Fritz Henderson, the CEO of GM, has the worst job in America. He has at least 700 bosses including czars, the President, the Senate, the House, the UAW, Canada, and a multitude of bureaucrats who have one talent, how to cover their own asses.
President Obama pledged the administration would not meddle in the operation of GM. That changed right out of the blocks.
First Barney Frank stopped GM from closing a warehouse in his district.
Then, a plant GM put in the bankruptcy plan approved by the judge to close a plant in Orion, Michigan. They planned to make fuel efficient cars in China. The UAW stopped that. The margins on fuel efficient cars is tight and GM felt they couldn’t make money making them in the US. Sorry, Fritz, you are overrode on that choice. So, the plant in Michigan will be retooled to make small, green, fuel efficient cars there. There was a provision in the 2006 energy bill setting aside $25 billion to help US car makers retool for fuel efficient cars. Plus, the state of Michigan will give GM $1 billion in tax incentives and training grants. More of your tax dollars to GM.
Another part of the bankruptcy approvals for both GM and Chrysler was the plan to close dealerships to cut expenses. Last week the House passed a bill that would force GM and Chrysler to reinstate those dealers. Up to 3,200 of them. So much for the meddling, right?
What does this make Fritz. A mid-level manager with no authority and full accountability. My guess, this job will be available soon. No one can work in this environment.
Fritz says he will bring GM out of bankruptcy in 6 months. That means GM stock will be available to buy. How many shares should we set-aside for you?
