Thread: Government Motors

Originally Posted by nnuut

I just want ALL of our money back from GM, WHEN, HOW!

Relax...its coming. From the article (below) General Motors today $8.1 billion in government loans repaid, five years ahead of schedule and nine months after the troubled auto giant declared bankruptcy, signaling that the auto maker may be on the path to profitability. With ownership of 61 percent of GM's shares, American taxpayers still have billions invested in the auto maker, but analysts say there's reason to believe that investment could now pay off. If the government can sell its stake in GM for more than $45 billion, then taxpayers could actually make a profit.

http://abcnews.go.com/WN/general-mot...4#.TzANRsjZExg

That's the other part you (we) will get back...45 billion...but you don't want it back too soon. Remember, buy low-sell high.

All the worlds major automakers, from Japan to Germany to the US took a major hit in the past year. BUT all (especially GM) are bouncing back now. GM is up nearly 30% in the past few months. In the next year or two, we will likely get all of our money back (maybe more...to pay down some of the deficit). You definitely don't want it now...that would be kind of like riding thru the crash in the C fund of 08-early 09 and then as you're surging from the March 09 low you say by June "I want to cash in now". Good things come to those who wait.

Insightful article from a Michigan reporter on the pro's cons...truths and lies of the US Auto Bailout.

A little bit of a political slant at the start (but not as much as the article's title might imply) but afterwards not so much...gets into the pro's/cons..actually has some positive stuff about George Bush, and keeps it clear. (IMHO)

What Mitt Romney gets wrong about the Detroit automakers

Hey Hugo, I like George Bush! I hope your hero makes it through the year.

Originally Posted by nnuut

Hey Hugo, I like George Bush! I hope your hero makes it through the year.

Clint and BO will be just fine.

"BO". I like that. Has a nice ring to it.

GM posts its highest profit ever: $7.6 billion

Wow.

That's pretty darn good for a company that Mitt wanted to end.
GM turns a record profit on solid sales gains. Good products mean a good future.

More: GM posts its highest profit ever: $7.6 billion - Yahoo! Finance

Unfortunately, we're (U.S. taxpayers) are still down about $25 billion on our investment. The stock price would have to double from here to break even. Could happen, I guess.

I also read that they plan to eliminate pension contributions for the 19,000 workers who still receive them and switch them to 401K contributions, so you must be torn about that. It helps us get our money back faster, but the unions can't be too happy about it.

Originally Posted by tsptalk

Unfortunately, we're (U.S. taxpayers) are still down about $25 billion on our investment. The stock price would have to double from here to break even. Could happen, I guess.

I also read that they plan to eliminate pension contributions for the 19,000 workers who still receive them and switch them to 401K contributions, so you must be torn about that. It helps us get our money back faster, but the unions can't be too happy about it.

The Unions of GM have said- they will do whatever it takes to make sure GM is profitable, that taxpayers get their money back, and that jobs remain. That hasn't changed. The commitment to a successful GM hasn't changed. It's real, and what has to be done, has to be done.

On the flip side- workers expect that once GM pays off it's debts, that GM will share the profits with it's employees in the years ahead.

When GM succeeds, it's employees succeed.

GM builds the best cars in the world. GM employees are the most productive car company employees
in the world.

I thought it was the white collar pension contributions, non union, that were eliminated? Does the $25B include the amount "invested" by the USG and lost in the bankruptcy? Were any secured bondholders forced to lose money like they were for Chrysler? On that matter all I've heard in defense of that governmental action is that they were meanies who deserved to lose money.

Originally Posted by James48843

GM builds the best cars in the world. GM employees are the most productive car company employees in the world.

GM automobiles have gotten better but when you build the BEST cars in the world you generally don't need help to stay afloat. Your product does that for you. Bottom line, years of garbage got them into that mess.

Originally Posted by WorkFE

GM automobiles have gotten better but when you build the BEST cars in the world you generally don't need help to stay afloat. Your product does that for you. Bottom line, years of garbage got them into that mess.

Yep. Like the 1995 Chevy Cavalier I once had the misfortune to own. That experience turned me away from GM. It'll be a long while before I choose to buy GM again.

I'm almost convinced to get a used Ford F250 Super Duty Diesel pickup. I've been in need of a pickup, but I don't like giving up my gas sipping Toyota daily driver.