New GM Avoids Paying Old GM $1 Billion In Secret Deal

Can anyone be surprised by this? This is the same company that got bailed out by us taxpayers and didnt payback a dime! Also the same company who with their faulty ignition switches caused the deaths of hundreds of people and yet what did that cost? 900 mil?

Where are YOU getting your information? Or are you just making it up.

GM not only paid back ALL of its TARP money - it did so with interest - and it did so 5 years in advance of the requirement as well.

ANd NO - the current GM company is not the company of those switches - Companies go Bankrupt ALL the time - Most of the Airlines have done so Multiple times - certainly Donald Trump has used Bankrupcy to get out of paying suppliers of many of his projects over the years. However - the NEW company is NOT the same as the Old company (WHich actually still exists) - and is not responsible for that debt. THAT is the way Banruptcy works - and this was not a law created for GM - it has been used by LOTS Of really big companies.

In this particular case - a number of cases that were determined to be false - were being added into the mix to try to require GM to pay more(A determination that the claims were false should not require GM to pay they anything). However - GM paid out to people who were provably injured in the cases - a total of 594 Million - or about $1.5 million per case ALTHOUGH there were cases settled for less and several for $5 million. GM also paid a $900 Million dollar legal settlement over the switches (the switches were worth less than $2) - and they also replaced 2.6 million switches on recall. (Total Cost over $4.1 Billion Dollars in the end)

YOU - 1 - Have no knowledge of what a Bankruptcy is - and how it deals with situations like these.2 - Continue to spread information that is simply wrong andoutdated

Dear Fifty six - as much as I would like to credit Mr. Obama with the TARP program that saved many US industries - not just GM and CHrysler - we BOTH know that the plan was passed by a Republican Congress on IN October 2008 - before Obama was even elected - and signed by then President George Bush.

So GM is a dead beat company. What else is new?

Lots of people make claims using different sources for their data - including conservative opinions that would not get through a court from right siding sites and YET - the General Motors Corporation Bankruptcy happened and resulted in the creation of a NEW entity - General Motors Company - the current "new" GM. Since - as all these things do - resulted in the loss of all investment dollars for the stock - I would have expected a LOT more lawsuits than have happened - probably because the re-organization was LEGAL enough that suits would have not ended in anything. Since National Affairs is not a court of law - their opinion is noted - but not significant anymore. THere are other opinions that favor what GM went through too.

However - again - the fact that lots of companies have declared Bankruptcy reorganization - and that liability requirements can be one of the reasons (Note the current Air Bag situation - the manufacturer no longer exists) - we have toxic sites all over NJ from lots of different manufacturers who went bust or reorganized - this is not something UNIQUE to GM.

The fact is - if both GM and Chrysler were liquidated - it would have resulted in an incredible depression - because of the loss not just nationally - but worldwide of THOUSANDS of suppliers - it might have resulted in the loss of virtually ALL car manufacturing in this country since parts needed might not have been available - as suppliers could not take the hit of losing Both GM and CHrysler at the same time.

Meanwhile the tarp money saved maybe a million middle class jobs. Without it
several mid-western states - especially Michigan - would have gone Bankrupt. Governments often give tax incentives for businesses - and tax abatements - and even LAND - to get manufacturers to come to their city/town/state. This is just another way for government to do business.