Aug 03, 2012 10:07 PM GMT
Obama and his campaign have gone all-in in running on what they have spun as the successful turnaround of General Motors (GM), which received nearly $50 billion in taxpayer bailout money.
The Obama campaign wants to use GM to prove not only Obama’s managerial skills and instincts but to contrast Obama with Romney, whose past successes in the private sector give him a considerable advantage over Obama when it comes to economic issues.
Since Romney did not support the GM bailout, Obama’s team is betting on GM to neutralize the advantage Romney has over Obama on the economy.
For this reason, Obama’s “Betting on America” campaign theme is a not-so-subtle reference to GM.
But as executive turmoil within GM again bubbled to the surface this week, the Obama administration’s record on GM should be examined more closely.
And on examination, they have continually over-promising and under-delivering since the company relaunched in November of 2010 after receiving billions in taxpayer dollars.
And because of the way GM has been mismanaged, there has been constant turmoil and turnover within the top ranks of the company since it went public.
But Obama’s administration and GM’s CEO Dan Ackerson have largely been absolved by the press of any blame they deserve.
Since GM declared bankruptcy in 2009 and was bailed out by the Obama administration, Obama and GM executives have publicly set business benchmarks -- such as market share -- they have failed to reach while publicly pumping up GM’s stock and prospects.
When GM’s stock debuted on November 18, 2010 at $33 a share, Obama said the “tough decisions” that led to the bailout were beginning to pay off, according to a CNN report.
"American taxpayers are now in a position to recover more than my administration invested in GM," Obama said at a press conference then.