Government Taking Over GM

[Coach McGuirk]

http://news.yahoo.com/s/nm/20090427/bs_nm/us_gm_6

So we are cruising down the slope here.

The new GM that would emerge from the restructuring would be 89 percent-owned by the U.S. government and the United Auto Workers unions, provided that workers and officials approve plans to take an ownership stake in exchange for debt.

How can a plan be that you emerge from bankruptcy owned by the fed? Also, Ford was a big supplier to the city state and fed, good luck with that now.

I wonder who is next.

[Color Me Badd Fan]

http://news.yahoo.com/s/nm/20090427/bs_nm/us_gm_6

So we are cruising down the slope here.



How can a plan be that you emerge from bankruptcy owned by the fed? Also, Ford was a big supplier to the city state and fed, good luck with that now.

I wonder who is next.

So this is how Obama both pushes GM towards bankruptcy while still bending over for the unions. I was wondering how that was going to work and I was hoping that Obama would finally be tough with one of his constituencies. My hope was clearly unfounded. GM is just going to continue strolling along the green mile.

[il Padrino Ute]

Banks, car maker, what's next?

[venkman]

This is a disaster, GM should have filed Chapter 11 months ago. Now Pontiac will be dead (huge mistake), and with the government owning them, you can bet they'll push GM away from profitable vehicles (Trucks, SUV's) to unprofitable vehicles (small cars).

If this goes through, GM is basically over. Sad, because they were beginning to turn things around. With the Feds and the Unions owning GM, it's only a matter of time before they just cease to exist.

I have $3k in credit built up on my GM Card, but I will not buy a vehicle from Government Motors.

[Surfah]

Government and union ownership. This is bad. Real bad. Someone spin this for me.

[il Padrino Ute]

Government and union ownership. This is bad. Real bad. Someone spin this for me.

You'll have to go to CG for that because that's where Cali posts.

[Uncle Ted]

Time to check to see how our investment into Government Motors is doing...

GM got bailout, now ships jobs to China

Saving General Motors from bankruptcy was among President Obama’s most frequently cited achievements when he ran for re-election last year. Democrats everywhere touted the company’s revival as proof of the 2009 bailout’s wisdom. That was then. Now, Obama has quietly released the auto manufacturer from a bailout requirement that it increase its production in the U.S. Instead, GM is spending billions of dollars building up its production capacity in ... China.
[...]
How did it do this year? GM refuses to say. But in February, GM announced in its annual report to shareholders that Treasury had agreed to “irrevocably waive certain of its rights” regarding the federal loan. These included “certain manufacturing volume requirements.” Guess what happened next? GM announced in June that it would stop releasing its North American production figures altogether. Its spokesman tried to justify this move with Orwellian doublespeak about how providing more information would result in “an incomplete data set to look at.”


The same month, GM announced it would boost its output from its China plants by 70 percent. It is not just selling Chinese-made cars to the Chinese, either. GM is nearly doubling its export production capacity there from 77,000 units to 130,000. It doesn’t take a Ph.D. in economics to see what is really going on. GM cannot make the domestic production targets and still turn a profit. It wants to be spared the embarrassment of having everyone know that. Obama, who is in this as deep as anyone can be, doesn’t want the embarrassment, either. So both buried the news.


It is yet more proof that Mitt Romney was right in the 2012 presidential campaign: GM should have gone through a traditional bankruptcy instead of the politicized farce of a taxpayer-funded bailout and government managed “bankruptcy.” The TARP funds involved could have instead been used to provide liquidity for a managed sale to a private buyer that minimized the opportunities for political interference in the new GM’s operations.

http://washingtonexaminer.com/examiner-editorial-gm-got-bailout-now-ships-jobs-to-china/article/2537323

Well, at least we are creating jobs for someone.

[Eddie]

Time to check to see how our investment into Government Motors is doing...

http://washingtonexaminer.com/examiner-editorial-gm-got-bailout-now-ships-jobs-to-china/article/2537323

Well, at least we are creating jobs for someone.

That's awesome. So one interpretation of this could be that we are in debt to China - and we essentially took the money that we borrowed from China and are now paying interest on and gave it to GM in order to build more plants and create jobs in...China.

Well - that turned out well for them, didn't it.

[old_gregg]

why pay someone $100k and give them a defined benefit pension when you can pay someone $40k to make the same product in a market where demand for your product is exploding? the uaw made their bed.

[SCcoug]

But during the election they said they weren't shipping jobs to china! Even the fact checkers said so. In fact they gave Brother Mitt a "pants on fire" rating.