21
Mar
09

GM Doesn’t Quite Get the Picture

The 2010 Chevrolet Camaro LT

The 2010 Chevrolet Camaro LT

icon_digg20 Here’s the GM execs in front of congress on two different occasions that I can recall, begging for our tax payer money to keep them a float.  Both occasions forecasting gloom and doom should they not receive assistance along with promising to use the money to invest in “greener automobiles”.

So out today is this article by TIME online praising the re-introduction of the Chevrolet Camaro, the “Stud” car of the future.  GM claims to have 20,000 orders for the car from foreign countries, but you have to ask yourself will these orders “hold valid” or be “canceled” because of the global economy troubles.  Basically when did GM receive these orders?

Topping GM offering off is the car will actually be assembled at a GM plant in Oshawa, Ontario, outside of Toronto; this I’m sure will help the Detroit high unemployment rate “decrease”!

The new Camaro is powered by either by an old school, 426-hp V8 or an up-to-date direct-injection V6 engine that produces 29 miles per gallon and 304 HP in one package. What so “green” about those figures for gas mileage?

And here’s the part I like most about TIME’s article:

Making it through the next couple of months will require more financial engineering than mechanical, and that process moved along this week, too. The U.S. Treasury Department’s decision to release $5 billion in federal loans to automotive suppliers suggests that the Obama administration is likely to approve billions in loans for GM and Chrysler. The Administration’s automotive task force appears to have ruled out forcing GM and Chrysler into bankruptcy. That’s one reason GM has pushed back the date of the company’s annual meeting unit August from June. Once it gets final approval of $21.6 billion in new federal loans, the company can have a future to talk about. GM isn’t planning anything fancy for the meeting — it will be held in Detroit to save travel costs. “The board felt they would be in a better position to give some perspective on the progress we’re making on our restructuring,” says GM spokeswoman Julie Gibson of the delayed meeting. “We’ve got a lot going on right now.”

What are these Fortune 100 companies taking us for, complete suckers?  GM begged for our help in congress, slimed the Unions down by requesting member concessions, closed how many plants, cut how many employees and forced how many employees into early retirement.  In deed and truly, I feel sorry for all in the car industry, but if they fail to listen to what our new administration wants in return for lending them money, let the GM executives join the AIG folks in the unemployment lines.

The TIME article may be mournfully reviewed here.

Following along with my argument against our tax dollars being used for foolishness by GM is this video when the “Big Three” appeared before the House requesting bailout funds:

We Are Very Much Between A Rock And A Hard Place

On November 19,2008, the House Financial Services Committee held a legislative hearing on extending the Department of Treasurys Troubled Asset Relief Program (TARP) to the U.S. auto industry. The draft legislation will extend the recently passed TARP program to help the financial stability of the American car industry. Testifying in the second panel were Mr. G. Richard Wagoner, Jr., Chairman and Chief Executive Officer, General Motors Corporation, Mr. Robert Nardelli, Chief Executive Officer, Chrysler, LLC., Mr. Alan Mulally, President and Chief Executive Officer, Ford Motor Company, and Mr. Ron Gettelfinger, President, United Auto Workers.

For the full archived hearing video or to read prepared testimony, visit: http://www.house.gov/apps/list/hearin…

Rep. Watt: “We are in much the same position that we were with the original bailout. We are very much between a rock and a hard place and the hard place is coming from the public out there who has a great resistance to bailing out anybody else, as they did in the original bailout.”

Update 27 Mar 09:

Source: 12% Of GM Workers Accept Buyout
from CBSNews.com

A person familiar with the numbers says about 7,500 General Motors Corp. hourly workers have signed up to take buyout and early retirement offers.

Update 12 Apr 09:

Carmakers: We’ve Seen The Light
from CBSNews.com

With bankruptcy possible for at least two of America’s Big Three automakers, those companies have more on the line than ever at this year’s New York Auto Show. They need vehicles that sell, both now and in the future.

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2 Responses to “GM Doesn’t Quite Get the Picture”


  1. 1 Jack Daniels
    March 22, 2009 at 6:05 AM

    I don’t mind loaning my tax dollars to keep GM afloat. Ask yourself, can we afford to lose the auto industry. The answer is no, not unless you don’t mind becoming a second rate nation. All other countries would help their auto industry and we should also for many many good reasons that I do not care to go into right now because it’s time for my dinner.

  2. 2 Tom Awtry
    March 22, 2009 at 7:28 AM

    Jack,

    I couldn’t agree with you more, regarding your comments on the auto industry, but I’m also against companies like AIG, Citicorp, Bank of America and now (perhaps) GM saying “one thing and doing the other” with tax payer money.

    Before the congress GM told our Representatives that TARP money would be used for the development of “Green vehicles” and more importantly they said one reason they were in need of money, was they had mis-read what Americans wanted, which is and was Green cars.

    I know I’m speaking with a tone of anger, but Jack please understand it’s not directed at you, just the past and present GM management.

    Regards,
    Tom


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