What's Good For General Motors Is Anybody's Guess
Including General Motors.
Dave Capps, of Capps Van and Truck Rental in Dallas, is creditworthy and has a solvent business. He wants to expand it by 1,000 new GM vans.
General Motors has an insolvent business, is receiving bailout money from taxpayers, and should desperately want to sell 1,000 new vans.
General Motors Acceptance Corporation, which has financed Capps's fleet purchases in the past and has an ongoing relationship with him, has an even more insolvent business and has received bailout money, which the government has demanded that it lend in order to stimulate the economy.
So why does Dave Capps, who was spurned in his attempts to finance his fleet expansion by GMAC, have to take out billboards to advertise for a willing lender?
If GM wants more bailout money, and it does, the government should set one precondition: that GM's top management and directors all resign before the company gets another penny.