Okay, so the Detroit Three have finally got their money, but exactly the amount they wanted but it’s money. They asked for US$34 billion but only got US$15 billion. Seems now they’re heading north, asking another country for money.
GM, Chrysler and Ford is asking for a collective US$6 billion in loans, of which US$2 billion is a request from Ford and only a “stand-by” line of credit in-case the situation gets worse. Ford seems to be the least affected of all 3, could it be they are actually making cars people want to buy?
GM seems to be the worse off. GM is also asking an additional “immediate” US$800 million from Canada to make it through the end of 2008. U.S. Senator Chris Dodd has suggested that GM CEO Rick Wagoner “move on”, given an almost “impossible to defend” record (according to BusinessWeek) that includes wasting US$1.3 billion on a stake in Subaru which yielded absolutely nothing – no new cars, no technology, nothing, and then proceeded to sell off the stake later, partly to Toyota. He also spent US$2.3 billion to buy a share in Fiat and another US$2 billion to get out of it. Read the BusinessWeek link for more on Wagoner’s track record in GM.
The American taxpayers are probably furious at GM and the silver lining is at least GM knows it, hence this two-page apology letter to the American taxpayer you can read below.