• May 12, 2010
Steven Rattner, the man who headed the Auto Task Force, saved Michigan from bankruptcy, shepherded the still-contentious resurrections of General Motors and Chrysler and will soon have a book on his time in the trenches, has said his little lambs are doing better than he expected they would a year ago. Not only are they outstripping the targets set for them, but he thinks the government could get $40 billion of the $50 billion it threw at GM last year.

Ratter wouldn't be surprised if GM posts a profit this quarter, but that assessment is "based on public statements by GM executives," and it's probably better to wait for the slightly harder fact of the bottom line than to expect some gravy. More solid might be Rattner's belief, based on the price of old GM's bonds, that the government could get back $40 billion of the $50 billion it threw at the company last year, once GM begins selling stock.

[Source: Automotive News – Sub. Req'd | Image: Neilson Barnard/Getty]


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  • 19 Comments
      • 4 Years Ago
      You guys know that President Carter and Chrysler went through the same crap right? And it worked out right?

      While people talked about having a tax base, what they don't mention is the fact that those millions of people would be on welfare and unemployment benefits, which would raped our government.

      I actually like the bailout it made more sense to me. I mean I don't like the mismanagement that tanked the two auto but the bail out made sense. And the companies isn't really nationalized, they have to bust out a Hugo Chavez to be called nationalized.
      • 4 Years Ago
      GM was an oversized company before Chapter 7, while Chrysler was undersised (plus their cars were poo).
      That's why they both failed.

      Now GM trimmed down to few core brands that actually make profit, while Chrysler together with Fiat aim to become the world 6th largest carmaker.

      The kind of restructuring and planning the 2 companies did after chapter 7 it's a positive signal and the results start to show.
      And believe it or not out of the 2, Chrysler is the one with the biggest potential.
      While GM is already present in almost every market and cannot expand any further, Chrysler has always been a North american company only up until now.
      With Fiat, the Chrysler business will expand to Europe and further down the line in Asia.
      Not so much Dodge, but Chrysler and particularly Jeep have a large margin of improvement outside the US.


      • 4 Years Ago
      What are you smoking? something good my a*se! A worse 'investment' you could not make. As for Rattner, he is easily impressed. It sounds like the same old smoke and mirrors that GM is well known for. If there ever is an IPO, Americans will be lucky to see a small fraction of what was thrown at GM and Chrsyler. Within 2 years of an IPO both will be in chapter 7 anyway.
        • 4 Years Ago
        You clearly put your political party before America.

        GM's demise would have sealed YOUR demise. All of us would have been affected by the black hole of them going under. Their suppliers, the companies dependent on the suppliers, all consumer spending, tax bases nationwide, unrelated industries -- They'd all get hit. MILLIONS of jobs lost, all at once.

        And heavy manufacturing? You know, the industry we depend on when another country attacks us? It would be ALL gone. As a nation, we'd be a sitting duck, ripe for attack.
        • 4 Years Ago
        You forgot to uncheck the "blind hatred for GM and Chrysler" box on your keyboard.

        So what, pray tell, do you base your opinion on that they will both be Ch7 in 2 year's time? It certainly isn't based on their restructures or future plans, so what then, do you base it on?
        • 4 Years Ago
        As a resident of michigan who got his head handed to him by this recession, I wish people like you could put yourself in the shoes of those of us stuck here. I was born here and raised here and as a student in college I am kinda stuck here. I am in a co-op program with my university which means I go work for a few months at a time between school terms to make money and gain job experience. Guess what happened when the auto industry fell apart? I and pretty much everyone else found themselves out of a job. We go home to our families instead of going to work but are told that since mom or dad also lost their job, the money isn't there, we have to sacrifice and make do for the time being. And that's just our story and we're just students. Think of all the families that would've gotten the shaft from this. You go tell someone still employed at GM or Chrysler to their face that this was a bad idea and tell me how hard they punched you in the face.

        This past year has been the worst in our lives. How dare you say that this is all some big sham and waste. You bitch about taxes now? Well guess how many taxpayers would be taken out of the system if any of the big 3 just up and tanked? It would be on the scale of millions. With so many businesses and suppliers caught up in these webs, it's hard for anyone here not to be affected. So yeah, go ahead and let GM or chrysler die, just be prepared to pay my share of taxes. Oh, you don't want to? Well then shut the hell up and accept the fact that a disaster has been averted for now.

        Was it not done the way you liked oby? Well then do go on and share with me your infinite wisdom on how you would've stopped the implosion from happening.
      • 4 Years Ago
      GM isn't a public company (please don't argue semantics here, folks) so they aren't required to issue 10-Qs. Is GM expected to do so anyway?
        • 4 Years Ago
        I guess because they are a state owned company they are kinda forced to do so actually, surely the tax payer wants to know what the hell they are doing with their money...........
        • 4 Years Ago
        I wanna know. I'm glad to get the info. I just think they're not actually legally compelled to do so.
      • 4 Years Ago
      If they had been not bailed out it would have done wonders to the unemployment rate.
      • 4 Years Ago
      I agree we had to bail out GM... I didn't like it, but sometime the truth hurts. We also should find a way to hold every single upper manager liable for running the company in to the ground and forcing the tax payers to ante up.

      Someday GM will pay us back with their own money and not TARP (taxpayer) money.
      • 4 Years Ago
      If we get our money back, with interest, that'd be just fine.
        • 4 Years Ago
        Uhh unless I missed the news tonight, I don't think you or I will see a dime from this "investment". As American's we are only responsible for the liability of a major corporation, not the success. That money just goes back to the White House' balance sheet.
      • 4 Years Ago
      I'm SHOCKED, former Car Czar is impressed. Of course he'd be!!!
        • 4 Years Ago
        Lol what progress?

        GM has done NOTHING except get rid of old unwanted car brands, car models, and advertise that stupid "May The Best Car Win".

        Thats the same as them bringing out a commercial saying "Go out and compare a car to ours. They will win. We guarentee it. We are Grade-D Quality."

        And Chrysler has done absolutely ZIP NADA NOTHING. They havent released any new cars. They are still selling their demise PT Cruiser...they dont say anything about their future...or how they will repay us (the Americans who bailed their smelly butts out of bankruptcy.)

        When you suddenly realize it, the CEO's and Managers of GM/Chrysler dont care about the company. They just get paid $50 million a year to sit around and make phone calls, acting like they actually give a hoot about the well being of their company. Then when they resign (unlike that old unqualified fiend Bob "Minumum" Lutz), they STILL get paid until they croak.

        Corruption will always be in GM and Chrysler. I dont even see Chrysler being relevant in the next 3 years or so.

        Just my .50 cents.
      • 4 Years Ago
      Just think Americans, for once your tax dollars went to something good. Not just illegal alien healthcare / welfare.
        • 4 Years Ago
        Not to stat a war here, but... my wife and I don't have any kids, nor do we plan to. So, why should we get higher taxes to pay for kids whose parents don't know how to use contraception?
        • 4 Years Ago
        @ Xtasi - You're paying for the roads you use, the police force you rely on, the fire department you rely on, the postal service you rely on, the accounting and judicial services for the state and federal governments you rely on (against your will perhaps but nonetheless...) as well as your own social security "benefits" and countless other services.

        You also get the right to have kids when you want and how many you want and the government can't do a thing about it. Bear in mind, there are countries in the world where the government claims this right for itself and will dictate your child bearing rights (Mostly China comes to mind but I'm sure other countries have a few laws pertaining to this. We don't.)
        • 4 Years Ago
        Something good?! Have you ever sat in a Sebring?
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