With the Obama administration taking a hands-on approach to the auto industry after leaning on Rick Wagoner to resign, I believe they should carry right on through to the paradigm that surrounds corporate restructuring.
Corporations and the Federal Government seem to often be at odds about restructuring during the recession. Corporations want to cut expenses and make themselves look viable in the long term in an attempt to buoy their stock prices. The first area cut is personnel, and we have all read about the huge layoffs, buy outs and firings. But, the focus of the stimulus money was job retention and job creation. The Obama Administration understands that an unemployed person makes fewer purchases and cannot pay off the items he already owes on.
Obama should insist that every GM plant that has been closed, or idled as the company calls it, should return to full capacity. If they want to impose their will about the executives in GM, then they should impose the will of the stimulus plan onto the entire recovery procedure. If the money shilled to GM came from taxpayers' pockets, then it should go to keep taxpayers in jobs. This would be a boost across the entire workforce as many estimates show ancillary job loss at six to seven for every auto worker who loses his or her job.
The Federal Government should have a huge say in how these corporations operate, the same as any investor. If you can find me any other investor with as many billions of dollars spent, then she can control the process.