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GM CEO Tells Shareholders Bailout A Success

Akerson: its clear that loans protected U.S. manufacturing.

by on Jun.06, 2013

General Motors Chairman and CEO Dan Akerson addresses the 2013 General Motors annual meeting.

The facts show the bailout of American automobile industry has been a success, at least according to Dan Akerson, General Motors chairman and chief executive officer, who made the assertion to shareholders at the company’s annual stockholders meeting in Detroit.

“Four years on, it’s pretty hard to argue it wasn’t successful,” he said. “The American public has been well served. All three American companies are profitable and the American manufacturing base is still 50% larger than China’s.”

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Akerson acknowledged the decision to bailout Detroit carmakers was very controversial at the time. However, the decision by “two administrations with very different political perspectives” has proven its worth by helping protect the U.S. manufacturing base during the recession. The bailout also meant the U.S. government didn’t have to cover $26 billion in pension costs connected to the automakers.

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GM, Chrysler Submit Plans — But Are Key Details Missing?

Threat of bankruptcy needed to force changes from union and bondholders?

by on Feb.17, 2009

GM CEO Rick Wagoner: Alms for the poor?

GM CEO Rick Wagoner: Alms for the poor?

Chrysler and General Motors have submitted turnaround plans to the U.S. Department of Treasury that will determine the fates of ten of thousands of blue and white collar workers worldwide. Neither of the struggling companies will discuss details of their latest plans until late Tuesday after the stock market closes.

Stay tuned. TheDetroitBureau.com will have updates as the evening progresses and details emerge from GM and Chrysler.

Given the global economic collapse it is expected that cutbacks will be much more severe than contained in the plans originally submitted to Congress on December 2, 2008. Talks today are continuing with the United Autoworkers Union over health care benefits, but the Union said earlier that an agreement would take more time. It’s also not clear if the deals needed under the loan terms have been reached with bondholders to convert their debt into stock of the companies.

Robert Nardelli, Chairman and CEO, will discuss the plan at about 5 pm. General Motors Chairman and CEO Rick Wagoner will hold a news conference about 6:30 pm to discuss the viability plan being submitted to the U.S. Treasury and to provide an update on the company’s restructuring.

Responding to the Speaker of the House Nancy Pelosi’s letter that was released yesterday, Chrysler said in a statement, “We believe we are on track with our viability plan, which will be consistent with both the request of the letter and the terms of the loan agreement. We look forward to a continued dialogue with the Administration and Congress as we move forward with the process.”

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