The stock deal just makes it official. As GM's largest secured debtholder, the government has owned them since last December.

However, IMO this is political kryptonite. I expect them to sell out as soon as it looks the economy is recovering.

 

89 % owned by the union and the government

I think I just became a Ford fan..

 

Enjoy your Mustang.

 

Which part?

 

I will likely get a Camaro..and I have always wanted a Corvette. I am just scared what we will get from GM in the future.

 

You'll get Camaros and Corvettes. And hopefully a lot of other desirable cars. CAFE is already taking care of the greening of the auto industry and pushing green initiatives much further will only have negative effect.

The goal is to make GM a profitable automaker. To do that, GM will have to build what the public wants and build cars that are competitive with Ford and the imports. GM fuel economy already compares favorably to the competition and there are even more efficient vehicles right around the corner with the Cruze, Volt, and Beat/Spark. The new Equinox and Terrain are class leading in fuel economy. Their highway mileage is better than some small sedans! GM are industry leaders in direct injection and could be in plug-in technology with Voltec as well.

If the government were to dictate to GM that they could only produce 1.0 liter microcars and hybrids, then they might as well have just let them go to liquidation. They'd never return to profitability.

 

wouldnt that mean the gov't( THE TAXPAYER) is going to make a killing on GM stock if/when the company turns around and the value in shares go up..?

 

GMs proposal is to turn their debt to the government into equity in the company. When GM recovers, the government could then sell their equity in GM on the open market to recoup the loans they've made.

GM is trying to make the same deal with the UAW and other creditors.

 

1fastdog slams one out of the park!



Nicely played!

 

Exactly. The greenies will be able to influence GM product thrusts for a while... but only to some extent. Ultimately Obama won't want to be "left holding the bag" of a car company that went under while trying to sell cars few actually want.

The changes going on are scary and they are painful to watch unfold. But people should keep some perspective here. Our Gov't and the UAW, right now, are the only key players keeping GM alive. Without them and their support, however it comes in the short term, there'd be no GM at all. At least there's clearly a path out of the jungle now, for GM.

 

After looking at everything that has been going on politically................ that some of you would believe that the government would not look at the "ownership" of GM, as an opportunity to push their political agenda........... puzzling at best.

Remember that everyone had hoped that the UAW would end up out of the picture, whether GM had to declare BK or not................. and that it is now quite obvious that they will still be roped around GM's neck, even a post BK GM.

That is politics, and nothing but.

Does anyone here think that GM would not have wanted to remake the G8 into a Chevy???

I think there have been alot of "suggestions," behind closed doors. Suggestions about letting V8 models, and sporty models, just go away. Closing Pontiac, just makes it look like a "viability" solution, instead of a political one.

Lets wait and see what the final look of GMC ends up being. That is one that will be interesting, to say the least.

Do I trust the government to do right by GM, and not let politics lead the way?? Hell no !!!! From reading these threads, I am far from the only one who thinks this way.

Disclaimer: Sorry if this rambles a bit. I am sick, and my brain really isn't firing on "all 8," if you know what I mean.

 

Because it's bad business. And if they're going to push bad business on GM, they should have just liquidated them. If they're going to "Push Their Agenda" why not put a 50 MPG CAFE in 5 years on the table right now? That would get GM, Ford and Dodge all at the same time. It simply makes no sense to specifically make a business (that owes you a LOT of money) noncompetitive to further your agenda.

I'm not sure where everyone keeps getting the idea that GM can cut and run from the UAW even in bankruptcy. And even if a judge did allow them to walk away, the taxpayer would then be picking up all of their retiree benefits through the PBGC. It's a more complex issue than "UAW, you're fired, go home. No money for you."

I'm sure they'd like to, but it's not practical. It's not bringing in big profits at current volume and is a little on the pricey end for a Chevy. They also can't call it Impala if it's not built at Oshawa. I'd assume we'll still see a RWD Chevy something from Oshawa in 2012.

Other than the G8 GT, what V8 models are going away? It was announced months ago that the Solstice/Sky wouldn't continue and Kappa was "one and done" - too expensive to be practical. If you're going to make a "political statement" why not get rid of GMC right now? How many V8s did they sell last year compared to Pontiac?

If it's a profitable division, it will probably look pretty darn similar since a return to profitability is the goal.

Undoubtedly, but I still don't think that there's any solid evidence that any heavy outside tampering is being made to GM's product plan. GM has had too many models from to many divisions sold through too many dealers for a long time now. It hurts and its ugly, but the other option was to turn out the lights in December and call it a day.

 

Exactly. I think it's going to partially be up to ---oh, I don't know --- people like us, in forums like these, to keep a watchful eye for any political shenanigans regarding this matter. I expect plenty.

 

I don't exactly know what to think anymore. I think the government wants to make GM profitable and get taxpayer money back, to show that it saved jobs and shut up the critics.

I DO agree that the government shouldn't be playing roulette in private businesses, but ladies and gentlemen, lets face it...without the federal government, GM would be getting liquidated right now.

If cars like the Corvette and Camaro prove profitable, I don't think products like that would be axed from a future GM. At the same point, decisions like not continuing the G8 as a Chevy puzzle and sadden me. I know they want less models and overlap, but at the same point the G8 truly is one of the best cars GM makes right now, and the only one besides the Camaro I seriously would like to own.

The rest of it is either to Vanilla (Malibu, crossovers etc.) or expensive (Corvette, CTS)

 

http://uk.reuters.com/article/motori...53Q68420090427

So much for all the speculated fear of an Orwellian future...