General Motors gave Detroit Tigers pitcher Armando Galarraga a Corvette directly after his near-perfect game. The 2010 Chevrolet Corvette convertible is worth $ 53,000, but it was reported by Crain’s Detroit Business the media coverage the gesture brought to GM was worth approximately $ 9 million. A study that was done by research group Joyce Julius and Associates Inc. tracked the exposure the Galarraga Corvette brought to GM across all forms of media, from 714 TV shots to 151,000 print publications and numerous Web entries.
Source for this article: Armando Galarraga Corvette gift from GM burns taxpayers
Taxpayers angered by Galarraga Corvette windfall
California Rep. Darrell Issa gave a crucial voice to what numerous taxpayers are thinking after GM’s Galarraga Corvette gift. Issa’s spokesman Kurt Bardella said to the New York Times that “Until GM has repaid the taxpayers in full for the money they have borrowed, each and every action they take should advance them in that direction.” The U.S. government currently owns 61 percent of GM, and because GM nevertheless owes taxpayers for its bailout investment, the Galarraga Corvette giveaway was quite unacceptable. 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 showed contrition and admitted that he had made a mistake with the call. Despite the blown call, Armando Galarraga’s game was perfect.
GM says they paid the borrowed funds but did it with another bailout loan
Rep. Issa isn’t the only one who noticed that GM aired a TV commercial in May 2010 that said that apparently it had paid back its government bailout loan. As outlined by Crain’s, the fact is that GM was only able to do so because it took out an additional government auto bailout loan. Possibly the $ 9 million windfall that came from the Galarraga Corvette can help them take care of that loan on the books? That kind of brand value exposure works just as well as any other asset when it comes to repaying debt.
Read more on this topic here
Crain’s Detroit Business
crainsdetroit.com/article/20100609/FREE/100609856
Personal Money Store
personalmoneystore.com/moneyblog/2010/06/03/perfect-game-blown-call-joyce/
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