OF1-05/29/09 6:25 AM
THE CLOCK'S TICKING FOR GM'S FUTURE.
The Osgood File. I'm Charles Osgood.
The U.S. Government is poised to take a 72-and-a-half percent ownership position in General Motors. All this and bankruptcy too, as GM expects to operate not only under government ownership, but also Chapter 11.
As one bondholder puts it...
SOT - Mark Modica, a GM bondholder
"I guess we have to prepare for court proceedings and hope that we will get fairer treatment in the court of law."
CBS News Business Correspondent Anthony Mason says Uncle Sam is now supposed to put another 30 billion dollars into GM on top of the 19 billion plus that was loaned them under the Bush Administration.
SOT - Anthony Mason, CBS News Business Correspondent
"We've already put more than 19 billion dollars into GM. But a senior Administration said, quote --- 'That money really did not accomplish anything' --- endquote."
The Obama Administration is hoping that it can get GM in and out of bankruptcy quickly.
SOT - Anthony Mason
"The government is saying they think they can basically create this new General Motors and bring that company out of bankruptcy within 60 to 90 days. And, given how quickly the Chrysler bankruptcy is moving, that may be possible."
In Chrysler's case, says bankruptcy attorney Steve Jakubowski.
SOT - Steve Jakubowski, bankruptcy attorney
"It's going at light speed, absolute light speed."
Much to the distress of closed Chrysler dealers like Marc Treiber.
SOT - Marc Treiber, a Chrysler dealer
"It's not fair. And if it wasn't for bankruptcy court, they couldn't do this."
There's no joy in bankruptcy at GM either, says autoworkers union President Ron Gettelfinger.
SOT - Ron Gettelfinger, president of the United Auto Workers
"I don't know of anybody's that's happy. Certainly, we're not happy. And having a ratified agreement going into bankruptcy in this process is critically important to us..."
But the government's paying the piper and gets to call the tune.
SOT - Steve Jakubowski
"They're providing the money. And they're the ones who are ultimately gonna decide how that money's gonna be spent."
Auto worker Brian Yarbrough.
SOT - Brian Yarbrough
"I don't think any of us even just two years ago could have believed that we're in the situation that we are now. (Question: Did you vote yes?) I, I did vote yes..."
Even though his plant is one that might be closed. His wife Sabrina says...
SOT - Sabrina Yarbrough
"I can't even watch the news. Because if I watch it, I just cry..."
The Osgood File. Charles Osgood on the CBS Radio Network.
The Osgood File. May 29th, 2009. |
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