The announcement Monday that General Motors Corp. had filed for Chapter 11 bankruptcy protection will be a turning point – perhaps for the U.S. auto industry, but certainly for capitalism. American taxpayers will own 60 percent of the 101-year-old company when it emerges from bankruptcy.
The company hopes that will take no more than 90 days.
Though GM’s bankruptcy was expected, the world reacted with shock. That wasn’t a surprise. When the Giant fell from Jack’s beanstalk, the crash was felt across the English countryside.
The GM announcement hit Michigan hardest. The company said it would close or idle 15 plants. Six are located in GM’s home state and affect 7,216 employees.
Despite the alarming headlines in newspapers and on broadcasts Monday and into Tuesday, reaction in Kokomo was subdued. In fact, most here likely believed the news out of Detroit, New York and Washington Monday gave Howard County hope.
• Bankruptcy Court Judge Arthur Gonzalez approved the sale of most of Chrysler’s assets to Fiat Group SpA. Rep. Joe Donnelly, D-Ind., said, “All the Chrysler transmission operations will remain in Kokomo. All transmission-related work will remain.”
• Delphi announced its sale to Parnassus Holdings II LLC, an affiliate of the private equity firm Platinum Equity. A Platinum official said Delphi Electronics & Safety in Kokomo is not a part of the sale.
• And GM still plans to buy back Delphi Electronics & Safety, hinting if not announcing that research and development in Kokomo is vital to the General’s viability.
Since Delphi’s bankruptcy filing in October 2005, Kokomo’s economy has experienced a steady slide. Jobs have been lost. Tax collections have shrunk. Business has contracted.
But as Donnelly told us Monday, “The future is much better today than it has been in the past.”
Opinion
‘The future is better today’
- Opinion
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White shouldn’t return to office
The issue: The conviction of Indiana’s secretary of state.
Our view: Charlie White’s ouster from office should be permanent.
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Editorial - Feb. 8, 2012: Grand success for Indianapolis
The issue: The Super Bowl.
Our view: Indianapolis left a great impression on thousands of visitors.
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Letters to the Editor: Feb. 8, 2012
As Hoosiers celebrate the conclusion of a truly remarkable Super Bowl experience, there is even more good news that should fill us with pride. More Indiana students are graduating from high school than ever before.
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Which religions will we include?
The Indiana Senate last week approved a bill that would allow public schools to teach creationism, as long as they include theories from multiple religions.
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If you say so
In an opinion piece we published Thursday, state Rep. Mike Karickhoff announced why he voted against “right-to-work” legislation. His reason: The community told him to.
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Cheers and jeers - Saturday, Feb. 4, 2012
Karickhoff acted ‘cowardly’
The Rev. Robin Wentworth Mayer and Horst G. Mayer of Kokomo send the Jeer for state Rep. Mike Karickhoff’s silence during the “right-to-work” debate:
“Mr. Karickhoff, for someone who’s new to office, you’ve certainly learned the art of talking out of both sides of your mouth.
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Let’s drug test our lawmakers
Perhaps it’s appropriate that a measure passed by the Indiana House this week would ask not only welfare recipients but Indiana lawmakers to consent to a drug test.
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Editorial - Feb. 2, 2012: Peru delivers a message
The issue: Peru’s collection of $20,000 last year from property owners who failed to keep their yards mowed.
Our view: Aggressive enforcement can help a city’s finances, but the benefits go beyond dollars and cents.
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Karickhoff: Reason behind my ‘right-to-work’ vote
There is no doubt the “right-to-work” debate has brought mixed emotions, not only to our state but District 30 as well. There were only a handful of House Republicans who did not vote in support of this legislation. Let me explain why I felt it was necessary for me to vote in opposition to right to work.
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Heinig: ‘Right-to-work’ law to arouse continued resistance
I wouldn’t call Gov. Mitch Daniels a charismatic leader, but he does possess some leadership skills. If he didn’t, he couldn’t have brought us this far along the happy trail to his economic Valhalla.
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White shouldn’t return to office
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