Obama motors

[RACER X]

By Chelsea Emery and Tom Hals
NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The source, who would not be named because he was not cleared to speak with the media, did not specify a purchase price. The new company is expected to honor the claims of secured lenders, possibly in full, according to the source.

The remaining assets of GM would stay in bankruptcy protection to satisfy other outstanding claims.

GM has about $6 billion in secured debt, including a secured revolving credit and bank debt.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

The government has given GM until June 1 to restructure its operations to lower its debt burden and employee costs.

If those talks failed, the company has said it would follow rival Chrysler LLC into bankruptcy.

Setting up a new company to buy the healthy assets is aimed at reassuring consumers who might not be willing to make a major purchase from a bankrupt company, fearing it would not honor warranties or provide service.

The board of the new company would be established with the tacit approval of the government. Fritz Henderson, who took the helm of GM earlier this year after the government pushed out Rick Wagoner, would likely head the new company, the source said.

GM could not be immediately reached for comment.

GM shares were up about 9 percent at $1.29. (Editing by Gerald E. McCormick)

http://www.reuters.com/article/merge...43363120090519

[Corey]

Nice, the government will be control controlling industry and financial institutions. I'm sure looking forward to government run housing and food lines. What's good for one will be good for all, right comrades?

[Digifox]

Иногда я думаю, было бы лучше, если бы США * умер *

Cause it Soviet Russia, Car company own Government

[Avatard]

The sky is falling.

[Rsv1000R]

5 years from now after coming out with the new Gov car which will have lack luster sales, they'll be closed for good, and everyone will complain that we spent all of that money for nothing.

50 years from now, we'll look back on this with shame for trashing the auto industry.

[was92v]

As with almost everything, govt intervention can be both good and bad at the same time. I am old enough to remember riding and driving in cars from the 50's, 60's and 70's. They had their good points but plenty of not so good too. Many of the improvement were spawned by govt and insurance pressure. The awesome cars we have now are a direct result of pressure from the govt for fuel mileage and pollution controls mixed with a healthy dose owner outrage and Asian flight from that junk they made from 1974 -- 1993.
The American auto industry would still be making cars that were shot at 50K miles and incredibly un-crash worthy if not for outside pushing. People seem to think that those big ole cars were tuff and could take a hit. That is true up to a point, but in a real crash they came apart like a cheap watch in the hands of an 8 year old boy with a pocket knife. I remember what it was like and it was ugly. Steering columns would skewer the driver in the chest and drive it out their back. The passenger always went through the windshield and sometimes got cut in half on the snap back. It was not uncommon for 900 pounds of red hot engine to end up in the front seat on top of what used to be the passengers. Now days the car gets totaled and people walk away much of the time. Back then a "Total" often meant the people in the car too. Pressure from govt and Insurance companies is the only reason they crash better now.
The same digitally mapped fuel injection system that allows them to pass emission requirements is the same thing that allows a GM 5.7 liter to make 425 HP and still get 28 MPG on the highway. Would we have cars that perform that well, MPH & MPG, if not for the fuel mileage
requirements? However the time it takes to figure it out can be painful (witness 1974-1993).

Of course knowing this really doesn't make me want more Govt & Ins intrusion. Car prices and gasoline pricing tend to moderate things.
However if I win the lottery and I don't have to sweat the cash outlay I already have my daily driver picked out in my mind and it is not eco friendly.
It would be a 1968 Dodge Charger R/T with a 500HP Hemi, 6-speed, high end suspension, brakes and steering gear. Blk/Blk/Blk with white stripes draped over the tail...

[Avatard]

Originally Posted by Rsv1000R

5 years from now after coming out with the new Gov car which will have lack luster sales, they'll be closed for good, and everyone will complain that we spent all of that money for nothing.

50 years from now, we'll look back on this with shame for trashing the auto industry.

...And 51 years from now, they'll bring back the rear wheel drive Camaro with a big motor (again). It's the circle of life, Simba.