Not very often is losing $1.2 billion good news but that’s the way General Motors is spinning its third quarter earnings report. GM claims its finances are stable enough to begin repaying the $6.7 billion in government loans as soon as December and could be paid off ahead of schedule, potentially by June of 2010. But that’s a small share of what the government (aka the taxpayer) invested in GM. Americans unwillingly invested over $80 billion in auto industry, allowing the government to take a 61 percent stake and a 10 …
Have an idea but strapped for cash? Not sure if the idea is going to pan out? That’s all right, just ask the government for a few billion dollars. That’s what the automakers did. USA Today reports: If you believed all the talk from Chrysler about how our tax dollars would help finance its fast-track electric-vehicle future, you’re in for a big disappointment. Chrysler has disbanded the engineering team that was trying to bring three electric models to market as a rush job, Automotive News reports today. Chrysler cited its …
The Wall Street Journal reports: GMAC Financial Services Inc. and the Treasury Department are in advanced talks to prop up the lender with its third helping of taxpayer money, people familiar with the matter said. The U.S. government is likely to inject $2.8 billion to $5.6 billion of capital into the Detroit company, on top of the $12.5 billion that GMAC has received since December 2008, these people said. For those of you keeping score at home, this would be the third time the federal government has bailed out GMAC. …
At a speech at a General Motors Assembly plant in Lordstown, Ohio, President Obama restated his regret for government interference in the auto industry claiming the decision was out of necessity rather than choice. In what many called a campaign-like speech, the President asserted: As I’ve said before, I didn’t run for president to manage auto companies. It wasn’t something on my to-do list. It wasn’t even something on my want-to-do list. I like driving cars — sometimes, you know, I can change a spark plug or change a tire, …
The Obama Administration’s claims that General Motors — the federally-owned auto manufacturer — is independent from political entanglements is once again being tested, this time with an international twist. The issue is what to do with Opel, GM’s German-based European subsidiary (as well as the smaller, British-based Vauxhal). Last week, GM CEO Fritz Henderson presented to the GM board a plan to sell the two firms to a Canadian-Russian consortium. Surprisingly, however, GM’s board rejected the plan, asking Henderson to consider other options. Those option include GM keeping Opel, or …
The Obama administration’s bailout of General Motors and Chrysler has already reached a staggering $110 billion. But even that is not enough money to undue the damage big labor has done to the industry. Tucked inside H.R. 3200 is yet another $10 billion in bailout cash. The Detroit Free Press reports: Antilabor forces say it’s welfare for the UAW and Democrats’ union allies. Labor supporters say it falls short of what’s needed as tens of thousands of union members are pushed into early retirement as employers cut back health care …
As part of his on-going effort to reduce carbon emissions – or perhaps in an effort to charm a conservative-leaning audience that’s skeptical of his health care plans – President Obama, Wednesday, honored Jimmie Johnson, the 2008 NASCAR Sprint Cup Champion, and extolled the virtues of this “uniquely American sport.” It’s not a sport he appears to have much liking for: his jokes were labored and he butchered the name of one of the honorees. Presidents have to do a lot of this sort of thing, of course, and it …
Celebrating the fact that his administration has blown through $1 billion in deficit spending on the “Cash for Clunkers” program in just one week, President Barack Obama said Friday: “I’m happy to report that it has succeeded well beyond our expectations and all expectations.” And just what exactly has the “cash for clunkers” program succeeded at? Cash for Clunkers Has Not Helped the Environment: Thanks to the inclusion of SUVs and small trucks in the program, you could, in theory, trade in a Hummer that got 14 mpg to get …
After passing in the House, the stage is now set for a Senate vote to pass the “Cash for Clunkers” bill that would offer up to $4,500 to trade in a used vehicle for a new one. Although the idea sounds good on paper, we’ve outlined a number of problems with the bill: Consumers typically replace clunkers with slightly newer clunkers or used cars, the program would distort the used car market by reducing the supply of used cars at a time when demand has been increasing, the voucher exceeds …
On a blogger conference call this morning, Senator Lamar Alexander (R-TN) discussed a bill he introduced last week that would distribute the Federal government’s recently acquired GM and Chrysler stock to taxpaying Americans. “Instead of the Treasury owning 60 percent of shares in the new GM and 8 percent of Chrysler, you would own them, if you were one of about 120 million individuals who paid taxes on April 15,” Alexander explained. “This is the fastest way to get the stock out of the hands of Washington and back into …
