When the rubber hit the road today, the brakes came on for G.M. and Chrysler; Rick Wagoner was out of a job and they had 60 days and 30 days respectively to get their house in order or face bankruptcy.
President Obama flexed his muscles at his news conference today explaining the alternatives given to the two automakers. It was an option of tough choices or tougher choices if they are to expect any additional bail out funds.
Mr. Obama said G.M. and Chrysler had not yet met the conditions of their existing loans and “That’s going to mean a set of sacrifices from all parties involved – management, labor, shareholders, creditors, suppliers, dealers,” he said on “Face the Nation.”
Under the guidance of the president’s auto task force, G.M. has 60 days to restructure and Chrysler has 30 days to work out a merger with Italian automaker Fiat. If not, bankruptcy looms large.
President Obama now jumps from auto policy to foreign policy. On his way to London for the Group of 20 summit that starts tomorrow (Tuesday), he faces leaders from Europe and Asia, some of whom have rejected his proposals for saving the global economy. They have shunned the president’s call for more stimulus spending and want instead more government regulation of the financial system. It should be an interesting week.
After the summit, the president told Jay Leno of The Tonight Show that
the dog he promised his daughters during the campaign would be in place. A Portuguese Water Hound will soon be the new First Dog. The selection of a new puppy was apparently a tedious process as revealed by the president’s comment to George Stephanopoulos, “ We’re closing in on it. This has been tougher than finding a Commerce secretary.”
Another tough problem will be how to deal with the annual White House Easter Easter_Egg Roll. In an effort to make the tickets to the Roll more accessible, Michelle Obama decided to make them available on line on a first come first serve basis so that people wouldn’t have to wait in line for hours and hours. However, the plan backfired as tickets soon showed up on E-bay being sold to the highest bidder. Some of the “free” tickets were selling for $50 apiece and more. Needless to say the First Lady is fried about this. Not sure yet how this will all be resolved, but now both the president and the First Lady have diplomatic problems to solve.
On a much happier note, Mrs. Obama has agreed to be the commencement speaker for the first graduating class of the University of California, Merced. Established in 2005, the school, located in the economically depressed Central Valley, is the smallest, and newest in the California state university system.
The senior class inundated Mrs. Obama with Valentine’s Day cards, handwritten letters, online letters and a “Dear Michelle” Facebook campaign, which carried an ecstatic message on Friday – “!!!We did it!!!”
When asked why they didn’t ask the president, one senior, Yaasha Sabbaghian said, “We want him to fix the economy. But we’d love him to come and introduce her.” (LA Times)
As always, it looks to be a busy and interesting week at the Obama White House.
Cheri Cabot, Politics Correspondent
Cheri is a freelance writer, living in Southern California. She has two grown children, one in Iowa and one a recent graduate of Columbia University, and is the proud grandmother of two. Cheri is also a purveyor of fine coffee, warm chatter and dry wit.
You can find all of Cheri’s columns www.personalpolitcs.gather.com, or www.ccabot.gather.com.
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Comments: 35
Hey, Jim...I've been meaning to ask you about that. It's been in the news all day. They will obstruct this in every way they can. The only consolation is that it's costing Coleman a lot of money too and appears that Franken is getting a lot of funding from the DNC. And what part of the state elected Michelle Bachmann? Dang, she's as bad as or worse than Steve King...and that's saying a lot!
Can you fill in a little more particulars of the Coleman/Franken race? What action has been taken and by whom? We don't seem to get much about it anymore out here in the west.
Neat about the president getting an honorary doctorate, Jan!
Obama did the right thing to fire Rick Waggoner. The automakers have to get serious. Their expensive products are nothing but rich man's toys. It is long past the time when they should have gotten serious about alternative energy and about making affordable cars for Americans.
I am disappointed that Michelle chose a pure bred dog. Didn't the president say he would go to a shelter and find a mutt. That campaign statement impressed me. I feel let down. His choice also encourages breeders, who are part of the problem of pet overpopulation.
And in response to Mary Ann S.: Obama said he would "like" to find a shelter dog. But, when you have children with allergies that can sometimes be difficult.
I would love to know why Rich Waggoner really stepped down. Yes, the auto companies have been poorly run and haven't put out the best product in decades, but I don't believe they've actually worked toward bringing down the economy like those gamblers on Wall Street.
Second--so, why can he take over the car industry and demand re-negotiation of the contracts of working people, but banking, insurance, finance contract negotiation was off limits? I don't know any union workers that make over a million dollars a year!
Mary Ann S., Mar 31, 2009, 7:38am EDT
I see nothing wrong in their decision to make or choose which pet to get or from where...Have you gone to a local shelter to retreive a dog or pet as your own???
In 2005, UAW leaders took a Pay CUT of 2.5%, in 2006, they received a 2.3% increase, bringing the president, Ron Gettlefinger, an annual $145,126. He also received $13,405 in allowances and official expenses for a total compensation of $158,530. In 2007, his total compensation was less than $151,000 according to USA Today....compare that to Waggoner's "golden parachute" of over 20 million!
Any "benefits" that union workers get are usually given to management also...and we don't get company cars....or jets!
On the UAW Lobbyists, PPPPUUUUUHHHHHLLLLLLEEEESSSSEEEEE--argue with facts, not fear & bigotry.
My union, AFSCME is the largest employee lobby in DC....and we rank # 216(which means there are 215 business lobbyists that are larger, with more influence) in size/ability on the hill(UAW was lower than us). Since St. Ronnie, the "middle" aka working class(anyone that is in the bottom 80% of the population) wages have been stagnant...CEO's? They're wages have been astronomical. We have the only "industrialized" country that has the skewed wages we do? Toyota's CEO makes under $1 million annually. Most countries have laws/ethics in place that state CEO's can only make Xamount more than highest paid non-management employee(somewhere between 10-30 times).
Until St. Ronnie(or before the Roosevelts--both Teddy & Franklin), the same held true for our companies....but then deregulation for the rich became the VERY VERY MOST IMPORTANT THING IN THE WORLD!!!!!
What a fun column to put on Gather. Thanks for the updates on the Presidential First Family.
It would be a good fit for both. Chrysler is going under anyway, but Fiat wants to get into the U.S. market. Fiat would get the the physical plants here in the U.S. and Chrysler would have the expertese of Fiat's energy efficient blueprints. By the WH stepping in, it gives Fiat more of an incentive to proceed because the WH backs it.