Re: Bob Lutz To Retire
Regarding the government's intervention, from Bob's own mouth they did not want any part of an equity position in GM. It was, and I quote Bob, a conservative Republican who convinced GM to ask for an equity stake, and another conservative Republican (one of them was an ex-Marine) who convinced the govt. to accept an equity solution. Bob related that a loan by the govt. would have left GM in as bad, if not worse, a situation than they were in. Think about it, none of the labor contracts would have changed and now they would have had a huge debt to repay. The debt would have been on the order of $5 billion a year. Unsustainable. Bob said that without the govt. doing what they did GM would have been liquidated.
Further, Bob reiterated this story to the conservative talk show hosts, Rush in particular, and they failed to talk about his side of the story.
George
Regarding the government's intervention, from Bob's own mouth they did not want any part of an equity position in GM. It was, and I quote Bob, a conservative Republican who convinced GM to ask for an equity stake, and another conservative Republican (one of them was an ex-Marine) who convinced the govt. to accept an equity solution. Bob related that a loan by the govt. would have left GM in as bad, if not worse, a situation than they were in. Think about it, none of the labor contracts would have changed and now they would have had a huge debt to repay. The debt would have been on the order of $5 billion a year. Unsustainable. Bob said that without the govt. doing what they did GM would have been liquidated.
Further, Bob reiterated this story to the conservative talk show hosts, Rush in particular, and they failed to talk about his side of the story.
George
Comment