General Motors CEO takes a beating

General Motors CEO takes a beating

General Motors CEO Mary T. Barra is undergoing a grilling by lawmakers accusing the company of criminal deceit.
http://www.nydailynews.com/news/justice-story/general-motors-ceo-mary-barra-grilled-lawmakers-article-1.1743908
Some have speculated that Ms Barra is being thrown under the bus.
http://www.forbes.com/sites/michelinemaynard/2014/04/02/is-gm-ceo-mary-barra-being-thrown-under-the-bus/
Here are a few thoughts I have on this situation.
First, this is the American corporate way of doing business. Anytime a problem arises with a product whatever the product or the problem, corporate problem solvers go to work on a cost benefit analysis. This problem could be anything from defective ignition switches in cars to Listeria in the lettuce.
In the case of the faulty ignition switches General Motors number crunchers decided it would be less costly to just pay off the claims than to fix the problem. They operated under that mode until it became unbearable or the public outcry became unbearable.
Second, there is a small segment of my mind that thinks possibly this is just another attempt at destroying General Motors and consequently elimination of another union force. But that is just a silly conspiracy thing, pay it no heed.
Most important of all these thoughts is the fact that a bankruptcy law written and passed under the previous administration gives corporations freedom from any and all obligations conceived prior to 2009. This would save General Motors a lot of money based on their recent bankruptcy.
This law has also been used profitably by vulture capitalists to void union contracts and retirement plans made or created prior to 2009.
Ah the joy of living in a plutocracy with a plutocratic Supreme Court.

Advertisements

2 thoughts on “General Motors CEO takes a beating

  1. I agree with everything you said, Larry; and I also believe that, in all likelihood, the female CEO is being thrown under the bus to relieve pressure on the real vultures.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s