How GM "paid" back it's "loan"

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SP33Demon

SP33Demon

Lifer
Jun 22, 2001
27,928
143
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Never buying a POS GM. Although my 1997 Buick is a tank and I'm driving it into the ground.
 
Bill Brasky

Bill Brasky

Diamond Member
May 18, 2006
4,324
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I have wondered exactly that when I saw those commercials. Interesting video. :thumbsup:
 
LTC8K6

LTC8K6

Lifer
Mar 10, 2004
28,520
1,576
126
A complaint has been filed with the FTC over GM's deceptive ad.
 
ussfletcher

ussfletcher

Platinum Member
Apr 16, 2005
2,569
2
81
SP33Demon said:
Never buying a POS GM. Although my 1997 Buick is a tank and I'm driving it into the ground.
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What you pretty much contradicted yourself there. Unless you would consider something of the foreign cars.. that are not 'tanks' to be non-POS cars.

What I fail to see is how being a tank makes it a POS.
 
FeuerFrei

FeuerFrei

Diamond Member
Mar 30, 2005
9,144
929
126
Yeah it was a dishonest attempt to gain public approval of the dumb decision to bail out GM.

I recently read a letter to the public from some clueless GM exec who said something like "We know the American people are angry that we needed federal money to stay operational."

Uh, no that's not it.

- First of all, GM didn't "need federal money" they needed income from selling their own products.
- Second, people are angry because GM violated principle in granting government ownership of their company.
- Third, people are angry that GM had the gall to take government handouts rather than having the integrity to succeed/fail on their own merits. Note how Ford 'just said no.'
- Fourth, people are angry that GM and the federal government consider the company a jobs program and people working for GM must continue to work for GM at all costs! :rolleyes: No such thing as "too big to fail."

Freedom to fail in business, lose your job, or lose money invested are vital to a healthy economy.
 
Ktulu

Ktulu

Diamond Member
Dec 16, 2000
4,354
0
0
FeuerFrei said:
Yeah it was a dishonest attempt to gain public approval of the dumb decision to bail out GM.

I recently read a letter to the public from some clueless GM exec who said something like "We know the American people are angry that we needed federal money to stay operational."

Uh, no that's not it.

- First of all, GM didn't "need federal money" they needed income from selling their own products.
- Second, people are angry because GM violated principle in granting government ownership of their company.
- Third, people are angry that GM had the gall to take government handouts rather than having the integrity to succeed/fail on their own merits. Note how Ford 'just said no.'
- Fourth, people are angry that GM and the federal government consider the company a jobs program and people working for GM must continue to work for GM at all costs! :rolleyes: No such thing as "too big to fail."

Freedom to fail in business, lose your job, or lose money invested are vital to a healthy economy.
Click to expand...

Ford needed to mortgage everything just to stay afloat or they would have gone under or needed bailout money too. GM tried to get money from the banks but they weren't lending money to anyone.
 
her209

her209

No Lifer
Oct 11, 2000
56,336
11
0
Ktulu said:
Ford needed to mortgage everything just to stay afloat or they would have gone under or needed bailout money too. GM tried to get money from the banks but they weren't lending money to anyone.
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Ford would have gone under if GM had gone under.
 
Squisher

Squisher

Lifer
Aug 17, 2000
21,204
66
91
The ad was just stupid. I'm pretty sure GM knows that now.

However, paying back money they were lent because they didn't need it is an indicator GM is doing better than they and everybody else thought they would. GM wants badly to shed the whole Government Motors moniker as fast as it can, this premature ad campaign just shows how badly.
 
S

Slick5150

Diamond Member
Nov 10, 2001
8,760
3
81
her209 said:
Ford would have gone under if GM had gone under.
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Very likely true. I have family that owns an auto supplier company who sells parts to GM, Ford, Chrysler, and Toyota. He said that he's 100% sure he would have had to close down if GM went under. So, fewer suppliers selling parts to the others drives their costs way up, kills their bottom line.

And the only reason Ford didn't need a bailout is that they went to the banks a year ahead of time and borrowed as much money as they could, beating GM and chrysler to the punch. When they tried to goto the banks, they weren't lending anymore so couldn't find the money they needed. Ford still has a MASSIVE debt load to shed, it's just to private banks rather than the feds. All 3 companies are showing a very healthy turnaround the past several quarters, which is good for America as a whole. We should all be happy about this.
 
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FeuerFrei

FeuerFrei

Diamond Member
Mar 30, 2005
9,144
929
126
Ktulu said:
Ford needed to mortgage everything just to stay afloat or they would have gone under or needed bailout money too. GM tried to get money from the banks but they weren't lending money to anyone.
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I realize Ford had to mortage everything. But they retained their integrity and managed to stay in business.

There is no such thing as "needing" federal bailout money. Companies are free to fail. A federal bailout shouldn't even be an option on the table.

I'm sure GM did try to get money from banks. The private sector is their only option.
 
S

Slick5150

Diamond Member
Nov 10, 2001
8,760
3
81
FeuerFrei said:
I realize Ford had to mortage everything. But they retained their integrity and managed to stay in business.

There is no such thing as "needing" federal bailout money. Companies are free to fail. A federal bailout shouldn't even be an option on the table.

I'm sure GM did try to get money from banks. The private sector is their only option.
Click to expand...

And if the private banks are so screwed up by their own doing at that point that they aren't lending a dime to anybody, what's your plan then?
 
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