You are going to love this. We've known for a while now that Barack Obama has had a vision for the auto companies long before he'd be able to use this economic crisis as an excuse to execute his plan. And that vision is to require the auto industry to build cars that would please the environmentalists, if not the consumers.
The White House has released a report of General Motors that says the company's restructuring plan will not lead to a stronger company. And why is this? Because GM's proposal relies heavily on advanced, fuel-efficient cars, which are not commercially viable. Cars like the Chevy Volt, which is too expensive to be commercially successful.
So Obama's Auto Task Force comes out and says that GM's restructuring plan isn't viable because they are doing what President Obama wants them to do: build a "green" auto industry. According to this task force, the plan is based on economic assumptions are leave little room for error.
And even if GM succeeds in making and selling "green" cars ... the task force says that "it will not lead to a viable company because it will not be able to make enough money to weather future economic slowdowns ... Even if the projected plan is achieved, the cash flow forecast is quite modest, leaving the company little margin for error in what will be a very difficult turnaround."
Suspiciously missing from the task force's report is the crushing costs of GM's labor force. Keep in mind that GM was required, under the original terms of the bailout, to modify labor contracts. And the task force acknowledges that GM has failed to successfully renegotiate these contracts, but does not cite it as a reason as to why GM's plan is not viable.
Either way, there is one simple way to renegotiate these union contracts. Bankruptcy. Obama is using the term "structured bankruptcy." What would you like to wager that any Obama-approved "structured bankruptcy" contains some pretty strong protections for the unions. Democrats aren't quite ready to eat their own.