GM is still running that stupid ad, trumpeting the company’s payoff of its “government loan” (with interest! Five years ahead of schedule!)
However, more and more lawmakers are showing concern with GM’s blatant attempt to mislead the public. Along with Charles Grassley (R-IA), Sens. Tom Carper and Richard Shelby have also voiced their discomfort with GM’s message.
“It sounds like they’re kind of like taking money out of one pocket and putting it in the other to do that,” Sen. Tom Carper, D-Del., said at the hearing.
Sen. Richard Shelby, R-Ala., expressed similar concerns Sunday on NBC’s “Meet the Press,” saying it’s “misleading” for the administration to claim the company has paid back its loans.
Fox News also reports that GM could be in trouble with by playing fast and loose with the truth:
The GM ad could potentially land the company in trouble with the Federal Trade Commission over its truth-in-advertising laws, which prohibit ads that are “likely to mislead consumers.”
…General Motors admits that the company is repaying the loan with other government money, but says a year ago “nobody thought we’d be able to pay this back.”
And of course, that’s the problem, isn’t it? It’s almost as if General Motors honchos don’t want to admit that paying one loan back with another loan (from the same source) isn’t paying the loan back at all. It’s just transferring the liablity from one bucket to another within the same well.
How many more politicians will call Whitacre out for his lies? How much more can the unions gouge out of GM via all those loans? How much lower will Whitacre and the unions sink General Motors before the company loses all claim to any kind of credibility at all?
My guess is that they’ll ride GM right down to the ground before “retiring” with vaults full of taxpayer money, causing eventual failure for a company deemed “too big to fail.” And you and I will pay for Ed Whitacre’s golden parachute.