Govt is Betting on GM’s Recovery, Are You?by Tim Manni
What is it about General Motors? Why does our government continue to pump billions of taxpayer dollars into this company? They’re making a bet with our money that we’re pretty sure most taxpayers wouldn’t take. What it comes down to is that the government is supplying GM with what could amount to almost $50 billion to emerge from bankruptcy quicker and stronger. But what if they don’t?
Experts predict it will take GM 6-18 months to return to a publicly-traded company. Washington has gone “all in” on the hope that the automaker’s restructuring — freeing themselves from under a mountain of debt, slashing high labor costs, cutting out half of their product lines, and slimming their inventory — will lighten the load enough to get them on the profitable side of the ledger. But there’s one problem that all the Federal money in the world can’t solve: how do you get consumers interested in buying GM vehicles?
That problem, according to the White House, sits squarely on the shoulders of GM:
“We’re not going to run advertising campaigns or take charge of brand rehabilitation,” said an Obama administration official.
Since it’s your money that the government is pledging to rescue this automaker, we want to know if you think it will work. After all the time, money, and effort that has been dedicated to GM, will they return return to profitability, or will they re-fail?