Bailout Watch 436: GM Withdraws Request for $2B Pre-Bailout Bailout

Robert Farago
by Robert Farago
bailout watch 436 gm withdraws request for 2b pre bailout bailout

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.

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  • SCE to AUX SCE to AUX on Mar 12, 2009

    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.

  • Alex Nigro Alex Nigro on Mar 12, 2009

    So, is this good or not? Can I dream about a Camaro again? I noticed that 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?

  • Stu Sidoti Stu Sidoti on Mar 12, 2009

    @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.

  • Alex Nigro Alex Nigro on Mar 12, 2009

    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...