Obama Appoints Grumpy, Old Republican to Run GM
Wow. Big and very interesting news coming out of CNBC. Ed Whitacre, former Chairman and CEO of AT&T will become Chairman of the new General Motors. What makes this interesting is that Whitacre was a big-time Bush supporter and a guy that doesn't suffer fools lightly. It is not likely that he will be a doormat for any and all government meddling at GM. If he gets too much guff from the White House or Congress, he's the type of guy to quit rather deal with the bullschtein. I got a consistent take from an exclusive source who tells me "[Whitacre] doesn't know much about cars. He never used a computer. He hates regulators with a passion."
The charitable take: Obama realizes and regrets how much nervousness and angst he has created among investors with his takeovers of GM and Chrysler that he has chosen Whitacre as a sort-of "anti-crony", pro-business figure to show his good faith in trying to fix this difficult situation. Odds this is the right analysis - 25%
The less charitable take, Obama realizes the backlash from the nervousness and angst he has sown could damage him long term, so he is dressing up appearances by bringing in an old, grumpy Republican business figure, who he can figure out how to steamroll later. Odds this is the right analysis - 60%
Odds neither of these analyses is correct - 15%
UPDATE: Here is Holman Jenkins's take. Holman is well-versed in things auto and it would seem he is saying that it's option 3. He thinks that Whitacre might actually steamroll Obama. Unlesss they (Obama and Congress) want a bloody awful sink hole on their hands, being in the car business they might want to try to generate at least some profits making cars. Well, the easiest way to do that is not to screw around too much with the proven successful gig of selling trucks and SUVs to people who love them and pay alot for them. And Whitacre is just the kind of guy to lay it out straight for them.
Also, Holman makes a good point that too few have made. These old dudes (Liddy, Whitacre, et al.) are doing the country a favor, they are patriots. They are trying to salvage and rebuild some of our once proud business institutions. They have plenty of money, they could be playing golf or spending time with the grandkids, but instead they are putting in full days and from time to time getting harangued by the likes of Barney Frank. For a 70 year old, who can't go off to war, if that ain't heroic sacrifice in the name of country, I don't know what is.
The charitable take: Obama realizes and regrets how much nervousness and angst he has created among investors with his takeovers of GM and Chrysler that he has chosen Whitacre as a sort-of "anti-crony", pro-business figure to show his good faith in trying to fix this difficult situation. Odds this is the right analysis - 25%
The less charitable take, Obama realizes the backlash from the nervousness and angst he has sown could damage him long term, so he is dressing up appearances by bringing in an old, grumpy Republican business figure, who he can figure out how to steamroll later. Odds this is the right analysis - 60%
Odds neither of these analyses is correct - 15%
UPDATE: Here is Holman Jenkins's take. Holman is well-versed in things auto and it would seem he is saying that it's option 3. He thinks that Whitacre might actually steamroll Obama. Unlesss they (Obama and Congress) want a bloody awful sink hole on their hands, being in the car business they might want to try to generate at least some profits making cars. Well, the easiest way to do that is not to screw around too much with the proven successful gig of selling trucks and SUVs to people who love them and pay alot for them. And Whitacre is just the kind of guy to lay it out straight for them.
Also, Holman makes a good point that too few have made. These old dudes (Liddy, Whitacre, et al.) are doing the country a favor, they are patriots. They are trying to salvage and rebuild some of our once proud business institutions. They have plenty of money, they could be playing golf or spending time with the grandkids, but instead they are putting in full days and from time to time getting harangued by the likes of Barney Frank. For a 70 year old, who can't go off to war, if that ain't heroic sacrifice in the name of country, I don't know what is.
posted by Donny Baseball at 10:57 AM
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