GM to turn Government Motors?

[NOBama]

Siddharth Vinayak Patankar
Tuesday, April 28, 2009 (New Delhi)

General Motors’ new Chief Executive, Fritz Henderson has the tough task of transforming what was once the world’s largest [COLOR=blue! important][COLOR=blue! important]car[/color][/color] making dinosaur, into a fleet footed, agile and flexible beast that suits today’s environment. Henderson says, “"I think we're going to be lean, flexible, very customer focused. And, really get behind and win with four core brands, rather than try to figure out how we allocate lots of resources across, frankly, too many things.” But in doing so, GM could very well end up turning into Government [COLOR=blue! important][COLOR=blue! important]Motors[/color][/color].

In its latest plan, GM says it wants the government to write off half its loans to GM so far, in exchange for 50 per cent stake in the company. It also wants the unions to accept shares in the co in lieu of 50 per cent of $20 billion it has to pay to the health care trust.

Besides this GM says it will cut 21,000 more jobs and close 13 more plants over the next year. Another move that is not getting a very popular response is an offer to give bondholders new shares, to help reduce 90 per cent of its bond debt. “89 per cent of the shares of the company would be owned by a combination of the Treasury and the UAW VEBA. The second thing the prospectus does is it talks about as a condition, that the Treasury would equitise approximately 50 per cent, at least 50 per cent of their pre-June 1 debt. So, about $10 billion." Henderson said on Monday.

http://profit.ndtv.com/2009/04/28173149/GM-to-turn-Government-Motors.html

What about all those bailout bucks we gave them to "save millions of jobs"?

I’ve offered to help them with a new advertisement:

“GM: Closing plants and dealerships near you. Get'em while they last!
In the interest of disclosure: please be advised that we will not honor Pontiac warranties because we got away with not honoring Oldsmobile warranties, besides, complaints would be bad for your investment. Thank you for your patronage!”

 

[midcan5]

I don't buy this BS, GM makes cars American wanted and still want, it is just that foreign car makers have none of the employee responsibility GM does. Our GM cars are all excellent and fit our needs. But another aspect is the cheap aspect, Walmart isn't popular because they are a good citizen and treat their employees well, they are popular because they are cheap, and cheap sells whether it makes sense or not to the country.