GM restructure NOT so full of Obama promise – or any

I don’t care that President Barack Obama himself claimed recently GM’s restructuring plan is “full of promise,” it’s not.

First, let us note that, per a subscription-only Wall Street Journal story, “old” GM may take a number of years to clear bankruptcy.

Among problems there is that GM’s planned sale of its Hummer brand to a Chinese company has been put on ice by the Chinese government.

Second, it looks like the government hugely overvalued “remnant” GM, judging by putting an equals sign between the government loan amounts and the equity stake percentage, then converting that into stock value.

Remember, while the original bailout help to automakers was on the Bush dime, cutting off the tap in order to push the General into a structured bankruptcy, and the terms of government involvement in that, are all Team Obama’s. And, these are the folks who miscalculated the size of the recession.

So, when the Obama Administration tries to pawn off a slower-than-it-planned GM resurgence in coming months, you know it’s not so.

Also related to Team Obama’s views about the future of the “new” GM, how does it square its plans for the General to get “greener and meaner” with GM CEO Fritz Henderson naming global warming denialist Bob Lutz its marketing bigwig? It can’t, and it will ignore that if pressed; but, nobody in the MSM will press it.

And, even “new” GM is unlikely to actually come out of bankruptcy for a full year or so. If the recession lasts longer, or recovery is more shallow than even new predictions, the General won’t be out until 2011. The “new” GM only.

So, if you believe Henderson can do it, when he says he intends to repay all government loans by 2015, then I have a brand-new 2009 Chevy Volt to sell you.