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  When GM says 'Here's your money back,' they really mean it!

  GM "says it will begin to pay back U.S. loans." But of course it's paying back that debt to taxpayers with money from ... taxpayers. Even the new, nicer Truth About Cars isn't falling for it. GM got $50 billion from the government, after all, mainly for a 60% share in the company. It's planning to pay back $1.2 billion in December--basically a PR attempt, TTAC speculates, to erase its negative consumer image as a bailout baby. The only hope for the taxpayers actually being repaid for their entire $50B investment is an IPO. TTAC pinpoints 2010 as the ideal year, when the innovative Chevy Volt will be conveniently not yet released. "GM’s hail-mary will provide a speculative upside to GM’s value as long as it’s still just around the corner." ...
   
  P.S.: Also, these financial results are not GAAP-ready. "North American Operations are still bleeding cash. And, as Henderson has admitted, the fourth quarter results for 2009 are only going to bring worse news." [TTAC again]  ...  P.P.S.: But GM will launch a company-wide sale this week to clear excess U.S. inventory. A sure sign of success! ...  2:58 P.M.

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  Filed under: AUTO INDUSTRY, RATTNER, CHOOCHISM

About Mickey Kaus

• Mickey Kaus is the author of The End of Equality.

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