Ralph Nader has written a letter to President Barack Obama, urging him to delay General Motors' IPO. According to The Detroit News, his fear is that the automaker is still the "same old arrogant GM" and that the government stands to lose a bundle on the sale of its stock.
Nader is not alone in his criticism. His letter is signed by Public Citizen President Robert Weissman, Center for Auto Safety Executive Director Clarence Ditlow and former Public Citizen president Joan Claybrook. The group suggest that GM is taking steps that undermine the Obama administration's efforts after it was directly supported by the government and U.S. taxpayers. It feels that General Motors should not be lobbying congress while owners by the government. Per Nader, "They are lobbying against Obama's own policies on fuel efficiency, auto safety."
In his letter, Nader also states,
Ralph Nader knows that this letter is a Hail Mary attempt to delay General Motor's IPO, but he is hoping for some congressional support to build momentum. What do you think about Nader's move? Have your say in 'Comments.'"The primary rationale of investing in GM had to be to preserve jobs and prop an economy in a severe downward spiral. As majority shareholder in GM, the United States has the ability to direct or influence the company's investment decisions. As the U.S. reduces its share, so its capacity to influence such decisions diminishes."
[Source: The Detroit News | Image: Brendan Smialowski/Getty]