General Motors Co. claims the American public’s anger toward it for accepting a $50 billion U.S. government bailout in 2009 has ebbed, the Associated Press reports.
The news service cites remarks by GM's CEO Dan Akerson. He says a poll taken this summer by Washington, D.C.-based public opinion researcher Peter Hart Associates found that more than 70% of Americans now have a positive opinion of GM. The ratio was reversed in July 2009 when GM emerged from bankruptcy, according to Akerson.
In 2010 his predecessor Ed Whitacre complained about the stigma of being known as “Government Motors.” Akerson says the company has “kind of gotten over that” now that it is profitable, the AP says. GM netted $7.1 billion in the first nine months of 2011.
Akerson says the U.S. government, which still owns a 26.5% stake in the company, remains a hands-off investor. But he reiterates his concern that the government’s cap on GM’s executive compensation could hurt the company’s ability to recruit and retain top talent. The pay restrictions will prevent GM from paying bonuses to senior executives this year, even though the company could earn as much as $9 billion.
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A little heads-up for Mr. Akerson, who's real glad we have short memories:
Perhaps Americans are unaware that the government now expects to lose $23.6 billion from the bailout. Perhaps Americans have forgotten that our tax dollars funded that takeover (think you could have found a better use for YOUR money?). Perhaps Americans are unaware that, unlike in a traditional bankruptcy (where shareholders are paid off from the company's assets), that's not the case in a government "bailout". Rather, the bailout screwed the shareholders (as well as GM's creditors). Think that might make investors and suppliers nervous about where the government might intrude next? Perhaps Americans are unaware that the UAW did *just fine* after the bailout, and didn't suffer the same fate as those of us who held GM (and supplier / vendor) stock. Think Americans might have forgotten about the employees of 25% of all dealerships who lost their jobs in the three months after the bailout?
Some of us have't forgotten.
