GM goes from bad to worse despite Obama bailout

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    Aug 22, 2012 3:01 PM GMT
    Predictable and it was predicted.

    http://washingtonexaminer.com/gm-goes-from-bad-to-worse-despite-obama-bailout/article/2505518

    Obama talks about the auto bailout frequently, since it's one of the few things in his record that gets positive responses in the polls. But he's probably wise to avoid probing questions, since the GM bailout is not at all the success he claims.

    GM has been selling cars in the U.S. at deep discount and, while it's making money in China -- and is outsourcing operations there and elsewhere -- it's bleeding losses in Europe. It's spending billions to ditch its Opel brand there in favor of Chevrolet, including $559 million to put the Chevy logo on Manchester United soccer team uniforms -- and just fired the marketing exec who cut that deal.

    It botched the launch of its new Chevrolet Malibu by starting with the green-friendly Eco version, which pleased its government shareholders but which got lousy reviews. And it's selling only about 10,000 electric-powered Chevy Volts a year, a puny contribution toward Obama's goal of 1 million electric vehicles on the road by 2015.

    "GM is going from bad to worse," reads the headline on Automotive News Editor-in-Chief Keith Crain's analysis. That's certainly true of its stock price.

    The government still owns 500 million shares of GM, 26 percent of the total. It needs to sell them for $53 a share to recover its $49.5 billion bailout. But the stock price is about $20 a share, and the Treasury now estimates that the government will lose more than $25 billion if and when it sells.

    That's in addition to the revenue lost when the Obama administration permitted GM to continue to deduct previous losses from current profits, even though such deductions are ordinarily wiped out in bankruptcy proceedings.

    It's hard to avoid the conclusion that GM is bleeding money because of decisions made by a management eager to please its political masters -- and by the terms of the bankruptcy arranged by Obama car czars Ron Bloom and Steven Rattner.

    Rattner himself admitted late last year, in a speech to the Detroit Economic Club, that "We should have asked the [United Auto Workers] to do a bit more. We did not ask any UAW member to take a cut in their pay." Nonunion employees of GM spin-off Delphi lost their pensions. UAW members didn't.
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    Aug 22, 2012 3:52 PM GMT
    Dec. 19, 2008 – The U.S. announces a $17.4 billion lifeline to Detroit car makers from the $700 billion Troubled Asset Relief (TARP) program. GM is to receive $13.4 billion and Chrysler $4 billion.

    Bush doesn't set auto bailout timeline
    NEW YORK (CNNMoney.com) -- President Bush said Monday he might use money from the Treasury program to aid financial services companies in order to avoid the bankruptcy of U.S. automakers, but he would not provide a timeline.

    In an interview with reporters on Air Force One en route to Afghanistan, Bush said that "an abrupt bankruptcy for the autos could be devastating for the economy."

    When asked if he would use any of the $700 billion from Treasury's Troubled Asset Recovery Program (TARP) that has been earmarked for Wall Street to make a loan to automakers, he replied, "I signaled that that's a possibility."

    White House spokesman Tony Fratto said, "We'll be focused on trying to get the policy right while considering the best interests of the taxpayer and our economy, and we'll take the time we have available to do that right. No decisions have been made."

    A proposed $14 billion loan to avoid bankruptcy for Big Three automakers General Motors (GM, Fortune 500), Ford Motors (F, Fortune 500) and Chrysler is in a state of limbo after the Senate failed to pass it last week.

    http://money.cnn.com/2008/12/15/news/economy/bush_bailout/index.htm

    Hey riddletits.. whose bailout?????????????????????????????????
    Your bullshit is caught again.. your rhetoric makes you such a lair and a fraud.icon_rolleyes.gificon_rolleyes.gif
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    Aug 22, 2012 4:54 PM GMT
    I wonder why Obama takes credit for what he sees as the success of the bailout? Could it be, that he owns it? Oh TropicalMark - a racist prick and a stupid one at that.

    http://gm-volt.com/2010/04/25/obama-says-gm-bailout-has-been-a-success/

    Though in the last days of the Bush administration $17 billion was extended to GM and Chrysler, it was just a band-aid, for when Obama took office “the situation remained dire,” he said. He said it was a difficult decision to provide further funding since in many ways the collapse was the fault of the automakers themselves.

    “Many of the problems in the auto industry were a direct result of poor management decision over decades,” said Obama.

    He noted that both GM and Chrysler had to undergo “painful” restructuring. “Many believed this was a fools errand,” said Obama. “That we would be throwing good money after bad.”

    Now he says things are looking bright and optimistic. “The industry is recovering at a pace few thought possible,” he said. He noted that GM paid its government loans back with interest five years ahead of schedule, and that Chrysler has turned a profit this year.

    Obama also said he believes the additional $50 billion in stock the government has bought from GM will soon be divested.

    “It wont be too long before the stock the Treasury is holding in GM could be sold,” he said.

    Obama said he never ran for office to get into the auto business and is happy it may soon be over.

    “As essential as it was that we got in,” he said. “I’m glad to see that we’re getting out.”
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    Aug 22, 2012 4:57 PM GMT
    How it must be nice to have the Obama Administration and friends in your back pocket:

    http://www.foxnews.com/opinion/2012/05/18/what-gm-bailout-really-cost-american-taxpayers/

    In addition to the more than $50 billion given to General Motors in the bailout, the Obama administration quietly snuck in a special tax break for GM, which allows the company to write off approximately $45 billion in post-bankruptcy losses against post-bankruptcy profits.

    The result? In 2011, GM paid nothing in federal income taxes despite claiming record profits of $7.6 billion, the “highest profits in the 100 year history of that company” according to President Obama.

    In fact, that’s not quite right. GM paid a tax rate of negative 1.5% on its record profits – less than nothing.

    That’s right, while you were paying your income taxes last month, the IRS was sending General Motors a check for $110 million. And GM’s tax break is a gift that will keep on giving every year at tax time.
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    Aug 22, 2012 5:23 PM GMT
    riddler78 saidI wonder why Obama takes credit for what he sees as the success of the bailout? Could it be, that he owns it? Oh TropicalMark - a racist prick and a stupid one at that.

    http://gm-volt.com/2010/04/25/obama-says-gm-bailout-has-been-a-success/

    Though in the last days of the Bush administration $17 billion was extended to GM and Chrysler, it was just a band-aid, for when Obama took office “the situation remained dire,” he said. He said it was a difficult decision to provide further funding since in many ways the collapse was the fault of the automakers themselves.

    “Many of the problems in the auto industry were a direct result of poor management decision over decades,” said Obama.

    He noted that both GM and Chrysler had to undergo “painful” restructuring. “Many believed this was a fools errand,” said Obama. “That we would be throwing good money after bad.”

    Now he says things are looking bright and optimistic. “The industry is recovering at a pace few thought possible,” he said. He noted that GM paid its government loans back with interest five years ahead of schedule, and that Chrysler has turned a profit this year.

    Obama also said he believes the additional $50 billion in stock the government has bought from GM will soon be divested.

    “It wont be too long before the stock the Treasury is holding in GM could be sold,” he said.

    Obama said he never ran for office to get into the auto business and is happy it may soon be over.

    “As essential as it was that we got in,” he said. “I’m glad to see that we’re getting out.”
    Still collecting old articles to bolster your idiocy I see. Oh no, Im not racist.. its just that you are a nutcase that just so happens to be Asian. I'm an equal opportunity idiot sniffer-outer.icon_wink.gif
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    Aug 22, 2012 5:45 PM GMT
    Lol - once again TropicalMark beclowns himself with his own stupidity and an inability to do math. No, TropicalMark you are a racist - as even Christian has noted. Yeah silly me - looking up and posting facts that decimate your puffery. icon_wink.gif
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    Aug 22, 2012 5:49 PM GMT
    riddler78 saidLol - once again TropicalMark beclowns himself with his own stupidity and an inability to do math. No, TropicalMark you are a racist - as even Christian has noted. Yeah silly me - looking up and posting facts that decimate your puffery. icon_wink.gif
    Nice try, but are you and geezer dating now?