I think the only reason GM's able to start paying back the loans so quickly is simply they borrowed more than they needed to. Probably so they could start paying it back sooner, as a PR move. Like you said, GM's PR department isn't stupid, but they think the rest of us are.
@HurtsSoGood: They needed money AND they were blowing smoke up our asses.
Kind of like when you couldn't make rent right after you finished college, and scared your parents into lending you $1,500. But you didn't tell them that you spent $400 of this on concert tickets and beer, and when you paid them back $200 early it was just so that they'd forget about the remainder.
Edited by Mr.choppers - Delenda Carthago Est at 11/19/09 11:08 PM
Mr.choppers - Delenda Carthago Est was starred
Mr.choppers - Delenda Carthago Est was unstarred
Incorrect. The cars are commodities, of which none are sold for less than the price of materials, therefore any monetary loss is associated with labor, manufacturing overhead, and administrative cost.
Let's assume that the profit on the materials can outpace the facility overhead cost, and break it down to where all losses are associated with personnel, both labor and administration.
Let us furthermore assume that the taxpayer funded loan was a gift, and that none of it will come back.
Then, let us assume that the funds remained within North America.
With approximately 112,000 employees in North America, 8.6 billion dollars works out to $76,785 per worker that the taxpayers have spent.
Fire them all, and give me back my money. All $30 of it ($8.6 billion divided by the current US population of 300 million is only $28.67; The $1.33 is interest)
skitter promoted this comment
Corvette_Thunder_Wheres my trophy for participating in Jalopnik? was starred
Corvette_Thunder_Wheres my trophy for participating in Jalopnik? was unstarred
Quick. Everyone buy an Aveo just to spite the taxbuyer. "Look at this! Look at it! Yeah, that's right! This pile of misery cost you 12 Grover Clevelands!"
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I told you, Idiocracy is coming true.
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Kind of like when you couldn't make rent right after you finished college, and scared your parents into lending you $1,500. But you didn't tell them that you spent $400 of this on concert tickets and beer, and when you paid them back $200 early it was just so that they'd forget about the remainder.
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#tips
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Let's assume that the profit on the materials can outpace the facility overhead cost, and break it down to where all losses are associated with personnel, both labor and administration.
Let us furthermore assume that the taxpayer funded loan was a gift, and that none of it will come back.
Then, let us assume that the funds remained within North America.
With approximately 112,000 employees in North America, 8.6 billion dollars works out to $76,785 per worker that the taxpayers have spent.
Fire them all, and give me back my money. All $30 of it ($8.6 billion divided by the current US population of 300 million is only $28.67; The $1.33 is interest)
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Also, faring, not fairing.
/grammarian
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Hopefully, GM will learn the lesson and not stagnate. Next time, the taxpayers won't be so willing to hand over billions on a silver platter.
But then again, this isn't exactly the first time, either. Do we, as a species, ever learn?
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