• Oct 30, 2009
Fritz Henderson went to Washington to have a word the folks who wrote the $50 billion check to keep General Motors alive. While there, he answered a few questions put forth from The Washington Post about that investment and the "new" company created with it. His answers are sound, but qualified and a bit vague – that's to be expected, since the economic storm isn't anywhere close to being over.

On the subject of money, he said that "any reasonable planning scenario" they've looked at doesn't involve the government writing any more checks, and when it comes to payback, "If we get our job done, I think the government has an excellent chance of getting a return on its investment." That could all be read as a way of saying "We have no clue what's going to happen." But four months into his job is too soon for Henderson to be making promises for years out, so at the very least, we'll see what GM's next round of cars is like before we dissect his veracity.

On other scores, Henderson praised the UAW, kicked hydrogen cars in the doors, estimated that the Chevrolet Volt will come in at $40K, and he also said electric cars need a lot more investment from other sources for prices to come down. Click the link for the rest of The Generalissimo's words. Hat tip to Serge!

[Source: The Washington Post] | Image: Philippe Lopez/Getty]



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    • 1 Second Ago
  • 26 Comments
      • 5 Years Ago
      Didn't they already lose over 20 billion (the gov) since the formation of 'New GM'?

      I'd love to understand why all of the sudden GM wouldn't need any more government money.
      • 5 Years Ago
      Hahaha...... yeah right.
      • 5 Years Ago
      Famous last words anyone?
      Its way to soon in my eyes to say that they wont need any more money or that they are fine. He should of just said "So far things are looking alright." and leave it at that. I just hope they dont let the old mentality that got them to what they were previously set in.

      Also while I'm at it.. can we have him shave that mustache. Every time I see him I think of a plump stupid Hitler and it always irks me.
      • 5 Years Ago
      They already got quite a bit.
      • 5 Years Ago
      Washington? GM is using my money and i do not live in Washington.

      I'll go and deposit my paycheck into Ally Bank, great bank by the way, rock solid, it did not even need a bailout.
        • 5 Years Ago
        Not owned, it is GMAC, they just renamed themselves.

        • 5 Years Ago
        You get some provision from them? Because you are walking advertisement. :)
        • 5 Years Ago
        It's more confusing than that- GMAC had a subsidiary named GMAC Bank. GMAC Bank renamed itself Ally Bank- so in a way, GMAC did rename itself Ally, while also remaining a subsidiary of GMAC... ah, the world of Wall Street.
        • 5 Years Ago
        Not renamed, as GMAC is still in existence. Ally is just a subsidiary. Still, it's more honest than other corporate masking shenanigans. My favorite is Airtran, formerly known as ValuJet.
      • 5 Years Ago
      So long mom and dad, thanks for the $50B, screwing over all the people that I owe money too, cash-for-clunkers.... I don't need any more help. Can I still come over and do my laundry?
      • 5 Years Ago
      • 5 Years Ago
      Sorry Fritz, but once you take money from this government, it's like taking money from the mob - they own you. And you will take whatever other money they require that you take. In return, they might one day ask for a favor from you, on the day of your daughter's wedding.
      • 5 Years Ago
      GM won't ever pay the government back because they don't owe the government anything. I think the government will, however, get a decent ROI. They have a 60% stake in the company. If the company is ever able to have an IPO I think the government will get back its $50 million pretty easily. Still don't think it'll come even close to the ROI they got from loaning money to banks that didn't need it.
        • 5 Years Ago
        You're right. In that case, the odds are definitely working against them. I don't think GM will ever be able to achieve a market cap of $100b+.
        • 5 Years Ago
        that's billion with a b champ. And unless GM's stock pulls an AAPL, I don't think they're going to be raking in the cash.
      • 5 Years Ago
      GM and the UAW were bailed out by the American Taxpayer for a failed business model. Profitable local dealerships were forced out of business in the process. Dealerships don't stay in business without customers. So, why would you force them out of business? As you drive by empty GM dealerships all over the United States remember 90% of them were profitable and employed people in your community. These people will now be drawing unemployment for no reason.

      How is GM going to sell more vehicles with fewer dealers? They only sell to dealers. The remaining dealers are not going to pick up the slack. Half of the customers doing business with the closed dealer will not do business with the remaining dealer because of a previous experience.

      GM will be on the Government bail out program from now on. What goes around comes around.
      • 5 Years Ago
      They DID get $50 billion- if they need more than that then it's a bit ridiculous.
        • 5 Years Ago
        I get your point but to be fair, $50b included also the Chrysler bail-out and they are obliged to pay some $6-7b back. So it is more like $30-ish I guess.
        • 5 Years Ago
        Imagine that, a Government run entity, that doesn't know how much money it will cost the taxpayers!

        Sounds like every other Government run program. "It will cost this much, promise." Then a few months later, "Sorry, we were wrong, it will cost this much." Again, further down the road, "Sorry, wrong again, it will cost this much."

        When will people pull their respective heads out of the sand, and realize that no Government run program, or entitlement, ever works fiscally, the way it was intended.

        You really think we will ever see a dime of the tax money used to facilitate this deal?

      • 5 Years Ago
      "If we get our job done, I think the government has an excellent chance of getting a return on its investment."

      If GM had been doing its job they wouldn't have gone bankrupt. What has changed in the organization? A few concessions from the UAW?
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