The WSJ provides a good example of the kind of shenanigans we should expect under a government-run car company. Despite GM’s need to streamline operation and close facilities all around the country, Rep. Barney Frank was not pleased when it decided to shut down a Norton, Mass. warehouse that employed 90 people.
So he gave Fritz Henderson a call:
Mr. Frank’s spokesman, Harry Gural, says the Congressman discussed, among other things, “the facility’s value to GM.” We’d have thought that would be something that GM might have considered when it decided to close the Norton centre, but then a call from one of the most powerful Members of Congress can certainly cause a ward of the state to reconsider what qualifies as “value.” A CEO who refuses the offer can soon find himself testifying under oath before Congress, or answering questions from the Government Accountability Office about his expense account. To that point, Mr. Henderson spent Wednesday with Chrysler President Jim Press being castigated by the Senate Commerce Committee for their plans to close 3,400 car dealerships. Every Senator wants dealerships closed in someone else’s state.
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