Senator Claims GM repaid federal loan with federal money

[Txflyer]

Nothing very surprising here, but glad to see someone actually sees what went on today:

http://www.autonews.com/apps/pbcs.dll/article?AID=/20100422/OEM/100429927/1216

For those who can't access Automotive News, there is a similar story on Fox:

http://www.foxnews.com/politics/2010/04/22/grassley-slams-gm-administration-loans-repaid-bailout-money/

[XDCX]

Thanks for starting the tread and posting the links. :)

I read the story in Automotive News but actually thought the link you provided to the story by FOX was more informative.

There's no question the statements and commercials are mis-leading. I think most Americans watching the GM commercial with Ed Whitacre will assume that the government's been paid back and everything is back to normal - that's hardly the case. The taxpayers are still on the hook with GM and GMAC until the Treasury manages to sell off the equity they have in both companies. (GM will most likely have an IPO and issue stock next year.)

That said, I saw the commercial with Ed Whitacre last night and thought it was awesome. He portrayed the GM as strong and viable company with a bright future. He not only showed the product they have today, he showed what they have in development.

[CL Pgh]

That said, I saw the commercial with Ed Whitacre last night and thought it was awesome. He portrayed the GM as strong and viable company with a bright future. He not only showed the product they have today, he showed what they have in development.

You think Ed remembered Lee Iaccoca's early 80's commercial??? ;) Only Lee was telling the truth about paying back the Gov. early! :D

[XDCX]

You think Ed remembered Lee Iaccoca's early 80's commercial??? ;) Only Lee was telling the truth about paying back the Gov. early! :D

That's exactly what I was thinking of when I saw that commercial. Whittacre's no Iacocca, but it was still a very good commercial and I think it will definitely help GM repair their reputation. In fact, I liked how Whitaker acknowledged there are a lot of Americans who were opposed to the GM bailout and he respected their feelings.

Granted, he misrepresented the truth but that doesn't really seem to matter much anymore.

[Txflyer]

Granted, he misrepresented the truth but that doesn't really seem to matter much anymore.

Yep, the sad truth is 99.9% of the public probably fell for Ed's spiel hook, line and sinker. This OLDCO dealer who was not offered his franchise back sure doesn't buy it.:censored:[

[Txflyer]

Follow-up story from Fox. Apparrently this is getting some more attention: http://www.foxnews.com/politics/2010/04/23/gm-hot-water-ftc-truth-advertising/

It was also mentioned in the the Automotive News videocast this afternoon.

[possum]

GM Dealers have storefront banners declaring the payoff is complete.

[The StraightShooter]

The new math or rather Obama math.

[crowe]

Don’t forget both GM & Chrysler will have to fund those “Cadillac Plan” UAW pensions that were reaffirmed during bankruptcy.
That’s 12 billion + for GM & 3 billion + for Chrysler over the next few years.
If they don’t pay up Uncle Sam has guaranteed these plans & taxpayers will be on this hook.
Normally in bankruptcy pensions go away with the other unsecured debts.
Obama gifted the UAW those “Cadillac Plans” at the expense of the secured debtors & maybe both company’s futures.

[Ralph]

The thing that struck me with those commercials was that their PR machine is right on target, yet Chrysler doesn't seem to be even close to being in the same game. There seems to be no attempt at all to tell any story. Sure they are running ads, but GM is running promotional stuff letting the buying public think they're here to stay, healthy and relevant in the marketplace.

The second thing is that it's so disingenuous. Wasn't there about 80 billion dumped into these two companies? They pay back 5 and crow that they're all paid up. And no one, not even Fox mentioned it. It's the same fuzzy math that we're seeing everywhere in this country. Seems no one tells the truth anymore, and worse, seems no one really cares or reports on it. We're all doomed. Lol

[Txflyer]

There is a new follow-up story on Fox: http://www.foxnews.com/politics/2010/04/26/lawmakers-accuse-gm-administration-misleading-public-loan-repayment/

Even the TARP Inspector General is admitting that they just used other TARP money to "pay off" the loans.

[XDCX]

There is a new follow-up story on Fox: http://www.foxnews.com/politics/2010/04/26/lawmakers-accuse-gm-administration-misleading-public-loan-repayment/

Even the TARP Inspector General is admitting that they just used other TARP money to "pay off" the loans.

Thanks for the link - I'm in the process of catching up and just had a chance to read the story.

Concerning the article, I was surprised by this quote - "Grassley said lawmakers are being told government losses on GM are expected to exceed $30 billion." I was under the impression the OLDCO version of GM had about $1 Billion that would never be recovered but the rest of the tax payer's dollars were secured by equity in the NEWCO version of GM. :confused:

[possum]

Both, Chrysler and GM are equally disgusting with their brazen disregard for anything that is right or decent. The difference is that GM has a better, or more experienced, spin machine in place.

This whole time in our business is a real shame.

[Txflyer]

Both, Chrysler and GM are equally disgusting with their brazen disregard for anything that is right or decent. The difference is that GM has a better, or more experienced, spin machine in place.


After having experience with both, I'd say that GM has a lot more experience doing disgusting things, and therefore has gotten a lot better a making them look pleasing to the general public. That's about all I'll say in the public area of the forum. ;)

[Ralph]

After having experience with both, I'd say that GM has a lot more experience doing disgusting things, and therefore has gotten a lot better a making them look pleasing to the general public. That's about all I'll say in the public area of the forum. ;)

Never more truthful words were typed. :roflolk: it's a shame we're living in these times and there isn't anywhere to turn for help.

[XDCX]

I had to laugh when I saw a press release from NADA regarding GM's repayment of their federal loans. Here's their statement: "Strong sales of GM's brands -- Chevrolet, Buick, GMC and Cadillac -- through a network of thousands of GM dealerships across North America have enabled the company to repay more than $8 billion in loans from the U.S. and Canadian governments way ahead of schedule." Here's the link to their press release - click here (http://www.prnewswire.com/news-releases/nada-statement-on-gm-repaying-government-loans-early-91824924.html)

Strong sales of vehicles had nothing to do with the repayment - it was simply shifting borrowed money from one pocket to another.

In my opinion the NADA's job is to support dealers, not echo the mis-guided spin efforts of one of the OEMS. :mad:

[dodgequality]

http://www.philly.com/inquirer/opinion/20100430_Editorial__Lube_job.html

Editorial in today's Philadelphia Inquirer

[Txflyer]

http://www.philly.com/inquirer/opinion/20100430_Editorial__Lube_job.html

Editorial in today's Philadelphia Inquirer So true! Thanks for posting.

[XDCX]

I noticed this issue is back in the headlines. Automotive News is reporting a consumer group has filed a complaint with the FTC stating GM's ad is deceptive.

While I've softened my position on GM since they reinstated 661 of their rejected dealers I do think they crossed the line with their ad.