Talk about ROI… The Washington Post reports that General Motors and Chrysler are using $7M of their $17.4B federal “loan” to lobby for their next snootful of bailout bucks.
In the last three months of 2008, just as slumping auto sales pushed the two Detroit carmakers closer to bankruptcy, GM spent about $3.9 million on lobbying, according to a review of its most recent disclosure forms. Chrysler and its parent company, Cerberus Capital Management, reported spending about $3.4 million.
The Post forgets to account for the lobbying parity between the artist formerly known as the world’s largest automaker and the Crisis Corporation. Lest we forget, Cerberus has another huge mouth to feed at your expense: GMAC. Which received a $6B bailout and a last minute waiver of the Fed’s rules for bank incorporation. And how, pray tell, do the automakers’ owners justify using your money to get more of your money?
“There is significant, ongoing demand from legislators and government officials for education and information on Chrysler, its operations, products and future plans, including promoting advanced technology that responds to the nation’s energy needs,” said Chrysler spokeswoman Linda Becker. “The expenses reported included a number of activities at the local, state and federal levels of government on a wide range of issues.”
It is probably the most heavily regulated industry in the country,” GM spokesman Greg Martin said. “Lobbying is legally protected speech. It’s a transparent, effective way for us to have a voice in multiple policy issues that impact our business and employees.The reports, which must be filed quarterly, do not detail the exact amounts spent on specific issues, drawing questions from some critics about whether they are using the loans to lobby against the taxpayers’ interest…
Martin added, “Companies should not be required to forfeit their legal rights if they receive federal funding.”
instead of “There is significant, ongoing demand from legislators and government officials” and “Lobbying is legally protected speech”, why not just, “of course we are, we’re trying to build a better auto manufacturer for america.”
silly gits.
Not to be SNARKY or ignorant..
7 mil to a coupla lobbyists…
Someone needs to tell someone else.. they arent doing such a hot job, and I HIGHLY doubt they are worth.. even 1/4 of that.
Man, I am so in the wrong business. I shoulda been either a politican or a lobbyist, all they do is B.S
I dont think they got the email or the news..
NO ONE.. IN THIS DAMN COUNTRY.. WANTS CHRYSLER TO EXIST.
Maybe they need that link to the Chrapsler blog where people openly detailed their ongoing hatred for a company that took money from people and THANKED THEM FOR IT.
Last time I checked my driveway.. I dont have a Chrapsler in it.
So how did I wind up buying the company?
This just in, water is wet.
“NO ONE.. IN THIS DAMN COUNTRY.. WANTS CHRYSLER TO EXIST.”
I’d like the Dodge Caravan, Dodge Ram, and Jeep Wrangler to exist.
The rest of ChryCo’s lineup can take a dirt nap and I wouldn’t miss it.
Just paying it forward.
GM could have used the money to develop the Cadillac Cimarron II from the Aveo platform.
Ahhh… what could have been!
In an attempt at bravado, Chrysler has advised the Canadian government that in order for them to guarantee keeping a plant going in Canada, they have three preconditions (nothing like arguing from a position of strength):
1. The $519 million bill for not paying proper customs taxes must disappear.
2. An agreement with the CAW must be put in place that is twice as good as the one GM and the CAW have just negotiated, so that Chrysler would enjoy wage parity with the transplants.
3. The government has to ante up adequate cash, like a few billion for the Canadian operation.
This in response to complaint by the government that the turnaround plan submitted by Chrysler some weeks ago was totally inadequate and needed fleshing out in detail. Mr. LaSorda was lecturing senators today in Ottawa.
If Cerberus management have not yet met Jim Flaherty, Canadian Finance Minister, they may find a pugnacious soul who is just as likely to plant them one in the kisser for being stupid, as backing down from demanding a real plan.
We shall see. Since Chrysler has not yet started talking to the CAW, and March 31 is the deadline for submitting a real plan in order to get a loan, it seems Chrysler is not really interested and wants to disappear from the Canadian scene.
I thought truely diabolical plans like this only came from comic books…
I can’t wait for Act II. Somewhere, baby seals are very scared.
Finally a smart business decision. That is some serious bang for buck spending.
The great thing about the word transparent is that you can put it in a sentence describing just about any nefarious behind the scenes activities you are involved in and they isntantly become organic and sustainable.
If Chrysler used baby seal hides for their car interiors, it would be an improvement.
This money may actually be spent in relatively inane ways, but it sure gives the impression that the auto companies are paying for that last round of support and ensuring the next.
The thing is, this is a common occurance in every industry. Legislators take action to, “support local communities and jobs” by creating low tax zones, securing one time tax rebates and actually providing direct grants for capital investment and the relevant businesses generously donate to their campaign/charity/pac of choice immediately afterwards, every time. Embracing this practice, and succeeding at it, is openly considered a litmus test of a politician’s skill and even responsiveness to their community. In no way is that materially different from what (it appears like) the automakers are doing here.
The USA has the best political system that corporations can afford.
“NO ONE.. IN THIS DAMN COUNTRY.. WANTS CHRYSLER TO EXIST.”
Well, someone wants it…they just paid $3.4 million for it to exist…
Hmm. What to think?
http://news.yahoo.com/s/ap/20090312/ap_on_bi_ge/gm_bailout