So when the US and Canadian governments own nearly three-fourths of GM, I wonder what happens if the interests of the shareholders conflict with those of public policy? What if the best return for investors is to shift work overseas? Will the government try to stop the ensuing domestic job loss? What if GM can't produce vehicles at competitive quality and price? Will the government create subsidies to make sure those vehicles make it on the market? What if the company can't meet fuel efficiency standards on time? Will the government push the timeframe forward? What if labor costs rise faster than revenue? Will the government force the UAW to accept further concessions?
It will certainly be interesting to see the play between financial and political needs in this whole affair.
1 comment:
My bet is that politics wins the day. I can't imagine the O administration, what with the Buy America plan, could support the outsourcing of jobs. (Although the silver-tongued President could convince us, if anyone could!)
I think the best we can hope for is that the government sell it off asap. Maybe to Bill Gates or Warren Buffet? :)
Post a Comment