With the economy in the doldrums, Barack Obama in the White House, and Elton John releasing a line of crystal encrusted Ipods for charity, it’s suddenly fashionable to talk about “Sacrifice” once more; a trend that senior management at General Motors seems to have picked up on. Their December 2, 2008 proposal to the Senate Banking Committee calls for sacrifices no less than nine times in twenty four pages from everyone including stake holders, share holders, bond holders, management, senior executives and in one instance, even the GM balance sheet (it has been asked to sacrifice leverage). That the Company wrangled out $13.4 billion from the TARP suggests an era in which nothing succeeds like sacrifice, but the accompanying term sheet suggests that the time for martyrdom has just begun.
Tag Archives: UAW
Generally Motored! Why GM has the Government by the Gonads
Either the well was very deep, or she fell very slowly, for she had plenty of time as she went down to look about her and to wonder what was going to happen next…” As General Motors representatives prepare for the February 17 discussion with the Treasury Department on viability plans, they shall be under some pressure to illustrate how they plan to pull the company of its $44 billion dollar rabbit-hole of debt and re-emerge into the sunny wonderland where selling cars actually generates profit. The company is expected to show progress on negotiations with its creditors and must have firm commitments by end-March, else it could be forced to pay back the $13.5 billion loaned by the Treasury thus far. Given GM’s current liquidity crisis, a misstep on February 17 could plunge it into bankruptcy.
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