The US government will own 70% of restructured GM

[thewiseguy]

DETROIT — In better times, many employees of General Motors called their company “Generous Motors” because of its rich benefits.

Now G.M. may stand for something else: Government Motors.

The latest plan for the troubled automaker, which is expected to file for bankruptcy by Monday, calls for the Treasury Department to receive about 70 percent of a restructured G.M.

Including the more than $20 billion that has already been spent to prop up G.M., the government will provide G.M. at least $50 billion to get the company through Chapter 11, people with direct knowledge of the situation said Tuesday. By some estimates in Detroit, tens of billions beyond that amount may be required.

http://www.nytimes.com/2009/05/27/business/27auto.html?_r=1&hp

The UAW will have a 20% stake and the bondholders will have a 10% stake. (Far short of the 60% stake they were demanding)Shareholders will be wiped out.

GM owes the UAW 20 billion dollars and the bondholders 26 billion dollars. For whatever the reason UAW will get twice as much stake in the new GM than the bondholders!?!

[The_Casual_Observer]

1. And they are going to build the cars in China from now on.

So fuck you USA!

[Abecca]

2. I know how you feel

In this economy...soon the government will own everything. Even us.

[BlooInBloo]

3. I feel bad for all of the people who will suffer due to management's horrendous business decisions.

[doc03]

4. Get your Yugo folks

GM is doomed to failure unless they address their legacy costs they can't compete with Toyota and Honda. They should have let them go bankrupt before they dumped $20 billion into a bottomless pit. All this wasted taxpayer money and they go under anyway, what a mess.

[thewiseguy]

5. China is making a last minute bid for Opel.

And Fiat now owns Chrysler...

We are not in a good position right now..

[doc03]

7. My next car will be a Ford

they must be doing something right. Why the hell is my tax money being used bailout bad management?

[Mythsaje]

6. Oooh... When do we start getting our shareholder checks?

:evilgrin:

[doc03]

8. Right after you get your free Corvette n/t

[Mythsaje]

9. Can I skip the Corvette? I don't like them anyway. n/t

[AdHocSolver]

10. The government won't own jacksh#t.

Corporate stock shares are worth only as much as you can sell them for. If you can't find someone to buy your shares, you hold worthless paper.

If a person buys a house for $300,000, decides to sell it, but can't find any buyers, he no longer "owns" a $300,000 house.

The only control over a corporation is exercised by the top executives. These insiders run the corporation like a personal fiefdom. The corporate model that counts is Enron.

The only "owner" that counts is the one that makes the decisions. If the government doesn't dictate GM policy, it "owns" nothing.