



I. GM Expands Texas Hiring




Arlington Plant
Arlington, Texas SUV plant. [Image Source: GM]






II. Bailout Benefits Finally Being Realized?


GM data center workers




Source: GM

Comments     Threshold


Too early to know...
By topkill on 9/7/2012 7:52:00 PM , Rating: 2

I'm sorry, but it is too early to tell if taxpayers will lose anything on this whole thing or not. How much gets paid back, when, what they sale any portion the gov't now owns for, etc. will determine whether or not we actually "lose" money on this.

It also ignores potential tax revenue from preserved jobs and an industry which may have totally gone away and the potential effect on the economy.

When people make claims like this, they are not intelligent enough to even understand the question....or else they have an agenda.

The VALID question is whether or not the industry would have recovered and been healthier in the long run with a more traditional bailout. Where they could have had a free hand to totally throw out Unions and change wage scales, etc. But the correlated question then would be whether or not the industry would have survived for US automakers if they DID go down this path.

Presidents Bush and Obama didn't want to test the theory to see if they survived. I think they were right on this one.

RE: Too early to know...
By topkill on 9/7/2012 7:53:36 PM , Rating: 2
"a more traditional bailout."

Sorry, I meant "a more traditional bankruptcy"

RE: Too early to know...
By inperfectdarkness on 9/8/2012 2:39:37 AM , Rating: 5
Those who claim the bailouts were a success typically only view the continued existence of GM as proof positive that it worked. That's like saying welfare works because you collect it.

The reality is, automobiles are a market whose demand is very stable. Eliminating one of the top manufacturers of automobiles would create a large vacuum within the industry--one which would quickly rushed to be filled by other existing competitors. The net result would be increased automotive production by Toyota, Nissan, Honda, BMW, VW, Audi, Hyundai and others. As we have already seen within the past 10+ years, these large foreign firms have found it more beneficial to create plants here in the US, rather than seeking to place them in China or Mexico.

So what would have happened without bailouts? UAW would have died completely. GM would have been broken into smaller pieces and sold to creditors who would have in turn sold those pieces to other existing auto firms. 90% of the existing workforce "endangered" by this bankruptcy would find employment under new management in a different company--doing virtually the same type of work.

The US has decided to elect leaders who have collectively decreed that it is better to allow their government to be insolvent--rather than mis-managed corporations. The problem is, corporations can effectively wipe out their debt by declaring bankruptcy and closing their doors. Governments can't do that.

There is no difference between bailing out a corporation due to financial insolvency--and bailing out an individual because they chose to spend above their means.

RE: Too early to know...
By Mathos on 9/8/12, Rating: 0
RE: Too early to know...
By tng on 9/8/2012 10:14:21 AM , Rating: 1
I always love the KILL THE UAW People...
I don't think that is what people wanted. It became obvious that the UAW had way to much say in how the company was being ran and had basically turned GM into a welfare state for it's members.

A bankruptcy would have allowed GM management to bring the company back to an acceptable stance with the UAW.

If GM disappeared completely, that would have left millions of vehicles out there that would need service and parts. I, for one, have no doubt that this would have spawned the opportunity for thousands of small businesses to fill the gap much more efficiently and would have arguably been better for the economy as well.

RE: Too early to know...
By TSS on 9/8/2012 5:26:41 PM , Rating: 2
Explain to me how a union is going to protect you from you employer when the union is the employer?

UAW does not equal Unions. Kill the UAW, not unions.

RE: Too early to know...
By Ringold on 9/9/2012 4:10:22 AM , Rating: 4
I'm not sure why everyone always assumes a GM bankruptcy would've meant destruction of GM as an entity with a stop on production, leading to dismemberment.

Airlines go through this all the time. They usually keep flying with zero disruption to service or clients, keep buying the goods and services that go in to its operation, even keep the ball rolling on future acquisition plans in terms of aircraft.

GM may well have gone in to bankruptcy protection and kept building, selling and servicing cars while its lawyers worked quickly in court to throw out specific contracts (like with the UAW and dealerships) that held it up, might've pre-negotiated the outlines of agreements with lenders, and emerged just like airlines do; leaner, meaner, and ready to continue the battle.

Only difference is the UAW would've lost out. Those that can't make the connection between a Democrat President and a "bail out" that eradicates secured bond-holders, shafts the companies suppliers workers, does as little as possible to help the company itself but gives a golden parachute and huge ownership stake to UAW is absolutely blind. It was a huge thank-you note from Obama to the UAW for decades of support for his party.

RE: Too early to know...






RE: Too early to know...





