Maybe Buffett expects the taxpayers to continue to pay the bills at GM. Maybe that is part of the buyout agreement. Or some huge tax kickback.
I work at a company that had been recently acquired by Buffett. B-H poured in a lot of money for capital expansion. Also, the management structure has been changed considerably. This is all long term stuff. Anything Buffett acquires is due to perceived long term earning potential. As far as buying up a company looting it and breaking it up - that doesn’t seem to be his style.
Will he not make the needed fixes to make the company solvent?
Problems with GM (IMHO):
1. Quality. GM have a serious problem with quality. Drove and will continue to drive customers away. No paying customers, no business.
2. Cost of operation. Apparently this was serious enough to drive the company into bankruptcy... before the government came to the rescue. Also, seems to be a risky investment since the stock holders got screwed at the hands of the Feds last time.
GM seems to be huge sink hole without any serious fixes and reorganization. Unless the Feds are willing to guarantee solvency on the backs of taxpayers.