Lubbock Congressman reacts to GM bankruptcy - KCBD NewsChannel 11 Lubbock

6/1/09

Lubbock Congressman reacts to GM bankruptcy

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LUBBOCK, TX (KCBD) - Congressman Randy Neugebauer calls the government's most recent dive into the private sector unprecedented and scary.

General Motors filed for Chapter 11 bankruptcy protection Monday. It's part of the Obama administration's plan to shrink them to a more sustainable size. To get there, US taxpayers will pump an additional $30 billion into the company, giving Washington a 60 percent stake in a reworked GM.

President Obama says auto executives will call the shots, but Congressman Neugebauer told NewsChannel 11 Monday afternoon that the administration needs to outline an exit strategy. "We know have the government kind of telling us what kind of credit cards that we should have, what kind of mortgages we should have, and now maybe what kind of cars we're going to drive. I'm afraid this a marriage that won't work and I'm afraid the divorce maybe even worse," said Neugebauer.

Canadian taxpayers will add $9.5 billion to the pot as GM restructures itself. That gives Canada a 12.5 percent share in the company.

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