Obama plans to convert GM loan into gift
posted at 5:45 pm on May 19, 2009 by Slublog
Look on the bright side. We’re going to own a car company! What could possibly go wrong?
NEW YORK, May 19 (Reuters) – 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…
…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.
My question is simple: what has GM done to prove it deserves loan forgiveness? According to the story, they still haven’t presented a restructuring plan and in this economy, auto sales are down across the board, which means the profitability we were promised isn’t coming anytime soon, if ever.
My first thought was that it might be to ease the pressure on the UAW, who will soon hold a majority stake in the company, but Ron Gettelfinger sounds increasingly less than thrilled about owning GM. So again, what’s the rationale?
This post was promoted from GreenRoom to HotAir.com.
To see the comments on the original post, look here.
Blowback
Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.
Trackbacks/Pings
Trackback URL
Comments
Comment pages: 1 2 Next »
Tee hee hee.
$15 billion. Down the shitter.
lorien1973 on May 19, 2009 at 5:46 PM
Where is America? China?
petunia on May 19, 2009 at 5:47 PM
Where is the One going to get the money to buy GM? TARP?
And how will he avoid needing Congressional approval if that’s not enough?
Wethal on May 19, 2009 at 5:48 PM
We shall see. I particularly enjoyed a story I read today about GM endorsing an Obama fuel efficiency proposal – you don’t say.
kc8ukw on May 19, 2009 at 5:48 PM
The One forgave the loan to Chrysler, too.
Wethal on May 19, 2009 at 5:49 PM
Government cars, like the ones they made in the Soviet Union between vodka breaks!.
I actually rode in a taxi that was about that model at 100 kmph in 1989. Still get chills that I survived.
PastorJon on May 19, 2009 at 5:49 PM
For your 100 day anniversary, you get a softball press conference. For your 200 day anniversary, you get an auto company.
rw on May 19, 2009 at 5:49 PM
Better question: what’s the constitutional authority for any of this?
AZCoyote on May 19, 2009 at 5:50 PM
With ACORN under suspicion, they need a new organization to launder vote buying money. VIVA GM and the UAW!
Laura in Maryland on May 19, 2009 at 5:50 PM
My grandad used to tell me about the rip off of the dealer charging you for “Undercoating” on a new car that you didn’t ask for. It just appeared on the invoice for an extra charge of $50 bucks (1950′s).
America just got their undercoating, and it cost 15 billion.
portlandon on May 19, 2009 at 5:51 PM
Well, there’a a sale pitch for potential buyers if ever I saw one…
Wethal on May 19, 2009 at 5:52 PM
Can’t wait until all we have to purchase are these flimsy dumb cars that fold like an accordian. I’ll hang on to my 1998 Honda SUV. I suspect other will hang on to their older SUVs as well.
So how is that for the economy, no one buying POS new cars.
jbh45 on May 19, 2009 at 5:52 PM
Essentially doing the same thing they did to Chrysler. I pick that they get bought by Land Rover. I think they were the worst European car manufacturer.
roux on May 19, 2009 at 5:52 PM
Government Motors won’t even get off the ground. The chosen one, who many hail as a genius, thinks that the liberals in this country will buy GM cars because they love him and he commands it. Even liberals aren’t that stupid. Toyota, Honda, Ford and Nissan must be dancing in the streets.
orlandocajun on May 19, 2009 at 5:53 PM
So much for the loan.
This is outrageous and can not possibly be Constitutional. When will it end?
ORconservative on May 19, 2009 at 5:53 PM
You think this is bad just wait… Here comes KALLYFORNIA!!! 23 Billion at last count and rising!!
Dire Straits on May 19, 2009 at 5:55 PM
Isn’t this what pullmyfinger wanted? Soon you’ll be building cars NASCAR doesn’t want. Brilliant.
jdkchem on May 19, 2009 at 5:55 PM
But, but liberal trolls told us that last time we did this, the taxpayers made money helping out Chrysler and it will happen again this time!
lorien1973 on May 19, 2009 at 5:55 PM
I expect the US government will buy Chrysler and GM cars for its fleets from now on.
Wethal on May 19, 2009 at 5:55 PM
We bought the unions. Bottom line! Taxpayers got the shaft. This is only the first of many our bho has in store for us. Think about the 10th amendment.
L
letget on May 19, 2009 at 5:56 PM
I’m glad that my family is not currently tied to GM or Chrysler. If it were, though, I’d be really upset. It doesn’t matter where you sit on the political fence, there is nothing good here.
ORconservative on May 19, 2009 at 5:56 PM
Wait – am I reading this right?
1. Government bails out company
2. Government (basically) seizes control of company
3. Government forgives debt of company it now controls
And as for Chrysler, don’t even get me started.
Isn’t ANYONE going to challenge the legality of this behavior?
Daggett on May 19, 2009 at 5:56 PM
Round this man up!
daesleeper on May 19, 2009 at 5:58 PM
If I am going to own a car company, can’t I please pick which one?
Cindy Munford on May 19, 2009 at 5:59 PM
The plan is all coming together …
Take over a car company.
Mandate higher mileage vehicles.
Build them at your new plants.
Mandate the type of vehicle people can buy (yours)
Drive gas prices through the roof.
darwin on May 19, 2009 at 6:00 PM
Are we there yet? Someone let me know when.
elduende on May 19, 2009 at 6:00 PM
There is an evironmental nightmare coming…and it is called your next new car.
We are so screwed. : “It’s terrible. Biblically terrible. Possibly the worst new car money can buy. It’s the first car I’ve ever considered crashing into a tree, on purpose, so I didn’t have to drive it any more.”
And if you think the Honda is bad, wait till the GM version comes out.
Mr. Joe on May 19, 2009 at 6:00 PM
Told you to buy Ford. But NOOOO you wouldn’t listen!
upinak on May 19, 2009 at 6:01 PM
As long as UAW controls the production , they’re dead in the water.So he’s right , it’s still worth nothing.
the_nile on May 19, 2009 at 6:02 PM
A subsidiary of India’s Tata Motors, makers of the world’s most dangerous car.
steveegg on May 19, 2009 at 6:02 PM
The conflicts of interest are astounding.The govt loans our money to gm, then forgives that debt, to benefit the UAW and the govt in their capacity as sharehoder/owners?I would like to know who specifically made this decision, and who dissented, and what legal and economic analysis was applied.Also, the govt makes a decision on fuel efficiency standards that will hurt the profits of GM and hurt the shareholders, ie the govt(you and me).The govt will continue to make decisions on “climate change” that will hurt GM.Insane.
beens21 on May 19, 2009 at 6:03 PM
There is is one surefire investment vehicle left in our soon to be deceased economy. It’s the one that always paid the highest rate of return. Campaign contributions!
djaces on May 19, 2009 at 6:04 PM
The government couldn’t run a brothel successfully, why does anyone think they could run an auto manufacturer, or the health care system for that matter?
doubleplusundead on May 19, 2009 at 6:04 PM
$15 billion given away to GM divided by 300 million Americans. GM owes everyone in America 50 bucks. Let’s everybody storm the gates of GM Headquarters and demand a refund.
Then we boycott Government Motors and Cry-slur. If you need a car, buy a Ford, Toyota, or Honda. Made in America, without taxpayer bailouts.
Steve Z on May 19, 2009 at 6:04 PM
Damn!! A lot of yall were right… I can see Russia from my house!!
Dire Straits on May 19, 2009 at 6:05 PM
I think its time to change the name of the country to Dollar World!
ronsfi on May 19, 2009 at 6:05 PM
Wow. Even though we saw it coming, it is still stunning.
myrenovations on May 19, 2009 at 6:05 PM
Comment of the
DayWeek!™steveegg on May 19, 2009 at 6:07 PM
Weeks ago I informed GM and Chrysler that I would never buy another product made by them. Should I be worried now that by not purchasing GM, I’m a traitor?
Will we be receiving dividend checks, now that we’re stockholders?
windbag on May 19, 2009 at 6:08 PM
What happens to the Chevy Hi-Performance end,of GM!
GM,has a long following of new generation,LS-1 engines,
454,502,572 Big Block rat engines,and the list go’s on!
Where does that stand!!!
What about the new 2009,2010 Camero!
Me thinks Liberals won’t be interested in vechicles,like
the Camero,or Corvette!
The Lefty’s want Hybirds!!!
canopfor on May 19, 2009 at 6:08 PM
Isn’t ANYONE going to challenge the legality of this behavior?
Daggett on May 19, 2009 at 5:56 PM
WHAT BEHAVIOR?
1984.
artist on May 19, 2009 at 6:08 PM
Hmmmm… doesn’t this break a few International treaties as well?
This is the blatant financial support of a US Company by the US Government, which is a defacto price support.
Romeo13 on May 19, 2009 at 6:08 PM
I must be standing on Russia then. **Waves**
upinak on May 19, 2009 at 6:09 PM
If anyone does buy one of these new “G” cars be sure to double knot the laces or they will keep coming untied.
2Tru2Tru on May 19, 2009 at 6:10 PM
Well, first of all, the only ones who would worry about conflicts of interest are Republican types, and they are all currently at their urologists, looking for their balls.
As for “climate change” legislation that will hurt GM, did you not hear Fritz Henderson today? He embraces this legislation, it’s all good! Let’s save Mother Earth!
In other words….the US government will keep transfusing buckets of cash into a dying GM, sorry, a dying UAW, no matter what.
shibumi on May 19, 2009 at 6:10 PM
Why am I not too big to fail?
Maybe I need to pack on 50 pounds or something. Time for That One to forgive my mortgage and get me on the road to Obamanomic health.
J.E. Dyer on May 19, 2009 at 6:11 PM
Fuck it, I want a ‘Free’ car.
Let’s see, Obama has ruined Chrysler, GM, the banks, what’s next. Oh yeah, health care, then education. When he’s run all of them off the freaking cliff will he still be ‘popular’?
GarandFan on May 19, 2009 at 6:11 PM
Oh boy,me also thinks Hopey will be going after
the Hemi as well!!
American Muscle cars meet Liberal pansies!!
canopfor on May 19, 2009 at 6:12 PM
I will look for you under the new Soylent Green ice cream… Dyers edition green vanilla.
upinak on May 19, 2009 at 6:12 PM
Why, I am shocked! Obama lied!
PattyJ on May 19, 2009 at 6:12 PM
What a criminal. First they loan money without legal authority and then they forgive the loan…….
JeffinOrlando on May 19, 2009 at 6:15 PM
It’s becoming obvious to me that only an armed revolution will stop the oligarchs. Correct me if I’m wrong.
voiceofreason on May 19, 2009 at 6:16 PM
We have a friend who’s been involved in a lot of this TARP stuff and is very smart and pretty well connected, too, and the conversation went something like this about Chrysler.
Me: Why would the UAW even want to own Chrysler? It’s a terrible company.
Friend: Rattner thinks Chrysler can sell well overseas. For example, Russia could buy a lot of Jeeps.
Me: So we’re going to dump overseas the cars that Americans don’t want?
Friend: Remember, Fiat is going to run Chrysler, and Fiat sells small cars that could appeal to Americans who want cheaper, fuel-efficient cars.
Me: No American is going to buy a Fiat.
——-
I’ll bet we could have had a similar conversation about GM.
Attila (Pillage Idiot) on May 19, 2009 at 6:16 PM
Allah’s right, expect some fantastic vehicles in the future!
madne0 on May 19, 2009 at 6:17 PM
The only up side to all this, we will be able to retread the old liberal campaign slogans for conservative use in 2012:
Obama lied; the economy died.
It’s the economy, stupid.
Disturb the Universe on May 19, 2009 at 6:17 PM
Broke, barefoot, hungry and walking. That’s the agenda. Or… they might just be stupid.
Griz on May 19, 2009 at 6:18 PM
Ya know,I come from the time of the DriveIn Movies,
cruising,and street racing,and parking in the family’s
Chevelle Station Wagon,drop the back seat,and voila,
i had a 9 foot bed,ahem!
I cannot fathom the death of the chevy small block,the
camero,nova,and all the great GM cars of that era,oh
what a blissful and carefree period back then that it
was!!
General Motors put America on the map!!
It is a sad day,and I weep at what has become of GM,
I hope the Lefty’s don’t kill off GM’s performace after
market!!!!!!!:)
canopfor on May 19, 2009 at 6:20 PM
It was my understanding Barney and his boy toy were doing pretty good with theirs before it was uncovered.
Do your research!
Joe Caps on May 19, 2009 at 6:22 PM
Can this not be hauled off to court?
canopfor on May 19, 2009 at 6:22 PM
Who’s going to haul it off to court?
ORconservative on May 19, 2009 at 6:23 PM
I’ve always bought American. I love Chevrolet. I’ll miss her. My next new car will probably be a Toyota.
jimmy2shoes on May 19, 2009 at 6:24 PM
What was that line about being a “careful steward of taxpayer dollars” again? I can’t find it on Google, only Riech saying something similar. Bummer.
Anyhoo…what a hypocrite!
Joe Caps on May 19, 2009 at 6:25 PM
I bought a Toyota Camry in March. It’s seriously an awesome little car. I think it might be better than my Impala ever was.
Then again, after the way Chevy treated me with the defects in that Impala, I doubt I’d ever buy a Chevy again.
mjk on May 19, 2009 at 6:26 PM
Hahahahah did you see the pic of Putin on that page?
http://en.wikipedia.org/wiki/File:Putin_with_his_1972_Zaporozhets.jpg
Joe Caps on May 19, 2009 at 6:27 PM
Who’s going to haul it off to court?
ORconservative on May 19,2009 at 6:23PM.
ORconservative: Never mind my question,your right,who
will,is the real question!!:)
canopfor on May 19, 2009 at 6:27 PM
Yet Obama’s approval @ 60%.
damn cult of personality.
Black Adam on May 19, 2009 at 6:32 PM
So the Federal Government would own a company in an industry it regulates … what could go wrong. So what if the government structures regulation so that it benefits GM to the detriment of its competitors. So what if we are witnessing the death rattle of capitalism. At least the unions will be protected.
Silly paranoid conservatives. All this time you were wasting your breath yelling about Obama being a Socialist.
Did I mention that I’m boycotting GM for the rest of my life and I hope the company fails miserably?
Stickeehands on May 19, 2009 at 6:32 PM
Since Ogabe has his fingers dug into banking and finance, why not mandate that if you need a loan to get a car, it must be one of his/our cars?? And you know they’re going to tie all this emissions/mileage bullshit into plate renewals.
That right there will be no problem.
BigWyo on May 19, 2009 at 6:35 PM
AZCoyote: “Better question: what’s the constitutional authority for any of this?”
Obama: “We don’t need no steenkin’ constitutional authority!”
Tantor on May 19, 2009 at 6:35 PM
To paraphrase Billy Joel:
The union trades a Chevy for a Cadillac-ac-ac-ac-ac-ac
You ought to know by know
You can’t drive with a broke Barack
Is that all you get for your money?
Steve Z on May 19, 2009 at 6:40 PM
Allah’s right, expect some fantastic vehicles in the future!
madne0 on May 19, 2009 at 6:17 PM
Something like a cross between a Yugo and a(n East German) Trabant?
They’ll be fantastic like Tiger Woods. They’ll putt-putt around.
Steve Z on May 19, 2009 at 6:43 PM
I maybe crazy but if these numbers aren’t fudged then I am a astronaut!!!
Dire Straits on May 19, 2009 at 6:44 PM
I’m bailing on what little is left of my 401K. Right now they can steal it electronically. If I cash it out they’ll have to steal it physically, and that means I’ll get to shoot somebody.
Bugler on May 19, 2009 at 6:47 PM
It is all about control.
Johan Klaus on May 19, 2009 at 6:48 PM
Sure they will. They’ve got to impress the bimbo babes in Hollyweird.
Obama is a Hybrid !
Steve Z on May 19, 2009 at 6:49 PM
Part of Obama’s legacy will be the death of the U.S. auto industry, and it could happen a lot sooner than most expect. With the awful way that dealers have been discarded and the ranks of GM upper management filled with people who know nothing about business, why would anyone buy a GM car?
Don’t be surprised if GM starts selling off its most profitable parts of itself (the SUV division) to stay afloat. GM is the Titanic about to go under. Good luck cashing in on your ownership, UAW.
EMD on May 19, 2009 at 6:49 PM
Your Tax dollars at work!
This is so sad. America is dying.
chalons on May 19, 2009 at 6:49 PM
You sound like my brother. Is that you Joe?
Johan Klaus on May 19, 2009 at 6:50 PM
Was that a Love Shack on wheels? :)
Steve Z on May 19, 2009 at 6:51 PM
If my investment portfolio wasn’t crappy enough, it just got crappier! I now own a piece of a failing car company that will be run by the UAW and Barry. Sweet.
redfoxbluestate on May 19, 2009 at 6:53 PM
Mr. Joe on May 19, 2009 at 6:00 PM
Heh – that review of the Insight you linked to was hilarious! For example:
“That’s like dragging Didier Drogba onto a cricket pitch and expecting him to be better than Ian Botham.”
Which also describes O’s decision to buy GM and forgive the loan. Totally wacko.
KS Rex on May 19, 2009 at 6:53 PM
I have a bargain, I will only take 1/10 the amount, 1.5 billion, and they can forget about it.
I am saving the gov. 13.5 billion…that is the kind of patriot I am, willing to sacrifice.
right2bright on May 19, 2009 at 6:54 PM
I’m not Joe, but I suspect we’re on the same team!
Bugler on May 19, 2009 at 6:55 PM
canopfor on May 19, 2009 at 6:27 PM
I wasn’t trying to be snotty. It sure looks to me like no one gives a damn. It should be taken to court but no one cares enough. Gettlefinger wants the cash, the people at the top of GM don’t care, Obama got rid of those that care and the dealerships are just closed.
This is pure insanity and it’s about to start all over again with healthcare.
ORconservative on May 19, 2009 at 6:55 PM
They took a BMW M3, followed (just followed) a Prius around a race course,and it ended up with better gas mileage.
Around town, careful driving, and a sporty car burns less gas, and less emissions then these disasters.
right2bright on May 19, 2009 at 6:58 PM
I agree with all but one point. It is because education has already hit the sewers that we get the “0″ to %^$* up the rest.
chemman on May 19, 2009 at 7:04 PM
Exactly.
No one seems to care. Its like we’ve just accepted that leftie/lib/dem/environmentalists are Daddy and Mommy, and we’re just the kids with no right to question how they run the household.
Its insane.
Itchee Dryback on May 19, 2009 at 7:06 PM
I wasn’t trying to be snotty.
ORconservative on May 19,2009 at 6:55PM.
ORconservative:
Whoa ORc,hit zee brakes,I didn’t take any kind of offence,
and I should of explained myself better!:)
The question you raised is actually better,who would it
be that would take it to court,let alone if it could be
hauled off to court!
I would hope,somebody in the Republican Party had the guts!!
And your right,its insanity,orwellian for that matter!!
———————————————–:)
canopfor on May 19, 2009 at 7:14 PM
Mr. joe, the (ahem) man who wrote that article, hails from jolly old england,home of lucas electronics,aka “the prince of darkness” ;Triumph motorcycles, and a bevy of other so-called vehicles that have kept AAA in business since the first english automobile broke down soon after being manufactured.The CVT takes getting used to,its not built for preformance, its built specifically for mileage,buy an accord v6 coupe if you want some preformance, or perhaps even a FIT. This dimwit who wrote this should pull his head out of his arse.
thank you
(your local honda dealer)
UNREPENTANT CONSERVATIVE CAPITOLIST on May 19, 2009 at 7:15 PM
Future Obama DNC CARS:
The Chrysler Imperialist
Dodge Iwon
Cadillac Michell’e de Eleganc’e
Pontiac Pelosi w/chameleon paint
Chevy Rahmbo
portlandon on May 19, 2009 at 7:15 PM
Was that the love shack on wheels?:)
Steve Z on May 19,2009 at 6:51PM.
Steve Z:
Hehe,excellent B-52 ditty! Steve that would be the
Shaggon Wagon,and still married to the same girl,
together for 32 years!
It also doubled as a hunting and fishing lodge,I wasn’t crazy about tents!hehe:)
canopfor on May 19, 2009 at 7:22 PM
meanwhile, did anyone read yesterday that rick waggoner, former CEO of GM was due his $20 million severance. and he is contractually guaranteed it?
who will pay him? bambi fired him. certainly bambi knew of it.
kelley in virginia on May 19, 2009 at 7:27 PM
Constitution? What’s that? I know that I read about it in a history book, once, but I thought that we had advanced far beyond such primitive mechanisms.
Frankly, I just give up. No nation can go this insane and just return to a normal, civilized state. This country has thrown in the towel.
progressoverpeace on May 19, 2009 at 7:27 PM
nice, can we have a contest?
UNREPENTANT CONSERVATIVE CAPITOLIST on May 19, 2009 at 7:40 PM
Anything GM made in the last few years that we really need? Didn’t think so.
RalphyBoy on May 19, 2009 at 7:48 PM
I really didn’t think so, was just trying to be sure.
This is a train wreck and someone needs to do something quick.
ORconservative on May 19, 2009 at 8:06 PM
Comment pages: 1 2 Next »