GM Board Members to be Replaced? Does it Go Too Far?

Changes in GM management at the influenced by the Obama Administration Auto Task Force have some wondering if it is too much government intervention in the free enterprise system America has always enjoyed. With the ouster of Rick Wagoner, and entry of Fritz Henderson as CEO and Kent Kresa as Chairman, the next move will be to replace a majority of the board of directors. Are we moving toward a European style of Socialism? How much power should the government yield over companies seeking aid?

The Obama administration will play a heavy role in reshaping General Motors' board of directors over the next six months, giving it even greater control in the management of the distressed auto manufacturer. The board today by and large consists of the current and former chiefs of major U.S. corporations such as Eastman Kodak Coca-Cola, Pfizer, and Ernst & Young,

Kent Kresa,, GM's new chairman, said that company officials will seek to replace a majority on the board by August, as the automaker moves to restructure operations.
And one White House official said that "There will be continuing coordination as decisions about the leadership of the company are made,"

If this is not a move toward socialism, than what is? The President of the United States has forced out the CEO of GM G. Richard Wagoner Jr. and Chrysler has been told they must make a partnership with Fiat. Even some senators agree; Bob Corker (R-Tenn.) "There is no question that this country is moving down a very different and foreign path. We have crossed this threshold: We own this company and we are telling it what to do."

What will happen to GM? With the government takeover and GM’s debt to the UAW heath plan, GM will probably go bankrupt and you will see the UAW being a major shareholder in the company. Hopefully if you own a GM product you won’t have to go to the post office to have service done or have a claim on your government backed extended warranty.

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