Word: gm
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...Administration is starting to face some resistance in Congress about its plan to put General Motors (GM) into Chapter 11, using Treasury money to sustain the company as it works its way back to profitability. The government put another $4 billion into the car company on Friday. In the process of a government-supported bankruptcy, $27 billion in bondholder capital will probably become worthless, GM workers will be laid off and hundreds of dealers will be closed...
...Fundamentally, taxpayer money will be used to restructure GM in such a way that thousands of taxpayers will lose their jobs. (See pictures of Detroit's decline...
...banking industries are long term whether the government likes it or not. The restructuring of those sectors may take years. Selling federal ownership in companies already weakened by the economy or a series of poor management decisions would undermine the public's tenuous trust in institutions such as GM (GM) and Citigroup (C). The American taxpayer may be faced with a decade in which there is no return for the government's assistance which was meant to keep critical portions of the economy from collapsing. (See pictures of TIME's Wall Street covers...
...GM and Chrysler will face a bloody competition with many of their own dealers this summer. Both will try to sell cars in the midst of an awful market. The closing dealers do not have much to lose by dumping their inventories and shutting their doors as fast as they can to save operating costs. The 2010 models may be lost in the shuffle of ridiculous deals to clear out 2009 editions. The dealers being closed may be going away, but in the process they will inflict real pain on the companies that shut them down...
...course, with the federal government pouring billions into U.S. automakers like GM, those executives may have little choice but to get on board. And there are still nagging concerns that new fuel-economy standards alone won't be enough to wean Americans from their gas guzzlers. Since gas prices fell during the recession, consumers' appetite for compacts and hybrids has dwindled, and sales of large SUVs are once again ticking upward. If gas prices stayed relatively low between now and 2016 - which is unlikely - automakers could end up producing cars and trucks that Americans won't be eager...