Gm still is Government Motors

Discussion in 'Current Events' started by brett636, Apr 25, 2010.

  1. brett636

    brett636 Well-Known Member

    http://www.forbes.com/2010/04/23/ge...sts-shikha-dalmia.html?boxes=Homepagetoprated

    Considering GM has a full ad campaign claiming that they paid back the government I think its only appropriate to show how they did it. Not only did they pay a government loan with money the government had given them, but they have yet to turn a profit even while their non government owned counterpart Ford has been turning a profit since last year. Its an excellent case study as to why government intervention and control only makes organizations less efficient and honest versus more so. Enjoy the read.
     
  2. Lue C Fur

    Lue C Fur Evil member

    Great article Brett. I like this quote:

    In short, GM is using government money to pay back government money to get more government money. And at a 2% lower interest rate at that. This is a nifty scheme to refinance GM's government debt--not pay it back!

    I heard that the FTC is looking into false advertising from GM. I wonder what the Messiah will say since he tooted the GM horn also.
     
  3. 1989

    1989 Well-Known Member

    I think they will have to wait for their IPO to pay it back fully.
     
  4. scratch

    scratch Least Best Moderator Staff Member

    I have a brother that works for GM in Shreveport, LA. This is one of their most modern and efficient plants, they build the Chevy Colorado/GMC Canyon small pickups and the Hummer H3 there. The Chinese deal to buy Hummer fell through and the plant will go up for auction in a year. GM will be without a domestic built small truck next year. My brother thinks that an Asian company will buy it. He has 25 years in and is thinking about retiring from GM and taking a job in LA's booming natural gas business. He is a union pipefitter/plumber by trade, he will have no problem getting work. So much for Government Motors, I bought a new Ford last time and will continue doing so.
     
  5. bbsam

    bbsam Moderator Staff Member

    yeah, but that new Camaro is simply a thing of beauty.
     
  6. brett636

    brett636 Well-Known Member

    A good friend of mine is an ASE certified mechanic, and since he first began turning wrenches he has always had a passion for GM products. He has had the opportunity to work on the new camaro as some have come into his shop, and even he says they are junk and would rather buy a mustang.
     
  7. diesel96

    diesel96 New Member

    http://www.bloomberg.com/apps/news?pid=20601103&sid=aDx83Q1yj6SQ

    Its hardly doom and gloom and this is still a sign of an improving economy reguardless of those of you lusting for failure. Think about it... When GM borrowed this money, it wasn't because they wanted to look like the worlds most incompetent executives (which they did), it was because they really felt they needed it. We should be happy that months down the road, they don't need all of it and were getting some back!
    I didn't support TARP and therefore I am fully in support of anything that gets that money back and helps get the Gov't out of the car business sooner than later!
    Once again we are so hung up on GREED and MONEY that we forget the larger picture. Thanks for pointing out what our entire country forgets on a daily basis, it's citizens, workers, honest businesses trying to employ or keep employing. We continue to get bombarded with "socialism" comparisons when you even feel the slightest bit of compassion for one another.
    It may be premature to rejoice in GM's money manipulation but isn't this a bit better than the lost jobs, lost revenue and trickle down effect it would have on the economy should they have gone belly up. I'm just asking?

    Oh and Scratch.....Ford's success might not have been possible without the aid given to GM and Chrysler for it's survival. A collapse by those rivals would have damaged suppliers, putting Ford’s survival at risk. GM and Chrysler now employ over 100,000 Americans, and over 1 million more U.S. jobs are dependent on those companies as well as Ford.
     
  8. brett636

    brett636 Well-Known Member

    I take it you either did not read, or possibly just cannot comprehend the notion that GM did not repay those loans with money they earned from operations, but with money they recieved from the government during the bankruptcy proceedings. BTW, they repaid $6.7 billion in loans all the while receiving nearly $50 billion in taxpayer money. This has neither been a good deal for the taxpayer or for the industry.
     
  9. diesel96

    diesel96 New Member

    I know you've been had when you start throwing around the "you can't comprehend" spliel. Coming from a guy who doesn't understand the definition of "socialism" as displayed on your Avatar, your assertion doesn't mean squat. If you had read my post, I wasn't neccessarily disagreeing with the basis of your link, rather touching on the attitude of a lust for failure, a lack of compassion, resisting the existance of greed, and utter denial of GM Shares rebounding so taxpayers can recoup some or most of their losses....We will see where GM stands in 2015, why you continually prey for there demise and the awful domino effect to American families is, your right, "beyond my comprehension".

    From CNN Money;

    "Taxpayers could recoup money from a possible sale of GM stock to the public in the future.
    A White House report issued shortly after GM's announcement was upbeat on the progress that both General Motors and Chrysler have made since coming out of bankruptcy but noted that the government would likely not make a profit on the funds it had invested.
    "Overall, the investments made by the prior and current administration in GM, Chrysler, and GMAC will likely result in some loss, but the U.S. Treasury anticipates it to be much lower than forecast last year," the report said.
    Mark Reuss, president of GM's North American operations, said in an interview with CNNMoney.com that he was "positive" that GM's stock would ultimately be profitable for taxpayers. [​IMG]"
     
  10. Lue C Fur

    Lue C Fur Evil member

    Deez... I dont think anyone wants or wanted GM or Chrysler to fail. The point is that GM is misleading (including our govt) that they paid back the loan when in fact they used taxpayer money to do so. Dont you see that? As far as for benifiting from GM and chrysler bailouts because of he suppliers...the parts supplier would be whatever company Ford would have done business with so how would they have went out of business if Ford was still buying parts from them?. Ford brought in a good CEO who seen the storm comming and made preparations and that is why they did not need a bailout and are doing so well today.
     
  11. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.


    Ford's survival had nothing to do with the bailout but with their foresight of securing financing prior to the recession which positioned them well.
     
  12. brett636

    brett636 Well-Known Member

    What is frustrating is this is spelled out for you in black in white written in plain english yet you continue to ignore what is going on. Did you even read the paragraph that you quoted from CNN money? Who is going to buy a stock with over 3 years of reported losses preceding a company that has had all its debt wiped out with help from the federal government? GM is a loser for the taxpayers just like its a loser for its customers, and it will ultimately be a loser for anyone foolish enough to invest in it. Seven out of ten of the worst rated new cars by Consumer Reports are produced by government owned car companies, i.e. GM and Chrysler(click here). Since these companies have lost all their fear of failure they really have no incentive to improve because they can always rely on the federal government, i.e. the taxpayes, to come to their rescue.
     
  13. bbsam

    bbsam Moderator Staff Member

    I'm not sure if it was noble forsight or steeper fall into certain financial ruin and the desperation born of that sense of doom.
     
  14. bbsam

    bbsam Moderator Staff Member

    I do not doubt that one bit. I just wish the new 5.0l mustang would get here so I don't have to settle on the Camaro.
     
  15. klein

    klein Für Meno :)

  16. unionman

    unionman New Member

  17. klein

    klein Für Meno :)

    Oh, I travelled lots lately. I haven't come across hardcore reps like on BC here.
    They can't help it, I assume, they have different news sources and beliefs.
    Kinda like being over religious, and hoping the end of the world is comming, so Jesus will arrive and resurect them.
     
  18. moreluck

    moreluck golden ticket member

    Klein, go bust a blister !!:sick:
     
  19. Lue C Fur

    Lue C Fur Evil member


    Fixed it for ya.:wink2:
     
  20. unionman

    unionman New Member

    As Obama fixes Bush's mess more people will vote Democrat, that is your fear. You can try to twist my words all you want because the truth hurts, but the fact is the economy is improving and its a direct result of good leadership.