Sunday, January 25, 2009

Weird: GM Won't Take The Cash

Lifestyles so rich and famous
Robin Leach will get jealous
Half a million for the stones
Taking trips from here to Rome
So if you ain't got no money take your broke ass home

GM isn't taking the Canadian Government's cash:
OTTAWA — General Motors of Canada has turned down an offer by the federal and Ontario governments of emergency short-term aid, a move that has stunned some analysts and left negotiations on a highly touted auto bailout in limbo.

"For reasons that are their own, General Motors has decided not to call upon our short-term aid," Prime Minister Stephen Harper said Friday in an interview, to be broadcast Saturday on Global TV's Focus Ontario. "That's actually good news, but we're talking to them about longer-term restructuring."

Harper and Ontario Premier Dalton McGuinty announced with much fanfare on Dec. 20 that their governments would extend a combined $4 billion in emergency loans to GM Canada and Chrysler Canada.

There are only a few possibilities:
A. They need the cash, but are too incompetent to actually get the paperwork done. This is a definite possibility given GM's history.
B. They don't need the cash because they are doing amazingly well despite the almost triple digit percentage drop in sales. Ahhh, yeah, not likely.
C. They need the cash, but don't want to use government money to be used as a leverage against the company in the event of a bankruptcy. Scary, but probably the most likely scenario.

This doesn't look good.

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