U.S. Government, UAW to take control of GM and Chrysler; Treasury attacks Delphi

Today was a sad day in the American automobile industry. General Motors might as well officially change its name to Government Motors because it is the government who has the controlling stake in the company. For Chrysler, the proposed plan is that the United Auto Workers union would have the controlling stake of this company.

Here are the numbers, according to The Wall Street Journal:

General Motors
United States of America: 50 percent (or more)
United Auto Workers: 39 percent
Private Sector: 11 percent (or less)

Chrysler LLC
United Auto Workers: 55 percent
FIAT: 35 percent
Chrysler's secured lenders: 10 percent

GM will also eliminate or attempt to sell its Pontiac, Hummer, Saturn and Saab brands. It's official, Pontiac is dead, what will happen to the rest?

Chrysler will end its association with Daimler and become independent of Serberus. I wonder what will happen to CEO Robert Nardelli? The Chrysler deal may become a reality tomorrow (Wednesday) if its workers agree to the deal to save the company.

In other news, the U.S. Treasury blocked moves by General Motors to increase payments to its former parts subsidiary Delphi Corp., and to acquire the suppliers steering division, according to the Detroit Free Press. This rejection may have as well been the final nail in the coffin for Delphi. The plan was to add more than $150 million to Delphi from GM and was to keep Delphi operating through May.

There may be some good news for the bankrupt Delphi. If it does end operations, GM could just buy up the Delphi plants, but that has to have the approval of the government. So that may not happen either.

Thanks Team Obama! Change we can believe in! Death to the Automobile Industry! Death to those UAW voters who put you into office. You used them, and now you'll just blame Bush and "hope" to get re-elected.

I wonder how the government can run GM and how the UAW can run Chrysler? Is it possible for a union to be the boss and still be the union at the same time? What cars can be built with these controlling bodies? This could be a recipe for disaster.

IN THE NEWS:
The Wall Street Journal: Control of GM Would Create Conflicts for Government
The Wall Street Journal: UAW to Get 55 Percent Stake in Chrysler for Concessions
The Washington Post: Chrysler Creditors Agree to Deal With Treasury
Detroit Free Press: Treasury said no to GM-Delphi deals
The Washington Post: GM's New Road Map: Partial Nationalization