"Yes: Bush should have told them five years earlier that the govt would not help them. They would NOT have been so much in the hole then. They should have forced GM under sooner.
Then any number of firms could have DIP'ed for them. But no - that idiot let them lose $88B in five years to the point where only a TARP recipient could have bailed them out."
I'm wondering what GM would have done differently if Bush would have told them 5 years earlier that the government wouldn't provide DIP financing. What do you think that would have done to change what they were doing? In 2004, GM made $2.8 billion (granted not an adequate return), had $57.7 BILLION in cash and marketable securities, $27.7 billion in shareholders equity and over $13 billion in cash provided by operations. I seriously doubt whether any company would drastically change their course based on these numbers.
"I seriously doubt whether any company would drastically change their course based on these numbers.
How much do you think GM paid out in employee buyouts and job bank payments? I
doubt that GM had many options given that their operations were largely in union
territory. The UAW had GM by the gonies and probably, still do. They just aren't
squeezing right now.
Yep that was about their last profitable year. Then they started losing big money. It was clear by 2006 they were in very serious trouble. We were already running a GM DEATH POOL on this board by 2006, for heaven's sake.