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

Started by SVT666, May 20, 2009, 09:08:10 AM

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

Quote from: GoCougs on May 20, 2009, 09:44:05 AM
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.


Cobra93

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

SVT666

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

Cobra93

Quote from: HEMI666 on May 20, 2009, 10:52:41 AM
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

Quote from: Cobra93 on May 20, 2009, 10:47:18 AM
I think we all know who will be the eventual owner of GM.  :mask:

Same ultimate fate as the British Leylands? :mask:

r0tor

Why do I believe that the holding company will be the Bank of America(n Government)
2011 Jeep Grand Cherokee No Speed -- 2004 Mazda RX8 6 speed -- 2018 Alfa Romeo Giulia All Speed

the Teuton

2. 1995 Saturn SL2 5-speed, 126,500 miles. 5,000 miles in two and a half months. That works out to 24,000 miles per year if I can keep up the pace.

Quote from: CJ on April 06, 2010, 10:48:54 PM
I don't care about all that shit.  I'll be going to college to get an education at a cost to my parents.  I'm not going to fool around.
Quote from: MrH on January 14, 2011, 01:13:53 PM
She'll hate diesel passenger cars, all things Ford, and fiat currency.  They will masturbate to old interviews of Ayn Rand an youtube together.
You can take the troll out of the Subaru, but you can't take the Subaru out of the troll!

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

Quote from: NomisR on May 20, 2009, 11:26:11 AM
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

Quote from: Vinsanity on May 20, 2009, 11:41:22 AM
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

Quote from: HEMI666 on May 20, 2009, 11:42:13 AM
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

Quote from: Cobra93 on May 20, 2009, 10:47:18 AM
I think we all know who will be the eventual owner of GM.  :mask:
The Chinese? :huh:

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
Current cars: 2015 Ford Escape SE, 2011 MINI Cooper

Formerly owned cars: 2010 Mazda 5 Sport, 2008 Audi A4 2.0T S-Line Sedan, 2003 Volkswagen Passat GL 1.8T wagon, 1998 Ford Escort SE sedan, 2001 Cadillac Catera, 2000 Volkswagen Golf GLS 2.0 5-Door, 1997 Honda Odyssey LX, 1991 Volvo 240 sedan, 1990 Volvo 740 Turbo sedan, 1987 Volvo 240 DL sedan, 1990 Peugeot 405 DL Sportswagon, 1985 Peugeot 505 Turbo sedan, 1985 Merkur XR4Ti, 1983 Renault R9 Alliance DL sedan, 1979 Chevrolet Caprice Classic wagon, 1975 Volkswagen Transporter, 1980 Fiat X-1/9 Bertone, 1979 Volkswagen Rabbit C 3-Door hatch, 1976 Ford Pinto V6 coupe, 1952 Chevrolet Styleline Deluxe sedan

"The saddest aspect of life right now is that science gathers knowledge faster than society gathers wisdom." ~ Isaac Asimov

"I much prefer the sharpest criticism of a single intelligent man to the thoughtless approval of the masses." - Johannes Kepler

"One of the most cowardly things ordinary people do is to shut their eyes to facts." - C.S. Lewis


GoCougs

Bright side???

Nationalization of Detroit is a catastrophe.

Madman

Quote from: GoCougs on May 20, 2009, 02:54:10 PM
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
Current cars: 2015 Ford Escape SE, 2011 MINI Cooper

Formerly owned cars: 2010 Mazda 5 Sport, 2008 Audi A4 2.0T S-Line Sedan, 2003 Volkswagen Passat GL 1.8T wagon, 1998 Ford Escort SE sedan, 2001 Cadillac Catera, 2000 Volkswagen Golf GLS 2.0 5-Door, 1997 Honda Odyssey LX, 1991 Volvo 240 sedan, 1990 Volvo 740 Turbo sedan, 1987 Volvo 240 DL sedan, 1990 Peugeot 405 DL Sportswagon, 1985 Peugeot 505 Turbo sedan, 1985 Merkur XR4Ti, 1983 Renault R9 Alliance DL sedan, 1979 Chevrolet Caprice Classic wagon, 1975 Volkswagen Transporter, 1980 Fiat X-1/9 Bertone, 1979 Volkswagen Rabbit C 3-Door hatch, 1976 Ford Pinto V6 coupe, 1952 Chevrolet Styleline Deluxe sedan

"The saddest aspect of life right now is that science gathers knowledge faster than society gathers wisdom." ~ Isaac Asimov

"I much prefer the sharpest criticism of a single intelligent man to the thoughtless approval of the masses." - Johannes Kepler

"One of the most cowardly things ordinary people do is to shut their eyes to facts." - C.S. Lewis

bing_oh

Quote from: Madman on May 20, 2009, 03:08:59 PM

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.
2. 1995 Saturn SL2 5-speed, 126,500 miles. 5,000 miles in two and a half months. That works out to 24,000 miles per year if I can keep up the pace.

Quote from: CJ on April 06, 2010, 10:48:54 PM
I don't care about all that shit.  I'll be going to college to get an education at a cost to my parents.  I'm not going to fool around.
Quote from: MrH on January 14, 2011, 01:13:53 PM
She'll hate diesel passenger cars, all things Ford, and fiat currency.  They will masturbate to old interviews of Ayn Rand an youtube together.
You can take the troll out of the Subaru, but you can't take the Subaru out of the troll!

Madman

Quote from: bing_oh on May 20, 2009, 03:19:20 PM
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
Current cars: 2015 Ford Escape SE, 2011 MINI Cooper

Formerly owned cars: 2010 Mazda 5 Sport, 2008 Audi A4 2.0T S-Line Sedan, 2003 Volkswagen Passat GL 1.8T wagon, 1998 Ford Escort SE sedan, 2001 Cadillac Catera, 2000 Volkswagen Golf GLS 2.0 5-Door, 1997 Honda Odyssey LX, 1991 Volvo 240 sedan, 1990 Volvo 740 Turbo sedan, 1987 Volvo 240 DL sedan, 1990 Peugeot 405 DL Sportswagon, 1985 Peugeot 505 Turbo sedan, 1985 Merkur XR4Ti, 1983 Renault R9 Alliance DL sedan, 1979 Chevrolet Caprice Classic wagon, 1975 Volkswagen Transporter, 1980 Fiat X-1/9 Bertone, 1979 Volkswagen Rabbit C 3-Door hatch, 1976 Ford Pinto V6 coupe, 1952 Chevrolet Styleline Deluxe sedan

"The saddest aspect of life right now is that science gathers knowledge faster than society gathers wisdom." ~ Isaac Asimov

"I much prefer the sharpest criticism of a single intelligent man to the thoughtless approval of the masses." - Johannes Kepler

"One of the most cowardly things ordinary people do is to shut their eyes to facts." - C.S. Lewis

Onslaught

Quote from: the Teuton on May 20, 2009, 03:20:37 PM
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

Quote from: Madman on May 20, 2009, 03:49:43 PM

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

Quote from: bing_oh on May 20, 2009, 03:19:20 PM
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.

:clap:

Quote from: Madman on May 20, 2009, 03:49:43 PM

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
Kia EV6 GT-Line / MX-5 RF 6MT

SVT666

Quote from: hotrodalex on May 20, 2009, 05:05:19 PM
:clap:

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.