GM to use private jets for meetings with investors over IPO

Article by Christian Andrei, on November 5, 2010

There’s another controversy brewing as General Motors Co. executives will be hopping on some charter flights on trips within the next few weeks to meet with prospective investors to talk about its upcoming public stock offering.

It can be recalled that two years ago, the public was outraged when the executives of the Detroit 3 (GM, Chrysler and Ford Motor Co.) flew to Washington on chartered jets to ask the federal government for a taxpayer-funded bailout.

They received so much criticism that they later attempted to save face by driving from Detroit for a follow-up hearing in hybrids.

However, this move wasn’t received warmly and was even made fun of on "Saturday Night Live." At the time, Ford was not seeking a bailout but supported bailouts for its two US rivals to ensure the integrity of the supply chain.

GM spokesman Tom Wilkinson told The News York Times that when supported by a business rationale, “GM’s corporate travel policy allows charter flights.”

He added that this is “consistent” with its requirements under TARP [the federal bailout terms] and its Treasury loan agreement.

Meanwhile, the US Treasury Department, which controls the government’s 61% GM stake, declined to comment on the matter, saying that the Treasury isn’t involved in this issue. [via autonews - sub. required]

Topics: gm, ipo, united states

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016