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G.M. Speeds Hat in Hand to Treasury (http://www.nytimes.com/2008/10/28/business/28sorkin.html?_r=1&bl&ex=1225339200&en=5f15e7dc1d0b8032&ei=5087%0A&oref=slogin)

http://www.cleanmpg.com/photos/data/501/textmessagedriving.jpgANDREW ROSS SORKIN - The New York Times - Oct 27, 2008

They really need to make a case that they are creditworthy -- Ed.

Is General Motors too big to fail?

Rick Wagoner would sure like us to think so. Mr. Wagoner, the chief executive of the ailing automotive giant, spent most of Friday down in Washington, pressing his case for a government rescue.

Yes, G.M. wants our tax dollars too. Banks are getting billions. Insurance companies are getting billions. Why not G.M.?

The answer to that question depends on a few crucial points that few people seem willing to talk about, at least publicly: jobs, wages and the United Auto Workers.

Mr. Wagoner hopes that one way or another that Washington will help finance a merger of G.M. and Chrysler, salvaging the companies, their employees’ livelihoods and his own legacy. He is painting G.M. as too big, too important and too interconnected to fail without dire consequences for the entire economy.

G.M., the line goes, is sort of an automotive Lehman Brothers — and we all know what happened when the government let Lehman go. Mr. Wagoner seems to be trying to whip up enough panic to make government intervention politically palatable.


G.M. and Chrysler need about $10 billion to make a deal work, and Mr. Wagoner would like the government either to inject capital into the company directly, give it a loan or let G.M. sell troubled financial assets to the Treasury. … http://www.nytimes.com/2008/10/28/business/28sorkin.html?_r=1&bl&ex=1225339200&en=5f15e7dc1d0b8032&ei=5087%0A&oref=slogin

good luck getting a loan GM. How about first proving that you are worthy of one by telling us that you aren't going to spend it on suv's and the like and you guarantee to spend it on getting us vehicles that get 50+mpg. Then I say you should get a loan not a handout.

They're asking for a loan not a handout, but they need safeguards to make sure the money is going to R&D and manufacturing and distribution and not to the fatcats pockets.

We need something that ensures they won't spend the money R&Ding some new hybird SUV that noone wants or can even afford to purchase. Oh don't forget about the Chevy silverado hybrid.
and not to the fatcats pockets.

yeah GM will be going on some fancy retreat like AIG or whoever it was.

I think GM should just be allowed to shrink down to some sustainable level. If all they want to do is make huge hybrid SUVs, then just let the company shrink until it's sustainable. There will always be people that will want guzzler-hulks -- just not as many as before. If it means GM has to be 1/10 the size it used to be, so be it. That's how a free market economy works.

I agree, Indigo.

Unfortunately, I watch sports on TV. Every other add is from GM or Ford. All are trying to sell SUV's or pick ups. I do not want my tax money spent that way.

Or for $1 million trips to Africa.

Frank

So, tell me please someone. What will happen to the pensions of the UAW pensioneers if GM fails?

You didn't get the memo? If you like sports you need a truck just to get through the day, what with sloshing through the mud, conquering virgin terrain or simply splashing lots of water in the air. Don't forget you need to then tow your motorsports equipment too, all before coming home to watch your sports program. :D

They're asking for a loan not a handout, but they need safeguards to make sure the money is going to R&D and manufacturing and distribution and not to the fatcats pockets.

Give them the loan, but there should be some guarantees.

1. What Kacey said above.
2. A salary freeze for all executive compensation, including bonuses.

I also like what Indigo said. If GM wants to produce small cars that get good MPG in other counties and not the US, then it will loose market share to Toyota and Honda. At some point GM will be right sized.