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Graphic courtesy of Spork Marketing and GMPartsCenter.net -
When GM went through its bankruptcy restructuring, it wasn't a typical one. GM was allowed to get rid of what it didn't want (debt, dealerships, brands, liability) and keep what it wanted - Billions in tax breaks it had accumulated while it was the "old GM." In case you're wondering, that never happens. The usual deal is the company that goes through the restructuring starts over with a new tax situation. It isn't small money. GM still has $34 BILLION in tax breaks it can apply to profits. As the Forbes story and many others point out, GM does not have to pay taxes on its profits for decades if it chooses not to. Apparently, in a merger those breaks would be lost. What the Forbes story assumes is that a GM merger would have to be structured like other mergers and follow financial rules and laws.
