GM has its hand out once again

February 26, 2009 at 10:22 am in Auto Industry, Bailout by IfLizWereQueen

Queen’s Comments: Here is the worst of the worst examples of a corporate dinosaur asking for yet another handout.  GM has not been profitable since 2004!  Our elected officials should never have been so irresponsible as to fork over billions to GM in the first place, but to continue is beyond absurd, it is criminal.

Oh GM and its minions are busy cooking all their numbers to prove the point that GM is too big to fail.  We need to remind them that no creature is too big to fail.  Look to the dinosaurs for an example.


FROM THE DAILY BEAST: General Motors, the top American automaker, reported this morning it lost $30.9 billion last year (including a $9.6 billion loss in the fourth quarter). Now, CEO Rick Wagoner is lobbying the Obama administration for an additional round of government bailout funds—to the tune of $16.6 billion. Wagoner is meeting with Obama’s auto task force today to plead his case. Without $2 billion in loans, the company will run dry. Though GM hasn’t been profitable since 2004, fourth quarter sales dropped a whopping 52 percent. “The size of the loss matters not only because it impacts what it will cost to restructure the company, but also the kind of bill for which the taxpayer is on the hook,” an analyst told Bloomberg. Read it at Bloomberg


The workers of GM deserve our support, but the executives who run the organization can go to hell. As long as they are in charge nothing will change.  We will have more of the same.  In February of 2008, OVER A YEAR AGO!  GM announced that they were reducing their American workforce by 70%.

Yes, it is true that if we don’t bail out GM that it will cost 100,000 jobs.  BUT what is NOT mentioned here is that GM already announced its intentions in February of 2008 to cut their remaining 110,000 USA workforce by 70%! [I read in the Guardian UK in February 2008 that General Motors planned to axe 70% of the American workforce so that would further reduce the US employee count to 35,000.]

What would we be paying them for?  Most likely we would fork over our money and then they, like Paulson would tell us to kiss their behinds and that they were still going to cut USA jobs 70%.  It seems to me that we would get a better return on our tax dollar investment by investing in new smaller and more nimble companies–companies that don’t take 40+ years to get with the needs of the time because they choose to run with their pals in the oil industry.  Use that money to create jobs for the remaining US auto workers for GM.  Forget the dinosaur.  It outlived its usefulness the day it did this:

Photo of a few of the thousands of perfectly good EVs that GM sent to the junkyard when a court ruling in California was overturned and they were no longer required to produce zero emission autos.

Perhaps G. Richard Wagoner, Jr., CEO of General Motors could help out.  His annual salary is $8.5 million.

Proclaim the Queen!