The National Taxpayers Union (NTU) is urging European governments to reject GM’s request for funding its reorganization of Opel.
This presumably will hasten GM’s demise and increase the chance that taxpayers will loose their entire investment in GM. The latest criticism comes at a time when GM is showing some signs, albeit small ones, of regaining momentum.
The conservative NTU was also an opponent of the original auto bailout plans, and — as a vocal proponent of the “Let GM Fail” ideology, NTU then went on to excoriate GM’s 60-day money back guarantee program, which is actually increasing consideration, sales and contributing positively to the bottom line.
Now NTU Vice President for Policy and Communications Pete Sepp is offering the following comments regarding GM’s Opel restructuring decision. GM’s latest plan has GM retaining Opel instead of selling it off and losing control of vital engineering and design resources.
“In order to do that, GM has requested $4.43 billion in taxpayer bailouts from European governments, including Germany, Poland, the U.K., and Spain. Incredibly, Opel already has $2.23 billion in loans from the German government to keep it afloat,” Sepp claimed.
Well, not quite, Sepp. First off, these are all loans. Back in late May, the German government provided a bridge loan to Opel, which at the time was within days of running out of operating cash. Opel still owes the government about €900 million of €1.5 billion advanced but improvements in its operations and an increase in sales have allowed GM to pay some back already.
Secondly, GM has not publicly revealed its revised plan, which is being discussed with European governments this week and next, but it will likely involve more loan guarantees.
In other areas, Sepp mirrors rigid conservative ideology, which would rather see GM fail, than succeed.