$2 billion more to General Motors

[Communist]

Treasury lends $2 billion more to General Motors

AP - Friday, April 24, 2009 2:26:30 PM

Taxpayers invested another $2 billion in General Motors Corp. this week as the struggling auto giant continued efforts to restructure and avoid bankruptcy court.
The Treasury Department said Friday it lent the additional money to GM on Wednesday to provide working capital. The loan pushes the total amount of GM's government aid to $15.4 billion after the company said it would need more money in the second quarter to stay afloat.
A government report revealed earlier this week that the Treasury was prepared to provide GM with up to $5 billion more in federal funds and Chrysler with up to $500 million more in bailout support as they
race against deadlines to restructure.GM has until June 1 to complete restructuring plans that satisfy the government's auto task force, while Chrysler has until Thursday to finish restructuring and ink an alliance with Italy's Fiat Group SpA.
GM, in a restructuring plan filed with the government in February, had said it would need $2 billion more in federal loans in March and another $2.6 billion in April. But last month Chief Financial Officer Ray Young said the company's expense cuts helped to hold off the need for the March installment.
GM CEO Fritz Henderson said last week that they would need $4.6 billion during the second quarter.
In addition to the $15.4 billion, the automaker's financial arm, GMAC Financial Services, has received $5 billion in government aid, plus GM received a $1 billion loan to buy more equity in GMAC.
GM had requested a total of $30 billion, and it's unclear just how much of that the government is willing to give.
The company said in a statement that it appreciates the Obama administration's support "as we undertake the difficult but necessary actions to reinvent our company."
In order to get more loans, the government's auto task force is requiring GM and Chrysler to swap part of their large debt for equity, cut unprofitable models, reduce labor costs and complete other restructuring steps.
GM faces a June 1 deadline to complete the tasks for enter bankruptcy protection. Chrysler's deadline is Thursday. If Chrysler can't reach a deal with Fiat by then, it likely will be auctioned off in pieces because no more government funding would be made available.

[Pawn Power]

With the tax payers investing so heavily into these automakers you would think we should have some say in how the business is run. However, that doesn't appear to be happening. Workers are not getting more power in these industries, in fact it appears to be the opposite with the threat of closure and bankruptcy workers are taking the brunt of it.

What can 'save these industries is work control over the factories. With that there would be no more need for outrageous CEO salaries, bonuses, and expenses. This money could be put back into production and to the workers. That, and the business would not be run in manner for short term profits to appease stockholders but for long term viability of the workers jobs and the communities they support- better working conditions, electric automobiles, etc.

[Marx22]

Reduce labor costs, restructure, whatever; it all means the same thing, slashing unions and laying off workers. As I pointed out many times before, how come Wall Street isn't being treated as tough as these auto companies? Special interests; Obama should be ashamed of himself trying to play politics with unions so he can get a few conservatives to back him.

How come is it when greedy capitalists and Wall Street investors are asked to sacrifice it is only then the free-market advocates stand up and protest but not when it comes to this obvious bullying on the union-filled auto industry. Double frickin' standard.

[STJ]

More problems for those workers.

[KC]

I don't understand why they're doing this, as it's pretty obvious that they are not going to be able to meet obligations by the deadline. Maybe they still think there's a chance, but I'd find that pretty delusional.