Bailout Watch 40: An Op-Ed A Day Keeps The Bill Collector Away

Hey, GM’s stock price just bounced 11 percent! Are the leaked photos of the production Volt responsible for the vote of confidence? Maybe anticipation of the forthcoming Cruze launch in Paris? Uh, no. The Detroit Free Press reports that the stock bounce came only “after a Wall Street analyst said a $25-billion government loan package for the auto industry would ‘notably reduce bankruptcy risk’ for the automaker.” And isn’t that heartwarming? It turns out that all of the pro-bailout editorials, lobbying and chatter has actually done GM some real good. For the moment. And to keep that ball of feel-good rolling, the Freep has posted a “Q & A” about the bailout, accompanied by a hilariously unironic photo of the Volt concept. Inside, subtly-pro bailout “answers” abound. For example, we learn that the Volt is indeed an important factor in the bailout, as it meets the government goal of topping its direct competitors’ fuel economy by at least 25 percent. “General Motors Corp. could qualify for a loan to help convert the Hamtramck plant to build the Chevrolet Volt — a car that drives its first 40 miles per day without a drop of gas but relies on unproven battery technology. But Ford Motor Co. wouldn’t be able to get a loan that would cover retooling Michigan Truck in Wayne to build relatively conventional, gas-burning small cars.” Asking itself “what would automakers have to give up?” the Freep gets all angsty. “That’s a $25-billion question,” they write. “So far, there’s no sign the industry would have to make additional sacrifices to win approval; automakers contend the 35-m.p.g. standard was their concession. But other aid plans, including the Chrysler bailout, have required cuts and belt-tightening in return.” Not to mention executive bloodletting. Literally.