Tuesday, February 17, 2009

GM wants another $16B

According to the WSJ, GM wants another $16.6B. Their plan to achieve stability requires cutting 47,000 people. And the carrot? If you don't give them the money, it'll cost $100B.

Let us hope that the arithmetic is not lost on the treasury: You can shutdown GM pay every single employee (all 252,000 of them) $30K per year for two years for $16.6B.

No doubt, $30K/year would cause pain to those without savings. But what exactly is the taxpayer getting by dumping this money into GM? Since the current management has run the company into the ground, shouldn't we consider letting nature take it's course and apply $16.6B to the mop-up operation after the bankruptcy?

1 comment:

The Car Czar said...

What's wrong with this headline: (2.26.09) "GM needs $16B to make it through 2009"

Carmakers are leading the manufacturing downturn. Detroit- based General Motors Corp. yesterday reported the second-biggest quarterly loss in its 100-year history, as Chief Executive Officer Rick Wagoner asked the Treasury for $16.6 billion more in loans (just) to survive through 2009. (underlined for emphasis)


Have we all lost our minds!? Stop this madness now in all matters.

Best wishes to all,

Andrew Gross
Chairman & CEO (The "Car Czar")
Automotive Consulting Services
(An Oregon Corporation)