GM to be owned by the U.S.?

[Ancona]

I just read an article over at Financial times that suggests the new deal on the table involves a majority government stake in the company. They are proposing a debt-for-equity swap.

So.....we're all automakers now? I always wanted my own car company.

http://www.ft.com/cms/s/0/a5326d50-332a-11de-9316-00144feabdc0.html

[fullsafe]

This should be titled GM to be OWED to the US! My understanding is that the US is basically going to help them form a new business model but the important thing is the legacy costs. The US taxpayer will now be on the hook for GM retirees benefits. If GM bankrupts outright those costs could disappear but this way the taxpayer gets stuck with both bills and the union voting block stays intact. Once again we are being 'serviced'. (livestock reference)

[Ancona]

We are already on the hook. The Pension Benefit Buaranty Corp. will pick up all o fthe retiree pensions and medicaid/medicare will become responsible for the underfunded medical insurance plans.

Nice huh?

[skijake]

So we win either way [sarcastic] and we get an American icon. Truly win win.

As much as I mock them my gut feeling is let some banks fail and put GM on a diet and work-out regiment. America needs to have manufacturing capabilities in all times and to lose GM would be devasting. They have done nothing half as bad as BofA or Citi. They have [some] decent products, they are just too bloated with upper level management and ridiculous union contracts. The Krauts and Japs can build cars in this country and turn a profit [most of the time] why can't we? It is ridiculosy expensive to build a car line. Don't kick 100 years out to the curb like an old sofa.

[Ancona]

I would agree in principle that the U.S. desperately needs to repatriate manufacturing that was offshored during the Reagan, Bush and Clinton era's.

If we ignore this fact, and continue to attemt the re-inflation of the previous housing bubble we are doomed.

[hiyosilver]

I would agree in principle that the U.S. desperately needs to repatriate manufacturing that was offshored during the Reagan, Bush and Clinton era's.

If we ignore this fact, and continue to attemt the re-inflation of the previous housing bubble we are doomed.


My question is, is it even possible to reindustrialize our country? Is there enough time to gather the resources? and more questionable, is there enough desire to do so? Especially when you have the "commander" passing out pacifiers....

[skijake]

My question is, is it even possible to reindustrialize our country? Is there enough time to gather the resources? and more questionable, is there enough desire to do so? Especially when you have the "commander" passing out pacifiers....


Desire is the key. The government and the electorate need to see the value before its too late.
I do think we may be being pacified to death. Hollywood, Sports and the Government are triple teaming us into submission. Throw in a Big Mac with some fries and we're cooked.
Wake up guys and gals, Times a wasting.:(

[Mylläri]

Well it looks like Chrysler is officially over and now under Obama. I'm actually thinking that it WON'T be a good idea to purchase an American brand vehicle because you'll be giving a fair share of that money directly to the UAW. I read something recently that said that the UAW will own at least 39% of GM or Chrysler upon them declaring bankruptcy. I'd prefer to support an American brand but I don't want to be handing my money over to a criminal organization like the UAW :rolleyes:

[pmstacker]

Actually i think it may go something like this:

GM: General Motors of the United States International Sales Rep
3WC: 3rd World Country

GM: Hi, this is Jafar, I am making a courtesy call to your country in hopes of securing more automobiles for your private citizens, we show exports to your country are down and would like to rectify this.

3WC: No thanks Jafar, the autos you sold us last month are either being repaired or are sitting in the dump waiting to be put into the car crusher so we can recoup some of the money we lost by buying them in the first place.

GM: No, i don't think you understand, we really need to work something out or else our military might accidentially launch some missles in your direction.

3WC: Did i say we didn't need any more autos? What i meant to say is we'll take 1 million more cars at double MSRP.

GM: Thats more like it! Will it be cash, charge or certified check?

3WC: Would you take Gold by the tons?

GM: Sure thing! Thank you for being a loyal customer, we'll have those autos to you in 6-10 years, please send payment now to ensure quicker delivery.

3WC: Yeah, no problem, the gold is on its way.

GM: Have a great day! (click)

GM Sales Manager: Thats 3 millions cars you've sold today, keep up the good work Jafar. You'll have that hat paid for by the end of the month if you keep this up!

[silverbuyer]

Socialist Government Auto Companies wont get my dime. I'll buy from Ford.

[Steadfast]

Wow, I can see the head lines now!

"Gm to be renamed SM"

"Socialist Moters now producing the "Obamatopia" the latest and finest in rice burning Rickshaws!"

"Massive tax hikes become law on decedent gas guzzlers!"

"Government crackdown on all SUV owning dissidents!"

"SUV runs down, brown uniformed, Eco Officer in Government Impound Lot!
Mother of five gets life, with no parole!"

[LoboNoches]

Wow, I can see the head lines now!

"Gm to be renamed SM"

"Socialist Moters now producing the "Obamatopia" the latest and finest in rice burning Rickshaws!"

"Massive tax hikes become law on decedent gas guzzlers!"

"Government crackdown on all SUV owning dissidents!"

Ooh ooh I can get me the new Chevy Obama complete with 22' rims and hydraulics fully loaded with Malt liquor and chicken.

[silverheartbone]

I just read an article over at Financial times that suggests the new deal on the table involves a majority government stake in the company. They are proposing a debt-for-equity swap.

So.....we're all automakers now? I always wanted my own car company.

http://www.ft.com/cms/s/0/a5326d50-332a-11de-9316-00144feabdc0.html

GM to be owned by the Federal Reserve is more like it.

[ruggerbugger]

Dont forget your neighbours to the north throwing them lifeline cash also.

[cowboycarl04]

Just to update....

GM restructure plan:

50% government

10% bonds

39% UAW

1% current shareholders.

The new plan will have current shareholders wiped out 99%, followed by a reverse 1:100 split of the stock. In reality, the stock's value may not change much, but the share holders will go from $1.68 to $0.0168 instantly.

I hope you didn't own stock...

[SeekrBrnEvryMin]

I'm seriously thinking of buying GM after all the dust settles. Anyone else?

[LoboNoches]

I'm seriously thinking of buying GM after all the dust settles. Anyone else?

Hell yeah jump in after the dust settles and ride that bouncing cat til it dies :)

[cowboycarl04]

Since Fannie and Freddie died, their stocks have gone up as much as 15x their value if you bought low and sold high.

AIG has gone up 4x for the same criteria.

Citigroup is currently 4x higher.

Makes you think to hop on the bandwagon right after they do this... better yet... wait a week to let it drop a tad more, and then jump on the wagon.

[silverbuyer]

Government and Union running a business is absurd. Neither has ever suceeded in that regard. The cars will have to be $100,000 each to break even. I wouldn't take one for free.