the auto execs for flying private jets to Washington for hearings. Me personally, I have been on the fence with it for the last few days…one day I am as angry at them as the rest of you, the next day I can see full well why anyone in that position would use these accommodations.

But let’s do a little math shall we? Let’s assume that Rick Wagoner or Bob Nardelli aren’t traveling alone. I mean do you think Rick Wagoner, the CEO of GM travels by himself? Hell no! So how many people will you be traveling with today Mr. Wagoner? Well, you imagine his executive secretary is a no brainer right? Then you have a VP or two from finance just in case they need to crunch some numbers during the hearing, and each of them bring their secretaries.

Body count so far: 6

Then you know full well Rick isn’t leaving town without being all lawyered up. So he brings both personal and corporate attorneys. Let’s say its five lawyers total and two support staff.

Final total: 13

Flying the friendly skies-If our villain did opt to fly commercial, he certainly isn’t doing it on a discount airline like Southwest, so it’s American or US Airways. And let’s also assume the lackeys aren’t flying first class with their boss either. So we have the following breakdown:

First class round trip from Detroit to Washington on less than 14 days advanced booking for eight executives and 1 executive secretary. Cost: $29043

Coach for round trip from Detroit to Washington for 2 support staff. Cost: $958

Grand Total=$30,001!

Cost for 1 GulfStream G550 with crew and seating capacity for 15: $18,974

Taxpayer savings: $11027!

So, there you have it. Rick and his band of merry men were looking out for your tax dollars! He took a private jet with support staff that cost over $10,000 less than what it would cost to fly commercial! You should all be ashamed of yourselves for giving this hard working titan of industry a hard time! Shame on you!

GM Should Crash and Burn!

Everyone has an opinion these days on whether or not to bail out the auto makers. I even talked about it in the affirmative just a few days ago. Everyone from Barney Frank and Nancy Pelosi to Christopher Dodd and Vice-President-elect Joe Biden has weighed in on what the Treasury should do with our money.

Maybe they should ask the people paying the bill?

I am going to do a complete 180 on my opinion on saving the autos because Rick Wagoner won’t resign his position as CEO of GM. Asked if he would step down as a condition for receiving funds to prop up GM Mr. Wagoner said during an interview with Automotive News that “This is an issue that needs to be addressed urgently,” and “now is the time to overshoot, not undershoot.”

He went on to say “I don’t think it’d be a very smart move.” “I think our job is to make sure we have the best management team to run GM. It’s not clear to me what purpose would be served by my resignation.’ Isn’t that some shit? This guy has spent years putting this company in harm’s way with big SUV’s, buying Hummer, and mismanaging the relationship with the UAW and he wants to make sure to have the best management team in place to run GM? I am not entirely sure that a half dozen circus monkeys don’t qualify to run your company right now Rick!

But that is only part of the reason I am flip flopping. If GM has to go bankrupt, there will be a forced restructuring. In other words, GM will get some breathing room but it will also have to fix its internal problems instead of us just handing them a big check to do with what they want.

So, you’re the new President of the world, do you thumbs up the autos or let them die? But remember, it’s gonna be another million people out of work in a highly concentrated area of the country. Are you prepared to distress the whole of Michigan for years to come or will you throw these scoundrels a rope to serve the good of us all?

Cerberus C-Blocking GM, Chrysler Merger?

While General Motors and Chrysler parent Cerberus play footsies under the soon to be Thanksgiving table the world is coming to an end. Guys, let’s stop kissing here and start fucking! Seems the holdup is Cerberus, they want an equity stake in the new company to which I would say “kiss my ass Nardelli” if I were the GM board. Read more

GM’s Hummer Unit a White Elephant?

News surfaced this weekend that General Motors, the embattled auto maker who is looking to pare down assets by selling off its gas guzzling Hummer unit was in talks with Oleg Deripaska, Russia’s richest man. He’s not the only one, Mahindra and Mahindra, an Indian auto maker along with a private equity group from Turkey have been sniffing around Detroit looking to pick up a used truck division on the cheap.

Just one itsy bitsy little thing….

Doesn’t Hummer still make the Humvee for the US military? Yes! AM General will be making and servicing the military version until 2009. Now, I realize we are not talking launch codes or missile defense shields, but I am sure there is a difference between the military Humvee and the civilian Hummer, and I am not just talking cup holders and ashtrays. I don’t know if most people remember or even realize that GM has a military contract to produce Humvees. If they did, would they then be upset to learn that the division might be sold off to a foreign company?

I would bet there was a phone call sometime this weekend to Rick Wagoner asking him to explain exactly what is being discussed by GM and Mr. Deripaska considering the frosty relations between Washington and Moscow these days. Let’s throw in for good measure how happy Pakistan would be if we sold Hummer to India, or how would the rest of the Middle East feel if Hummer was bought by a group from Turkey.

Unfortunately, GM is stuck with a white elephant. Too many political hurdles to get over with the current list of potential buyers. Would you be upset if a foreign company bought Hummer?

GM Off The Dow? Part 2

I left the 7 of you who read this blog yesterday waiting in anticipation for my lock on turning around GM right now. Ready?

Bob Lutz, General Motors Vice Chairman

Born in 1932, Bob Lutz has been in the car business for almost fifty years. He has a fantastic resume with having a hand in some of the most famous production vehicles of all time:

While VP of Sales for BMW, Bob had a hand in developing THE best selling 3-series

While President of Chrysler, Bob developed the Viper, the Prowler, and the LH platform of autos.

He brought the Pontiac GTO, arguably one of the most famous muscle cars ever to the U.S. while stationed in Europe for General Motors

His reference to global warming as a “crock of shit” didn’t warm him up to the environmental crowd, but the guy can sell cars. He has vast experience in selling and manufacturing cars both in the States as well as Europe which provides Bob with the chops needed to take GM into the next decade.

But Bob is too old!

Mr. Lutz is 76, Senator McCain will be 72 in two months, and if he gets the job he’s after, they’re going to give him effing launch codes, so I’ll take my chances with Mr. Lutz. Besides, he can’t do any worse than the current D-heads running GM right now!

Even though Lutz is 76, he used to fly jets for the Marines, so I am pretty sure he can still kick my ass. He’s smart and knows his way around the car business. He got blown up during the abortion that was the “merger of equals”  between Chrysler and Daimler back in 1998, went on to become CEO of Excide for four years until returning to GM in 2002. Point is, this guy knows the car business better than anyone in Michigan.

The Board

Once the board gets up enough balls to fire Rick Wagoner then I am positive all points will lead to Bob stepping in and saving this truly American institution, and not just by putting lipstick on a pig.

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