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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.


Department of Energy Rejects V-Vehicle Loans

Louisiana politicians “ask” DOE to reconsider. It says it will?

by on Mar.31, 2010

A virtual car company now with virtual funds.

V-Vehicle Company’s (V-VC) two loan applications for $321.1 million from the Advanced Technology Vehicle Manufacturing Loan Program (ATVMLP) from the Department of Energy were rejected last week, but that does not mean taxpayers are off the hook yet. (See A Closer Look at How DOE Spends Your Tax Dollars )

The fledgling venture capital startup, which plans to make four-passenger economy cars 40% cheaper than major automakers, was hoping that taxpayers would subsidize the gamble, and had been in discussion with DOE for about a year.

The first loan application was for $79.9 million to complete engineering integration with V-VC’s 30 U.S. suppliers. The second was for $241.2 million to re-equip and tool a former General Motors parts manufacturing facility as V-VC’s first regional assembly plant in Monroe, Louisiana. About 1.400 jobs would have been created if the company were successful.

The company raised $86.5 million in private capital, and another $87 million in state, local and federal grants had been promised if V-Vehicle obtained the loan.

Aides to U.S. Senator Mary Landrieu and Congressman Rodney Alexander, both of Louisiana, have met with federal Energy Department officials to see how startup automaker V-Vehicle can reapply for $321 million in federal loans, according to the Baton Rouge based NewsStar.   (more…)