General Motors Corp. Political Action Committee has about $350,000 cash on hand. Here’s a look at the PAC’s giving during the 2008 cycle. Can a company receiving “adequate working capital” from the government maintain a corporate PAC, when a corporate PAC may, by law, fund certain PAC expenses using general treasury funds?
For background, The White House blog quotes President Obama regarding changes at GM:
GM has made a good faith effort to restructure over the past several months — but the plan that they’ve put forward is, in its current form, not strong enough. However, after broad consultation with a range of industry experts and financial advisors, I’m absolutely confident that GM can rise again, providing that it undergoes a fundamental restructuring. As an initial step, GM is announcing today that Rick Wagoner is stepping aside as Chairman and CEO. This is not meant as a condemnation of Mr. Wagoner, who’s devoted his life to this company and has had a distinguished career; rather, it’s a recognition that will take new vision and new direction to create the GM of the future.In this context, my administration will offer General Motors adequate working capital over the next 60 days. And during this time, my team will be working closely with GM to produce a better business plan. They must ask themselves: Have they consolidated enough unprofitable brands? Have they cleaned up their balance sheets, or are they still saddled with so much debt that they can’t make future investments? Above all, have they created a credible model for how not only to survive, but to succeed in this competitive global market?