Making Government Motors official
Photoshop: Doug Powers
Hey, remember that bullcrap about how if we forked over billions in tax dollars to bail out the auto companies, we’d not only get our money back, we’d actually make a profit?
Yeah. Never mind:
General Motors Corp’s (GM.N) plan for a bankruptcy filing involves a quick sale of the company’s healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.
The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.
The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.
GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.
The government’s plans include giving stakes in the new company to GM’s union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company’s plans.
In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.
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Trackbacks
- The Greenroom » Forum Archive » Obama plans to convert GM loan into gift
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- Consequences of the Obamamobiles « Gunservatively!
- Why would Notre Dame grant Obama an honorary degree? The text. « Jim Blazsik
- Wizbang
- Auto Spending and Cost or Doing Business « Finding Ponies in Piles of Poop
- Its now official: Once GM goes bankrupt its Government Motors | Fire Andrea Mitchell!
- Politics @ Up North Mommy » US Government to buy GM if it declares bankruptcy
- Obama administration to “briefly” own GM and impose tough emission standards « Wellsy’s World
- Obama administration to “briefly” own GM and impose tough fuel standards « Wellsy’s World
- It’s Only $15.4 Billion, Let’s Throw It Away! « Tai-Chi Policy
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- The American Spectator : AmSpecBlog : If Chevy Is Gay, Does This Mean That Only Homophobes Drive Fords?
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I think you are right. Right now he has the adoration to feed his ego. As the slobbering millions slowly decline, he will eventually falter, and I do not think that even a dozen Soro’s can buy him another presidency.
Several. The one I’ve owned the longest is a Toyota T-100 Truck. It’s 13 years old and still drives and looks like new and nothing rattles.
My point is that every single GM product I’ve owned has left me broken down at least once a year if not more every year I owned them. I take good care of vehicles so it’s not from improper care. Since switching to Toyotas I’ve never been broken down.
I’ll never forget after owning my Nissan for a couple of years I realized one day that in that time it had not broken down once. I ended up owning that car for 4 years with no break downs. I knew I’d never buy GM (or American) again. I place a high premium on reliability for a vehicle.
Also, I remember getting a Consumer Reports buyers guide with all the repair info… all the American cars had nothing but black dots (most repairs). The Nissan and Toyotas were almost all red dots (fewest repairs). I don’t get that and haven’t for a while, but for years it was the same.
When I see Michelle, Barry and the two daughters driving down the street packed in a clown car, then I may look at one.
But hey, to hasten adoption of clown cars, lets get a law that all federal employees, Congressmen and the president cannot ride in any car that does not get the CAFE mileage.
Laws are for thee, not for the elite.
We were told that all the money going to GM and Chrysler was going to save them from bankruptcy. Now they’re going under anyway and the debt to the taxpayer will be shrugged away by this administration.
You have to wonder if the infusion of federal funds wasn’t designed to help but to get the government’s foot in the door, paving the way for more regulation, oversight and control. Actually, with the way this has played out, it’s tough to say that’s not the case.
Is there a mouse in someone’s pocket? I never authorized anyone to fork over any of my cash to anyone. With that said, some unauthorized person or persons have raided my money.
Last I understood, this was against the law. And it’s also against the law to swear in a person, who does not meet constitutional muster, to the office of President.
I think most of us knew GM would go belly up regardless of whether the taxpayers helped prop them or not… but really, when hussein announced that the Government would covering the warranties…
THAT was the final kiss of death.
Of course it is. Only way that Democrats know how to play the game.
I won’t buy a GM car and I won’t use a credit card that charges me interest from day one so I can cover for the idiots who run their cards up and can’t pay!
I won’t recognize the criminal, who’s sitting in the Oval Office, as President.
You mean bullcrap like the promises, below, that were made by both sides to get the bailout passed?
Ya think these politicians feel any shame for lying to the American people? Ya think they even remember making these promises?
Oh, that’s right, they have an out. If anyone ever brings up these statements, they’ll simply claim they were misled by the CIA or the Bush Administration. They’ll be absolutely certain that they were told in briefings that “forgiveness of debt” for companies receiving the bailout would absolutely never, ever be used. Never mind that Obama is in a position to do what he wants. It will still be Bush’s fault he can’t keep his promise.
I bought a ‘93 Camry in ‘96 with 80K miles. I put over 300K miles on it without a single breakdown. Gave it to my son 3 years ago and he’s still driving it.
I suspect the person who posted here about superior quality of American cars never owned a Toyota. The US auto industry should either compete with a superior product, reasonably priced or fail. UAW has and will destroy their own livlyhood.
I just noticed the condition Obama gave for us to get “our money back.” He said, “If this is managed correctly…” Well who is doing the managing of the auto bailout?
So, if we don’t get “every penny”, it means Obama and his pals didn’t manage the bailout process correctly. It sounds like the makings of a great, but very expensive Republican campaign ad in 2012.
Buy Deutsche…
79′ Super Beetle (ok, made in Mexico)
01 Audi
Bought the Audi after driving an 84 Fiero for all those years. Wish I still had it…I’ll always have a soft spot for Pontiac….goodbye chief…
When and if I buy a newer car it definited will not be American Made. Let’s see if unions can fix that. What a mess 0 has made/is making of this coiuntry.
Quick, somebody remind me again how this is George Bush’s fault.
That 4th of July Tea Party sounds like it will have plenty of fuel to warm up the tar. Who’s bringing the feathers?
I don’t know about all of you, but I am seriously considering violating HOA rules and standing up a Liberty Pole in front of my house
It seems that every politician involved in the auto deals will never have to live with the consequences. They each get lifetime salary and medical benefits while we taxpayers have to pay the full bill.
So what is their incentive to do it “right”? ? ?
It will take generations to undo what the POTUS has done / will do in less than 200 days.
We are screwed.
A few questions for those of you more knowledgeable than me.
What are the tax implications for state and local governments? Is the new GM required to pay the same taxes the old GM was required to pay? Or is the federal government exempt?
My current Cadillac will be my last. I am not supporting socialist unions. Period. My next car will likely be a BMW built in a “right to work” state down South.
OMG, can we ever wake up and not get news this tool in office has once again screwed the tax payer and stop nationalizing our industries?!
Only 4mths what the hell is he going to do to us in the rest of his time in office?!
Actually they only build the Z4 and X5 in SC now. I believe the X3 and 5 series will start production next year. The 3/7 series still built in Germany.
I have had 3 and they by far surpass any american or jap car!
I forgot GM builds the transmissions for BMW
the government running gm is sure to be a losing proposition. as inept as the government is the quailty of gm cars won’t be any better than they are now, maybe even worse.
I own a very used ‘96 Ford T-Bird. Like I was telling my neighbor over the yard fence this morning. Until Every single dime of bailout money is repaid and until the govt is completely out of any direct or indirect involvement with those auto companies I will not buy so much as a spark plug, let alone a new or used car, from GM or Chrysler. Doing that is not difficult at all.