GM seeks $250M loan from Detroit pension fund
General Motors Corp. officials pitched a plan today to borrow $250 million from a city pension fund and refinance the Renaissance Center, but pension fund members did not approve or reject the request.
It is unclear whether, or if, the request will be voted on any time soon by the Detroit Police & Fire Retirement System.
Two members are against loaning GM that much money, especially considering the automaker's financial problems, which stem from an 18 percent drop in sales this year, a credit crunch and consumer shift away from profitable trucks and sport utility vehicles.
"It's just too much money," pension board member Barbara-Rose Collins said. "We can't uphold General Motors if they are having cash flow problems."
Another member, George Orzech, said: "This little fund can't cover something like this."
GM wants to borrow about $500 million from two city pension funds. The requests come as the automaker is trying to raise about $5 billion through asset sales and borrowing to survive the worst auto sales market in 15 years.
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No No No No No No No No, you do not produce profit by incurring debt.
This pathetic proposal shows the truly criminal nature and limited vision of GM's top brass.
If GM get's their hands on those pension funds they are as good as gone, mark my words.
Welcome To Detroit
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