• Jan 21st 2009 at 7:01PM
  • 36
General Motors is ringing the alarm bell over a delay in the second installment of its bridge loan. Chrysler faced the same thing when it was waiting on its first installment, but eventually got its money in time.
GM puts the delay down to having to fill out a great deal of paperwork and having to wait on the Treasury to finish doing the ballroom-and-cocktail circuit during a little thing called the presidential inauguration. GM President Fritz Henderson said the money should arrive "in the next several days." And even though it's still only January, just in case you needed a reminder, he also said "If we don't get our second installment ... we'll run out of cash" by March 31. Cue the wailing and gnashing of teeth...

[Source: Detroit Free Press]


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  • 36 Comments
      • 6 Years Ago
      Next week they`ll use the old "BUT YOU`RE GOING TO BE PUTTING MILLIONS OUT OF WORK" scare tactic.
        • 6 Years Ago
        (crappy blog software put my original reply elsewhere..)

        They'll only pull that after Congress - trying to cover their own collective arses - make the case that "We've already loaned them billions, if we don't loan them more we'll lose our initial investment!"

        And the downward spiral will continue. On, and on, and on until there is nothing left (or the Chinese stop buying our t-bills - same thing).

        But, Change Is Here! We took the lowest approval-rated Congress in history* plucked 2 of it's members - one of the longest, and one of the greenest - and plopped them in the Executive to rubber stamp - err, fix! - things. Brilliant!

        (George Bush's much-cited and well-publicized low was 18, Congresses' well-hidden and relatively unpublished was 8. So, by comparison, W had more than 2x the support of Congress at their lowest comparable points. Hmmmm.)

        fyi: Not trying to politicize the discussion any more than to point out the reasoning (?) and motives behind the actions. Maybe once people understand how we got _here_, they can start working to ensure we don't get _there_, but I'm in the minority on this one.
      • 6 Years Ago
      BILLIONS!
      • 6 Years Ago
      This is ridiculous and has completely turned me off to EVER buying a GM product. Yuck.
        • 6 Years Ago
        It took you this long to realize that GM`s produces rolling outhouses?
        • 6 Years Ago
        wow....that's retarded.
        • 6 Years Ago
        Just because they are taking government aid means that they need to stop selling highly profitable premium vehicles????
      • 6 Years Ago
      This is why we should have nationalized them. If it's going to be a money pit might as well make it a state owned money pit.
      • 6 Years Ago
      Great caption Autoblog. Now, might I suggest to this fellow and GM: How about making your money the old fashioned way? Earn it.


        • 6 Years Ago
        @zamafir

        you don't know what you're talking about. the only reason ford doesn't need many (yet) is that they mortgaged everything they own including their headquarters building and got a $22 billion line of credit. Why didn't GM do the same? Well they would have had the govt and wall street not royally fucked up the credit market.

        just because ford got desperate and took out a huge loan before the credit crunch doesn't mean they are better run or have better "quality management" as you've said (i'm not even sure what that means in this context)
        zamafir
        • 6 Years Ago
        Well put, I wish GM and Chrysler had quality management like Ford and simply ran their business correctly. Pity we couldn't vote their management off the island along with Bush and anyone else who's very keen on not running their business with a modicum of fiscal reality.
      • 6 Years Ago
      Someone call the WANHHH-mbulance.
      • 6 Years Ago
      I just like how everyone makes such a stink over the small slice the automakers got when you know they will be made to repay it if they survive. does anyone believe the banks will repay their 700 billion or whatever it amounts to? Certainly not if the republicans return to power when they recover. "That would slow investments we need more tax cuts!!!"
      Bitch all you want at detroit but when full size trucks rule the roost yet again how can you blame them for serving up what the people are ordering?
        • 6 Years Ago
        "The people ordered those large trucks to due pressure caused my America`s obsessive preoccupation with homosexuality. It seems that in the U.S.A you are considered homosexual for not driving a land barge, 4X4 with a v-8 of course.The auto manufacturers know this and have been exploiting it since the word homosexual was created. And why is America so obsessively preoccupied with homosexuality? The bible. See, homosexuals and anyone who does not believe in Jesus are bound to go to hell."

        Or maybe Americans just like big vehicles because American cities aren't crowded enough to warrant tiny cramped econoboxes.

        I don't know what my sexuality is, but I do know that my car is a Mercury Mystique LS with V6 and automatic. Beautiful car, based on the European Ford Mondeo. Real sporty and everything. But it gets the same mileage as a typical American midsize sedan and is much smaller. My mom's Ford Escape gets the exact same mileage, albeit with a four cylinder engine and worse driving. She has a full hatch, comfortably sized backseats and big storage and headroom. My car, by comparison, is cramped.

        Ahem. All that aside, what I'm getting at is that I've driven my Mystique, my mom's Escape and her F-150 too. The Mystique drives nice but it's cramped. The Escape is big but it drives like crap, you can't corner it at more than granny speed with out feeling like you're going to turn over. But my mom's F-150 feels like the best of both worlds. It's still a bit tippy, but it feels less so (because it's heavier lower in the chassis) and therefore makes me feel more confident behind the wheel than the Escape, all with more space than my Mystique.

        I think a lot of Americans feel the same way.
        • 6 Years Ago
        Sometimes blog comments just go off in a total different direction and you think "WTF!?".
        :-)
        • 6 Years Ago
        The people ordered those large trucks to due pressure caused my America`s obsessive preoccupation with homosexuality. It seems that in the U.S.A you are considered homosexual for not driving a land barge, 4X4 with a v-8 of course.The auto manufacturers know this and have been exploiting it since the word homosexual was created. And why is America so obsessively preoccupied with homosexuality? The bible. See, homosexuals and anyone who does not believe in Jesus are bound to go to hell.

        Add to that easy-to-get loans and manliness (or masculinity) is but a monthly payment away.


        • 6 Years Ago
        Funny because my dad bought a Silverado because he hauls things in it, and my mom wanted one because she's a geologist and she tends to collect large rocks. But it must be their fear of homosexuality that convinced them to get it.

        I find it funny that the only one I see pushing the homophobic stereotype are the people posting here. I live in Michigan, most likely one of the most pick up heavy states, and have never felt or heard anything like that. Most people I know seem to get one either because:

        a) They need one. (My parents, builders, construction people, ect)
        b) They like them.

        I'll admit it's most likely the second category, but I highly doubt it has to do with homophobic tendencies.

        I'm guessing people who make this generalization have never lived in Michigan or any other north midwestern state. I don't drive a large truck since it wouldn't make sense for me, but there are days I wish I did. There's something to be said about not worrying about your car getting stuck in snow or even better, being blocked in by snow plows in parking lot.s
        • 6 Years Ago
        Liguan got it right when he said "I don't know what my sexuality is" because with Mercury Mystique LS you can not get laid with girl or a guy.


        People still buy Mercuries, i thought that they went out of style in 80's.
        • 6 Years Ago
        @rypt:

        I'm ~170 lbs and 5'10.

        Yes, there's enough room in the Mystique. But it would still be nice to have a little more room. I apologize, I should clearly buy a Corolla because I can fit in it, and therefore there's no real reason for me to want a roomier vehicle.
        • 6 Years Ago
        ronE: Some possible slogans for the D3 pickups:

        "F150: Built GOD Tough!!"
        "Silverado: Like a Rock in the Garden of Eden!!"
        "Ram: Drive this or go to Hell!!"


        Sea Urchin: LMAO that's a good one :D


        Luigiian: You might be a hermaphrodite. It's best to get that checked out by a doctor.
        • 6 Years Ago
        @Luigiian: I don't care whether you're gay or not either. And I can totally understand some people just want to drive a truck and not a car. Frankly there's no crime in that. It's your money and if you're happy with what you bought, then that's what matters. :)


        @dinnercoat: Glad I can help. Just make sure you're not eating your DINNER at the same time while laughing out loud, otherwise your COAT will bear the chunks. :D
        • 6 Years Ago
        Luigiian, how fat are you to feel "cramped" in a Mondeo sized car.
        Something the size of a Civic is all that a FAMILY with 2 kids really needs, a couple with just a baby can make do with a Yaris, and a couple just needs 2 seats.

        I'm 6ft 2, and I have plenty of leg room in the back of my Dad's Corolla if I'm ever passenger in there with my dad and mum up front.

        Hell, 4 (inc driver) people of my size fit fine in my mates AE86...
      • 6 Years Ago
      How can they be out of money already? They just got like a Billion 3 weeks ago. so if a Billion lasted three weeks, 5.4 million should last, you know, an hour or so.

      Im a GM man, but let them fall, and take the UAW with them. They cancelled the G8ST, so Holden cancelled the Cadillace intro in Australia as a tit-for-tat, if that's the way they're going to play, they deserve to fail. Gimme Fiat anyday.
      • 6 Years Ago
      Think thats what chapter 11 is for
      Just let the sh!t hit the fan. Bring it on!
      • 6 Years Ago
      whats next another billion dollar loan in march
        • 6 Years Ago
        @ JPM100, you are correct. But there's that little "viability" thing that GM has to prove. So far GM hasn't taken a single step. I remember right after GM got money they were saying that to save money they will kill Saturn, now that is off the table. So basically GM has taken no steps to improve its position.

        Before GM got money, according to Wagoner company was close to Ch 7, Bush said, here's the money but improve you business model. GM took no steps so come March 31st.................guess what, GM will again claim that it is close to Ch 7. Big Surprise, isn't it.


        Now, having said all that. I believe US should save its automakers, i believe we gave a lot to banks and other financial types to we SHOULD give some to automakers. Obama will have no problem with that because Barak and America are still honeymooning. I believe that if the TAXPAYER is giving GM money then GM should return the favor by making all its cars extraordinary efficient so the nation can beat its oil addiction. We help you, you help us. Also, government should force GM to hire a talented individual to replace Wagoner, that mean that government should FORCE GM "board of bystanders" to consider hiring Bozo the Clown, Humpty Dumpty, Jimmy Carter, anyone from United Nations, Michael D. Brown (a.k.a Brownie)----------------------------GM has to fire Wagoner and hire someone who has the ability to think, be it Lutz, Henderson, people listed above because it is obvious that Wagoner DOES NOT KNOW WHAT HE IS DOING.


        I think US Government should also be open to a possibility of buying 10% of all GM shares and negotiate the same deal with Chrysler, BUT making as clear as possible that at the earliest time the stock will reach a point at which government will have a profit all shares will be sold. That will stabilize shares of the automakers and will give government some additional seats on the board to make sure that top Management will not yet again engage in stealing money, ala Wagoners $17+ Million dollars a year salary.

        • 6 Years Ago
        Ummm yes. That was the agreement from December. $15 billion now & another dose in March predicated on meeting terms of the deal. They did ask for $35 billion. Its not like it should be a surprise.

        But I guess it harder to look outraged if you don't at least pretend its a surprise.
      • 6 Years Ago
      not to be an ass/stickler, but i really don't understand how a million can be confused with a billion by someone who is an expert enough on the subject as to write a post about it, i mean we are talking about a rather large quantity of money and to be making judgment on stuff when you really don't have a concept of how much money they are talking about doesn't make a whole lot of sense
      • 6 Years Ago
      this is just more industry whining, if they made a half decent product then they wouldnt need to come begging the taxpayer for more money to make the same old crap.. let them fail, someone else will buy them out and then the precious jobs can be dealt with by the new owner
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