Electric Cars or Not, Corporate Jets Must Go for GM

The Bush Administration bailed out GM on Friday, after pushing the prospect of bankruptcy as the most reasonable option.  The most compelling language in the bailout agreement: A mandate for electric cars or fuel efficient models?  Not at all. The government has focused in on forcing GM to get rid of its corporate jets, which drew little notice until the Big 3 CEOs flew to Washington to be upbraided by lawmakers.

The legislation had little to say about fuel efficiency, electric or hybrid cars, or the feasibility that a loan to GM will do anything to resurrect the struggling company.  In regard to emerging technologies, the legislation requires merely that GM “intend” to “commence domestic manufacturing of advanced technology vehicles.”

• » See also: Is the Renault-Nissan Alliance Going in Two Different Electric Car Directions?
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As to corporate jets, the legislation was more explicit:

“With respect to any private passenger aircraft or interest in such aircraft that is owned or held by any Loan Party or any subsidiary immediately prior to the Closing Date, such party shall demonstrate to the satisfaction of the President’s Designee that it is taking all reasonable steps to divest itself of such aircraft or interest. Further, no Loan Party shall acquire or lease any such aircraft or interest in such aircraft.”

The moral of the story: You may never be able to purchase a GM electric car (see Chevy Volt for all of the eggs in GM’s basket), but you most certainly will have the opportunity soon, to purchase one of the seven corporate jets previously used by GM.

Image Credit: Gulfstream
Sources: United States Department of the Treasury, The Sydney Morning Herald

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