The Detroit News reports that GM told the Presidential Task Force on Autos (or at least the two guys who went to Detroit on a Volt junket) that the zombie automaker won’t be needing the previously requested $2B federal “advance.” GM requested the money last month to get them to the end of this month—when they’ll need another $16.6B federal “loan.” Oh, and please note that the $16.6B—on top of the $13.4B previously loaned, not including a share of the $25B Department of Energy retooling loans, or the $1B loan to prop-up GMAC—STILL includes the $2B that GM says they don’t need. You know, now. For another couple of weeks. Did I mention GM’s $2.6B request for April? Funny how all these billions get confused in my mind. So, how come the deferral? Bad planning? No, good! “This development reflects the acceleration of GM’s company-wide cost reduction efforts as well as pro-active deferrals of spending previously anticipated in January and February,” the automaker said in a statement. So, they’re cutting they’re way to prosperity. As if.
You know for $16.6 billion I could set up a company that makes products that most people don’t want to buy and employ thousands of people doing it. Maybe even a little bit less, like $15 billion.
Just trying to help out.
+1 for Mr Burns
Do you realize that for $16B you could pay 50,000 people $40k per year for 8 years?
This development reflects the acceleration of GM’s company-wide cost reduction efforts as well as pro-active deferrals of spending previously anticipated in January and February
So they just deferred payments on things and they don’t need the money now? Won’t they have to pay more in the future because of those deferred payments?
Do you realize that for $16B you could pay 50,000 people $40k per year for 8 years?
I was thinking along the lines of spending $16B to buyout 100,000 GM employees with a lump sum of $160k per worker.
If you dutifully pay income tax, then the 8 year plan has a better ring to it.
I guess one the things they threw overboard was the small diesel. Certainly there are many things like other power train components and suspension issues to consider in offering a new engine in vehicles, but you’d think they were well along in all aspects before pulling the plug. So is this another case of the bean counters pushing out features that would boost sales and profit, or a wise move? Or maybe the required skills have been forced out the door so there was no option.
@mel23:
I’m a big fan of diesel but there seems to be absolutely no support for it in the US, and none coming.
Current plans are to continue to tax the bejesus out of it and throw tons of funding and mandates at ethanol, but almost nothing at biodiesel.
The economics are still very sketchy for passengers vehicles, or light trucks being used only as passenger vehicles.
I sure wish it were different.
I wouldn’t be surprised if the money was requested with GM knowing full-well that they wouldn’t need it. That way, the headlines make it seem as though GM doesn’t actually need as much federal money, implying that they are doing well. I notice their stock is past $2.00 today. Break out the champagne.
It makes for good PR headlines to see “GM doesn’t need billions”.
OK so they’re (temporarily) deferring $2 billion.
As mentioned, they’ll be sucking up 800% + of that amount “as scheduled” at the end of the month.
Then more. And more.
But wowzers, these good PR headlines all over the lame stream media are worth a good 2 bil, aren’t they????
These guys are total losers, at GM.
Wish we had a politicians with stones enough to tell them to go take a hike instead of tossing what used to be our money at this “problem of their own making”.
As Katie says; hey, it’s capitalism on the upswing for the wealthy, socialism (spread the pain/money around/bail ’em out) for the wealthy on the way down. Paraphrased, but yeah.
A politically-driven statement by GM, to be sure, skillfully released in the same week as the Volt $21B test drive by the Task Forcers.
There’s nothing to stop them now – from reaching deeper into your pocket.
Does it matter when you refuse the last drink, but your BAC is already 0.30%? Just wondering.
So, is this good or not? Can I dream about a Camaro again?
I noticed that cars.com has their fifth-gen Camaro configurator up, and I optioned it up to $36K with the stuff I want. Should I go back to my desires for a Camaro, or should I keep thinking about a Mustang?
@Ferrarimanf355: Camaro, Camaro, Camaro…I’ve driven both a fair amount-we have both at work and no one fights over the Mustang’s keys. Although conversely, I have a ‘Never buy version 1.0 of anything’ kind of mindset about such things…I’m not saying, I’m just sayin’…
Also…for about $1 Billion you could develop a new vehicle from the ground up.
Stu,
First, I have to get a job, then my parents have to sell a house that’s been on the market for months now before I think about getting a new car. By then, it’ll probably be 2010.
Of course, by then, GM may be out of business.
Maybe I’ll just stick to thinking about a Mustang. Or a 370Z. Dammit, I can’t decide…