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GM "Bailout"
Dec. 4th, 2008 10:22 amI've been on record on this blog as supporting a "bailout" of General Motors. I use "bailout" in quotes because they are asking for loans, not, as with the financial sector, "just give us a ton of cash now."
If you detect a note of irritation in the above, good. Unlike the bank bailout, GM was required to come up with a plan to actually use the money, and unlike the bank bailout, GM got yelled at for flying to Congress in private jets. There's more than a hint of double-standard there.
At any rate, GM's plan is available here for your reading pleasure. It's a summary with a link to the detailed plan. Some key points:
1) The plan works with GM auto sales of 12 million units in 2009 - below the record low 13.8 million units of 2008.
2) GM has already reduced North American costs drastically, from $39 billion in 2004 to $30 billion in 2008. Cost cutting already implemented will pull this down to $23 billion by 2012.
3) Three of the last four Car/Truck of the Year awards in the United States were awarded to GM products—the Saturn Aura, Chevrolet Silverado, and Chevrolet Malibu. In short, quality problems are resolved.
4) Hybrid development is ongoing, with the world's first production plug-in hybrid due to roll out in 2010.
Yes, I am biased. However, GM has done everything requested of it, and a hell of a lot more then the financial sector did. They're also asking for less money - $4 billion now, another $8 over 2009, and option for $6 billion if sales go below 10.5 million vehicles. So, give them the money.
If you detect a note of irritation in the above, good. Unlike the bank bailout, GM was required to come up with a plan to actually use the money, and unlike the bank bailout, GM got yelled at for flying to Congress in private jets. There's more than a hint of double-standard there.
At any rate, GM's plan is available here for your reading pleasure. It's a summary with a link to the detailed plan. Some key points:
1) The plan works with GM auto sales of 12 million units in 2009 - below the record low 13.8 million units of 2008.
2) GM has already reduced North American costs drastically, from $39 billion in 2004 to $30 billion in 2008. Cost cutting already implemented will pull this down to $23 billion by 2012.
3) Three of the last four Car/Truck of the Year awards in the United States were awarded to GM products—the Saturn Aura, Chevrolet Silverado, and Chevrolet Malibu. In short, quality problems are resolved.
4) Hybrid development is ongoing, with the world's first production plug-in hybrid due to roll out in 2010.
Yes, I am biased. However, GM has done everything requested of it, and a hell of a lot more then the financial sector did. They're also asking for less money - $4 billion now, another $8 over 2009, and option for $6 billion if sales go below 10.5 million vehicles. So, give them the money.
