Today, General Motors's CEO Rick Wagoner appeared before Congress and testified that GM's problems are not related to management but rather to the current economic downturn. Normally I would consider this statement to be perjury, but I think that Mr. Wagoner is really so stupid that he actually believes it.
Read on for why it's a crock of sh*t and thus he should be fired (for cause).
Like any publicly traded company, GM is required to file quarterly and annual statements with the SEC. In it's most recent annual filing (Form 10-K), GM states its last five years of financial data (scroll down to or search for "Selected Financial Data" in the link above).
Here's a quick summary of GM's Net Income (Loss) (in millions of Dollars):
- $(38,732)
- $(1,978)
- $(10,417)
- $ 2,701
- $ 3,525
GM runs on a calendar year basis so the 2007 figures are for the period ending December 31, 2007; 2006..., etc.
So in 2007, before the current financial crisis ever showed appeared on the financial radar screen, GM managed to lose $38.7 Billion.
THIRTY EIGHT BILLION SEVEN HUNDRED THIRTY TWO MILLION DOLLARS
Before the credit crisis.
Yet, it's the credit market's fault. Not current management. Management can do no wrong, after all.
Allow me to amend the title of this diary. Fire the entire upper management of GM. And fire the Board of Directors of GM as well.
I express no judgment about whether or not we should bail out the "domestic" auto industry. But if we do, or even if we don't, GM's board should fire it's entire upper management for gross incompetence and then the directors should tender their letters of resignation.
Good riddance to incompetent rubbish.
P.S. If you work for GM or used to, feel free to vent your frustration here!