This is funny enough to hurt.
General Motors gets bailed out by the federal government. Prez B Cool vows to be hands-off, no meddling. Now Washington is telling GM how to run its assembly lines:
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The Obama administration auto task force that oversaw GM’s reorganization last spring was startled to learn that the industry standard for plants to be considered at 100% capacity was two shifts working about 250 days a year. In recommending that the government invest about $50 billion in GM, the task force urged the company to strive toward operating at 120% capacity by traditional standards.
But industry manufacturing experts are skeptical, noting that the federal task force had limited automotive experience. “Do those guys understand the business?” asked Ron Harbour, whose Harbour Report is a widely followed analysis of auto-plant efficiency.
Not to be outdone, Hugo Chávez of Venezuela has told GM (and Toyota) to increase production of cars in that country to fill the demand created by (government subsidized) 7¢ per gallon gas:
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Whether Mr. Chávez moves to nationalize outright, he indicated his government would turn up the pressure on car companies. He said his government is going to apply strict quotas regarding the number and types of vehicles auto makers can produce.
The nature of the Venezuelan car market may make it unlikely that Mr. Chávez gets what he wants…
The command economy: pronounce, and it shall be done.
Must be nice to be so blindingly brilliant.
Tags: Add new tag, Automobile, Automotive industry, Business, Federal government of the United States, general motors, GeneralMotors, Hugo Chávez, Manufacturing, Toyota, Venezuela
