General Motors and its Board of Politicians

By Kellyn Brown, 10-29-09

The Wall Street Journal wades into a wide-ranging dispute between General Motors, which received $58 billion in federal bailout funds, and the politicians who have subsequently served as a de facto board of advisors for the company.

The palladium contract GM dropped with Montana’s Stillwater Mining Co. is just one example of politicians butting heads with the American carmaker. Across the country, congressman have pressured GM to reconsider voiding contracts, closing factories and shuttering dealerships as it aims to cut costs. From WSJ:

GM for years was supplied by the Montana-based Stillwater Mining Co., which bills itself as the country's only supplier of the precious metal. In early July, Frank McAllister, the mine's chief executive, received news that GM, as part of its bankruptcy proceedings, planned to sever its ties with Stillwater in favor of cheaper suppliers in Russia or South Africa.

"I thought, for heaven's sake, this doesn't make any sense," says Mr. McAllister. "Taxpayer dollars are keeping GM alive, just so it can turn away from U.S. workers?"

In some cases, the political pressure has worked. In Stillwater Mining’s case, it hasn’t yet. [End of article]