Bailout Watch 573: GM Counting on $10 Billion DOE Loan
Old GM ran afoul of the requirements for the original bailout ($25 billion worth of Department of Energy retooling loans). Something about a DOE requirement that the recipients be running a viable business. Now that it’s emerged from bankruptcy with taxpayer assistance, “New GM” wants . . . taxpayer assistance. In fact, it doesn’t just want the money. It’s counting on it. According to The Wall Street Journal, GM Treasurer Walter Borst told a congressional oversight panel that securing $10 billion in no-to-low interest, twenty-five year DOE retooling loans was “a component of GM’s shorter-term liquidity assumptions.” C’mon. Really? “He pointed to those funds as one of the sources of liquidity GM is factoring into its plans in order to meet its capital requirements in the future.” Later, Borst decided to added [what he thought was] a suitable qualifier: “We’re not dependent on them.” Join us next time, for other phrases that you might hear from a drug addict.
These guys are crack whores in business suits. Anything to get the next fix...........
You have to appreciate the depths of GM's inbred culture when you read today's article in USA Today by Chris Woodyard: General Motors' fuel-cell work may be in dangerBurns, 58, says he decided to retire to give the new GM fresh research leadership under Alan Taub, 54, who, he says, will continue with the same direction.(Emphasis added) Old [s]wine[/s]whine, new bottle.
There isn't any money hidden anywhere in any bills. Obama said there will be no more bailout money (until that changes it's the truth). In terms of the DOE loans members of congress (not obama) are trying to pass legislation that would double the amount available, however (luckily) it doesn't seem to have support to even make it out of the house. And even if technically GM meets the requirements to qualify for the DOE loans now, it isn't right for them to receive them, They have been given enough of an advantage. Thier (GM's) biggest problem is that they basically stopped R&D and retooling efforts in 2007 (except for the Volt), while they and Ford were burning through similar amounts of $, Ford was retooling factories and readying to bring multiple new cars to market and refreshing and improving existing models, while GM was just keeping the lights on basically. GM is now two years behind (and in the Automaker world that is a lifetime).
The government is going to spend us out of debt so just relax and let the administration open their wallet to success - pennies from heaven my a** those are billions of dollars raining down on the new gm - my great grandchildren can pick up the tab.