GM Hypes Too Much on Loan Repayment

After the famous declaration by GM that it has repaid the loan, it is facing lot of criticism from all corners. Where GM Chairman and Chief Executive Officer Ed Whitacre Jr was seen flashing on all national channels stating that GM has repaid the full loan amount well before the tenure of 5 years.

Soon after the advertisement was aired, it was brought down from all the channels amid a complaint with the Federal Trade Commission filed by a conservative think tank alleging that the company is lying about its health in a way that dupes consumers.

If we go through exact numbers, they suggest that government still owes 61 percent in GM, accounting to USD 43 billion.

Edmunds.com CEO Jeremy Anwyl said the carmaker took a risk with both campaigns that could hurt GM’s credibility. “They have a common element, which I call, selective disclosure. It’s just a bad practice,” he said.

It’s such an embarrassment for a company like GM to miscalculate its step. What could have been a thing to boast about has now left muck.

GM should have restraint from such misleading advertisement considering the loan they obtained, was tax payer’s hard earned money.