By on November 2, 2009

\Stop me if you've seen this one... (courtesy:spillingcoffee.com)

GM was given its last $30B of taxpayer money as it entered bankruptcy in early June of this year. By the time GM exited Chapter 11 protection on July 10, there was only $16.4B left in its bailout escrow account. According to an 8-K form filed today with the SEC, GM now has only $13.6B remaining in that account, less than one-third of GM’s $50B total bailout (not counting assistance to GMAC). GM’s rescue of its major supplier, Delphi, consumed $2.8 billion from its escrow account. According to the form:

Approximately $1.7 billion was utilized to acquire a membership interest in the new Delphi entity and approximately $1.1 billion was expended in the acquisition of Delphi’s global steering business, certain domestic facilities and other related payments

The form also confirms that GM spent about $417M on GM-Daewoo’s recent rights offering, but notes:

GM has not finalized the accounting treatment for the participation in GM Daewoo’s equity rights offering.

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15 Comments on “$13.6 Billion Remaining in GM’s Bailout Escrow Account...”


  • avatar
    dwford

    So GM is using tax dollars to re-aquire failing businesses it jettisoned years ago instead of using the money to fix itself?

  • avatar
    lw

    I think I finally get it.. The GM culture doesn’t understand the concept of stewardship.

    Stewardship – the conducting, supervising, or managing of something; especially : the careful and responsible management of something entrusted to one’s care (from Webster’s web-site)

    GM is like a senile grandma that gives her grand kids $50 each, then can’t pay her electric bill.

    The kids each buy a video game that they may never play and the lineman at the local electric company can’t get a raise because of all the deadbeats that don’t pay their bills.

    GM has no idea how to be good stewards. They are smart, dynamic people with good intentions. They work hard and when things go bad they work harder.

    Stewardship.. It’s that simple. The most ironic part is that the government is about the WORST role model anyone could have in this area. So GM is hosed.. Turn out the lights…

    How sad…

  • avatar
    JSF22

    On the off chance anyone actually thought there was any hope for change at GM, consider for a moment the following from today’s Automotive News article about that idiot Susan Docherty:

    “Finally, GM aims to make more gains in Consumer Reports, Docherty said. For 2008, Consumer Reports recommended 12 GM nameplates vs. eight in 2009.

    “Henderson recently endorsed the idea that the magazine be made widely available to GM executives, said Mike DiGiovanni, the company’s executive director of global market and industry analysis.

    “‘Not everybody at GM is immersed in Consumer Reports,’ DiGiovanni said.”

    Yes, you read that right: it seems Fritzie is going to buy Consumer Reports for his executives, who don’t otherwise pay attention to it, and who apparently don’t know they’ve started selling it on newsstands and even making it available on that new thing called the Internet.

    And this was one of the least stupid things in the Docherty article. She thinks they should try to reduce their incentives, you know.

  • avatar
    segfault

    @JSF22:

    And the sad part is that Docherty is GM’s Best and Brightest.

  • avatar
    PeteMoran

    Could Penn & Teller make that money disappear any faster or more painfully?

  • avatar
    law stud

    Consumer Reports is a valuable resource when buying a car. They can make dramatic shifts within the industry if they recommend you for a buy. Anyone else notice how motortrend’s recommendation about SUV of the year to Subaru resulting in their Forrester selling heavily.

    GM is simply on life-support and without the profits from GMAC they’re dead. They are the car industry version of Amtrak. Watch, in 1 year they’ll need another 20 billion to funnel to keep labor happy.

  • avatar
    John Horner

    I would never say that a company should use Consumer Reports as a driving force in its efforts, but any car company should at least be well aware of what this influential voice has been saying.

    My ***, have the GM executives really been this deaf, dumb and blind? Plus, what GM executive thinks the fact that they are taking a few minutes to read what CR is saying about their products is newsworthy?

    Some time ago I took a bit of flak for calling GM’s management stupid. Well, guess what, they are that, stupid. Sure, stupid it is a simple word full of school yard connotations, but nothing in the record disputes the conclusion that these men and women are simply not smart about how they go about doing what they are paid to do.

  • avatar
    DweezilSFV

    @john horner: Why would anyone give you flak for stating the truth ? 40 years of ineptitude should be enough proof for even the fan bois, but sadly, that isn’t the case.

    Now you have even more validation.

    You must live outside Detroit so you are believing all those misperception about GM.

    I’d say you called it.

  • avatar
    dwford

    They had to have a meeting to decide to buy CR??????? I am speechless.

  • avatar
    Happy_Endings

    They had to have a meeting to decide to buy CR??????? I am speechless.

    Well, they had to pass a hat around to get the $26 for a year’s subscription…

  • avatar
    jacksonbart

    Lets see 308 million people live in the US, the US govt gives GM 50 billion dollars. I figure GM owes me $165.00 excluding interest, taxes and loan origination fees.

  • avatar
    brettc

    I wonder if there was a Powerpoint presentation at the Consumer Reports subscription meeting?

    GM, please die immediately. I’ve had enough. Just when I think I’ve heard it all, something even more ridiculous is made public by one of your idiot executives. You have no plan to be successful any time soon, so you *will* fail. Just get it over with so the U.S. taxpayers will no longer be forced to give you money whenever it’s requested. Everyone thought SNL was joking last year about the bailout situation, but they were actually predicting the future.

  • avatar
    YZS

    The picture quality is horrible, and so fitting.

  • avatar
    Pch101

    it seems Fritzie is going to buy Consumer Reports for his executives, who don’t otherwise pay attention to it, and who apparently don’t know they’ve started selling it on newsstands and even making it available on that new thing called the Internet.

    More to the point, this tells you that dissent within GM has been unwelcome, and Consumer Reports represented unwelcome criticism. CR was ignored because it said things that nobody within the company wanted to hear.

    GM has spent decades responding to criticism by ignoring it, suppressing it and attacking it. You can see it on the fan boy forums, but it must happen at the corporate level as well.

  • avatar
    Steven02

    @JSF22

    That is a direct quote from the article, but not a direct quote from Docherty. She didn’t say, “We had 12 in 2008 and less in 2009, see that is a gain.”

    It would be interesting to note what the nameplates were. GM lost 4 brands, so any Pontiacs, Saturns, Hummers(ok, not likely a Hummer on the list), and Saabs will be off the list.


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