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Posted on 04/14/2009 4:49:18 PM PDT by Sub-Driver
U.S. May Take Stake in GM To Pay Off Loans
By SHARON TERLEP and JEFFREY MCCRACKEN
The U.S. government is considering swapping some of the $13.4 billion it lent General Motors Corp. for ownership in a stripped-down version of the auto maker, a move it hopes will push the United Auto Workers union and bondholders to accept similar concessions, said people familiar with the matter.
Interim GM Chairman Kent Kresa said the company would welcome the government's willingness to let it pay off some of the loans with stock. "Certainly that would be helpful," he said in an interview Tuesday.
But the move also could leave the federal government a direct shareholder in the car maker for years to come, a position certain to be controversial.
The government is considering the step because it hasn't had success finding outside private investors for a revamped GM, said a person close to the situation. The government and GM advisers are "creating a new GM on the fly," said this person. The U.S. wants GM's revamping plan to be set by June 1.
The government hasn't said how much of its loans it is willing to swap for GM equity, but doesn't seem to be opposed to swapping all the debt, said this person.
The plan would further enmesh the federal government in a private U.S. company and raise questions about how much a management role the government would take and how long it would own the GM shares.
(Excerpt) Read more at online.wsj.com ...
NOT!!!!
I will have to explore the otherings from Dearborn the next time I buy a vehicle. The Mark of Excellence has faded.
a move it hopes will push the United Auto Workers union and bondholders to accept similar concessionsyeah, that'll work. /sarc /barf
Constitution? What constitution? That's like, so, 18-the century. Get with the flow, grl!
I must have missed exactly what part of the Constitution gives the U.S. Gov’t the power to buy up stock in privately owned companies?
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With our tax dollars. TIME TO STARVE THE BEAST PEOPLE! Talk on the internet if cheap.
Rubbish! I just placed an order for a 2010 Camaro after test driving their V6. You are part of the problem-negativity when GM has outstanding cars out there now with more to come.
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Good for you. They will never see another cent from me until the day I depart the earth.
That’s right cut off your nose to spite your face. That’s a child’s way of dealing with a problem. We need an auto industry and we need manufacturing. I don’t like the UAW any more than anyone else but we need to keep our auto industry. If you won’t buy GM, then at least look at Ford before your mindlessly buy Japanese or German. You are a big part of the problem even though you may not know it.
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To the US Government
Thou shall Not Covet, nor Plunder thy Citizens Businesses, Corporations nor God given talents in Ideas
A microcosm of socialism/collectivism/criminality infected/destroyed a great corporation/industry much like the same will destroy a great country.
The socialization of risk socialists force us to pay for...someone’s mistakes/corruption/incompetence/criminality.
When we organize and protest too loudly force will be used upon us. Such is the economics/destructiveness of socialism.
In America, we have “Hugh G.” as pres__ent. Mr. Rection always wanted to own an auto maker...
>>>>>>If we had not had the spike in gas prices in 2007-8 (due to speculation) and then a Financial Catastrophe in 2008-9 resulting in a credit crunch, GM would have been able to make it without assistance. They were in the process of restructuring and lowering their cost structure when they got hit by this double whammy.
You are absolutely correct. To me, the anti-GM sentiment fostered by the media is merely a reflection of the media's broader anti-American mindset.
Yeah, a consumer that hates socialism / economic facism is a big part of the problem! That'll show him!!
I have over $3K built up on a GM Gold MasterCard, and I'll be damned if I support King Hussien's un-constitutional take-over of a company a) I once worked for and b) my family was a supplier for for many decades.
Go ahead and tell me "I'm part of the problem". I don't care what you have to say. I'm a consumer, and the quicker GM learns that they can't berate a customer into buying their products, the faster they'll (partially) get out of this mess. I have no hopes though - they seem quite content to die the death of government take-over.
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