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Posts Tagged ‘federal auto bailout’

GM CEO Tells Shareholders Bailout A Success

Akerson: its clear that loans protected U.S. manufacturing.

by on Jun.06, 2013

General Motors Chairman and CEO Dan Akerson addresses the 2013 General Motors annual meeting.

The facts show the bailout of American automobile industry has been a success, at least according to Dan Akerson, General Motors chairman and chief executive officer, who made the assertion to shareholders at the company’s annual stockholders meeting in Detroit.

“Four years on, it’s pretty hard to argue it wasn’t successful,” he said. “The American public has been well served. All three American companies are profitable and the American manufacturing base is still 50% larger than China’s.”

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Akerson acknowledged the decision to bailout Detroit carmakers was very controversial at the time. However, the decision by “two administrations with very different political perspectives” has proven its worth by helping protect the U.S. manufacturing base during the recession. The bailout also meant the U.S. government didn’t have to cover $26 billion in pension costs connected to the automakers.


General Motors CEO and Chairman to Resign

Rick Wagoner is stepping down at GM, while Peugeot-Chairman ousts its CEO.

by on Mar.29, 2009

GM CEO Rick Wagoner, (r) and Bob Nardelli testifying before Congress. Is Nardelli out like Wagoner?

Rick Wagoner, (r) and Bob Nardelli (c) of Chrysler before Congress. Is Nardelli out like Wagoner?

While an official announcement is not expected until sometime Monday, General Motors Chairman and CEO, Rick Wagoner, is expected to resign after eight years as head of the struggling automaker at the direct request of the White House. That, insiders report, was the last remaining obstacle before President Barack Obama would approve a second round of federal loans needed by the automaker if it hopes to survive the current U.S. automotive sales slump.

The news, which was apparently first leaked out of the White House on Sunday afternoon, came as a setback for Wagoner, who said, just last week, that he had no plans on resigning, and that the GM Board of Directors supported him.

GM officially refused to comment since the announcement hasn’t been made, saying only “we are anticipating an announcement soon from the Administration regarding the restructuring of the U.S. auto industry. We continue to work closely with members of the Task Force and it would not be appropriate for us to speculate on the content of any announcement.” (more…)

Opposition to Fiat Deal Growing — But Why?

Opinion: Deal is best option for both automakers and American taxpayers.

by on Jan.23, 2009

Could Capitol Hill Critics Sink the Fiat Alliance?

Could Capitol Hill Critics Sink the Fiat Alliance?

When Tennessee Senator Bob Corker dropped in on the North American International Auto Show, earlier this month, he made a point of saying that Chrysler should either “merge or go away.” But now that the ailing automaker is ready to tie its fortunes to the fate of Fiat, suddenly, there’s a lot of moaning and gnashing of teeth from some quarters on Capitol Hill.

The question is whether the strong reaction could derail the proposed Chrysler/Fiat deal, or is simply the sound of political machinations.

There is an excellent chance that the noise was nothing more than an aberration driven in part by the embarrassing news that the now-ousted uber-boss at Merrill Lynch, John Thain, had used taxpayer money to purchase an expensive commode for his private bathroom, and another $100,000 or so on new chairs. Even people who normally stick up for rich white guys at all costs, like the people on Fox News, were appalled by the revelation of corporate excess.

The Chrysler – Fiat – Cerberus deal actually could wind up benefiting federal taxpayers.