The General Motors Bailout
One side effect of the GM bankruptcy and bailout is reported at the
AutoBlog:
REPORT: GM gets out from under its polluted sites scot-free
Among those clamoring for attention and payouts from Motors Liquidation Co., the company that assumed General Motors' unwanted assets after its Chapter 11 filing, are the environmental and economic redevelopment departments of state governments. According to reports, when GM exited bankruptcy, its polluted factory and land sites were consumed by the Motor Liquidation, allowing the automaker to avoid the responsibility of cleaning up its mess, and state leaders fear there won't be any money to clean the locations.
Before bankruptcy, GM estimated it had $1.9 billion in environmental issues and litigation liabilites. Motors Liquidation Co., though, has only about $1.2 billion to manage the entire wind-down of its affairs -- and as one might expect, attorneys handling the matter are expected to get a huge chunk of that. The figure to clean up sites in places like Buick City, Michigan and Massena, New York has been pegged at $530 million. However, the way it's looking, there won't be anywhere near that much money to get the job done.
The affected areas are afraid they will have to pay for the clean ups or simply let the land go unused. The problem with that: those local governments don't have the money. And they can't expect a developer to spend millions to clean up an old mess. If not Motors Liquidation or GM, civic representatives want the government to foot the bill since the current administration orchestrated the deal. No one knows how it will -- or won't -- be resolved, but the EPA has said that it's in touch with states and Motors Liquidation to "identify any environmental cleanup requirements that existed at the time of bankruptcy."
Toyota trucks are looking better and better to me with Ford being a close second despite my problems with their vans back in the 1980's.
Posted by DaveH at August 9, 2009 2:02 PM