GM Did What? **Update**

GM Did What? **Update** by captainfish on 10-Feb-2009

Oh No They Don't!!!!

GM got how many billions from us American taxpayers??? And they are going to do what with it??

SAO PAULO -- General Motors plans to invest $1 Billion in Brazil to avoid the kind of problems the U.S. automaker is facing in its home market, said the beleaguered car maker.

According to the president of GM Brazil-Mercosur, Jaime Ardila, the funding will come from the package of financial aid that the manufacturer will receive from the U.S. government and will be used to "complete the renovation of the line of products up to 2012."

"It wouldn't be logical to withdraw the investment from where we're growing, and our goal is to protect investments in emerging markets,"

In other words, America sucks so we are leaving for Brazil, but we will take your money first.

(H/T Ace of Spades)

[Update:] Seems that now, as part of the rules to accepting the federal buyout nationalization monies, GM has laid off 10,000 workers HERE in the US.

So much for saving American jobs !!! But then, this $3 Trillion has nothing in it to stimulate the economy, let alone private industry.

And if GM does go under, the US is not the first creditor to get paid for its debt.

When Laura Ingraham asked Sen Spectre how this nationalization bill would help private industry, all he had to say was:

"Laura, we have a big chunk of this money going to roads, highways and mass transit," Specter said. "I talked to the governor of my state and he said we could do it in nine months. And I said, ‘That's really not good enough.' And he said, ‘If we really twist and turn we can cut it back to six months. And I talked to the mayor of a major city this morning that has a parking lot going up, which is out of money and the work can go forward this afternoon."

According to these rinos and socialists, paying for more government pork and state projects is the same as helping private industry.

Someone want to explain that to me?

Comments:

#1 Kevin 02-Feb-2009

Eh. I'm siding with GM here. A growing GM Brazil is a better investment than a failing GM US. If the loans they received are to do anything other than pay American employees for a few months, then they have to go where the profits are.

Otherwise they'll be back at the government trough by June.

IMO

#2 captainfish 02-Feb-2009

Ok Kevin. You lost me again. hehehee
You are ok with them spending our money that was designed to prop up their US division on remodeling of their Brazil facilities? Instead of paying US employees?

I don't think they should have gotten any of our money, actually. Especially if they are just going to send it somewhere else.

What about all that whining and moaning that if they didn't get this money NOW that they would be dead and gone by February?!?!?!

What was the interest rate? What were the terms of the deal? And it would screw us Americans over royally if this new Administration forgave this debt as a means of further helping the struggling auto-market. I would not put it past this guy.

This is nothing but an American screwjob all the way around.

IMO

:)

#3 Kevin 02-Feb-2009

First, I'm with you - they should not have gotten any of our money. But they did, and were thankfully given no orders on how they could or could not spend it.

This being the case, it makes sense for GM to try to save the company with that cash. It makes NO sense to just pay unprofitable employees in the US until the cash runs out. And Brazil is one of three countries (excluding the US and Canada) in all of the Americas where graft does not rule the country. It's a good investment. It's a safe economy.

On the other hand, as I previously said, they could simply use the bailout to pay American employees and go out of business 6 months later than expected. That wouldn't benefit anyone in the long run.

In short, GM did the right thing and the government did the wrong thing.

#4 forest 02-Feb-2009

Throw the money down the UAW rathole in Detroit or invest it in Brazil? I don't like it, but the Brazil option probably makes more sense.

The Government should stop handing out money, stop trying to take over businesses and cut some taxes and environmental regulations instead.

#5 captainfish 02-Feb-2009

Here. Here. (forest)

I see where you are coming from Kevin.

You are saying that as they already have the money, then it is up to them how best to spend it? And right now they think their growing market in Brazil will give them the better return.

Now, what does that say about America?!?! dang.

I think someone in Congress should stand up and say, hay, if you are going to spend it oversees, then we are going to take that money back. Because if you recall, the whole BIG point of these funds was to save AMERICAN jobs. Not go to Brazil. Not go to bonuses. And Not go to purchase more debt.

This whole thing has been one big flippin lie after another.

Once again guys, glad to have you on board.

#6 Kevin 04-Feb-2009

We are almost in perfect agreement, friend!

You're take:

[i]"I think someone in Congress should stand up and say, hey, if you are going to spend it oversees, then we are going to take that money back."[/i]

Mine:

I think someone in Congress should stand up and say, "We are going to take that money back."

#7 captainfish 04-Feb-2009

HAHAHAHHAHAHAHAAAAA

See, I learned not to doubt you. Again. :)

The Ghost of Snapped Shot

Or, welcome to my low-maintenance heck.

Comments: