He is being replaced with longtime GM exec Fritz Henderson.
Yesterday President Barack Obama promised the American consumer that the US government (you) would provide the warranty for all GM cars.
He also said that GM would be reorganized (chapter 11 bankruptcy) in 60 days.
What was the new chairman's first order of business? He committed fund from your checking account for the next five years.
The details he promised you would pay: * 5 Year / 100,000 mile warranty * Payment protection for unemployed buyers for up to nine $500 payments, or $4,500 * Equity protection on your vehicle.
When President Obama said the American people would stand behind the warranties of GM, he clearly did not assume that the warranties would be extended the NEXT DAY! This cost combined with the unemployment payment adjustment could represent possibly $20,000 per vehicle.
It is the ultimate "Buy Now / Let the Taxpayer Pay Later" plan.
The government oversight committee should have stopped the press conference in mid stream today.
If the US government was complacent in the deal, they are knowingly committing taxpayer funds in later years to fund sales now.
Congress should step in and stop the madness.
Where are taxpayer groups? Is it arrogant to pledge things you do not have? If your are being forced into bankruptcy because you operated on credit all of your career, how prudent is it to pledge the good will of the American people? Americans want cars of exceptional value that are well made, sold at a fair price and retain their value.
They will buy them all day in great numbers.
The US has tried to help GM survive.
What GM did this morning was similar to a homeless person receiving a gift from a stranger he could never pay back, and leveraging it into a loan that the donor will have to pay for the for the next 5 years.