Okay, time to put your money where your mouth is. What is your
prediction for what the relationship between GM and the Federal
Government will be like in 5 years? 10 years?
-- Ernie P.
http://www.whitehouse.gov/blog/The-End-of-an-Old-GM-and-the-Beginning-of-a-New-GM/
That's why our government will be making a significant additional
investment of about $30 billion in GM -- an investment that will
entitle American taxpayers to ownership of about 60 percent of the new
GM.
Now, let me talk about this. I recognize that this may give some
Americans pause. So let me explain as clearly as possible why we are
making this investment. We inherited a financial crisis unlike any
that we've seen in our time. This crisis crippled private capital
markets and forced us to take steps in our financial system -- and
with our auto companies -- that we would not have otherwise even
considered. These steps have put our government in the unwelcome
position of owning large stakes in private companies for the simple
and compelling reason that their survival and the success of our
overall economy depend on it.
Understand we're making these investments not because I want to spend
the American people's tax dollars, but because I want to protect
them. Instead of taking so much stock in GM, we could have simply
offered the company more loans. But for years, GM has been buried
under an unsustainable mountain of debt. And piling an irresponsibly
large debt on top of the new GM would mean simply repeating the
mistakes of the past. So we are acting as reluctant shareholders --
because that is the only way to help GM succeed.
What we are not doing -- what I have no interest in doing -- is
running GM. GM will be run by a private board of directors and
management team with a track record in American manufacturing that
reflects a commitment to innovation and quality. They -- and not the
government -- will call the shots and make the decisions about how to
turn this company around. The federal government will refrain from
exercising its rights as a shareholder in all but the most fundamental
corporate decisions. When a difficult decision has to be made on
matters like where to open a new plant or what type of new car to
make, the new GM, not the United States government, will make that
decision.
In short, our goal is to get GM back on its feet, take a hands-off
approach, and get out quickly.
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