What Does GM Really Stand For?

Saw this just a few minutes ago from Reuters:

General Motors Corp’s (GM.N) plan for a bankruptcy filing involves a quick sale of the company’s healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The government’s plans include giving stakes in the new company to GM’s union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company’s plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

Setting up a new company to buy the healthy assets is aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, fearing it would not honor warranties or provide service.

The board of the new company would be established with the tacit approval of the government. Fritz Henderson, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.

Doesn’t this sound familer?  Makes the following graphic all the more true.

gm-obamaScary, isn’t it?

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About Tom Roland

EE for 25 Years, Two Patents - now a certified PMP. Married twice, burned once. One son with Asperger's Syndrome. Two cats. Conservative leaning to the Right. NRA Life Member.
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5 Responses to What Does GM Really Stand For?

  1. As soon as I got home from work today, I hit Drudge and saw this news. I can’t say that I was particularly surprised. This is what BHO has been angling for.

    As for aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, I don’t think that’s possible. People are already antsy about buying new vehicles, particularly from a company entering bankruptcy. No consumer confidence there, even though prices may be wonderful.

  2. Hey, Tom.

    I just stumbled across THIS!

    Excerpt:

    The Obama administration’s proposed mileage standards that will be announced today may kill more Americans at a faster rate than the Iraq War — his signature issue in the 2008 presidential campaign.

    Obama’s standards will require automakers to meet a 35 miles-per-gallon standard by 2016 — four years earlier than the same standard imposed by the Energy Security and Independence Act of 2007.

    As discussed in my new book Green Hell, the only way for carmakers to meet these standard is to make smaller, lighter and deadlier cars.

    The National Academy of Sciences has linked mileage standards with about 2,000 deaths per year. The National Highway Traffic Safety Administration estimates that every 100-pound reduction in the weight of small cars increases annual traffic fatalities by as much as 715….

    More at the above link.

  3. Tom says:

    AOW – Besides the auto companies declaring bankruptcy, consumers are concerned about losing their jobs. Who wants to be stuck with a car payment when they don’t have a job?

    I saw the same information at another news site. Finally, somebody is doing some homework on what Obama’s fantasies really entail for the regular person.

  4. Z says:

    “mileage standards”? It made me wonder if we’ll be told HOW FAR WE CAN DRIVE on any given day!! “you’re limited to 40 miles a day”..wait for it.
    Are we INSANE!? THIS IS ALLL ABOUT THE UNION AND HOW THEY GOT HIM ELECTED.
    Great graphic; I almost can’t even look at it. ptui

  5. Tom says:

    Z – If 40 miles a day is all we can drive, then that’s the perfect distance for a battery-powered car.

    Unions are finally getting returns from a president that they helped elect, but if you look closer, it looks like the rank and file members are still getting hosed with all the job cuts.

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