General Motors Submits Plan For “Bridge Loan” From Congress This Week

Posted on 01. Dec, 2008 by Ryan in 2000-2009, Detroit, Michigan

Photo Credit: Saab History

This week, General Motors are submitting their ” plan” so that the United States Congress will respond with a “bridge loan”. The plan will be submitted on December 2nd, but a decision will be made on Friday, December 5th when an actual hearing is scheduled to take place.

There are a lot of rumors that are surrounding this plan, beginning with Bloomberg’s first posting that they have an “inside source” that cites that Saab is in their plan for sale.

Autoblog and the local have also followed up on this story with their own speculation as well, but I think the best piece comes from the New York Times as to what a structured bankruptcy would really mean for General Motors opposed to receiving such a “bridge loan”. It almost appears that bankruptcy would be more in GM’s interest than a loan, because as we know from the past, loans are systematically squandered by GM, so if Congress does approve, the writing will be on the wall, but we’ll see just how many “strings” are attached to this bridge loan if approved.

It should be quite an interesting week for General Motors, I just hope that Saab Automobile ends up on top!

Tags: Bloomberg, Congress, General Motors, the New York Times, United States Congress