Let GM go Bankrupt

People who should not be able to get a loan not being able to get a loan is not a problem, it is fixing a problem. GM needs to be profitable with paying customers, not cooking the books "selling" product to people who likely will never pay.

I have no slightest idea how you took that meaning from my post.

Do you?

Allowing credit worthy customers to have access to loans is not cooking the books!!!!!!!

It is an amazing leap to claims that customers who under any sane standard of granting loans would get those loans now for some strange reason will never pay GM back.

We are talking specifically about non credit worthy would be customers.

That may be the spin of the Fox network types however as far as I am aware GM had a long history of making money on their finance arm not losing money.

Hawkeye it would seem that GM is coming along fine and that is bad bad for the anti Obama people so let see if we can stop or slow it down.

Cooking the book charges and interfering with loaning money to car buyers something that car companies had been doing since the model T and earning a large percent of their incomes by so doing.
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DETROIT " General Motors on Monday said it earned $865 million in the first quarter, its first profit since 2007, as its revenue increased 40 percent.

G.M. said it had positive cash flow of $1 billion for the quarter and a total of $35.7 billion in cash and marketable securities on hand as of March 31. Revenue was $31.5 billion, compared with $22.4 billion for the first quarter of 2009, before the company filed for bankruptcy protection.

The company earned $1.2 billion before interest and taxes in North America, the region where G.M. had sustained most of its losses in recent years. In the fourth quarter, G.M. lost $3.4 billion in North America.

Worldwide, G.M. earned $1.7 billion before interest and taxes.

European operations lost $500 million.

“We’re pleased with our first quarter performance, in particular achieving profitability,” Christopher P. Liddell, the chief financial officer, said in a statement. “In North America we are adding production to keep up with strong demand for new products in our four brands. We’re also steadily growing in emerging markets, keeping our costs under control, generating positive cash flow and maintaining a strong balance sheet.”

“These are all important steps as we lay the foundation for a successful G.M.” he said.

The overall profit for the first quarter compares with a loss of $6 billion by the old G.M. a year earlier.

The news comes several weeks after G.M. repaid the balance of its $8.2 billion loans from the American and Canadian governments. G.M. aired commercials featuring its chief executive, Edward E. Whitacre Jr., highlighting the loan repayment, but critics, including some members of Congress, accused the company of misleading consumers into thinking all $50 billion given to the company had been repaid.

The Treasury Department still owns 61 percent of G.M., a stake it received in exchange for most of the money it gave to the carmaker. Taxpayers can recoup that money only through the sale of that stock.

G.M. intends to have a public stock offering as soon as the fourth quarter of this year. Federal officials now project the Treasury will recover most of the money given to G.M. and argue that any loss that results was less costly than the damage that a collapse of the company would have inflicted on the country’s economy.

In preparation for that action, executives are considering reentering the auto financing business, a move that could increase sales by expanding the pool of consumers who can qualify for attractive loans. G.M. sold control of its former financing arm, G.M.A.C. Financial Services, in 2006. G.M.A.C. is now known as Ally Financial and also handles financing for Chrysler.

G.M. has been able to improve its performance even as industry sales remain weak largely because it shed a significant amount of its debt during the six weeks it spent in bankruptcy protection starting in June 2009.

From July to December, G.M. lost $4.3 billion, mostly because of the cost of settling with the United Automobile Workers union over retiree health benefits, but it had positive cash flow of $1 billion. Prior to bankruptcy, G.M. was rapidly depleting its cash reserves and could have run out of money within months had the government not stepped in.

Likewise, Chrysler, which filed for Chapter 11 protection a month sooner than G.M., is showing early signs of revival. Chrysler lost $197 million in the first quarter, though it was profitable on an operating basis. Company officials said last week that the recovery is progressing faster than they had forecast and projected an operating profit for the full year, as well.

G.M. and Chrysler “have been given the unique opportunity to start over and they’re seizing it with both hands,” Ron Bloom, an adviser to President Obama who guided the administration’s auto industry task force, said during a speech in Michigan last week.

Meanwhile, the Ford Motor Company, which managed to avoid bankruptcy, recently reported a first-quarter profit of $2.1 billion.


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Can you spell "taxpayer funded bailout money?"

I will be buying nothing from Government Motors. I've already been forced to pay them for nothing anyway.

Can you spell being pay back with interest in the near future?

Damn do you not hate it when a bail out work just fine and allow at least some manufacturing jobs to be keep in the US!

I sure hope your Toyota does not run away on you and drive your hard head into a concrete wall.

You want them to fail, because you want Obama and the Democrat to fail. And no other reason.

Which is ******* pathetic, Okie. It's the sign of a hateful person.

Cycloptichorn

Supporting Obama and his ilk...

Your head must be full of concrete if you think TARP funds used
to pay back TARP funds loaned is remotely helpful to anyone.

You aren't very good with math are you squirt?

If a billion dollars of Tarp money is loaned out and then that billion dollars is paid back, how much does it cost the taxpayer?

You are a little dense so I will go slower just for you parasite.

A billion dollars was loaned and they used an [url=GM repays loan to US… actually, not really (Update)]additional larger loan to pay back the original loan with interest[/url].

How much does it cost the taxpayer?

A billion dollars was loaned and they used an additional larger loan to pay back the original loan with interest.

You get your bullshit from the fox network I assume.

Sorry GM will in the near future go public once more and the new shareholders will buy out the taxpayers with interest.

One other big reason, that being their policies are crap and terrible for the country, therefore I care more about the country than Lord Obama and his lousy policies.


Its about a person that loves this country and responsible policies more than liberalism and stupidity.

There you go jumping to conclusions about stuff you know nothing about, which is not unusual for you. I've never owned a Toyota and I probably never will. I used to be General Motors 100% until about 34 years ago, when I began to buy Fords, until now when I am now altogether Ford. I have never owned an automobile made by a foreign based company. If you want to blame anyone for driving manufacturing jobs overseas, blame your liberal world of stupidity, which includes unions, over-regulation, over taxation, and an adversarial relationship to business by your beloved government.

If you would open your mind to something besides what is fed you by the liberal media, you might actually know something too, Bill.

Therefore, by your own admission, the only thing you can write about here is your own navel.

Are you in your right mind, pom? Seriously, I have serious doubts. I write an honest response about some simple facts, and you respond with a reference to the "navel." What kind of a goofball are you?