GM Suspends Political Donations. For Now.
The Detroit News reports that GM’s Political Action Committee has temporarily halted political donations. And you might be tempted to think that this is a move of propriety, so as to not run afoul of Obama’s standards on lobbying by TARP recipients. But you’d be wrong. “As we have done in previous years following an active election cycle, we are holding off on making contributions in the first quarter as we replenish employee contributions,” says GM’s Greg Martin. But this isn’t a normally scheduled stop for GM’s busy DC operatives. According to the DetN, it’s the first such halt in six years, but “GM, like the other automakers, has cut its salaried ranks by thousands of workers, losing many donors to its political action committee.” And let’s not forget that those who are still there are being paid by federal bailout money. A look at GM PAC’s 2008 contributions and expenditures helps explain why a bailout happened at all (they gave money to everybody), but a few interesting questions also arise. Like why did Bob “Crock of Shit” Lutz donate over ten times as much as CEO Rick Wagoner and other executives? And how are so many of those Detroit-hatin’ southern Republicans on the payroll? Probably because the old standbys no longer have the clout they once did. Besides, now that the public is invested in GM, the chances that congress will cut GM loose to go bankrupt are slim.
More by Edward Niedermeyer
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chuckR, GMPAC is not part of the employer; corporations are forbidden to make political donations. Curiously, though, many GM executives find GMPAC a splendid way for them to participate as private citizens in the political auction, er, I mean process. No quid pro quo here. Move along.
" ... how are so many of those Detroit-hatin’ southern Republicans on the payroll" Because they are Republicans, and big businesses usually think that Republicans are their friends.
50merc - re: GMPAC - yeah, there's a wall of separation between GM and the politicos at least as strong as wet toilet paper.... OK, OK, I'm movin' already