Australian taxpayers support GM bankruptcy fightback

[depakid]

Source: The Age

Holden will help its US parent claw back from the brink of bankruptcy – with the support of Australian taxpayers.

General Motors, fighting for survival as its global line of credit dries up and buyers shun heavy, fuel-guzzling vehicles, yesterday indicated its far-flung Australian outpost was an important part of its fight for recovery. "Holden and the Australian Government have developed a plan to bring to market a new, more fuel-efficient vehicle, with project funding provided by the Australian Government in the form of permanent grants," GM said in a revised viability plan submitted to US Treasury officials yesterday as a condition of its access to $US14 billion ($A22 billion) in government aid.

"With this support, Holden is projected to be a viable operation, making a positive (net present value) contribution." Holden announced late last year that it will build a localised version of the Chevrolet Cruze, a small four-door hatchback, alongside its Commodore large family car range in Adelaide from late 2010.

The Federal Government has committed $149 million, part of its Green Car Innovation fund, to Holden over the next three years to help it begin production of the Cruze, while the South Australian Government has offered $30 million over four years. Holden potentially also has more access to the Federal Government's $6.2 billion car industry plan if it develops the Cruze to use fuels other than petrol.

Read more: http://www.theage.com.au/national/australian-taxpayers-support-gm-bankruptcy-fightback-20090218-8b2b.html

[Why Syzygy]

1. Why don't they just 'buy'

every taxpayer a new vehicle from current inventories. Is the goal to have vehicles available for public consumption, or keep the CEOs in jets? This is such a scam. No one can convince me that the world needs GM to survive.