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Heard at General Motors' (GM -1.2%) presentation at the Barclays 2012 Global Automotive...

Heard at General Motors' (GM -1.2%) presentation at the Barclays 2012 Global Automotive Conference: 1) The rationale for the automaker's new $11B facility is to help it bring capacity in line with peers and to send a positive message to ratings agencies and capital markets. 2) Comments from execs indicate that de-risking and reducing pension plan obligations will remain a focus. To date, the automaker reduced pension assets by $30.8B with a reasonable 107% cost-to-settle ratio. 3) Use of cash priorities includes a straight line approach to investing without regard to cycle and strategic M&A that offers good economic return. (webcast)
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Comments (3)
  • warrd 008
    , contributor
    Comments (15) | Send Message
     
    and when will they breakeven on the $52 Bn tax Payer "investment"
    not in many life times !!!! what a sham!
    13 Nov 2012, 02:17 PM Reply Like
  • elroy
    , contributor
    Comments (88) | Send Message
     
    Depends on how you measure it. Most knowledgeable people, both economists and business people alike, saw the potential for hundreds of thousands of jobs being lost PERMANENTLY. Instead, the company is profitable and both it, its employees, suppliers and supplier employees are paying taxes.

     

    Had it gone bankrupt the normal way, lots of people would have lost health care -- they might have gone on government Medicare/Medicaid rolls too....

     

    Had they gone bankrupt the normal way, the Pension Benefit Guaranty Corp -- a taxpayer owned company -- might have been asked to assume the pension responsibilities. Instead, GM was forced to keep them.

     

    Check out the health of the PBGC:

     

    http://1.usa.gov/OttLXx

     

    Even Ford supported the bailout because it would have devastated the supplier community and threatened Ford

     

    http://yhoo.it/Q7L1hL
    13 Nov 2012, 02:27 PM Reply Like
  • kingShehi
    , contributor
    Comments (86) | Send Message
     
    A good chunk of the money will most likely go to purchase the IO unit of Ally (formerly GMAC) in an effort to rebuilding its finance operations.
    13 Nov 2012, 02:51 PM Reply Like
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