Detroit News columnist Daniel Howes has penned a commentary on what he believes the "mind-numbing" future could be if the White House and the United Auto Workers end up with majority control of General Motors.
Howes fears that a government-and-UAW-controlled boardroom would end up an echo chamber, with both parties worried mainly about maintaining jobs and recouping their investments first. Those left on the outside – and poorer for it – would be the "short-changed" investors and "neutered" bondholders. Ford would also be left to deal with the repercussions of having the government as its next door competitor.
The scenario he paints could be considered slightly alarmist, and frankly, there's a nice hopscotch through American history of the government taking previously unheard of steps when dealing with labor and private enterprise. Howes is also presenting a scenario in which the government fails to execute efficient oversight of the company that it has repeatedly said it does not want to own, and he also lets those "wiped out" investors and "neutered" bondholders completely off the hook for responsibility for GM's current state. As a Ford representative said, "it's uncharted waters for us." That goes for the rest of the country as well... and we won't know the future's tale until it's told.
[Source: Detroit News]