GM burns taxpayers by Armando Galarraga Corvette gift

General Motors presented Detroit Tigers pitcher Armando Galarraga a Corvette soon after his near-perfect game. The 2010 Chevrolet Corvette convertible is worth $ 53,000, but Crain’s Detroit Business reports the media exposure the gesture brought to GM was worth approximately $ 9 million. A non-contracted study by research group Joyce Julius and Associates Inc. tracked the coverage the Galarraga Corvette brought to GM, from 714 TV shots to 151,000 print publications and countless Web entries.

Article Resource: Armando Galarraga Corvette gift from GM burns taxpayers By Car Deal Expert

The Galarraga Corvette windfall makes taxpayers angry

California Rep. Darrell Issa gave a critical voice to what numerous taxpayers are thinking after GM gave Galarraga the very nice Corvette gift. Issa’s spokesman Kurt Bardella told the New York Times that “Until GM has repaid the taxpayers in full for the money they have borrowed, every action they take should advance them in that direction.” The U.S. government owns 61 percent of GM right now, and because GM nevertheless owes taxpayers for its bailout investment decision, the Galarraga Corvette giveaway was quite inappropriate. Such is the case in spite of the fact Armando Galarraga may have earned praise for the manner in which he conducted himself following the blown call by umpire Jim Joyce that cost Galarraga a perfect game. Joyce later admitted that he had made a mistake with the call. Without he blown call, Armando Galarraga’s game was perfect.

GM claims it repaid the loan, but it did that with one more bailout loan

Rep. Issa is not the only one who pointed out that GM aired a TV commercial in May 2010 that claimed it had paid back its government bailout loan. Crain’s reported the fact is that GM was only able to do so because it took out an additional government auto bailout loan. Perhaps the $ 9 million windfall from the Galarraga Corvette can actually help them to take care of that loan on the books? That kind of brand value exposure works just also as any other asset when it comes to trying to pay back debt.

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Crain’s Detroit Business

crainsdetroit.com/article/20100609/FREE/100609856

Personal Money Store

personalmoneystore.com/moneyblog/2010/06/03/perfect-game-blown-call-joyce/