Friday, September 3, 2010

Rattnered-Out: Book by Former Car Czar reveals Obama wanted Ghosn to run GM


Former Obama car czar Steven Rattner (not to be confused with destroyer of films Brett Rattner) is set to cash in on his six month experience under an administration tasked with bringing the American auto industry back from the brink.

Titled Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry, it's meant to tell the story of how the US government reacted in at a time when automakers the world over were hit by a global economic crisis and surviving on a wing and a prayer.

Instead of boring you with all the blah blah blah, here are some interesting facts that have already been revealed:

- After Obama gave former GM CEO Rick Wagoner the boot, Rattner offered the General's top position to one Carlos Ghosn, who turned it down due to his loyalty to Nissan-Renault.

- In a meeting after being elected, Obama asked "Why can't [GM and Chrysler] make a Corolla?"

- That $85 Billion is actually less than planned. The White House initially agreed to $100 Billion.

- White House Chief of Staff Rahm Emanuel's soon to be infamous comment, "Fuck the UAW."

- The ever-calm Obama was shocked to hear that Rick Wagoner, "the man who had brought [GM] down", got to deploy a $7.1 Million golden parachute. Join the club, Mr. President.

- Obama spent more time deciding if it was right to pay Wagoner than deliberating whether or not to fire him.

- The government wanted money from Fiat up front for its 20% stake in Chrysler. Needless to say, they didn't get it.

- In a spat between Fiat CEO Sergio Marchionne and UAW President Ron Gettelfinger, Marchionne thought workers should "embrace a 'culture of poverty' instead of a 'culture of entitlement'" when discussing retiree health-care. Rattner says "no one in the Obama administration ever asked us to favor labor for political reasons."

- Former GM CEO Fritz Henderson thought executives should become more involved in research and product planning. To do so, he wanted to move GM headquarters from the current location to the Tech Center in Warren, Michigan. The idea was vetoed under the assumption that GM's leaving would wreak havoc in Detroit. Rattner says, "Fortunately, this unique intervention into a specific GM matter was never leaked to the press, saving us from having to explain how it comported with our policy of letting GM and Chrysler manage their own affairs."

If anything, it's interesting to see who was having which discussions at a time when the future of companies like GM and Chrysler looked extremely bleak. GM, on the other hand, isn't interested in the book. Spokesman Greg Martin says, "The book is history. We're a new company and we have too much work to do and no time for book reviews."

By Phil Alex

Via: Autonews (sub. req)

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