News, Will GM soon stand for ‘Government Motors?’ (loans, court, bankrupt)

[John1960]

WASHINGTON - If the government takes a majority stake in General Motors, will it end up taking the wheel, too?

Under a restructuring plan put forth this week by GM, the ailing automaker would give majority ownership to the federal government to stave off bankruptcy.

Will GM soon stand for ‘Government Motors?’ - Autos- msnbc.com

[Dexterguy]

Hopefully, this would not be for too long if the government does get controlling interest in GM. Even Pres. Obama said in last nights speech, "I don't want to run automakers."

It will be interesting to see whether or not GM can stay out of bankruptcy when Chrysler has already filed. I wonder if the Chrysler filing will affect the parts suppliers to GM.

[neil0311]

Originally Posted by Dexterguy

Even Pres. Obama said in last nights speech, "I don't want to run automakers."

That is a HUGE lie. He may not want to "run" them, but he wants to control them and make them build the kind of vehicles he thinks they "should" build, even if no one wants to buy them.

[dsnellen]

Originally Posted by John1960

WASHINGTON - If the government takes a majority stake in General Motors, will it end up taking the wheel, too?

Under a restructuring plan put forth this week by GM, the ailing automaker would give majority ownership to the federal government to stave off bankruptcy.

Will GM soon stand for ‘Government Motors?’ - Autos- msnbc.com

The UAW is most likely to take majority ownership in GM not the government. The government will take over the existing pension and healthcare plans while providing billions of dollars to the UAW to assist in the restructuring. You can use the Chrysler restructuring as a model. The UAW is to get 45% to 55% ownership under the restructuring plan.

[zoomzoom3]

I hope the UAW members will still be able to make decent wages.

[texdav]

You really need to look at the chrysler deal. Bascially the unions had already started to take over the retirement and healthcare from reports on money the company agree to give them. That is what the unions got in payment thru stock. Bacially that is up to the unions to take care of how.The governament got control of the board with Fiat getting the second number of seats.If anything goes wrong after this the governmnet has first call on assets in bankrupsy of course since the companies were ony given loans.Fiat bascially was given manufacturing control in day to day operations. Since it is how sheduled to go to court because it was not settle this can change and IMO is likely because of established laws that wre not followed ihn teh bankruspy agreement.

[Kootr]

Originally Posted by Dexterguy

Hopefully, this would not be for too long if the government does get controlling interest in GM. Even Pres. Obama said in last nights speech, "I don't want to run automakers."

It will be interesting to see whether or not GM can stay out of bankruptcy when Chrysler has already filed. I wonder if the Chrysler filing will affect the parts suppliers to GM.

I think you can expect GM to file for "controlled" bankruptcy sometime within the next three weeks, with the U.S. government solely financing a DIP loan using taxpayer money of around $50 Billion.

[texdav]

They have to get the money from the bank loans which now looks good because congress is not too excited about more money in bailouts.Ay some popitn ti and chrysler is coming to a head as they will be back for more has this is going to be a logn hard raod.We will see how tehy american peop-le react as they need more and mroe finacing. I dount private moeny want much of teh action with teh way bondholders got screwed in teh chrysler deal, it alos seems to be a probolem with the toxic assets plan on private /governmnet involvement

[Stac2007]

Originally Posted by John1960

WASHINGTON - If the government takes a majority stake in General Motors, will it end up taking the wheel, too?

Under a restructuring plan put forth this week by GM, the ailing automaker would give majority ownership to the federal government to stave off bankruptcy.

Will GM soon stand for ‘Government Motors?’ - Autos- msnbc.com

It should read gross mismanagement.

[strawberry2]

I can't wait to see how this plays out over the next 4 or so years.