Other Editorials

Motivating Factor

Jim Dollinger
Thursday, July 6, 2006

Kerkorian has every right to buy as much GM stock as is available on the market. If doing so allows him to gain control of the company, then so be it. Ghosn on the other hand can only hope to rise in power if the Board accepts Kerkorian's plan, which is doubtful. Really it is my feeling that the banks are behind this and are the ones who will benefit the most. Remember how ATT was broken apart, then put back together?

From today's Detroit News:

In addition, GM's outside investment banks are also helping to compile data on Renault-Nissan in advance of Friday's board meeting.

"It's not unusual that we would ask our bank advisers to help gather facts and provide analysis when you're looking at such a complicated transaction," said GM official Toni Simonetti.

Why would GM need banks to interpret the situation? Aren't we in the auto business? Why do we have so many lawyers and accountants on the payroll? Look at the paperwork everytime we spin off or sell something. Hundereds of millions paid to banks for what? Advice? C'mon.

Personally, I'd like to see Fritz Henderson put in charge immediately and get down to the matters involved in actually running an automobile company.