Chevrolet Corvette Stingray C7 Forum - View Single Post - Gov to get part ownership of gm? =bad deal

fastball · 12-02-2008, 08:15 PM

Different situation but same concept for the following:

Back in the late 1990s, the Cleveland Public School District was so broke it was placed under the financial guardianship of the State of Ohio untill all the debts were paid and the finances were restored. Once that occured, the State transfered financial responsibility back to the Cleveland City Schools.

I do not forsee the govt owning part of GM as a troubling sign of communism or totalitarianism. It is just another example of what pretty much goes on every day, where any part of the American govt takes financial guardianship of a smaller entity of the system untill the finances are straighted out.

Any lawyers out there? You could probably do a better job of explaining guardianship than I can, but that's in essence what the federal government of the United States would be: a legal guardian of finances for General Motors.

No, they would not be dictating to Bob Lutz about which cars should be getting the Volt's drivetrain, or if they should quit making V8s, or giving advice to designers how to make the front end of the next generation CTS. They would just be watching the federal loan, how it's being applied to cover GM debts, and how GM pays it off. Once it's done, the feds go back their way and GM goes their (hopefully not the same) way (they've been going for 20 years).

12-02-2008, 08:15 PM	#11
fastball Banned Drives: 2017 Camaro 2SS 6MT Join Date: Aug 2006 Location: Cleveland, Ohio Posts: 4,361	Different situation but same concept for the following: Back in the late 1990s, the Cleveland Public School District was so broke it was placed under the financial guardianship of the State of Ohio untill all the debts were paid and the finances were restored. Once that occured, the State transfered financial responsibility back to the Cleveland City Schools. I do not forsee the govt owning part of GM as a troubling sign of communism or totalitarianism. It is just another example of what pretty much goes on every day, where any part of the American govt takes financial guardianship of a smaller entity of the system untill the finances are straighted out. Any lawyers out there? You could probably do a better job of explaining guardianship than I can, but that's in essence what the federal government of the United States would be: a legal guardian of finances for General Motors. No, they would not be dictating to Bob Lutz about which cars should be getting the Volt's drivetrain, or if they should quit making V8s, or giving advice to designers how to make the front end of the next generation CTS. They would just be watching the federal loan, how it's being applied to cover GM debts, and how GM pays it off. Once it's done, the feds go back their way and GM goes their (hopefully not the same) way (they've been going for 20 years).