The whole matter of whether to give the money GM wants to continue as "a going concern" continues to drag on. Now the committee appointed by Presdient Obama will be making a site tour next week in MI.
I'm struck on how long it's taking for this group to make up its mind for $16B when we're spending TRILLIONS elsewhere often embedded with God-knows-what in terms of so-called set-asides (read that "bribes for votes" - aka "Pork.")
Outside of this decision-making process, brave blue and white collar workers alike wait and hope for auto plants to be unshuttered and the opportunity to go back to work.
From: http://www.bloomberg.com/...
GM Bondholders’ Doubts
Bondholders’ representatives, who met with the panel more than two and a half hours yesterday, are concerned that GM’s viability plan may not keep it out of bankruptcy, said a person familiar with the matter who declined to be identified because the meeting was private.
GM is in talks with bondholders to pare $27.5 billion in debt to $9.2 billion in exchange for equity. The representatives were seeking a sense of whether the task force believes the GM plan goes far enough to ensure survival, the person said. GM lost $30.9 billion last year, the second most in its 100-year history.
"Any money we give to the auto industry must be a lifeline, not life support," House Speaker Nancy Pelosi told reporters at a weekly press briefing yesterday, saying the ultimate decision remains with the administration. "This isn’t endless. But there has to be a sign of viability. And this needs to happen, and it needs to happen soon."
Michigan Governor Jennifer Granholm said March 3 that she encouraged the task force to move quickly to aid automakers, as she urged the panel to avoid bankruptcy as an option. Granholm said she spent almost an hour at a meeting led by Bloom and Rattner.
What a time for a "site tour!." This is clear example of political appointees going to Detroit because they've not sufficiently immersed at senior committee levels in the business they're tasked to save.
Apparently, the ex-media man and his new-found ex-union negotiator friend need to get more time to get comfortable with the car business in advance of advancing their determinations to the full committee. What's next, a visit to a car dealership?
It's probably too late for an appointment of a strong central figure to provide the single leader who might have more quickly galvanized the seemingly ever-growing list of political decision-making influences.
Good luck to all.
Andrew Gross
Chairman & CEO
Automotive Consulting Services, LLC
(An Oregon Corporation)
www.autoconsult.us
503-701-6003
andy@autoconsult.us