Remember Me
forgot your password?

Is GM Squeezing Tennessee For Cash?

General Motors is now officially in bankruptcy a moved brought on thanks to tens of billions of dollars lent to it by the federal government of the preceding six months. In order to secure GM's future, the Obama administration orchestrated the company's bankruptcy filing, a move which is intended to help the automaker shed unwanted brands, dealerships and factories as well as terminate thousands of employees.

Government Intervention, Despite Saying That There Would Be None

The federal government is insisting that GM will run its own affairs from this point forward, but analysts know that this statement simply is not true. Recently, Rep. Barney Frank of Massachusetts intervened when GM included a Norton, Mass distribution center on its list of facilities slated for closure, calling up GM CEO Fritz Henderson who agreed to reverse that decision.

Now, GM is playing hardball with several states, including Tennessee, asking the Volunteer State to contribute at least $200 million to keep the former Saturn factory in Spring Hill open. That factory will likely become the home of GM's small car venture, a project transferred to the US when lawmakers objected to the car being imported from China as initially planned.

Putting The Financial Pressure On Tennessee

GM's squeeze on Tennessee comes as the automaker looks at reversing the closure of one of three plants to build its small car, a vehicle likely to be based on the Chevy Beat concept platform. The two other facilities are in Wisconsin and Michigan states who likely don't have the deep pockets to fund the operation.

Tennessee, however, doesn't plan to provide the funding requested by GM, indicating that the current economic climate and lack of runny day funds would preclude that from happening. In addition, with GM being in the precarious financial state that it is, should the automaker eventually fail it could mean that Tennessee would lose its entire investment.

No Interest In Running GM?

The Obama administration has insisted that it has “no interest” in running General Motors, but that doesn't mean that members of Congress won't have their say. Nor does that mean that government backed managers, such as CEO Fritz Henderson, wouldn't consider carrying out the political wishes of federal leaders.

With just a few months in which to restructure, expect that GM will be taking additional controversial steps to ensure its success, perhaps leaning on local officials to provide funding to keep existing plants open. But, that step would leave a lot of folks facing a dilemma – risk losing thousands of local jobs and millions of dollars in property taxes while raising taxes on everyone else to provide the required funding.

Matthew C. Keegan

Matthew C. Keegan is a freelance writer who resides in North Carolina. Matt is a contributing writer for Andy's Auto Sport an aftermarket supplier of quality parts including Mazda Protege headlights and Ford F-150 headlights.

Rate this Article: 0 / 5 stars - 0 vote(s)
Print Email Re-Publish

Add new Comment



Captcha

  • Latest Automotive Articles
  • More from Matthew C. Keegan

Guidelines with reference to Labeling Machinery

By: richard | 09/11/2009
There is a lot of diverse kind of labeling machines accessible in the market which completely depends on the necessity of purchaser, pace of line, kind of product package and kind of labels to be applied.

The comfortable Nike shoes

By: aaryn | 09/11/2009
Interestingly, these shoes can be worn casual purpose. One of the interesting facts about the shoes is that for a long time, these shoes have been promoted in Olympic Games. Talking about the materials used in the manufacturing, then high quality of materials, rubber and leather is used with latest footwear technologies to give the right shape to shoes.

RV Insurance: The Basics

By: Marlon Jackson | 08/11/2009
It's no doubt that if you want a RV you should buy quality RV insurance. It's no doubt that if you want a RV you should buy quality RV insurance.

Car Insurance Is A Must Have, How About Yours?

By: Jimmy Woodall | 08/11/2009
Car insurance is basically very important to us as drivers and owners of any kind of vehicle we have. It costs us nothing if we have to secure an insurance for our security to any incidents. Right now, we have to be more knowledgeable to the insurance policies that is offered to us by the insurance company and the benefits we will get from them. This article will help you through in this topic.

The Leatt Adventure Works With Most Types of Body Armor and Chest Protectors

By: Jeammy Pickle | 08/11/2009
Complete attempts executed to ascertaining safety motorcycle riding will append up to cipher if the Protective Cover is not Perfect. For illustration, leather jacket will not mean that much if the hands, the knee, or elbows are not the right way conserved with cushioning or shock absorber pads to absorb...

Obtaining Cheaper Teenage Car Insurance

By: Tjs Vincent | 08/11/2009
There is a proud parent moment when their teenager can take to the road on their own. But, they might be slightly afraid that their son or daughter may be involved in an accident. They could also fear the insurance costs that they will have to pay out. Here are 5 tips for cutting the cost of insuring teenage drivers.

UK Road Safety Quiz No 3

By: Michael Ogden | 08/11/2009
You have to put a child in the front seat of your car. The law states that an appropriate child restraint must be used if the child is under: a. 3 years of age. b. 5 years of age. c. 9 years of age. d. 12 years of age.

How To Choose A Front End Loader For Your Application

By: Schaffer Loaders | 08/11/2009
When considering the purchase of an articulated front end loader, there are many factors that you need to consider. These include: What weight do you need to lift? Is there an operating weight you need to stay under? Is there a width requirement you need to stay under? Is there a lift height requirement? Are...

Glass Roof Ford Mustang Brings Some Sunshine Home

By: Matthew C. Keegan | 23/06/2009 | Automotive
While a convertible is a wonderful car for sun lovers, a glass top roof offers optimum light without the heat or dangerous solar rays. Looks like the Ford Mustang Glass Roof edition is a hit!

New Automobile Company Set To Launch In Louisiana

By: Matthew C. Keegan | 23/06/2009 | Automotive
A mysterious green car may soon go into production in the Bayou State. V-Vehicle Company says that they have just the "green model" that drivers will want, a 2011 edition at that.

No Hyundai i10 For US Market?

By: Matthew C. Keegan | 23/06/2009 | Automotive
The smallest Hyundai made by the Korean automaker is the i10. Built in Chennai, India, this diminutive city car isn't likely to make it to the United States in the short run, but might a 2012 roll out be in the works?

End of the Line for the Pontiac Vibe

By: Matthew C. Keegan | 23/06/2009 | Automotive
Twin to the Toyota Matrix, the Pontiac Vibe is a compact crossover vehicle built at the jointly owned NUMMI facility in California. 2009 will mark the end of the model run for the Vibe, preceding Pontiac's closure by a full year.

Mercedes Marks 30th Anniversary Of G Class Line

By: Matthew C. Keegan | 23/06/2009 | Automotive
Since 1979 the Mercedes G Class has provided near bullet proof reliability. Thirty years from now will the G Class still provide a safari-like experience?

New Three Cylinder Engine Under Development For Daimler?

By: Matthew C. Keegan | 23/06/2009 | Automotive
Daimler AG is considering developing a new line of three cylinder engines for Smart and Mercedes. Will these engines offer enough power to move drivers with authority?

Is GM Squeezing Tennessee For Cash?

By: Matthew C. Keegan | 16/06/2009 | Automotive
GM is looking to reopen one of its closed plants in order to build its next generation subcompact car. Reportedly, GM is putting the squeeze on the state of Tennessee to provide funding to get the job done.

Kia Introduces All New Compact Forte Sedan

By: Matthew C. Keegan | 16/06/2009 | Automotive
Kia's motto is "the power to surprise" something that the Korean automaker has been doing a lot lately. Most recently, the Kia Forte fills that bill, a compact sedan that will do battle with the likes of the Toyota Corolla and Honda Civic.

Submit Your Articles Free: Signup
Article Categories




Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.20, 1, w1)