Wednesday, April 1, 2009

GM and Chrysler explore bankrupcy - as a way out of financial mess

The financial mess brought on by $4.00 dollar a gallon gasoline and economic uncertainty amongst homeowners, and financial institutions have brought the auto industry to it's knees as the big automotive giants struggle even more to survive. Despite a huge influx of cash by the US government, the automotive manufacturers such as GM and Chrysler have now wielded the 'B' word as a way to further get out of debt.

Government intervention has brought upon the retirement of GM chief, Rick Wagoner a bit earlier than he probably would have wanted. It's really unprecedented for a government like the USA to dictate to private industry on calling on any executive to resign. I wonder if any other auto executive feels uneasy about his or her own job and the scrutiny of government agencies examining private industry.

The more this prolonged dismay of the automakers in the US drags on, the more strange it is getting. More and more the line is being crossed on what or what not government intervention into private industry such as the auto industry should be considered correct. It seems now that the auto makers are being blamed because of all the economic woes of something that they don't really control.

As we go into the Spring season, it will be interesting to watch the developments that are unfolding each day. The day to day business of private companies were never run by government agencies and shouldn't be run by them today, anything else reminds me of certain countries that control industries, and they are not capitalist style governments. Let's make our voices heard.... "Keep America strong and free, and let's leave the business decisions to the companies not politicians."

No comments: