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 $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.
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sounds like fraud to me.
Color me surprised….!
(Can I say “color”….?)
As I’ve said before, I will never again buy another American car.
No, you can’t.
Buying a Honda built in Indiana or Ohio sounds smarter all the time.
The damn thing about the whole industry is their products have bever been better and definitely match the foreign competition on a dollar for dollar basis. Deciding that this ugly development would keep anyone from buying an American car again is unfortunate, especially since at least up to now, Ford hasn’t taken a dime of federal money.
Now, Ford is likely in the crosshairs of the UAW since they own Chrysler and Guvmint Motors.
I currently own a FORD and may continue to buy FORD products. However, I will never buy another GM or Chrysler again if the Unions are given a substantial ownership such as the 55% stake of Chrysler.
The Obama administration has effectively disregarded our bankruptcy laws to steal from the taxpayers and the investors to make the unions more powerful and wealthy.
This is theft by the Unions and Obama. This also constitutes a willful disregard for the protections afforded to investors and consumers by our existing laws.
…throwing good money after bad
I’ve owned some great GM cars:
1940 Buick Super
1968 Pontiac Tempest
1969 Buick Riviera
1984 Buick Skyhawk1986 Pontiac Fiero
1997 Chevrolet Lumina
What right does the union have to that stake???????
Yeah…
Hey Obama… You are a lying piece of #%&$!!!!!
Oops, forgot:
1973 Opel GT
I think you’ll all soon be able to buy more Italian-made cars: Fiat looks to be returning to sell cars in the US, and will bring Alfa Romeo along as well. And if it does well, there’s a possibility that Citroen might follow through again after all these years. Their motors are very good. No need to buy from the sellouts in the American auto industry if they keep this up.
Another zombie destined to die once released into the market. Another Fannie/Freddie monster.
Can’t wait to see what kind of cars they design. Probably cars where only 3 wheels can touch the ground at one time. Standard equipment will include gold fish bowl on front seat. Probably call it “The Magoo”.
Oh yes you will…
… just know we have ways of dealing with insurgents like you…
My grandfather used to say if GM ever fell the USA would fall. I hope he is wrong cuz that day is here. Now for all you folks out there, “How many of you have a GM car/truck in your future?”
Who is going to buy a vehicle from the government..come on don’t be shy….
Remember the really early Simpsons episode where Homer discovers that he has a long-lost brother who turns out to be car manufacturer? The brother decides to pin the future of his company on a new car designed by Homer. The car was called the “Homer,” was awful in every way, and the company collapsed. Some variation of this story will play out when the first Chevrolet Barack rolls off the line.
I’m shocked! shocked! that the taxpayers are getting screwed in this deal. But that’s not the worst of it. I don’t think anything can “save” GM now except for — you guessed it — additional massive taxpayer subsidies. GM will become just like Amtrak and survive only on government subsidies every year in the biggest union vote-buying scheme in history.
GM’s problems run deeper than its debt or suffocating labor costs. Even if GM can radically restructure, the company simply doesn’t make enough cars that people want to buy. GM has been bleeding market share for decades. Obama’s brain-dead plan for yet more emissions and mileage standards will even further tilt the playing field in favor of smaller, lighter, more efficient Japanese and Korean imports.
And let’s not forget that Chinese and Indian cars are waiting in the wings to further squeeze GM’s market share.
What right does the Union have in that stake !? Well, they built the factories, right? They created the companies, right? /sarc
Contemporary events are very similar to the October Revolution:
The Russian banks were all nationalized (any US holdouts?).
Control of the factories was given to the soviets (the UAW).
Private bank accounts were confiscated (dollar headed toward zero value).
The Church’s properties (including bank accounts) were seized.
Wages were fixed at higher rates than during the war and a shorter, eight-hour working day was introduced (price and wage controls – how much does our chief executive “allow” CEOs to be paid these days?).
All foreign debts were repudiated (wait for it. If the forced sales of Chinese-made cars falls through…..)
My mistake. In order for the Chevy Barack to roll off the line, the wheels will need to stay attached.
I’m actually LIVID about this.
The UAW… the ROOT CAUSE of the failure of Detroit…. is now being REWARDED with a stake in the Gov’t Motors. This is sickening. All the Dems are doing is buying more insurance for their votes.
It’s disgusting.
Then, the money that is supposed to be paid back….. FORGIVEN???? Are they ^$^%&$ kidding me?????
We, the tax payers want our damn money back! We’re not gifting it to Detroit.
On top of that… new “LOANS” will be made? Yeah… and we’re supposed to believe these are loans and not GRANTS????
I already won’t be buying a car that had anything to do with the UAW. I just hope the backlash puts GM in it’s grave. Along with the UAW.
And it will be the only model available…for the unlucky few who will still be able to afford a new car and gas….on the days gas will be available, provided you have the right lottery number or connections.
Will we be able to purchase good used GM cars from Cuba after Obama normalizes relations?
I’d like a ‘59 Biscayne.
WHO IS JOHN GALT ?
Um, this is Captain Obama speaking. Our good ship, the GM, has hit an iceberg. Please move all light deck chairs to the bow, all heavy deck chairs to the stern. Everything should be fine now…
John Galt is Kilroy
2010 Oldsmobamabile 88
- 88 MPG (downhill with a tail wind)
- Kevlar sails
- Solar panels
- Warped overdrive
This ain’t your daddy’s Oldsmobile!
The UAW has named the car:
Hoosier Daddy
The results of the Chrysler and GM takeover would be comical if it were not for the long term implications to US taxpayers.
The new owner – the US government – motivated by protection of union jobs and eco-politics – not commercial success – will continue to produce products no one wants and of lower quality than true commercial manufacturers. The death spiral will continue and the products produced will become jokes in the marketplace.
I’d bet better than even money these newly minted departments of the US federal government ultimately will be forced to merge in the name of “protecting jobs”, creating a huge conglomerate of waste and corruption with massive losses covered by taxpayers.
It’s simply a huge transfer of taxpayer money from the productive parts of the economy to unions and government fraud. I think I’m going to be sick.
If the Obama Administration had any interest in knowing where this is going, all they would need to do is look at the track record of the Brit’s attempt to save an Auto industry by nationalizing companies… two words…
British Leyland.
Gov’t Motors is destine to fail. No one will ever buy one. The UAW will be paid tremdous wages just to sit on their can like they are now.
Errah, 2:52:30 pm EST – I just saw Mr. Goodwrench headed into the back parts rooms right before a heard a muffled gunshot!!! I hope he’s alright . . .
Clever lad isn’t he and his? They saw Bill Clinton’s failure and adjusted. They control the health system, the manufacturing, financing (banks), distribution (dealerships)–clever lad this 21st Century General Secretary.
We all knew it was coming–we saw Capitalism destroyed to save it. But I must give Papa Obama, Uncle Barack-whatever-credit for moving FAST, much faster than either FDR or LBJ.
Through some version of the Fairness Doctrine, ACORN running the Census and President Obama’s Civilian Security Service and the long nights march into the gulag begins. Then Eric Holder can have his revenge on the “cowards” as he puts it-perhaps to stop the smuggling of guns into Mexico.
So what are you going to do now? How about a People’s car that gets 96 miles to the gallon and only makes Left turns to Politically Correct and Earth Friendly events? All Power to the Soviet. Or not.
Its all a part of O & Ayers & Rev Wrong’s big plan. Go along with the plan or else!
Ya’ll crackas betta git in line an ack rite.
Two of my alltime favorites were my 1958 Impala convertible and my 1967 SS396 Chevelle convertible.
WooHoo! Just bought a nice, new Hyundai Santa Fe. (After owning Fords and Dodges for decades.) Plan to buy another Hyundai as soon as financially possible while I can still buy the kind of car I want. Because you just know the government will put “incentives” in place to guarantee you can only buy a government car.
It isn’t just the transportation. These people seem determined to progress right into the 19th Century. Including the healthcare.
Errah, those pissed off 1000 or so former GM Dealers are probably just now breathing a sigh of relief. How long will the Obama/GM/Yugo venture survive??? I giive it five years or less depending on how much more cash US Taxpayers “Invest”. Professors in business schools across this great land are today collectively saying WTF!!!!!!
When I get back from NY I’m thinking of buying a new F-150. That’ll be my last new vehicle.
Good choice. Get one while you can!!!!!!!
Q – Do you know why they put rear window defoggers in Yugos?
A – In order to keep your hands warm while pushing the car.
Thought I would share an e-mail from local (and national) talk host Lars Larsen regarding a dealer here in Portland…
Chalk up another Obama fraud/lie. This guy is pitiful.
No, no, he’s an elitist, it will be the CadiBarack. It will feature a TOTUS with turn-by-turn direction (singular) – “Left, further left, leftier, lefter than that…”
Sure, I’ll buy another “American-made” car — like the Subaru I already own, built by Americans in Indiana.
But I won’t buy another new car, especially when Hope-a-Dope’s going to make me pay extra for a flimsy death-trap on wheels.
Question: How is building “fuel efficient” crap cars that will kill and maim their occupants in any collision meaningfully different from Ford’s deliberate decision to “Let ‘em Burn” with the Pinto?
Either way, Americans will needlessly suffer and die for someone else’s bureaucratic notion of “efficiency.”
Roger that. But they would have to slam the coal fired steam engines with cap and trade.
BTW, my brother had the same year SS convertible you did. Dark red with black leather buckets. Sweet!
That must be the UAW’s holdings in GM.
With “investments” like these we will be out of this defeciet and living the high life in no time.
/sarc
If I were one of these people, I would run – not walk – to China to be the first to import the first plug-in electric car (which already exists) even if I had to modify it to US safety standards. I’d also invest in my local electrical utility company. I’d also get one of those 8 year old Chinese gymnasts to balance on the hood like the Rolls-Royce lady…
I’m giving serious thought to not buying a cadillac after all
Michelle, Auhniold and Obama riding in a single clown car.
BTW, how many new cars will they sell in California with an 11% sales tax?
Hey…..madmonkphotog.
“As I’ve said before, I will never again buy another American car.”
I don’t know….a Ford might be worth buying. But I have to agree with you about the others. ANY car company the govt has a hand in, I want nothing to do with. Start cranking them out made with union labor that KNOWS they can’t be fired, couple that with models that govt clowns had a hand in designing and you know the cars are going to be craptastic.
Everyday, it’s another sledgehammer press conference with the finger wagging and another blow is struck. We may think it’s 2009, but I’m feeling the chill of 1938.
Ford is going to be punished because they didn’t fall on the sword like the others. With the unions and Feds backing the losers, Ford is going to find it difficult swimming uphill. Which is precisely why I’d buy another one. It’s the only way to slap the present regime in D.C. upside the head.
They were big contributors to Mr. Spread the Wealth”.
The taxpayers have been screwed again. When is someone going to get brave enough to make some legal challenges to this totally unconstitutional president?
11%? Double it and they solve their problems! Tax, Tax, Tax until the last racist, homophobe, polluting capitalist dog leaves the state and they can all get together singing hippie songs and selling earth friendly macrame pot holders to each other.
Nancy?
Shut down the power grid and stop stealing water from the mountains and they won’t have all those noisy air conditioners to deal with in the summer.
No more re-runs of the Terminator on TV without power, but we all have to sacrifice to Mother God Earth. Plastic Surgons will have to operate with hand tools
And my Town Car most definitely does not get 39 mpg. The YUGO under the trunk mat might, I do not know-we only use it as a hand warmer
Ford didn’t have to figure out a solution for economically national healthcare.
Why did Americans buy foreign cars in the first place? I’ve read that foreign cars are only now assembled on US soil because Reagan was moved to make the competition somewhat fairer to the US worker. I never saw foreign cars as superior. I think many liberals saw it as chic to have a foreign car, as it started in the hip ‘60s. The two biggest purchases for the common man are a house and a car–yet for 500 bucks American car manufacturers lost out. Around and around we go because the love of money is the root of all evil. Even our “car czar” is only in the rat race for the moolah. To my mind, liberals destroy and then seek to create–God, I hate them.
Here’s the new car buyers of the future: Environmental wacko’s will buy Toyota’s Prayitruns, you know the ones that pay for themselves in 10 years. Conservatives will buy mostly foreign from Japan, Germany and England. That leaves the Obamanites to buy cars made in China or Italy, so who’s going to be buying the Giverment Motors cars?
If BO wanted to run an Auto Manufacturer couldn’t have just applied like everyone else? They would have hired him you just know it! But hey that’s beneath him.
My next car is a Ford Fusion Hybrid.
mom2jack: What can we do? Seriously, there’s no question these guys are getting screwed across the nation. Can they sell the cars past the deadline under a different name? I suppose all the warranties are gone if they do.
So what can the American Taxpayer – who also got royally screwed in this deal – to help these dealers without helping the government or GM?
It isn’t at 11% yet. But given Sacramento’s lunacy, after the props go down in flames, I wouldn’t put it past the legislature to at least consider it.
Must not have bought a car recently. Toyota and Honda are totally superior to Ford, GM, Chrysler
I don’t care how shiny and red it is! I will not buy a Chevy Corvette that runs on soy and sprouts! pbpbpbpbllltttth!
Haven’t made a Vette since ‘79.
We knew this before the election – we ALL knew it, including those who voted for Obama/McCain.
If Americans want a president that is honest, they will have to stop accepting the candidates offered by the Republicans and Democrats and start voting for honest people.
It’s not money that gets candidates elected. It’s votes.
RWR
http://www.rightwingrocker.com
Only if GM can survive to the other side of the midnight we are experiencing will it ever be viable again.
That said, I think GM is dead as of today. What a shame…
GM did make some fine products.
Who will buy them now?
Phht.
I’ll put my Blazer up against ANY Toyota or Honda product ANY DAY.
I will, however, begin looking into German products, such as BMW, since I refuse to support the US government’s involvement in GM.
RWR
http://www.rightwingrocker.com
If I buy another American car, it will be a Ford.
They really brought up the reliability on Jaguar. One of the reasons they didn’t ask for bailout money is that they sold off Jaguar and other foreign interests.
I wish I knew! It seems to be progressing as a done deal. I e-mailed back Lars and asked him the same question. I’m sure he covers it on his talk show, but it’s on during my work hours so I usually miss it.
O Chosen One,
Forgive us our debts—
✧IT IS DONE.✧
Wha? O-okay…
In taxpayer money we don’t have to repay,
Amen.
(delicious manna from heaven)
th-thank you, Messiah
✧DON’T MENTION IT. YOU NEED SOME SIGNS? OBAMA ‘12!✧
Pretty sneaky how he is taking control of the capitol system and means of production.
I have a broken weed eater at the end of my driveway with a “free” sign on it that beats any Chrysler.
Maybe an even better question is: How hard will it be to sue, or even stop production, when GM makes cars that are defective like the Pinto was?
Obama will be on TV blasting you by name for even daring to even complain about HIS company!
mom2jack, try picking up Lar’s shows in archives, don’t have be a member to hear them. I heard the same interviews.
Odopey is forcing these people out of business, I wonder how many of these lefty fools that voted for Odopey realize now just how many lives their votes have affected. All those employees now without jobs and money to be part of the American way. Looks like a case of misery loves company, sitting around the campfire singing kumbyme.
Allah would never say “bullcrap.”
But I sure would!
History will show that we are in the front seats watching the destruction of the American Capitalist system by a bunch of people who haven’t held any private sector job, ran a business, or contributed in creating jobs in the private sector. The American baby boomer generation will go down in history as bunch of spoiled brats who could not help themselves without destroying the success of others.
I would not worry about buying having to buy a GM or Chrysler product anymore. If both companies are run like US Gov’t runs its budget and the UAW runs its golf course there won’t be anything left of GM or Chrysler.
This is all so wrong.
The last American car I owned was back in 1990. I owned a Nissan after that and I loved it. Then I bought a Toyota and am now a Toyota only person.
I also haven’t had a break down since 1990 either!
It’s amazing when I’ve had to rent cars and end up in a GM product how all the switches and knobs wiggle. The quality is terrible and I’m always relieved to get back in my Toyota.
Well if the unions start engineering cars, they wont be worth buying in the first place.
Beware the $35K Yugo, that’s coming next.
I’m guessing the name will be changed to BO Motors. Named after Bo Diddley of course…
OT, but only a little…
This is illegal as hell, but nobody is doing anything about it.
At all.
True, it varies depending on what nut cases run your local town. Pico Rivera is something like 10.25%.
Don’t hold your breath waiting for me to buy a GM or Chrysler product.
Do I want them to fail? YEP….
Here’s a link to a (pdf) report called 2009 State Business Tax Climate Index. California ranks 48th out of 50. (57+3 for Obamites.) Jobs will be created elsewhere…(Wyoming #1, maybe not so many jobs, Nevada #3, maybe lots of jobs.)
Oh yes they are! They’re searching your hard drive right now
Affirmative. In fact, already failed. This “Too big to fail” meme is beyond insane. Who is now going to buy insurance from AIG? Or a brand shiny new Oldsmobamabile from Gov Motors? Seriously.
Swede,
I can definately see a scenario where the “too big too fail” and if a government program fails throw more money at it will overtake Obama to prop these two losers up as they sink deeper and deeper.
Obama has sunk a ton of politcal and persoanl capital into the automakers.
Sounds odd, but these could be the equivalent to Obama economically as Vietnam was to Johnson.
His ego is too big to fail. That could be his undoing.
Flyover,
Nailed it. I believe it will definitely be his undoing. Question is whether it’s before or after the economy is irrepairably damaged.
Flyoverman – That’s the most succint synopsis of hussein I’ve seen yet. Right…. on… the… head…
Perfect.
Way back when this started, and the government began pouring billions into GM and Crysler, I knew, and I think most people knew, it would not work. Well, now it has not worked and the government who poured billions into those companies who were “too big to fail” is now going to “forgive” those loans? Since our government’s revenue comes from us, then we, the taxpayers just lost billions of dollars because of our government’s lousy decisions. I would like to know, what gives the government the right to do this? I cannot determine where it is written down in any constitution, bill of rights, or whatever that the government has the right to spend the country into oblivion. How does this “protect” us? And, who will be held accountable for this apparent gross overstepping of authority by our government? Don’t bother answering, we all know the answer already. NOBODY. So what’s next on this crackpot government’s agenda? Maybe it doesn’t matter because if the government keeps fiddle- farting around while Iran is going nuclear, our debt and economic crisis could soon become quite trivial when compared to surviving a war with maniacs who possess weapons of mass destruction. Oh, by the way, I drive a Ford truck. I have never owned a Chrysler. I have a 27 year old Toyota Supra that still runs like new, and the only Chevrolet I have ever owned is parked in my garage. My wife and I went for a long cruise in it tonight. It is a 1955 Bel Air Sport Coupe.
How many cars have you had since then? We’re still driving our ‘94 Ford. (The transmission just died in our ‘93, at just over 250,000 miles.)
Can y’all see where this is going …
… iz da bling ‘conomy…
… an Escalade in every drive …
‘bama, u da bomb (quotin’ Billy Ayers)
If you want to know where he former GM (now Democratic Union Moters) is heading, read the history of the 20th Century Motor Company in Atlas Shrugged. IWon the Terrible’s legacy will be grim indeed.