GM spent $2.8 million on lobbying while on federal aid

Published April 21, 2009 4:00am ET



General Motors, surviving on $13.4 billion in government aid, spent $2.8 million on lobbying during the first three months of 2009, according to disclosures filed yesterday with the U.S. House and Senate.

“Like any quarter, our reporting and expenses reflect the level of activity that we’re engaged in, and the breadth of issues that affect our business,” Greg Martin, a GM spokesman, said. “As being part of what is arguably one of the most-regulated industries in the country, you have a voice to add to complex policy discussions and you report it.”

The first-quarter figure was down from $4.1 million that the biggest U.S. carmaker spent in the same period a year earlier. The Detroit-based company is working to cut labor, health care and debt costs by June 1 to avoid a government-backed court restructuring.

A government auditor said in a report released today that the treasury would give GM $5 billion in additional aid.

Chrysler, also relying on U.S. funds to avoid bankruptcy, reported lobbying expenses of $720,658 for January through March, about half the $1.4 million it paid out during the same three-month period a year earlier.

The third-largest U.S. automaker received $4 billion from the government in January and has a May 1 deadline to create an alliance with Italian automaker Fiat SpA in order to receive up to $6 billion more in U.S. assistance. Chrysler will get $500 million more from the Troubled Asset Relief Program, TARP’s special inspector general said in a report today.

Chrysler is spending “to educate” policymakers about the company and the future of the automotive industry, Todd Goyer, a spokesman at the Auburn Hills, Mich.-based company, said in a statement. “There is significant demand for education and information regarding Chrysler from legislators and government officials.”

The expenditures were for “a wide range of issues,” including energy policy, development of electric and fuel-efficient vehicles, taxation, health care, trade and international affairs, he said.

Ford Motor Co. reported spending $1.75 million to lobby in the first three months of the year, down from $1.9 million during the same period in 2008. Dearborn, Mich.-based Ford has not taken federal aid.