Tuesday, January 13, 2009

GM: If Our Cars Keep Sucking, Suckers Keep Paying

According to GM COO Fritz Henderson, if the worst case scenario that the company has put together which calls for 10.5 million annual car sales (which is higher than recent market data shows for an annualized run-rate around 10 million), then the company will simply have to borrow more from US taxpayers. The amount already allocated to GM is $13.4 billion, less than the $18 billion GM begged for. Allegedly, GM will be able to gain more concessions from the United Auto Workers which recently have proved they are unwilling to budge on pretty much anything, and in fact Ron Gettlefinger president of the UAW has said he will approach the Obama administration to "end what he called unfair requirements in the loan terms for concessions from the unions".

Whether or not it is fair to have taxpayers foot the bill for this game of chicken while the U.S. auto industry spews such masterpieces as the Pontiac Aztek is at this point moot. With unemployment soon to hit 10% and federal tax revenues crashing, the end result of this will be about as pretty as the Aztek itself...
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