GM: the good, the bad and the ugly

June 1, 2009 at 7:21 am | Posted in Barack Obama | Leave a comment
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11:55ET: Obama to deliver remarks on next steps for GM. 

The Good News: Obama will play up the idea of a new start for an embattled company once the symbol of American enterprise.  He’ll lay out a new strategy for GM to get back to making money, with emphasis on innovative, greener technology for the auto industry. 

The Bad news: To ge there, taxpayers will have to invest another $30 billion on top of  $20 billion already spent just to keep the company solvent.

And the Ugly:

NYT:

“The company will also have to shed 21,000 union workers and close 12 to 20 factories, steps that most analysts thought could never be pushed through by a Democratic president allied with organized labor…Forty percent of the company’s 6,000 dealers will close, the workers’ union will be forced to finance half of its $20 billion health care fund with stock of uncertain value in the restructured G.M., and bondholders, including many retirees, will be forced to take stock worth 10 cents for every dollar they lent the company.”

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