Bailout stipulations

[BuddyP]

http://www.foxnews.com/politics/elections/...rings-attached/

It would create a board composed of Cabinet secretaries from the departments of Treasury, Energy, Labor, Commerce and Transportation plus the Environmental Protection Agency administrator to oversee a broad auto industry restructuring.

This paragraph scares the hell out of me... what it means to me is no Camaro, no Corvette, no GXP's. Basically GM could turn into a maker of true cookie cutter gov't mandated automobiles.

Edited December 8, 2008 by BuddyP

[balthazar]

As long as it's strictly an advisory board (as opposed to a policy-making one), GM could squeek out of the deal without being zombie-afied... because those gov't chuckleheads have little idea how to do their own jobs, nevermind run a manufacturing corporation.

[thenewdamage]

Get ready for Prius wannabes that run on tofu and patchoulli. What I heard was the 'committee' will have say over any GM decision involving $25B or more. And considering the social reengineering the Dems are known for there will be a million strings attached to this bailout. I could be really wrong here and everything is all rainbows and lollipops for GM...But I expect that GM will regret this decision sooner than later.

Edited December 8, 2008 by thenewdamage

[toesuf94]

The last time I saw a car designed by a non-automotive person, it looked something like this:

I wish GM would just give the government the Finger and ask the idiots in Congress where they are going to replace the $156 Billion in tax revenues when they go out of business. Tell them all to go to hell and dig in, lay off a ton of workers...and just try to get by until things turn around.

[loki]

adding stipulations to these things just f's up stuff. anyone a fan of sat. radio prolly understands how that played out not in Sirius' favor....at least not yet.

[smk4565]

The last time I saw a car designed by a non-automotive person, it looked something like this:

I wish GM would just give the government the Finger and ask the idiots in Congress where they are going to replace the $156 Billion in tax revenues when they go out of business. Tell them all to go to hell and dig in, lay off a ton of workers...and just try to get by until things turn around.

Well no bank would give GM a loan, so the government is their only option. GM isn't paying income tax right now because they don't make income, and Wagoner said something in the hearings about a tax exemption they have.

[toesuf94]

Well no bank would give GM a loan, so the government is their only option. GM isn't paying income tax right now because they don't make income, and Wagoner said something in the hearings about a tax exemption they have.

I understand that...but these stipulations were not given to Citibank, AIG, Fannie and freddie...suddenly the Government wants to tell GM How it will do business from now on...no more private jets, Rick screwed the pooch so he has to go...all sorts of stipulations. yet they gave BILLIONS to the financial companies and banks, are buying Billions in Bad debt...with NOT stipulations. Who do these people think they are? That is what I meant by having GM just give them the finger and shut it down. As much as that idea pains me, I think it may take a new start to make them competitive. I know there is a chance that GM would NOT make it out of bankruptsy, and that would be horrible...but the Government needs to look at what GM has Done for this country.

Besides all of that, how about Congress park all the private jets and free travel that we pay for until they get THEIR HOUSE in order? And GM may not be paying income taxes right now, but the suppliers I bet do...as do the workers. So there would be a NET LOSS if GM shuttered the plants. Not to mention the debt that this country owes GM for it's innovations over the years as well as the efforts in the wars...GM is owed that money on principle.

[FUTURE_OF_GM]

Yeah...

Because that's EXACTLY what GM needs....

GOVERNMENT BUREAUCRACY on top of it's own BUREAUCRACY.

[FUTURE_OF_GM]

The last time I saw a car designed by a non-automotive person, it looked something like this:

I wish GM would just give the government the Finger and ask the idiots in Congress where they are going to replace the $156 Billion in tax revenues when they go out of business. Tell them all to go to hell and dig in, lay off a ton of workers...and just try to get by until things turn around.

+1

[CARBIZ]

I'm not reading too much into this. Politicians have to play games - that's their nature. Once the US economy recovers (probably in mid-2009, IMO), the pent up demand for vehicles will rebound sales and this crisis will pass. GM has many new fuel efficient vehicles in the line up (I'm told the new 'Nox will knock our socks off) and the combination of these new vehicles, pent up demand and the rebounded economy will allow GM to pay back this loan and tell Congress to f-off.

Once GMAC gets bank status, perhaps GM can tell the banks to f-off, too.

[hyperv6]

God forbid they bring in anyone who really has a inter working knowledge of the industry and Washington.

Lee Iacocca know Washington and Detroit. He has paid off Goverment loans. He has an idea on good and bad product and Managment. Let him come in and give a balanced effort here.

[CSpec]

There seems to be a disconnect in Congress: they chide GM and the Big Other Two for not having enough green and small vehicles, but does anyone actually want to buy microcars and expensive dual-hybrid systems and alternative-fueled cars? It seems to me that if people really wanted that kind of stuff Honda would actually sell its natural gas Civic, etc. Who wants to bet that Congress will just dictate production of green cars that no one actually wants?

[ZL-1]

Yeah...

Because that's EXACTLY what GM needs....

GOVERNMENT BUREAUCRACY on top of it's own BUREAUCRACY.

They might cancel each other, and something productive might actually happen

[gm4life]

They might cancel each other, and something productive might actually happen

No it would make it worse. Some people won't let this happen and I will be one of them. The less goverment touches the better.

[ZL-1]

No it would make it worse. Some people won't let this happen and I will be one of them. The less goverment touches the better.

Let me be serious for a moment here: if I was an American taxpayer, I'd want oversight of how my tax dollars (current or future, depending on how the Government will fund these bailouts) are spent by the companies being bailed out. To me it's this simple: no blank checks.

Edited December 9, 2008 by ZL-1

[ocnblu]

This thread should be titled "Bridge Loan Stipulations". There are too many misconceptions about what is transpiring with this project, and we should not perpetuate them.

[haypops]

I read that the las test kink in the negotiations is that Senator Crocker of Tenn. is leading Republican Senators against the Democrats and the administration. He wants to make sure that all bond holders loose 2/3 of their investment before the government will help. Other stipulations too.

Just venting again, but hay about all job bank employees be given an address at Spring Hill Tenn. plant then close the place up and let the State of Tenn try to deal with the massive unemployment compensation requests.

[gm4life]

I want goverment to be responsible, but for goverment not for compaines.

[daves87rs]

http://www.foxnews.com/politics/elections/...rings-attached/

This paragraph scares the hell out of me... what it means to me is no Camaro, no Corvette, no GXP's. Basically GM could turn into a maker of true cookie cutter gov't mandated automobiles.

That's pretty much going to happen everywhere, not just at GM.......