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Author Topic: U.S. Expected to Own 70% of Restructured G.M.  (Read 1572 times)

Offline 99 Silver

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U.S. Expected to Own 70% of Restructured G.M.
« on: May 26, 2009, 08:36:24 pm »
I think the bankruptcy filing is getting very close as it appears the bond holders are holding out.  The US government will be in for almost $70 billion!

http://www.nytimes.com/2009/05/27/business/27auto.html?_r=1&8au=&emc=au&pagewanted=print
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Offline articsteve

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #1 on: May 26, 2009, 09:14:27 pm »
That is excluding money lent to GMAC?

What is the true Canadian portion I wonder?
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Offline Honda Owner

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #2 on: May 27, 2009, 01:08:01 pm »
Well, the Canadian taxpayers will be on the hook for 20%, which is about $14bn plus the exchange on the USD. Assuming that 30,000 jobs are "saved" that means that each job cost us $466,666. Of course, those jobs will be lost anyway since GM is closing half or more of their plants and will import more cars from Korea and China. Our tax dollars are in effect buying jobs overseas. Good work, Harponi, you now have the honour of being the biggest spending government in Canadian history, had the biggest increases in spending and run the biggest deficits.

Taxes are going up, ladies in germs, unless we want to be in the shape the USA is right now. I would wager an income tax surcharge will be first.
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Offline 99 Silver

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #3 on: May 27, 2009, 02:25:15 pm »
Quote from: articsteve on May 26, 2009, 09:14:27 pm
That is excluding money lent to GMAC?

What is the true Canadian portion I wonder?

I thought GMAC was above these numbers as they are treating it with the same programs as their banks.
« Last Edit: May 27, 2009, 02:28:31 pm by 99 Silver »
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Offline toolatecrew

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #4 on: May 27, 2009, 03:50:26 pm »
Quote from: Honda Owner on May 27, 2009, 01:08:01 pm
Well, the Canadian taxpayers will be on the hook for 20%, which is about $14bn plus the exchange on the USD. Assuming that 30,000 jobs are "saved" that means that each job cost us $466,666. Of course, those jobs will be lost anyway since GM is closing half or more of their plants and will import more cars from Korea and China. Our tax dollars are in effect buying jobs overseas. Good work, Harponi, you now have the honour of being the biggest spending government in Canadian history, had the biggest increases in spending and run the biggest deficits.

Taxes are going up, ladies in germs, unless we want to be in the shape the USA is right now. I would wager an income tax surcharge will be first.

I read that the % will be reduced for Canada to 15% to better reflect the amount of production.

Still far to much for my taste. The idea of basing it on % of produiction for a shinking compnay is stupidity. Tie it to # of people employed or something similar or don't do it all. Actually just don't do it at all.
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Offline DockMan

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #5 on: May 27, 2009, 03:53:22 pm »
Quote from: toolatecrew on May 27, 2009, 03:50:26 pm
Actually just don't do it at all.

 :iagree:
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Offline rrocket

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #6 on: May 27, 2009, 03:53:56 pm »
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Offline UmroAyyar

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #7 on: May 27, 2009, 06:41:14 pm »
Interesting stuff. Being a common folk that I am. This ($$$$$$$$$$$$$$$$$$$$$$$$$) many billions on one company alone? How many plants can be established with this money whether GM, Ford, Toyota, Honda, Fiat, Hyundai. Now that will be a stimulus.

How much is GM's market capitalization /net worth anyway?
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Offline articsteve

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #8 on: May 27, 2009, 08:01:34 pm »
702.5 Million USD as of today

To put that in perspective, Toyota's, the basket case as reported by many learned ppl here, market cap as of today is 120.5 BILLION USD.
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Offline Leviathan

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #9 on: May 27, 2009, 09:17:17 pm »
Quote from: UmroAyyar on May 27, 2009, 06:41:14 pm
Interesting stuff. Being a common folk that I am. This ($$$$$$$$$$$$$$$$$$$$$$$$$) many billions on one company alone? How many plants can be established with this money whether GM, Ford, Toyota, Honda, Fiat, Hyundai. Now that will be a stimulus.

How much is GM's market capitalization /net worth anyway?
Worth :censor: right now. Depending on how the "new" GM stock performs and when the Canadian government sells said shares is how much net $$$ we (tax payers) actually spend on keeping GM (and Chrysler for that matter) afloat. *Some* $$$ will be coming back to the coffers though.
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Offline articsteve

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #10 on: May 27, 2009, 09:33:56 pm »
.
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Offline 99 Silver

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #11 on: May 28, 2009, 12:17:45 am »
Quote from: UmroAyyar on May 27, 2009, 06:41:14 pm


How much is GM's market capitalization /net worth anyway?

The market cap is irrelevant and the net worth is negative.  The company is insolvent without massive capital injections and the prognosis after the restructuring is very tentative.

This is a case where the various governments have decided that the company would have too big a negative impact on the economy if it fails in a traditional bankruptcy, and they have decided to soften the impact.

The real problem is that the governments and the union will wind up with control at the end and that is no good in my opinion.  I personally would have preferred that there be no government intervention in the auto industry.
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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #12 on: May 28, 2009, 10:37:46 pm »
GM is indeed worthless and bankrupt. It's market capitalization is $705m and its outstanding cash debt $27bn. This is AFTER the bailouts, and assuming that that stock could actually be sold, which I doubt it could.

It is shocking that a company could be as badly mismanaged as this one was. This is not a problem that started a few weeks ago. This was YEARS in the making, the culmination of crappy product and customer service for decades. The writing has been on the wall for years. When I worked for GM it was obvious they were a financing company that used autos as a method me making loans and vice versa. Not much of a surprise that GMAC was the first to bust.

Seeing Red Ink Rick making excuses that all his problems were caused by lack of consumer finance make my blood boil, particularly when anybody with a 700 FICO could drive away from a Honda or Toyota store the same day.

Oh, but GM financed people with, get this SIX HUNDRED TWENTY FICO socres. I wouldn't lend money to my mommy if she had a 620 score!

In the end, we all get to pay for the worst run corporation in recent history. Only Enron has ever been this bad.
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Offline mmret

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Re: U.S. Expected to Own 70% of Restructured G.M.
« Reply #13 on: May 28, 2009, 11:02:17 pm »
Quote from: Honda Owner on May 28, 2009, 10:37:46 pm
Only Enron has ever been this bad.

No, Enron had the good grace to just go poof.

Plus they took Arthur Andersen with them.
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