Gov to get part ownership of gm? =bad deal

redsap05 · 12-02-2008, 06:14 PM

I heard on the news today that gm may offer the government part ownership of Gm. I for one am against that becasue I can see the government forcing gm to drop thinkgs like the camaro, corvette, g8 in order to build more tree hugger friendly vehicles. I certainly hope not but you have admit that it does sound kinda like a bum deal for the performance vehicles at gm. I guess it could have some good points about it. Iam just corious to see how such a think would play out in the long run for everyone. I say just loan them their 12 billion and forget about government ownership. We dont need the gov to dictate what cars we can buy anymore than what they allready do.

Jamestwilliams · 12-02-2008, 06:15 PM

Quote:

Originally Posted by redsap05

I heard on the news today that gm may offer the government part ownership of Gm. I for one am against that becasue I can see the government forcing gm to drop thinkgs like the camaro, corvette, g8 in order to build more tree hugger friendly vehicles. I certainly hope not but you have admit that it does sound kinda like a bum deal for the performance vehicles at gm. I guess it could have some good points about it. Iam just corious to see how such a think would play out in the long run for everyone. I say just loan them their 12 billion and forget about government ownership. We dont need the gov to dictate what cars we can buy anymore than what they allready do.

I don't think the government would be that stupid, besides the gov't would not get a controlling interest.

*The_Blur* · 12-02-2008, 06:19 PM

This isn't a socialist acquisition. It is a good faith stake in a company on the rocks. I'm not worried about the government taking part in GM. I'm worried about the government not taking part in GM.

Mr Twisty · 12-02-2008, 06:23 PM

You don't have to be a controlling interest...If you have 5 billion shares if GM, when you talk, they listen.

kkelloww · 12-02-2008, 06:29 PM

Quote:

Originally Posted by MisterCamaro69

You don't have to be a controlling interest...If you have 5 billion shares if GM, when you talk, they listen.

Especially since they only have a float of about 600 million.

Mr Twisty · 12-02-2008, 06:31 PM

Quote:

Originally Posted by kkelloww

Especially since they only have a float of about 600 million.

ouch, oversold huh?

"Uncle Sam Wants You!
to sell your shares to him."

12-02-2008, 06:38 PM

most of the goverment owns $50000 dollar cars and up so know they can get that bj in there new camaro.

GrnMchin · 12-02-2008, 07:38 PM

Quote:

Originally Posted by The_Blur

This isn't a socialist acquisition. It is a good faith stake in a company on the rocks. I'm not worried about the government taking part in GM. I'm worried about the government not taking part in GM.

Well said. If GM doesn't get help your next GM might say made in China. Not many companies in the US right know can afford to by GM out right and save it. Theirs a lot more foreign interest in buying US companies for pennies on the dollar.

dayvedayve · 12-02-2008, 07:48 PM

I agree. Keep American Car companies in America. When you sell pieces of America to foreign investors we all die a little inside. Be an American and Buy American. I dont care if they drill into a polar bears skull for oil, as long as its on American soil thats all that matters. Its time that we stop supporting terrorist countries by buying their oil. I say we pull everything we got back to America and get started on fixxing this country before we even start giving a crap about saving all the third world countries that burn our flags, kill our soilders, murder our citizens, and talk about hating our guts and how evil America is bt got their damn hands out begging for aid. Funk that. When this country wakes up and realizes that our past foreign policies of being the world's "play nice police" is useless and decides that We are tryng to stop people from fighting a nonstop war that has lasted hundreds of years, then we can say enough is enough. Let them kill themselves off.

jack24 · 12-02-2008, 07:54 PM

Remember that the government would have a stake in the company only while GM is paying on the loan. It looks like the same type of deal the airlines used a few years ago for government loans. Once the loans were paid off the government returned the shares to the company. In that case, the government did not tell the airlines how to operate, where to fly, how much to charge, etc. They just held the stake in the company until the loans were paid back.

If GM can make this work with the loan, it will be transparent to the public that the government had a stake in the company.

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).

headpunter · 12-02-2008, 08:30 PM

i really dont see it playing out well, with the obammunist party in charge it would mean greenies would have an ear in government to twist the arm of the auto industry. we already know congress is a bunch of idiots no matter who is in charge especially considering thier stupid questions during the hearings.
congress will try to pander to who they feel is thier base.

The Great KJ · 12-02-2008, 08:58 PM

Great Winged Cadillacs Are Coming Back

Rodrunner · 12-02-2008, 09:18 PM

Yeah, it's all pretty scary. The green freaks are already pretty much in control, what with the polar bear being endangered even though their numbers have steadily increased over the past two decades. And the global warming hoax, ignoring the fact the earth's average temperature has actually decreased over the last seven years.
Seems we're already headed down the path of fascism. We're all gonna have to stay vigilant!

2SS/RS Black/Black w-Cyber Gray stripes/Auto - ordered 10/18/08 - Polished Aluminums added 12/1/08

12-02-2008, 06:14 PM	#1
redsap05 Drives: 2005 pontiac gto Join Date: Jul 2008 Location: akron oh Posts: 174	Gov to get part ownership of gm? =bad deal I heard on the news today that gm may offer the government part ownership of Gm. I for one am against that becasue I can see the government forcing gm to drop thinkgs like the camaro, corvette, g8 in order to build more tree hugger friendly vehicles. I certainly hope not but you have admit that it does sound kinda like a bum deal for the performance vehicles at gm. I guess it could have some good points about it. Iam just corious to see how such a think would play out in the long run for everyone. I say just loan them their 12 billion and forget about government ownership. We dont need the gov to dictate what cars we can buy anymore than what they allready do.

12-02-2008, 06:19 PM	#3
The_Blur Moderator Drives: 2018 Harley-Davidson Street Bob Join Date: Nov 2007 Location: San Diego Posts: 14,768	This isn't a socialist acquisition. It is a good faith stake in a company on the rocks. I'm not worried about the government taking part in GM. I'm worried about the government not taking part in GM. __________________ RDP Motorsport//GEN5DIY//Cultrag Performance//JPSS//Rodgets Chevrolet// Operation Demon//Buy at Invoice//RACECARWEAR RESPECT ALL CARS. LOVE YOUR OWN. warn 145:159 ban

12-02-2008, 06:23 PM	#4
Mr Twisty Drives: the 2nd amendment home Join Date: May 2008 Location: OK Posts: 14,763	You don't have to be a controlling interest...If you have 5 billion shares if GM, when you talk, they listen. __________________ "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." -- Benjamin Franklin lib·er·ty /ˈlibərdē/ noun 1. the state of being free within society from oppressive restrictions imposed by authority on one's way of life, behavior, or political views

12-02-2008, 06:38 PM	#7
mrpre10der Guest Posts: n/a View My Garage	bj and that camaro .govern that most of the goverment owns $50000 dollar cars and up so know they can get that bj in there new camaro.

12-02-2008, 07:54 PM	#10
jack24 Drives: 2010 2LT Aqua Blue Camaro Join Date: Jul 2008 Location: Charlotte, NC Posts: 92	Remember that the government would have a stake in the company only while GM is paying on the loan. It looks like the same type of deal the airlines used a few years ago for government loans. Once the loans were paid off the government returned the shares to the company. In that case, the government did not tell the airlines how to operate, where to fly, how much to charge, etc. They just held the stake in the company until the loans were paid back. If GM can make this work with the loan, it will be transparent to the public that the government had a stake in the company. __________________ 2G1FC1EV2A9120071 - It's Here!!! ABM / 2LT/RS / White Stripes / Black Interior 1100 - 10/18/08 3000 - 5/27/09 3300 - 6/4/09 3400 - 6/10/09 3800 - 6/19/09 4200 - 7/2/09 5000/6000 - 7/23/09

12-02-2008, 07:48 PM	#9
dayvedayve Drives: 2006 Chevy Avalanche Join Date: Aug 2008 Location: Gulf Coast of Texas Posts: 386	I agree. Keep American Car companies in America. When you sell pieces of America to foreign investors we all die a little inside. Be an American and Buy American. I dont care if they drill into a polar bears skull for oil, as long as its on American soil thats all that matters. Its time that we stop supporting terrorist countries by buying their oil. I say we pull everything we got back to America and get started on fixxing this country before we even start giving a crap about saving all the third world countries that burn our flags, kill our soilders, murder our citizens, and talk about hating our guts and how evil America is bt got their damn hands out begging for aid. Funk that. When this country wakes up and realizes that our past foreign policies of being the world's "play nice police" is useless and decides that We are tryng to stop people from fighting a nonstop war that has lasted hundreds of years, then we can say enough is enough. Let them kill themselves off.

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).

12-02-2008, 08:30 PM	#12
headpunter Not That sad..considering Drives: Man Join Date: Aug 2007 Location: the part of washington the capital forgot about. Posts: 3,745 View My Garage	i really dont see it playing out well, with the obammunist party in charge it would mean greenies would have an ear in government to twist the arm of the auto industry. we already know congress is a bunch of idiots no matter who is in charge especially considering thier stupid questions during the hearings. congress will try to pander to who they feel is thier base. __________________ Stop Whinging

12-02-2008, 08:58 PM	#13
The Great KJ The Great KJ Drives: 09 Challenger R/T & 05 Caravan Join Date: Mar 2008 Location: Longmont Colorado Posts: 481 View My Garage	Great Winged Cadillacs Are Coming Back __________________ Former Cars - 1980 Z28 / 1987 IROC-Z / 1991 Z28

12-02-2008, 09:18 PM	#14
Rodrunner Senior Member Drives: 2010 SS/RS, '06 350Z Join Date: Oct 2008 Location: So. Maryland Posts: 2,326	Yeah, it's all pretty scary. The green freaks are already pretty much in control, what with the polar bear being endangered even though their numbers have steadily increased over the past two decades. And the global warming hoax, ignoring the fact the earth's average temperature has actually decreased over the last seven years. Seems we're already headed down the path of fascism. We're all gonna have to stay vigilant! 2SS/RS Black/Black w-Cyber Gray stripes/Auto - ordered 10/18/08 - Polished Aluminums added 12/1/08 Last edited by Rodrunner; 12-03-2008 at 11:03 AM.