The study that exposes the bailed-out automaker's lobbying spending also points out that firms in a similar position, namely mortgage companies Fannie Mae and Freddie Mac, both suspended their political lobbying - explaining that they will pay the government bailouts back in full before returning to lobbying, according to Fox News.
"There are different types of contributions but they're all under the same umbrella to influence the political process," Dave Leventhal, an advocate of transparent government from the Center for Responsive Politics told Fox News. "What GM is trying to do is largely the same with all of them: gain access to politicians, trying to build relationships. It goes back to the idea these are all avenues of political influence."
2010 spending totals
So far in 2010 GM has donated $41,000 to groups associated with various lawmakers, with the majority - $36,000 - going to the Congressional Black Caucus Foundation. In addition to the donations, GM has utilized $4.2 million of federal money in order to fund their federal lobbying efforts. For comparison's sake, GM spent $8.4 million on the same actions in 2009, putting them on pace to match that for 2010.
Chrysler has spent $1.2 million on federal lobbying efforts in 2010, slightly less than half of its annual total for 2009 of $3.12 million.
GM defends its lobbying efforts
"We're running the business the best way we see fit," GM spokesman Greg Martin told Fox News, adding that the GM needs to continue lobbying in order to keep up with the competition. Martin also pointed to the automaker's recent successes, with a profit in the first quarter, and expected profits to be reported next week for the second quarter.
Chrysler defends its lobbying efforts
"Chrysler continues to devote company resources to educate policymakers about the company and the future of the automotive
industry," Chrysler said in a written statement. "There continues to be significant demand for education and information regarding Chrysler from legislators and government officials.
"These include responding to requests for plant visits, explaining significant company decisions and preparing for various congressional hearings. All of this is lobbying under the law."
Not Illegal
There are no federal laws that cover the intricacies of post-bailout corporate spending on lobbying. Perhaps it's because such rescue measures have never been taken before on such a large scale. In any case, it looks like the court of public opinion will have to decide whether GM and Chrysler's actions are appropriate, given the circumstances.
References
1.'Bailed out firms spend...' view
