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 Conflicting Pressures Of A New Car Company In A New Auto World - White House Press Briefing by Robert Gibbs 6/2/09 — Tuesday, June 02, 2009 —  MR. GIBBS: Mara. Q I want to try to ask a better question about the inherent conflicts of owning 6 percent of GM than I did yesterday. (Laughter.) MR. GIBBS: Take two. (Laughter.) Q If it turns out that GM could make more profits for the taxpayer investors that you represent by outsourcing some of its production to China, even at the cost of maybe losing some U.S. jobs, is that something that you as the 60 percent owner would push them to do? MR. GIBBS: Well, again, I think we're -- there are core governance issues that, again, as I talked about yesterday, that the government will take part in as a holder of almost 60 percent or 60 percent of common equity. I think the major thrust will be basically being involved in a majority of a new board of -- a newly constituted board of directors. But, look, business decisions are going to be made by General Motors. I don't want to get involved in making those business decisions for them. Q So if they did out-source that would be a decision for them -- MR. GIBBS: Yes. Q I mean, there are public policy goals that the government has and then there's the goal of making the highest return for the taxpayers as you can. MR. GIBBS: And understand this -- I spent a little time thinking about this yesterday. About half the questions yesterday were, you know, good golly, you can't possibly do that. And the other half of the questions were, good golly, why aren't you doing that. Q Well, that's the whole point -- (inaudible) conflicting pressures, yes. MR. GIBBS: And the goal of the restructuring plan is to get a company that -- and again, I think when we got a look at some of the details yesterday of the filings, we've got a company that was -- these are rough, remembering these figures -- I think $85 billion in assets and $172 billion in debt. One gets a pretty good grasp on why a company is where it is based on those numbers. Obviously now this is a company that we hope in a short period of time -- 60 to 90 days -- that emerges restructured, competitive, and without the massive debt that it previously had. And that they'll be free to make a series of decisions as a new car company in a new auto world. And I think our goal and I think their goal, too, as a business is to produce profit for its shareholders. And I can assure you the President's goal is to get out of the equity business in auto companies as quickly as possible. Q So all of these topics are for them to wrestle with and resolve, not for you. MR. GIBBS: Yes. Yes, sir. Automobile Industry | General Motors | Obama Administration | Press Briefing | Robert Gibbs | White House Press Corps Labels: Automobile Industry, General Motors, Obama Administration, Press Briefing, Robert Gibbs, White House Press Corps >> Full Story
Posted by White House Press Corps @ 6:43:00 PM
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