U.S. Expected to Own 70% of Restructured G.M.

[Chunkee]

GM.gov

G.M., which has already received $19.4 billion in financing from Treasury, would get another $50 billion or slightly more in debtor-in-possession financing, which it would draw upon during its reorganization.

The Treasury plans to create a new version of G.M. with its most attractive assets, like Chevrolet, Cadillac and some of its manufacturing operations. The rest of G.M. would be sold or liquidated.

G.M. is expected to seek Chapter 11 protection on Monday, the deadline set by the Obama administration for the company?s restructuring, although the initial set of papers could be filed over the weekend, allowing for the first court hearings next week, these people said.

The $50 billion-plus figure includes $7.6 billion that G.M., which drew another $4 billion in federal financing on Friday, told the Treasury last week that it would need to operate after June 1.

When will this black hole end? This has gotten so out of hand. I know this is a "business" saving move, but how much more can we sustain to place such large funds into an abyss? It appears that the purchasing of cars, will not recover for another 12 months or more. How much more money will they need at the end of 2009?

Someone tell them to STOP!

 

[Genx87]

Bu bu but they are too big to fail!!!!!!!!!!!!!!!!!!!!!

 

[StageLeft]

haha, now I really want to own a GM car. They can change the emblem to Obama's face.

 

[techs]

Yes, just giving them money would be a much better idea than actually getting something back for the taxpayers.
/sarcasm

 

[Chunkee]

How long will the restructuring take? Years? How long will it take for them to sell cars again? Years....its like a damn Carl Sagan fest...Billions and Billions....

with that kind of money that they are spending...they could have just given to the GM workers for early retirement, that way no more bleeding. Here is millions dollars, thank you for playing build a car, you can go now.

I fear this is going to be the most expensive debacle in history...more so than the banks.

 

[techs]

Originally posted by: Chunkee
How long will the restructuring take? Years? How long will it take for them to sell cars again? Years....its like a damn Carl Sagan fest...Billions and Billions....

with that kind of money that they are spending...they could have just given to the GM workers for early retirement, that way no more bleeding. Here is millions dollars, thank you for playing build a car, you can go now.

I fear this is going to be the most expensive debacle in history...more so than the banks.

Yes, because having a US owned auto industry would be bad. I guess when we need to replace the HUMVEE we can just ask China to develop and build it.
And there is nothing wrong with sending tens of billions of dollars overseas to buy cars. After all it hasn't hurt our balance of payments.
I say, lets just grown corn, grow cattle and ship our natural resources overseas. After all, it worked for other countries for many years.
I think they were called the "third world".

 

[MotF Bane]

Change!

 

[PokerGuy]

Yet another good reason to never ever ever purchase a GM product.

 

[lupi]

Change change change, um um, change change change.

 

[ElFenix]

Originally posted by: Chunkee
How long will it take for them to sell cars again?

they'll probably idle the factories for a short while to clear off all the excess that's on the lots but they're not going to stop making cars for years

 

[jpeyton]

I wanted to chime in here with a clever anti-Obama one-liner, but it seems you guys used them all up. Shucks.

 

[CycloWizard]

Originally posted by: techs
Yes, just giving them money would be a much better idea than actually getting something back for the taxpayers.
/sarcasm

How about NOT giving them money? They make a crappy product that no one wants. Therefore, they should go under just like any other business that makes crappy products that no one wants. Throwing money at the problem is not a solution - it's a life raft with a gaping hole in the side. Except instead of leaking air, it's leaking my money.

 

[Train]

Originally posted by: jpeyton
I wanted to chime in here with a clever anti-Obama one-liner, but it seems you guys used them all up. Shucks.

Mission Accomplished?

 

[BoberFett]

Originally posted by: Genx87
Bu bu but they are too big to fail!!!!!!!!!!!!!!!!!!!!!

They've already failed. The only thing we're doing is keeping them on life support.

It's kind of funny. Republicans were insistent that keeping Terry Schiavo alive was the moral thing to do while Democrats blasted them for unethically spending money keeping a brain-dead person alive just to please their base. How the tables turn.

 

[boomerang]

Originally posted by: BoberFett

Originally posted by: Genx87
Bu bu but they are too big to fail!!!!!!!!!!!!!!!!!!!!!

They've already failed. The only thing we're doing is keeping them on life support.

It's kind of funny. Republicans were insistent that keeping Terry Schiavo alive was the moral thing to do while Democrats blasted them for unethically spending money keeping a brain-dead person alive just to please their base. How the tables turn.

I hope this was supposed to make me laugh, because I found it to be quite humorous. Something keeps me coming back here and I think posts like this are a big part of it.

 

[quest55720]

I am not sure which is worse the UAW owning Chystler or the government owning GM. I just hope the bond holder stand up and bring this to court and win. I am sure in the near future Obama will give the 70% stake in GM to the UAW. So then the UAW will end up owning 2 out of the big 3 by bankrupting them with outrageous labor costs.

 

[nakedfrog]

Originally posted by: CycloWizard

Originally posted by: techs
Yes, just giving them money would be a much better idea than actually getting something back for the taxpayers.
/sarcasm

How about NOT giving them money? They make a crappy product that no one wants. Therefore, they should go under just like any other business that makes crappy products that no one wants. Throwing money at the problem is not a solution - it's a life raft with a gaping hole in the side. Except instead of leaking air, it's leaking my money.

I know people that like their vehicles and continue to purchase them. These people typically owned a GM vehicle before that, and it gave them little to no mechanical trouble. So it must not be a crappy product, and people do seem to want it.

 

[5150Joker]

America..f-ya!!! Well America has been on a steady decline anyway so this was all but inevitable. Once other nations like China achieve military parity with the US, the glory days of waving the US flag around and bullying smaller nations will come to an end. A cool sight I saw today was someone with a big US flag waving from their Toyota Camry..simply beautiful. I'm sure the Japanese must be laughing their asses off.

 

[mstersmith]

Originally posted by: 5150Joker
America..f-ya!!! Well America has been on a steady decline anyway so this was all but inevitable. Once other nations like China achieve military parity with the US, the glory days of waving the US flag around and bullying smaller nations will come to an end. A cool sight I saw today was someone with a big US flag waving from their Toyota Camry..simply beautiful. I'm sure the Japanese must be laughing their asses off.

Ya thats what we do. All that aid we send and AID's research to Africa. Damn our bullying ways. We should be ashamed.

 

[Strk]

Originally posted by: Genx87
Bu bu but they are too big to fail!!!!!!!!!!!!!!!!!!!!!

They kind of are, otherwise they wouldn't be given all of this money.

 

[XZeroII]

Originally posted by: CycloWizard

Originally posted by: techs
Yes, just giving them money would be a much better idea than actually getting something back for the taxpayers.
/sarcasm

How about NOT giving them money? They make a crappy product that no one wants. Therefore, they should go under just like any other business that makes crappy products that no one wants. Throwing money at the problem is not a solution - it's a life raft with a gaping hole in the side. Except instead of leaking air, it's leaking my money.

Crappy products that no one wants? You realize that Toyota lost MORE money than GM did this past quarter, right? Are they making crappy products that no one wants? It's idiots like you who keep spreading misinformation that makes a bad situation worse. It's obvious that you don't know jack about the situation yet you speak as if you are an expert. There is PLENTY of actual information available on the internet. Look it up and get back to us.

 

[Craig234]

Originally posted by: CycloWizard

Originally posted by: techs
Yes, just giving them money would be a much better idea than actually getting something back for the taxpayers.
/sarcasm

How about NOT giving them money? They make a crappy product that no one wants. Therefore, they should go under just like any other business that makes crappy products that no one wants. Throwing money at the problem is not a solution - it's a life raft with a gaping hole in the side. Except instead of leaking air, it's leaking my money.

Typical right-wing approach, run the car into the ditch following ideology. When problems require real and creative solutions, only Democrats come up with them, it seems.

Republicans just bitch about how they violate their ideology, and create slippery slopes predicting doom if the Democrats get their way.

So, we should just not give GM the assistance that will have payoffs for our society, and instead let them go out of business during the crisis, and let the economy suffer.

More poverty the right-wing can easily explain away as long as their ideology is followed. When we had children dying in unsafe factories living in poverty, they could defend that.

Because they don't understand the tradeoffs between the options, they think the GM bailout is some precedent for broad socialism, when it's not.

And they don't understand the bastards on the right who put the nation second to a chance to strike a blow against the unions at GM in favor of the foreign car makers.

 

[PricklyPete]

Originally posted by: PokerGuy
Yet another good reason to never ever ever purchase a GM product.

How is this a reason not to buy a GM product? Because you already paid for it?

 

[CycloWizard]

Originally posted by: nakedfrog
I know people that like their vehicles and continue to purchase them. These people typically owned a GM vehicle before that, and it gave them little to no mechanical trouble. So it must not be a crappy product, and people do seem to want it.

If I start a hot dog stand and I have five very loyal customers, I'll still go out of business and rightly so. Should the government keep my stand afloat to make sure I and my customers can keep on keeping on? Really?

 

[CycloWizard]

Originally posted by: XZeroII
Crappy products that no one wants? You realize that Toyota lost MORE money than GM did this past quarter, right? Are they making crappy products that no one wants? It's idiots like you who keep spreading misinformation that makes a bad situation worse. It's obvious that you don't know jack about the situation yet you speak as if you are an expert. There is PLENTY of actual information available on the internet. Look it up and get back to us.

Toyota made more cars than the market wanted, so they took it on the chin. Are we going to float them as well? No, we don't need to because they have been making money for a long time now, so they can absorb the loss. That's how business works. Unfortunately, only idiots like me can see that, while wise men like you want to bury the poor GM people alive with my money.