Blue Collar Benefit Monitor
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5 new posts in Forum from GM going public in ho-hum economy to cash for clunkers dealers being investigated
Sunday, August 22, 2010 - 11:02 PM

There have been five new publications added to the Forum since Friday. The first three can be found posted under the GM, Ford and Chrysler tab. The first article comes from a Free Press Business Writer reporting that GM has declared its intentions to go public in the midst of an economy that’s ho-hum at best. It is asking would be investors, some of whom were burned in GM’s bankruptcy, to look beyond that. General Motors is taking a leap of faith and asking investors to do the same. The second article comes from the Detroit News telling that Ford Motor Co. Executive Chairman Bill Ford Jr. said late on Friday that he welcomes General Motors Co.’s plan to begin selling its stock and doesn’t see it as a threat to his own company’s stock price. The third article is a release from the Associated Press asking the question; would you buy stock in a company that has hemorrhaged tens of billions of dollars for years and run through four bosses in quick succession just because it has turned a profit for a few months?

Two new posts have been entered into the Open Discussion section of the Forum. The first article comes from the Detroit News Washington Bureau. It reports that e-mails obtained by The Detroit News show that Toyota Motor Corp. officials bragged in late 2007 that they saved more than $100M by deterring U.S. safety officials from ordering costly repairs to prevent runaway vehicles. There is plenty of blame to go around on this issue of Toyota’s unintended acceleration from Toyota management knowingly and willingly proceeding with the production of unsafe vehicles to the government’s willingness to overlook discretions made by the automaker. Let it be known that a few of the government officials involved in this investigation used to work for Toyota. The second article comes from the DRIVEON section of USA TODAY. It states that the government is investigating at least 20 car dealerships it claims violated the rules of last year’s cash-for-clunkers program. Government auditors say up to $94M in rebates may be ineligible because they lack the proper documentation.

 

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