Government must do better than Wagoner

The Obama administration doesn’t have a coherent rescue plan for the auto industry.

If the government is going to take such an active role in the auto industryâÄôs management, then it must outline a clear vision to resuscitate the industry while assuming the responsibility for seeing the crisis to its end. In light of the auto industryâÄôs importance, itâÄôs important that the federal government make a concerted effort to rescue the industry. And while the government did agree to support these failing automakers, it needs to do more than simply make demands and threaten to cut off aid if the companies donâÄôt restructure quickly enough. Having involved itself in the problem, the Obama administration now has a responsibility to the auto industry and to the people dependent upon the jobs the industry sustains. Forcing out GM CEO Richard Wagoner was only an acceptable move if the government is prepared to offer better leadership for GM. But the government doesnâÄôt seem to have a clear plan to fix the problem, instead placing mandate after mandate on the companies that wonâÄôt necessarily create positive outcomes. The auto industry needs a long-term solution to its problems, and the federal government has yet to produce such a solution. The government knows what the stakes are âÄî it understands the dire repercussions for leaving these companies for dead. ItâÄôs evident that millions of Michigan residents, including university students, are dependent on these companies. But just understanding the stakes isnâÄôt enough. ItâÄôs time for the federal government to offer a coherent plan. Having fired Wagoner, Obama has implicitly agreed to do a better job than he did. This editorial, accessed via UWire, was originally published in the Michigan Daily at the University of Michigan. Please send comments to [email protected].