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THE QUESTION
What Role for a Government Owner?
With the U.S. government likely to become the 60 percent owner of General Motors after bankruptcy proceedings are complete, the Obama administration said it would take a "hands-off" approach as the majority owner. Yet the administration has clear goals for the auto industry, including better fuel efficiency. How involved should business owners -- in this case the government -- be in operational decisions?
Posted by Andrea Useem on June 1, 2009 10:13 AM
FROM THE PANEL
Don't Get Political
The president's willingness to expend political capital to protect GM from political pressures--and risk the vagaries of the marketplace--will determine the administration's new role as its dominant shareholder.
Posted by Marty Linsky, on June 5, 2009 11:05 AM
What Taxpayers Want
I don't trust the government to make good business decisions any more than I trust the former leaders of GM. The government's role in GM should be to focus on ensuring good governance and business practices, and not business strategy decisions.
Posted by Bob Schoultz, on June 3, 2009 10:50 AM
What We Don't Know
The recent enormous outlays of taxpayer money for General Motors' survival provide a great opportunity for the government to learn to keep tabs on our money and use it wisely.
Posted by Ed Ruggero, on June 2, 2009 12:02 PM
A Risky Investment
The administration is like the gambler who doubles his bet after every unsuccessful roll of the dice. It has so much invested in GM now that it can't be anything other than the principal shareholder.
Posted by Slade Gorton, on June 2, 2009 11:25 AM
Avoiding the Technical
The government should express its broad desires to see new models that are more fuel-efficient, more environmentally friendly and more in line with the kind of vehicle that fits our future.
Posted by Yash Gupta, on June 2, 2009 10:50 AM
Stay Involved
The government--and taxpayers--must play an important role in choosing top GM's top leadership and stay involved in matters like oversight, transparency, and emissions. We must ensure that GM is using our investment to make cars people want to buy.
Posted by Warren Bennis, on June 2, 2009 10:19 AM
Set Broad Goals
On a day to day basis, it makes no sense for the federal government to "operate" General Motors. Instead, the administration should set broad goals, establish ambitious energy and environmental objectives and oversee important management decisions.
Posted by Alan M. Webber, on June 2, 2009 9:39 AM
Not Our Business
In General Motors' case, the government's actions may result in an oxymoronic situation: although the government pledged not to control GM, taxpayers could ultimately have majority ownership of the company.
Posted by David Walker, on June 1, 2009 3:23 PM
Bring the Best Minds
The government cannot run GM operations, but it can make sure that it has the best possible leadership. One way to do this is to organize an advisory committee that is not dominated by financial types but which includes experts on auto companies.
Posted by Michael Maccoby, on June 1, 2009 3:00 PM
Ill-Equipped
With the help of outside thinkers, the government should monitor strategic thinking and plan to measure progress in restoring profitability.
Posted by Abraham Zaleznik, on June 1, 2009 1:05 PM
"Hands Off" Has Failed
General Motors board members, including Uncle Sam, must demand major changes and accountability for greatly improved performance from companies that made so many bad decisions.
Posted by Elizabeth Sherman, on June 1, 2009 11:51 AM
Governance Traditions
Short of a crisis, owners try to keep their hands off the operations they own. But well-established precedent shows that even hands-off owners must stay vigilant to ensure their mission is achieved.
Posted by Michael Useem, on June 1, 2009 11:07 AM
A Buyer of Last Resort
Although there will be some conflicts of interest, I think they will prove to be better sound bites for the "drift-toward-socialism" crowd then a significant problem.
Posted by Andy Stern, on June 1, 2009 11:02 AM
Hands Off? Not Likely
To pretend that a 60% owner of the business will be totally "hands off" is not credible. My suggestion is that the government be honest with both GM and the public on their planned for level of involvement.
Posted by Marshall Goldsmith, on June 1, 2009 10:53 AM
FEATURED COMMENTS
clay11: Maybe the government should submit a resume detailing what they've run well in the past 50 years or so....all I can think of is the 1st Gulf...
TRACIETHEDOLPHIN: Who ever decides to run GM, they need to start by doing some serious polling, to see what kind of cars the American people want, instead of ...
kengelhart: If the government is "us" shouldn't "we" have a say in what kind of automobile we want to build in a highly competitive global marketplace. ...
