Cornwall ON – So why all the false stories about GM paying back their government bail out? According to media reports GM has paid back some of the monies given to them with other monies given to them to bail them out. They also secured more financing at a lessor interest rate.
When you read news about companies like Ford that took no bail out monies improving that feels a heck of a lot better than reading this story.
(The Canadian government likewise gave GM $1.4 billion as a pure loan, and another $8.1 billion for an 11.7% equity stake. The U.S. and Canadian government together own 72.5% of the company.)
In short, GM is using government money to pay back government money to get more government money. And at a 2% lower interest rate at that. This is a nifty scheme to refinance GM’s government debt–not pay it back!
These definitely are not by father’s Oldsmobiles….oh, they don’t make Oldsmobiles anymore…
I think the car business is simple like most others. Build good products and take care of your customers. If you do that generally everything work out if you bust your hump and work hard.
As a small business owner I can’t stand the fact that our governments are rewarding big companies that have only proven to be failures.
What do you think Canada? Should the government have given GM a bailout in the first place? You can post your comments below.
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