As you can see on the right, I still have up my poll on when GM will get out of bankruptcy. And, by that, I don’t mean a judge’s ruling on paper. I mean, when will the government no longer own part of it.
Well, GM’s reneging on its sale of Euro subsidiary Opel to Canadian parts maker Magna puts a whole new kink in that.
Germany insists it wants back all the purchase assistance money it gave GM. What if GM doesn’t have it? Will it ask for more U.S. money to help it keep running Opel?
And, does anybody at GM have a finance degree?
Germany extended $2.2 billion in bridge financing for the Magna sale. GM says it will cost more than $4.4 billion to restructure Opel itself. So, not only did it kick the Federal Republic in the teeth, it’s theoretically on the hook for twice that much money.
Why would anybody buy GM stock?
Yes, new GM cars here in the US are built on Opel platforms, but GM would have kept a minority stake in the company with the deal.
This is ludicrous. Why either Germany OR the US should now trust GM is of serious doubt. But, if Fritz Henderson pleads for some more Obamabucks, he will probably get them.
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