GM Email...Anyone else get this?

[ArkySS]

I honestly don't get the complaining from people on a forum board about a GM car......that they bought.....but I am but a simple minded man. I hate all of the bailouts too but I am not going to go to a Merrill Lynch board and complain about their bailout when I am a customer (not necessarily by choice).

[binlow84]

Originally Posted by The_Blur

The government has decided to take a stake in the company as payment. Due to GM's competitive product line, the government believes that GM stock will return that investment with an initial public offering (IPO) and subsequent sales of government-owned GM stock over a period of time.

To expand on this, the Canadian and US governments gave GM a total of ~$61 billion. Of this $61 billion some ~$1.5 billion (of a total 9 billion) from the Canadian government and ~$7 billion of the $52 billion from the US government were considered as loans and required to be payed back in about 5 years time. the remaining "bail out," some 52 billion I believe was converted into shares of stock. Once GM decides it is stable enough to go public once again the Canadian and US governments expect to regain the remainder of their investment back by selling their shares.

So yes, GM has paid off the full value of the government loans, however the government still has considerable investment tied up in the company. Still, it is a huge stride forward IMO.

[Jarhead]

Yup. Got it.

[The_Blur]

Originally Posted by Indy2010

Unfortunately, I believe this has happened across the board, not just the automotive industry. Cheap labor has forced all industries to re-evaluate their labor costs. Most companies that I am familiar with are trying to reduce the workforce and maintain production/capacity/capability by being more efficient with what they have. What we really need is for China to become a nation of consumers instead of producers (they are really lopsided).

It's happening everywhere in every industry, and that makes it hard for so many of us to get jobs. It's good to be on the same page.

Originally Posted by ArkySS

I honestly don't get the complaining from people on a forum board about a GM car......that they bought.....but I am but a simple minded man. I hate all of the bailouts too but I am not going to go to a Merrill Lynch board and complain about their bailout when I am a customer (not necessarily by choice).

It already happened, and people like to look back at it. If it didn't happen, who knows how things could have turned out? It doesn't matter. It's already happened. Let's celebrate that GM has worked to pay off the legally required loan amount 5 years early. That's amazing!

[Unfair]

Originally Posted by The_Blur

The government has decided to take a stake in the company as payment. Due to GM's competitive product line, the government believes that GM stock will return that investment with an initial public offering (IPO) and subsequent sales of government-owned GM stock over a period of time.

Ok so the loan they paid back is all they had to pay back and the rest is just gov. stock the gov. keeps?

[ArkySS]

All I know and care is that when I mash the pedal I smile EVERY time...and I mash it often!

[alrox]

Nothing regarding GM's financials is good news. They lose money selling cars still. The business is still unprofitable.

You should notice how short all those 'feel good' articles are on details. They did not get this money from selling cars. If you knew the details you would realize the massive fraud that is Standard Operation Procedure of the US government and *everyone* that accepts money from them is a player in the fraud and deception.

[The_Blur]

Originally Posted by Unfair

Ok so the loan they paid back is all they had to pay back and the rest is just gov. stock the gov. keeps?

When the company goes public again, the government will start selling stock. In order to avoid a substantial price drop, the likely decision will be to sell GM stock over a period of time. This way, the government will get its money back.

[Rcfiddy1]

Anyone here own GM stock before they went bankrupt? How do you feel about them selling stocks again while your out x amount for your shares?

[OHIOSS]

I got this e-mail from GM. I haven't heard anything in the news about GM paying back their loan. Just curious if this is for real and if anyone has gotten this:

Dear Russ,
We value and appreciate your loyalty more than anything. We are proud to announce we have repaid our government loan – in full, with interest, five years ahead of the original schedule. We realize we still have more to do. Our goal is to exceed every expectation you've set for us. We're designing, building and selling the best cars and trucks in the world. Like the award-winning Chevy Malibu, the all-new Buick LaCrosse, the versatile Cadillac CTS Sport Wagon and the innovative GMC Terrain, just to name a few. As we move into the future, we're thankful to have loyal owners like you. We invite you to learn more about the new GM and join our community, by visiting gm.com. And once again, thank you for your support.


Susan E. Docherty
Vice President, U.S. Marketing

[iPODFAN11]

http://content.usatoday.com/communit...-we-all-know/1

Yes, it is for real. And 5 years ahead of schedule.

[elcamino85]

http://www.camaro5.com/forums/showthread.php?t=78865

[H82GOSLO]

Just got mine today

[DGthe3]

Originally Posted by Indy2010

I understand what you are saying and that point was griped about the most when the loans / stock purchases were approved. I personnally had a very big problem with it. It is very shady if not done correctly (the potential is there to defraud the taxpayer and will most likely happen); but it can be done fairly as long as the government sells the stock for what it paid plus what the money would have brought with interest. Anything less is equal to taxpayers subsidizing GM, a private company. As some others have noted, the taxpayer could actually benefit, but I think it is highly unlikely in this case.

How can the US and Canadian government sell back stock for what they paid for it when they didn't exactly pay for it? Or are you saying that they need dictate the selling price on what would be a publicly traded company?

Anyway, the tax payers have already came out ahead on the loans made to General Motors Company. The total value returned depends on the value of MLC and the selling price of the new GM stock. If GM is in as good of shape as they appear, then we should stand to make money when the stock is sold.

Originally Posted by Indy2010

The loss of jobs and layoffs would have been temporary or short term. If there is a demand for a certain number of cars, the demand does not change because a company went out of business. What would have happened is the other car company sales would have increased, causing them to need to expand and hire. Who would they have hired? Most likely the same people who got layed off because they have the experience and would not need as much investment / training. Sure, it would have taken time for the markets to adjust, but adjust they would have. Ford probably would have been the ultimate winner (in the long run). Would there have been a price for the adjustment? Sure. Catastrophe? No.

The danger wasn't explicitly the loss of GM's manufacturing, is the complete collapse of the suppliers in North America. Many suppliers supply to GM, Ford, and Chrysler as well as the transplants from other manufacturers. According to most industry experts the loss of GM and Chrysler would cripple these suppliers, and by crippling the suppliers end entire industry collapses. Ford understood that, as did Toyota, and every other major automaker.

Originally Posted by alrox

Nothing regarding GM's financials is good news. They lose money selling cars still. The business is still unprofitable.

You should notice how short all those 'feel good' articles are on details. They did not get this money from selling cars. If you knew the details you would realize the massive fraud that is Standard Operation Procedure of the US government and *everyone* that accepts money from them is a player in the fraud and deception.

You've seen their Q1 2010 numbers? Care to share them with us? And how did their costs go up in the last 6 months? Last I checked, their costs went down as of January 1, 2010 and they were making money selling cars. Sure, they lost money by doing things like paying out billions to their VEBA fund and other large expenses