I feel General Motors has now crossed the line of having any public support going forward. Before today’s announcement from General Motors (GM) that it may now need as much as $30 Billion (tax payer) dollars to survive, public support of all ‘bail outs’ has been waning.
Now General Motors is coming back to Washington saying that they under estimated the economic declines and may now need more than twice as much money from the tax payers in order to become a profitable company by 2012, but may still need even more money in 2013 to help pay retiree pensions.
General Motors has now crossed the line. You are asking for more tax payer support at a time when tax payers are already hurting in this economy. This is now about individual preservation of capital. Rick Wagoner, your request for additional funds is appalling and disgusting, and an insult to the American people.
On November 20th, 2008; in an interview with Bloomberg, you Mr Wagoner said that you ‘strongly beleived’ that you would not have to go back to congress and ask for more money. I will give you credit in that you said ‘I can’t gaurantee we won’t have to ask for more’, but your pitch at the time was clearly trying to win over public support by trying to convince the Amercian tax payer that you would not have to go back to the well. It is very apparent now that you were knowingly selling the public ‘a bag of goods’ back then.
Enough! The United States is on the verge of entering a depression with other nations around the world in the same situation. Tax payers are in ‘self preservation’ mode as the economy continues to deteriorate. It is now every man and woman (and company) for themselves, if you Mr. Wagoner can’t make your company profitable any longer than it is time for you to fail.
You have crossed a line in the sand… no more!
I realize this may not be a popular opinion in some circles, but ‘bail outs’ of all kinds has reached complete insanity.
—–
- Says it may need $30B in total US aid to survive.
- Notes it may run out of funds next month without new loans.
- Says its loan request has been raised by $4.5B from $4B
- Would pay back loans in 2012
- Worst case bankruptcy would require $100B, considered but rejected 3 bankruptcy scenarios as part of the plan
-In talks with other foreign governments for funding support.
- Talks with UAW and bondholders:
- Still negotiating with bondholders over debt swap.
- GM and the UAW agreed to cut pension plan contributions in 2013 and 2014.
- Declines to say how much UAW agreement will save.
- Currently reviewing its pension funding strategies.
- May need more aid in 2013 to cover pension obligations.
- The company and the UAW have suspended the JOBS program
- Job cuts:
- To cut 47K jobs by the end of 2009 (10K salaried workers and 37K hourly workers)
- Plant Closures:
- To close 5 more US plants.
US plants will fall to 33 in 2012 from 47 in 2008
Recent Posts:
- Taxpayers to the Rescue of Afghanistan Banking Crisis?
- Economic Data and Earnings Schedule for September 2 2010
- Christina Romer Makes a Final Recommendation Before Leaving To Teach Keynesian Economics
- Homebuilder Hovnanian (HOV) Reports Dismal Quarter
- Auto Sales Data for August 2010
- Stock Market Rewind – September 1, 2010
I am with you 100% on this. This is way out of control and has to end.
THATS SHAMEFULL, TYPICALL BIG BUSINESS IN THE US
Time for them to fail is right. It is only justified for the way they raped the americans through the years with there high prices, and cheap cars.