Posted by: arnegrim | September 4, 2012

GM – the whitewashed bailout

“We now learn that government purchases of GM vehicles rose a whopping 79% in June.

The discovery of the pick-up in government fleet purchases at the taxpayers’ expense comes just weeks before GM announces its second quarter earnings. Overall fleet sales (which are typically less profitable than retail sales) at Government Motors rose a full 36% for the month, helping to drive decent sales improvements year over year.”

http://nlpc.org/stories/2012/07/05/gm%E2%80%99s-government-sales-and-truck-inventory-rise

So… the government is spending taxpayer $ purchasing vehicles from a government owned auto company… and then touts the increased sales as evidence the bailout worked.

HUH?

“Three years into their forced marriage with GM, the American taxpayers have seen the value of their investment in GM deteriorate by approximately $24 billion, largely due to continuing European losses. Exposure in Europe has contributed to crushing the value of GM’s stock due to its chaotic and failing Opel unit in Germany…

…Overlooked is that the value-destroying, cash-sucking disaster that is GM Europe was packaged and ready for sale to new European buyers in 2009 before the new Obama GM Board of Directors slammed the brakes on the deal, throwing GM into its current value free-fall. In fact, the decision to not sell the Opel operations (which has not been profitable for more than a decade) in 2009 after GM cleared bankruptcy was the very first major decision of the new Obama Board.”

http://nlpc.org/stories/2012/08/16/auto-bailout-legacy-gms-european-nightmare

Pre-bankruptcy, the GM board saw the need to sell-off Opal which was losing money at a furious rate… then the government ‘bought’ GM and told the board they were wrong and stopped the sale… and Opal continues to lose $.

HUH?

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