Running GM

Members of Congress just can't resist meddling in General Motors' business, especially now that it is also a government business.

Senators and representatives are using as justification for interfering with business decisions the 60 percent stake the government has in the automaker purchased with the $58 billion bailout that has kept a restructured GM in business. But GM isn't alone.

"Congress has been acting like the board of USA Inc.," writes Neil King Jr. in the Wall Street Journal, "invoking the infusion of taxpayer money to get banks to modify loans to constituents ... They have also pushed GM and Chrysler to reverse core decisions designed to cut costs, such as closing facilities and shuttering dealerships."

The sudden closing of some 1,300 dealerships nationwide prompted owners to turn to their senators and representatives in protest. It was a sign of things to come. Congressional intervention has saved dealerships across the country, among them a Syracuse Cadillac dealer saved with help from Sen. Charles Schumer and Democratic Rep. Dan Maffei.

But it doesn't stop there as Congress intrudes on other business decisions. Lawmakers prevailed on GM to reverse a decision to manufacture its new subcompact car in China. Instead, it will be located in an existing plant in Michigan.

Democratic lawmakers rallied to the aid of a powerful political backer — organized labor — when GM tried to shift some car-carrier contracts to nonunionized contractors in a plan that could save the company $31 million over three years. GM modified its plans, saying it did not intend to "phase out unionized haulers," although it would continue to seek new contracts.

In another case, GM drew government scrutiny when it announced plans to break its contract with an American firm, Stillwater Mining Co., to supply palladium and purchase it overseas. The decision stands for now, but the response of Montana's Rep. Denny Rehberg was enlightening about attitudes within Congress.

Calling for a congressional hearing, Rep. Rehberg, a Republican, said GM "ought to be subjected to the same rigorous oversight we exercise over any other government agency."