For a federal government that claimed it had "no intention" of running General Motors, it sure is doing a good job of executing a back-door takeover that will result in said government, along with the United Auto Workers (UAW) owning 89% of the company:
That was the restructuring plan that GM outlined Monday. Under the plan, the government would get half or more of GM's stock and the United Auto Workers as much as 39 percent. Bondholders - who now hold more than $27 billion in GM's debt - would get a 10 percent stake in the company. Current shareholders would be left with about 1 percent.
The alternative: bankruptcy. "The risk is greater today," GM President and Chief Executive Officer Fritz Henderson said Monday.
You can read the entire Cleveland.com article here.
If I were running things over at Chrysler, I would be getting seriously nervous, because once the federal government gets its claws into something, it is next to impossible to get them out.
I am guessing we will soon be seeing a model introduced that was designed by Greenpeace and the Sierra Club. I am sure the guys over at Car & Driver are chomping at the bit to test it, too.
My prediction is that it won't have sufficient power to get out of its own way.
(h/t: Boortz.com)
(photo credit: rushlimbaugh.com)
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