Report: U.S. government to own post-bankruptcy GM

[SVT666]

Report: U.S. government to own post-bankruptcy GM, forgive $15.4b in loans
05/20/2009, 9:58 AMBY DREW JOHNSON


General Motors will likely follow Chrysler?s outline for bankruptcy, meaning the ?good? parts of GM will be sold within 30-60 days to a new entity while the ?bad? GM set will remain in bankruptcy for years. However, whereas the new purchasing entity for Chrysler will be Fiat-led, a new report indicates the United States government will take the lead in the new GM.

In order to spend just 30-60 days in bankruptcy, GM needs a purchasing agent on the other side. For Chrysler that agent will be Fiat, but GM has no such plan in place with another automaker. Instead, the U.S. government will be forced to step up to the plate and purchase the new GM.

According to a Reuters sources, the government will at least initially own the new company that in turn owns GM. The source didn?t reveal how much the deal will be worth, but the U.S. government will undoubtedly have a larger share of GM than the 50 percent stake discussed earlier this year.

Additionally, the government?s ownership will likely see GM skipping out on the repayment of its $15.4 billion emergency loan. The government will also extend GM a new line of credit.

With bankruptcy seeming like the only outcome for GM, it looks like the Detroit automaker will be government-owned ? and debt free ? by August.

[GoCougs]

Who in their right mind would buy a car from a nationalized automaker?

[NomisR]

Who in their right mind would buy a car from a nationalized automaker?

British Leyland all over again, only on this side of the Atlantic now.

[bing_oh]

Government Motors?

[Cobra93]

I think we all know who will be the eventual owner of GM. 

[SVT666]

GM will build nothing but hybrids and electrics. GM should change their name to BAM (Bankrupt Again Motors).

[Cobra93]

GM will build nothing but hybrids and electrics. GM should change their name to BAM (Bankrupt Again Motors).

Nope, Ugo.  Union's Gift from Obama.

[NomisR]

I think we all know who will be the eventual owner of GM. 

Same ultimate fate as the British Leylands?

[r0tor]

Why do I believe that the holding company will be the Bank of America(n Government)

[the Teuton]

[Vinsanity]

well, I guess I should be thankful if they don't end up scrapping all the CTS-V's like they did the EV1's...

...but then again, who knows what kind of disgustingly sick and heinous revenge the dirty hippies have planned against GM

[NomisR]

Say goodbye to Corvettes, the Camaro and all performance type cars. 

[S204STi]

Great, the leftist dream of following in Europe's footsteps is coming true one step at a time.  Too bad they forgot to read the part of history where British Leyland still died anyway, along with all the related jobs, but maybe I expect too much.

[Vinsanity]

Say goodbye to Corvettes, the Camaro and all performance type cars. 

Hopefully they become so cheap to buy used, that I can buy two: one to enjoy on the road, and one to keep in storage as a reminder of better times. And to sell for $$$ in a future auction.

[SVT666]

Hopefully they become so cheap to buy used, that I can buy two: one to enjoy on the road, and one to keep in storage as a reminder of better times. And to sell for $$$ in a future auction.

They'll be collector's items since they won't exist anymore.  They won't be cheap.

[bing_oh]

They'll be collector's items since they won't exist anymore.  They won't be cheap.

Exactly. The new Camaro, especially, considering that they're not being manufactured in huge numbers yet.

[sportyaccordy]

I think we all know who will be the eventual owner of GM. 

The Chinese?

Is there any way I can not pay the GM portion of my federal taxes? I wanted nothing to do with that.

[Colonel Cadillac]

Goodbye to the Suburban, you've made the company too much money!

[Madman]

Why does government ownership of GM have to be a bad thing?  Renault produced some pretty spectacular high performance cars under French government ownership.

Renault 5 Turbo, anyone?



Let's stop being negative and try to look on the bright side of things for a change.  Maybe, just MAYBE, government ownership of GM will give the company the stability it needs to reinvent itself into a leaner, meaner, more competitive company?  It's certainly a better outcome than allowing GM to fall into the abyss, which is what would happen without Federal intervention.  Once back on it's feet, the New GM could then be privatised.  A revitalised GM would be beneficial to the American economy and GDP.

The choice is simple: A fresh start under government ownership and, hopefully, a better future or no future at all.  The answer is a no-brainer.


Cheers,
Madman of the People

[hotrodalex]

http://i184.photobucket.com/albums/x253/calfan5/middle-finger-of-the-apocalypse.jpg

[GoCougs]

Bright side???

Nationalization of Detroit is a catastrophe.

[Madman]

Bright side???

Nationalization of Detroit is a catastrophe.

Letting what's left of America's manufacturing sector die is an even bigger catastrophe.


Cheers,
Madman of the People

[bing_oh]

Letting what's left of America's manufacturing sector die is an even bigger catastrophe.

If the American manufacturing sector cannot sustain itself, then it's unfit to live. That's capitalism. It's supposed to be a Darwinian process where the smarter and more agile company thrives by providing products the people want at competetive prices. The government propping up unproductive companies will only make the problem worse, encouraging American companies to continue uncompetetive business practices. If we have any hope of keeping up with up-and-coming international competetors like China, then we'd better re-learn how to do business effectively. That means we have to get rid of the dead wood.

[the Teuton]

Let's face it:  Outside of the automotive industry, Detroit is a shithole anyway.

[Madman]

If the American manufacturing sector cannot sustain itself, then it's unfit to live. That's capitalism. It's supposed to be a Darwinian process where the smarter and more agile company thrives by providing products the people want at competetive prices. The government propping up unproductive companies will only make the problem worse, encouraging American companies to continue uncompetetive business practices. If we have any hope of keeping up with up-and-coming international competetors like China, then we'd better re-learn how to do business effectively. That means we have to get rid of the dead wood.

If we protected out markets the way China protects its markets, American industry wouldn't need any help.  The fallacy of the "free market" is why American manufacturing is on its knees.  Politicians on both side of the aisle have sold us out to China.  Let's impose the sort of restrictions on Chinese goods that China imposes on American goods and see how quickly America's manufacturing sector recovers.

Cheers,
Madman of the People

[Onslaught]

Let's face it:  Outside of the automotive industry, Detroit is a shithole anyway.

Even in the automotive industry it's a shit hole.

[bing_oh]

If we protected out markets the way China protects its markets, American industry wouldn't need any help.  The fallacy of the "free market" is why American manufacturing is on its knees.  Politicians on both side of the aisle have sold us out to China.  Let's impose the sort of restrictions on Chinese goods that China imposes on American goods and see how quickly America's manufacturing sector recovers.

Sorry, I'm not much for socialism in my economy.

[hotrodalex]

If the American manufacturing sector cannot sustain itself, then it's unfit to live. That's capitalism. It's supposed to be a Darwinian process where the smarter and more agile company thrives by providing products the people want at competetive prices. The government propping up unproductive companies will only make the problem worse, encouraging American companies to continue uncompetetive business practices. If we have any hope of keeping up with up-and-coming international competetors like China, then we'd better re-learn how to do business effectively. That means we have to get rid of the dead wood.

If we protected out markets the way China protects its markets, American industry wouldn't need any help.  The fallacy of the "free market" is why American manufacturing is on its knees.  Politicians on both side of the aisle have sold us out to China.  Let's impose the sort of restrictions on Chinese goods that China imposes on American goods and see how quickly America's manufacturing sector recovers.

Cheers,
Madman of the People

That's not free. I don't want ANY restrictions. The better man wins. That's how it goes.

When you regulate things, you never get a better product.

[Laconian]

    Hello, My name is Regis J. Larkin Jr. and I am a sales manager with Ramsey Chrysler Dodge and Jeep. I would like to take the time to tell you why you should buy your next domestic product from us. Contrary to all the negative propaganda in the media let me be the one to assure you we are going nowhere. The fact alone that the PRESIDENT of these UNITED STATES BECAME DIRECTLY INVOLVED IN OUR RESTRUCTURING SHOULD SAY A LOT. THINK ABOUT THAT. THEY ARE SO SURE ABOUT US AND OUR PRODUCT THEY ARE GUARANTEEING OUR LIFE TIME WARRANTIES. Thats pretty aggressive don?t you think. In the coming weeks a lot of smaller dealers will be closing. However RAMSEY CHRYSLER DODGE AND JEEP will be going nowhere. In fact we are in the process of redoing our showroom for your comfort and convenience. During times like these we must stand together AS AMERICANS.

http://www.thetruthaboutcars.com/letter-from-a-hungry-chrysler-dodge-jeep-dealer/#more-315770

[SVT666]

That's not free. I don't want ANY restrictions. The better man wins. That's how it goes.

When you regulate things, you never get a better product.

GoCougs and you are both subscribe to the same ideology.  The problem is that just like Communism, your ideology only works in theory.  When you factor in the human element, it will never work in practice.