The heated debate dragged on for some time.
This was inevitable, as the Obama administration had appointed many politicians from the previous government, resulting in a clash of opinions.
There was only one person who could bring order to this situation—President Obama himself.
"I believe we must embrace change. Why did America's pride, the automobile industry, collapse? Japanese and Korean car companies accepted change, adopting the latest equipment to stay competitive on price. But America failed to do so. If we don't reform the job bank system and union-related policies, we will continue to suffer such humiliations in the future."
The conference room fell silent.
It was the early days of his presidency, the period when a president's power was at its strongest.
At such a time, few would dare challenge the president's words.
"We will convey the White House's position to the United Auto Workers. Since the majority of Americans agree that the Big Three automakers must find ways to cut costs, the union will have no choice but to accept."
"Chairman Kim, does this sound agreeable to you?"
One major obstacle had been cleared.
The job bank system, which guaranteed laid-off workers 95% of their salaries, was a heavy burden.
But the struggles of the Big Three automakers were not solely due to the job bank system.
"I understand that around 1,600 people at GM are currently benefiting from the job bank system. But simply reforming that alone will not be enough to overcome the crisis facing the Big Three."
"The Big Three executives have committed to presenting their own cost-cutting measures. A new management approach will soon emerge, different from the past."
"If you can promise restructuring, plant relocations, and debt forgiveness, then I will seriously consider acquiring one of the Big Three automakers."
Had I gone too far with that statement?
Dissenting voices immediately erupted from several corners of the room.
[Seriously consider acquiring one? At a time when even begging someone to buy them wouldn't be enough, that's far too arrogant!]
[Even without selling to Taewoo Group, I'm sure there's a way to revive them!]
[For the sake of public opinion, they must not be sold to Taewoo Group. This could have a huge impact on approval ratings.]
They still hadn't grasped the severity of the situation.
There was no need for me to persuade them. Time itself would take care of that.
"So you're saying you have no intention of selling? Then why did you call me here?"
"Please, everyone, calm down. It's not that we refuse to sell. But there are many issues that must be addressed, and we want to resolve them one by one to find the best solution."
[If the Big Three automakers present their own cost-cutting measures, they can recover without foreign assistance!]
[I agree that change is needed, but it can be resolved entirely within America.]
So that's how they wanted to play it?
Then I had no choice but to move in earnest.
The meeting ended in a sluggish stalemate.
Without looking back, I left the White House and returned to my hotel.
The moment I arrived, I downed a glass of water.
Only when the cool water slid down my throat did I feel the tightness inside me ease.
"Chairman, did things not go well at the White House?"
"They still believe the Big Three can survive without outside help. We'll just have to show them otherwise."
"What do you mean by that?"
"How much of the Big Three's bonds do we hold?"
"Through SAVE Investment and FinTech Bank, we hold about ten billion dollars' worth."
It was more than I expected.
We had certainly invested in real estate-related assets like subprime mortgages, but there was a reason we also held automaker bonds.
"They refused to sell cars, and instead stuck their hands into the real estate market. This is what happens."
"The Big Three had overextended themselves, not only in auto loans but also in real estate loans."
"Use the creditors to pressure the Big Three automakers. And make sure the media picks up on it too."
"Are you certain that's wise? If we push too hard, at least one of the Big Three could go bankrupt."
"That's exactly the point. Only when one of them collapses will the politicians finally grasp how serious this is."
The third round of talks would decide everything.
And that meeting would be held immediately after one of the Big Three filed for bankruptcy.
Only then would they stop spouting nonsense.
In the past, we had been the ones constantly battered by the media.
But now, the tables had turned, and we were the ones launching an aggressive media campaign.
"The Big Three's stock prices have dropped significantly."
"They briefly rebounded when articles came out suggesting they might be sold to Taewoo Group. But once reports surfaced that Taewoo had withdrawn its interest, the prices plummeted at a rapid pace."
"And with the creditors making moves as well, the stocks will fall even faster."
Last year, GM's stock price was a mere 13 dollars.
Now, it had fallen below 5 dollars.
With no good news and only negative developments breaking one after another, no one was willing to buy GM shares.
"There's even a possibility it could fall below a dollar. It could literally become a penny stock."
"If it drops into the cents range, bankruptcy will be the only option left."
"The securities market already predicts with over 80% certainty that GM will go bankrupt. Public opinion isn't favorable either, making it difficult for the government to actively provide bailout funds."
We had been waging this media campaign for a month.
But even if we hadn't leveraged the press and the creditors, this outcome was inevitable.
All we had done was accelerate the timeline by a few months. Thanks to that, the White House had begun moving more quickly.
"Boss! Treasury Secretary Timothy has requested a meeting."
"Just the two of us? No other cabinet members this time?"
"He says full authority has been delegated to him. With GM on the verge of filing for bankruptcy, it seems the consensus is to at least save it first."
"If only they had thought that way earlier. When does he want to meet?"
"He's asking to meet right away. He's waiting near the hotel."
So, they were desperate.
The Treasury Secretary was moving quickly, knowing that if too much time was wasted, at least one of the Big Three might truly collapse.
"They must be getting desperate. So, where's the meeting place?"
"He said he'll come up to the hotel."
"He wants to talk here? Well, that's not bad. Let him come up."
David leaned toward a man who looked like a security agent and whispered something.
Within minutes, Secretary Timothy arrived at our hotel suite.
"Forgive me for dropping in unannounced. The situation is urgent, and I couldn't afford to waste any time."
"On the contrary, I should be the one thanking you for coming first. So, what did you want to discuss?"
"All negotiations with the United Auto Workers have been finalized. The job bank system will be abolished, and agreements have been reached to allow restructuring and even plant relocations."
So much had changed in just a month.
President Obama's inaugural pledge for change was clearly not just empty rhetoric.
"And what about debt relief?"
"We agreed to convert the debt into a 10% equity stake. Wouldn't you say that minimizes the risk as much as possible?"
"That may be so, but aren't there still officials in the government who oppose Taewoo Group's acquisition of an American automaker?"
"The President resolved that matter himself. He stated that without international cooperation, it would be impossible to overcome this crisis. Everyone agreed with him."
So it could have been resolved this easily.
We had wasted time simply because of a few ministers' negative opinions.
"Hmm, under those terms, I'll consider it positively."
"May I take that to mean you are willing to acquire one of the Big Three?"
"You may think of it that way."
"Then may I ask which one you intend to acquire? That way the government can move forward with concrete plans."
"Which company would you recommend, Mr. Secretary?"
"Personally, I would like you to acquire GM."
As expected.
They wanted to unload the company with the heaviest debt burden onto us.
Ford's debt wasn't as severe, and Chrysler was small enough that the U.S. government could manage it on its own.
"Hmm, so you recommend the most difficult option."
"The President has promised that if you assist us in this matter, he will ensure every possible convenience for Chairman Kim Min-jae moving forward."
GM's role in American industry was by no means small.
Some analysts even claimed that if GM went bankrupt, the U.S. gross domestic product could drop by as much as 4%.
The White House had no choice but to keep GM alive at all costs.
"Hmm, Taewoo Group acquiring GM is possible. But the real problem lies in what comes after the acquisition. There will be many situations requiring the U.S. government's support and political backing."
"We can offer as much assistance as possible—within the limits of public opinion. But since Taewoo Group is a Korean company, the public may not react favorably."
"Of course, no one will welcome the idea of a Korean firm acquiring an American company. But if that issue is resolved, can you commit to giving us your full support?"
The Treasury Secretary ran a hand through his hair.
It was a gesture born from the difficulty of accepting my words about overcoming public sentiment.
"How exactly do you plan to persuade public opinion?"
"I can't reveal that just yet. But the reaction will be far better than you might expect."
"If you can truly accomplish that, then I promise not only the Treasury, but the entire U.S. government and political establishment will mobilize to support you. Still, it will be no easy task."
Everything was relative.
What might seem impossible to one person could be far easier for another.
"You don't need to worry about that. Before anything else, we should discuss the GM acquisition process."
"The White House itself will step in to assist with the acquisition process. Once the contract is finalized, I can guarantee that the current executives will be removed without receiving a single cent of severance."
"That's only natural. The public would never accept those responsible for GM's collapse walking away with golden parachutes. But what I meant is something else."
"And what would that be?"
"In order to justify GM's sale, I believe an extreme measure is necessary."
An extreme measure.
For the Treasury Secretary, those words were surely unpleasant.
And the step I had in mind was something the White House would likely find even harder to accept. But it was an essential process to ensure the acquisition went smoothly.
"What kind of measure do you mean?"
"First, GM must go bankrupt. Then Taewoo Group will acquire it. I want you to push GM into filing for Chapter 11 within this month."
Chapter 11.
In the U.S., Chapter 11 is roughly equivalent to court-supervised rehabilitation — in simple terms, bankruptcy followed by reorganization.
"Is this to lower the acquisition cost?"
"If we don't declare our intent to buy, they'll file for bankruptcy anyway, won't they? Naturally, the purchase price will be the pre-bankruptcy price."
"...That condition places a heavy burden on the White House. But if you truly acquire GM, we can accept that burden. However, if GM files for bankruptcy and Taewoo Group then refuses to buy, the White House will have no choice but to hold someone accountable — both officially and unofficially."
This was the Treasury Secretary's meaning.
He would grant all the conditions I wanted.
In return, Taewoo had to buy GM without fail. If we didn't, there would be reprisals.
"I will acquire GM. I give you my word."
At last, I voiced my intention clearly.
From the moment I said those words, the acquisition had to happen at any cost.
But I spoke without hesitation. I had been planning this situation for years, so there was no reason to falter.