Tag Archives: United States Congress

United State Senate Fails To Pass Bailout Bill For GM

Posted on 13. Dec, 2008 by .

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Photo Credit: Saab History.

After all the begging that General Motors has done, the $14 Billion dollar bailout bill that passed the U.S. House of Representatives, has recently failed in the Senate, and as a result, General Motors, nor the rest of the big 2.5 will be getting any of the funds they have asked for.

This means that it’s clear that General Motors will be able to activate it’s ideas on a structured bankruptcy in the near future as it won’t have the money needed to pay its bills. However, the White House recently extended an offer to help GM using some other funds, so we’ll see what actually takes place in the next week, yet dragging this situation on further.

In the meantime, the questions I have about Saab Automobile’s future are starting to come clear:

Can Saab Automobile stay alive solely with the appropriations from the Swedish Government, and if so, for how long? I’m guessing that Saab Automobile will still need a funding source from a new owner, correct?

Secondly, how much of that funding, will Saab Automobile apply for and is it only available for both Saab & Volvo? Can all of the Swedish automotive industry such as Volvo Trucks, Scania Trucks and koenigsegg apply for it as well? This will be interesting and I’ve passed these questions over to Saab Automobile awaiting their responses.

Here is GM Europe’s Response in a press release to the United States Senate:

United States Congress failed to reach agreement on a loan package

Last night the United States Congress failed to reach agreement on a loan package in support of the US auto industry. Obviously, we’re very disappointed in this development. As critical a situation as this is, GM’s leadership continues to look at options to restructure and stabilize the business in this exceptionally difficult economic period.

As it pertains to GM Europe, we are working with our labor representatives and the European governments where we have big operations to provide liquidity for sustaining operations, while the U.S. team pursues its options. In other words, GM Europe continues to operate as usual. We are aggressively managing down our cost structure and executing key product programs, such as the Insignia, to help maintain our business.

In Germany, talks with the government and the states where Opel has production facilities concerning a credit guarantee continue. These talks are preparing a solution for the eventuality that GM cannot guarantee financing of operations and Opel cannot get access to credits on the free market. As mentioned by the German government four weeks ago, an update on these talks is expected in due time.

Sweden yesterday announced a framework proposal for state guarantees and direct loans as well as investments into R&D for the Swedish auto industry. The state of Aragon in Spain, where the GM/Opel plant is located has agreed to support the plant with credit guarantees of euro 200 million.

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

Posted on 01. Dec, 2008 by .

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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!

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GM Asks FAA To Stop Tracking Flights Of Private Jets

Posted on 29. Nov, 2008 by .

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Photo Credit: Matthew Smith

Bloomberg, BBC & Aero News announces that General Motors, in an attempt to continue their isolation from the reality of the rest of the world, has instead of selling all of their private jets, have asked the FAA to stop tracking the flights of their private jets. These are the jets that GM executives fly including CEO, Rick Wagoneer as recently exhibuted during his visit to the United States Congress to beg for a no-strings handout.

General Motors and their leadership still do not get it. Why can’t they just get off of their “high horse” and they fly coach, drive or take public transportation like the rest of us? I am really starting to believe that their company is actually not in the dire straights that they are in because it takes a lot of money to fly and lease these private jets, so where is that money coming from exactly if they “don’t have any”?

Furthermore, for General Motors to request that the Federal Aviation Authority to bar the public (us & the media) from being able to track their flights is absolutely appalling and the epitome of arrogance. Message to General Motors: The 400 pound gorilla in the room is NOT that we can SEE you flying, it is the fact that you are FLYING these jets period!. Get a clue and start living a modest lifestyle so that you don’t take your company further into debt and wasting everyone’s money including, quite possibly the tax payers here in the United States!

As expected I checked to see if I could track one of their 8 jets with the registration N5116 from Aviation Air LLC in Danbury, CT and that website now shows “This flight is not available for tracking per request from the owner/operator”. No surprise! Anyone know the remaining 7 registration #’s for their private jets?

I leave you with Blogging Stocks best response to this appalling news as of late:

General Motors Corp. (NYSE: GM) just doesn’t get it. After flying in a corporate jet to Washington last week with tin cup in hand, its executives have not wised up. Rather than flying on public airlines like the rest of us do, they want to keep flying those corporate jets. But they want to make sure nobody in the public can track their flights.

If this is not the height of arrogance I don’t know what is. Bloomberg News interviewed a GM spokesman who said, “We availed ourselves of the option as others do to have the aircraft removed” from a Federal Aviation Administration tracking service. But he declined to discuss why GM made the request.

GM doesn’t need to explain why it made the request. I already know — it wants its executives to be able to keep flying on corporate jets and it doesn’t want Congress or the public to know about it. I think GM executives should consider three options: flying coach, getting the boot from the executive suite, or continuing to fly in their corporate jets until they run out of money.

If they pick the third option, they should not get a penny’s worth of taxpayer money.

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