“I’ve got a little bumper sticker for you: Osama bin Laden is dead and General Motors is alive.”
~ Joe Biden
I’ve got a more accurate bumper sticker for you: “Osama bin Laden is dead, al-Qaida is alive, Government Motors is on life support and heading for China.”
~ Sara Noble
President Obama and VP Biden brag endlessly about saving GM and I don’t know why that narrative is flying. He saved them from what? Bankruptcy? They did go bankrupt only he managed it in lieu of the courts to favor his union allies.
He saved the UAW, that’s true – at least for the time being it was true – but a court bankruptcy would have as well. The union president eventually headed up the company. Nothing changed for the union except they sold out future employees with the hope of eventually getting them unsustainable benefits and pensions at some time in the future.
That all comes at a future cost for the union and taxpayers because it cannot be sustained.
Now we have 70% of GM’s R&D in China and it is all going to go to China eventually.
Obama put investors, car dealerships, and part suppliers to the end of the line, defying the law and legal precedent. Only the Republicans seem to care that Delphi (parts supplier) employees lost their pensions.
GM still owes us billions and the money they did pay back came from another government slush fund. They are doing poorly and are forced by the government to make cars no one wants – the Volt being the signature failure.
Government running the company is hurting the company and they want out. GM wants the government to sell their shares at a loss. And what a loss it would be. We bought it at $53 a share and it is selling for $24.44 today.
What exactly did Obama do besides pay off the union? If Government Motors had gone through a court-run bankruptcy, as the law and precedent requires, the pensioners still would have survived but current employees might have actually had to pay their fair share instead of putting it all on the backs of everyone else.
In August, Forbes et al said GM is heading for another bankruptcy. If the first one was implemented correctly, we wouldn’t be in this position. We will have to bail them out again and again if we don’t deal with the company’s core problems.
While car sales soared 13% in September, compared to the complete bust that existed since 2008, GM only increased sales by 1.5%, which, coincidentally is the rate of economic growth in the U.S. under Obama. So much for any lasting effect from Cash for Clunkers.
Chrysler, on the other hand, increased sales by 12%, but they were sold to Italy and Canada at a giveaway price and it is hardly a U.S. company any longer. Did we really need to subsidize Italy buying their way into the U.S. car market?
GM is no great success but you would never know it after listening to President Obama and VP Biden.
Obama said, I “refused to let Detroit go bankrupt ” but what he should have said is “I insisted on paying off the UAW for votes and at all costs.”