I Always Wanted to Own a Car Company

As of Monday, you and I own 60% of GM. When's the fancy executive retreat? BTW--you can read the restructing plan insisted upon by the government here.

I can't begin to tell you how disgusted I am by this. First off, did you know that the amount we taxpayers paid for 60% of the company ($68 billion) is more than GM's total market value has ever been ($52 billion in 1980)? Yup, that's a good investment. Only the government could buy something as shitty as GM stock at it's peak when it's gone bankrupt. And the new company will be lucky to be half of the previous size.

And let's make no mistake--there's no guarantee that GM's still going to make it. Sure, they've shed a bunch of costs and gotten some concessions from their unions in the US and Canada. But, they still make cars that most people think suck. I saw how their "revolutionary" electric car the Volt is going to sell for $40,000 (it goes the first 40 miles on electricity only before gas kicks in). A new Prius hybrid? About $23,000. Yes, there is a niche market for it (people who primarily make short drives and live near a 220 volt charging station or have the money to have one installed in their homes), but unless they improve the battery technology it's not a game changer. Their remaining brands will include Buick, Cadillac, GMC and Chevrolet. Except for the Escalade, I can't think of a car under any of those brands that has any cache.

While Obama says that the government will be a silent partner, it presents several problems. First, if I own 60% of the fucking company, I don't want to be silent. However, the dual relationship is troubling. Now when the feds buy new cars, are they going to HAVE to buy GMs (so we can get some money back) even if they aren't the best ones to have? Or, if the feds decide they want to implement new safety standards. Do they talk to "our" engineers first, hence giving GM technological head start? From a profit motive p.o.v., I hope so. From a fairness p.o.v., I hope not. See the problem.

Likewise, one of our fellow shareholders (at around 12%) is the Canadian government. What if they don't like a policy that affects them. Do they hold GM decisions hostage over how much maple syrup we export?

The UAW is also in a weird spot in that their health care plan (not pension or dues money) owns about 15% now. Do they shut down a plant to protect their investment, but throws thousands of members out of work? How do they vote when the other members of the board of directors wants to reduce benefits to increase profits?

I don't think any of the partners are going to be happy with this when it's all said and done. Especially when they are back in bankruptcy court.