Thursday, October 29, 2009

May I have some more, Please?

                              Ok, here is what I learned yesterday on a number of news outlets.
General Motors Co. by the end of the week will outline plans to draw down more U.S. government money it will use to aid Delphi Automotive LLP and also give an update on a closely watched escrow account of its bailout funds, according to several people familiar with the matter.

GM's additional borrowing will mostly be limited to Delphi's funding needs and is expected to be north of $2.5 billion, based on prior announcements.”

Delphi was formerly owned by GM and is a key GM supplier.

GM is promoting this to happen. It’s obvious. If Delphi goes belly up so does GM.
So GM goes to Uncle Sam for billions more.

While you think about that; perhaps you watched the World Series game last night and noticed that Chevrolet, a GM product, was sponsoring part of the telecast of the game.

It’s a guess, but some limited research suggests that a thirty second commercial would run just over $400-thousand on network television.

Here’s my question. If GM is going to the government for billions more of taxpayer  money why are they spending that kind of capitol to co-sponsor a game? I understand they need to advertise, but at that cost?

1 comment:

Topher08 said...

I agree. I always thought that when times were tight you cut expenses to the bare bone, work harder to increase income, put together a saving plan to save what you make, and, if that is still not enough, BORROW only what you need to get through!!!!

Oh well, thanks for the posting and it is high time DC cuts GM off. Have a great weekend.

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