GM Playing a Shell Game with the Numbers

GM Playing a Shell Game with the Numbers

PostBy: Richard S. On: Wed Apr 28, 2010 1:32 pm

When I first heard this commercial I figured there was something fishy. I'm sure everyone has seen the commercials about how they have paid back the loans but he's only referring to a very small portion of the overall package. The US and Canadian governments now own 72.5% of GM, the money to make that purchase has not been returned, we still own GM... ... nnellatest

But when Mr. Whitacre says GM has paid back the bailout money in full, he means not the entire $49.5 billion--the loan and the equity. In fact, he avoids all mention of that figure in his column. He means only the $6.7 billion loan amount.

While paying back the loan of $6.7 billion would be great that isn't the case either. That's being paid back with another much larger loan:

As it turns out, the Obama administration put $13.4 billion of the aid money as "working capital" in an escrow account when the company was in bankruptcy. The company is using this escrow money--government money--to pay back the government loan.

To top it off they are seeking another loan from the DOE:

[GM]..has applied to the Department of Energy for $10 billion in low (5%) interest loan to retool its plants to meet the government's tougher new CAFÉ (Corporate Average Fuel Economy) standards. However, giving GM more taxpayer money on top of the existing bailout would have been a political disaster for the Obama administration and a PR debacle for the company. Paying back the small bailout loan makes the new--and bigger--DOE loan much more feasible.
Richard S.
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Re: GM Playing a Shell Game with the Numbers

PostBy: franco b On: Wed Apr 28, 2010 4:04 pm

More lies and double talk.
franco b
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Re: GM Playing a Shell Game with the Numbers

PostBy: jpete On: Wed Apr 28, 2010 5:06 pm

I thought everyone knew this?

It doesn't even have the whiff of truth. How did they make enough money to repay all the loans with interest in a down market?
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Re: GM Playing a Shell Game with the Numbers

PostBy: Black_And_Blue On: Wed Apr 28, 2010 5:21 pm

And the union legacy costs will be the burden of US taxpayers......
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