Ford joins Congress on Federal Government's GM, Chrysler Ownership
Is Congress getting cold feet concerning the government’s so-called "takeover" of General Motors and Chrysler? Detroit News reports Senator Bob Corker, Republican from Tennessee, wants to see a trust run by an independent board to hold the shares of private companies owned by the government. Representative Pete Hoekstra, Republican from Michigan, is criticizing GM’s and Chrysler’s decision to close down dealerships. Hoekstra and 150 other members of the House are co-sponsoring a bill that would prevent GM and Chrysler from using bankruptcy to close dealerships. A spokesman from GM said that the company has made agreements with more than 98 percent of its dealers to either terminate or operate under new franchise requirements. GM intends to close 1,330 of its dealerships in the U.S. And Ford is not helping matter. Ford’s executive chairman Bill Ford Jr. continued to call for more visibility on the part of the government concerning its relationship with the automakers. He wants the government to explain how decisions are being made at GM and how the government is involved in those decisions. Meanwhile as Congress worried, General Motors CEO Fritz Henderson told the media that he expects the auto task force to oversee GM until the “new GM” comes out of bankruptcy. He said that he expects GM to finish with the bankruptcy procedure in 60 to 90 days.
Attributable to Troy Clarke, President, General Motors North America As part of its long-term viability plan...