Rattner: Auto bailout saved Michigan from bankruptcy

Chris Shunk — Thu, 11 Mar 2010 13:59:00 EST

Filed under: Government/Legal, Chrysler, GM

Without the government bailout of General Motors and Chrysler, the U.S. auto industry would likely have two fewer domestic automakers and hundreds of thousands of high paying jobs would be history. The Detroit News reports that ex auto task force chief Steve Rattner recently told an audience at a bankruptcy conference that the state of Michigan and the city of Detroit would have faced municipal bankruptcy if Chrysler and GM were liquidated.

Instead, Rattner claims the government bailout not only saved untold thousands of jobs and two enormous American car companies, but the price tag for the government is shrinking as time goes on. Initial estimates by the task force showed that the auto bailout would cost U.S. taxpayers $20 billion or $30 billion after GM and Chrysler's initial stock sale, but Ratner claims that the current price tag is $10 billion or less. The estimated loss has gone down due in part to the fact that old GM's assets are worth more than previously estimated and The General is turning around its operations more quickly than originally thought. If GM continues to surprise and delight, the government may even make some money when it goes public with a stock offering this year or next.

Would the city of Detroit and the state of Michigan have gone bankrupt if GM and Chrysler were liquidated? There is no way to be sure, but if the government hadn't stepped in and bailed them out, its inaction would have probably cost taxpayers untold billions of dollars as well.

[Source: The Detroit News | Image: Neilson Barnard/Getty]

Rattner: Auto bailout saved Michigan from bankruptcy originally appeared on Autoblog on Thu, 11 Mar 2010 13:59:00 EST. Please see our terms for use of feeds.

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Goodbye-amino? Pontiac could kill G8 ST; become one-car brand

Chris Tutor — Mon, 15 Dec 2008 10:58:00 EST

Filed under: Pontiac, Holden

Click above for a high-res gallery of the Pontiac G8 ST

It's been a bad month for Pontiac fans. While begging for money from Congress, GM mentioned its intentions to sacrifice the brand to aid the General's recovery and get a few billion from the feds in the process. Now comes word that GM may keep the brand around, but cut its lineup in half... or more.

Automotive News spoke with Susan Docherty, vice president of Buick-Pontiac-GMC, who said that Pontiac's Aveo-based 2010 G3 will sticker for $15,000, but says it's a short-term product for the brand. Unfortunately, Docherty also hints the G8 Sport Truck's lifespan could be even shorter. "We would be foolish if we didn't take a second look at whether or not that is the right thing to do."

In a separate AN article, Docherty goes even further and suggests Pontiac's lineup could be pared down from six vehicles to a single nameplate. According to Docherty, "We are not going to spend tons of money on product development" for Pontiac and that the Pontiac Torrent will be dropped for 2009.

So what will Pontiac be selling? According to Docherty, the G8 is the most likely candidate for GM's performance brand, and that the ideal future for Pontiac would be "very focused, very specialty or niche."

Gallery: 2010 Pontiac G8 ST

Gallery: 2009 Pontiac G3

[Source: Automotive News - Sub. Req.]

Goodbye-amino? Pontiac could kill G8 ST; become one-car brand originally appeared on Autoblog on Mon, 15 Dec 2008 10:58:00 EST. Please see our terms for use of feeds.

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