UAW To Own GM Also

Looks like the UAW will own 2 major automakers in the U.S. And you know those billions of taxpayer dollars Obama gave GM? Gone. The cost of federalizing yet another automaker.

CORRECTED - UPDATE 1-GM bankruptcy plan eyes quick sale to gov't

NEW YORK, May 19 (Reuters) - General Motors Corp's (GM.N) plan for a bankruptcy filing involves a quick sale of the company's healthy assets to a new company initially owned by the U.S. government, a source familiar with the situation said on Tuesday.

The government's plans include giving stakes in the new company to GM's union and bondholders, although the ownership structure of the company is still being negotiated, said the source who is familiar with the company's plans.

In addition, the government would extend a credit line to the new company and forgive the bulk of the $15.4 billion in emergency loans that the U.S. has already provided to GM, the source said.

well that seems counterproductive, bailing out a company just to have it fail regardless. So the money given to them did what exactly except thin out the taxpayers pockets?

*sigh* .... if all three auto makers collapsed... over 2.5million + American's would be unemployed overnight, essentially destroying our economy...

And so, I am torn. Does this help the Corporates? Yes. Help the rich? Yes. Help the Communist UAW? Sadly, yes...

But it WILL keep the little guy employed, as over paid as they are, regardless.. technically speaking more "average joe's" will benefit than wealthy peoples.....

Damn Government has us backed into a corner with this one!

Just found some new info on the GM fiasco. This is concerning GMAC. The GM bank.

#1) The federal government will be the primary owner of GMAC after giving them another $7.5 billion in taxpayer money. I'm glad to see they haven't run out of our money yet.

#2) GMAC is going to be providing loans for people buying Chrysler vehicles. So, is this a sign of a GM and Chrysler merger on the horizon? I do know that the Obama regime does not like that they cannot touch any of the executives working for Fiat. With a GM/Chrysler merger then CEO Obama could dictate to them, albeit hypocritically, like normal.

Feds to inject $7.5B more into GMAC

Washington -- The Treasury Department is preparing to announce as early as today that it will invest an additional $7.5 billion in GMAC LLC in a deal that could allow the U.S. government to hold a majority stake in the Detroit-based auto finance company.

GMAC, whose financial good health is key to providing loans for consumers to buy General Motors Corp. and Chrysler LLC vehicles, has been in talks for several weeks to secure additional capital. It had hoped to close the deal last week.

In December, the U.S. Treasury invested $5 billion in GMAC by buying preferred stock in the finance company. That stock carries a 9 percent dividend, but has no voting rights. Treasury also loaned GM nearly $900 million to buy GMAC stock.

[edit on 5/21/09 by Ferris.Bueller.II]