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The complete history of Barack Obama's second term -- click Views/Repies for top stories

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Obama brags about $10 billion auto bailout at plant he helped idle

Investor's Business Daily is reporting that Obama is going to Detroit Wednesday to brag about how he saved the U.S. auto industry. What he's really doing is exposing the folly of his industrial policy.

Just days before Obama's planned swing through Detroit, the Treasury Dept. reported that the final taxpayer cost of the auto industry bailout was $9.26 billion. That equals $441 for every single car and light truck that GM and Chrysler have sold since 2009.

That's an awfully big price tag for Obama to claim bragging rights over.

Maybe the outsized bailout cost explains why Obama will give his talk at an assembly plant owned by Ford, which didn't take any bailout money yet somehow managed to survive the recession.

Ford did, however, put its hand out for a $5.9 billion low-cost Department of Energy loan, which it used in part to convert that Wayne, Mich., plant from one that made popular SUVs to one that now makes politically correct hybrids and compacts.

The problem is that consumers have never been very interested in these kinds of cars, which is evidenced by the fact the plant will be idle when Obama visits. Slumping sales of the Focus and C-Max Hybrid models caused the plant to stop production for three weeks.

Small-car sales, in fact, are sagging across the board, while the market share of SUVs and pickups reached a nine-year high in December, according to Edmunds.

The University of Michigan's Transportation Research Institute found that the average fuel economy of vehicles sold in December was almost 3% lower than for cars sold in August.

And if gas prices remain low, automakers will find it harder still to sell fuel-efficient cars.

Not to worry, since Obama plans to force people into small cars in the near future.

In exchange for all that government aid, the auto industry gave Obama a green light to hike the federal "corporate average fuel economy" standard to 54.5 miles per gallon by 2025, which is double what it was just a few years ago.

To put the standard in perspective, not a single non-electric car on the road today gets 54.5 mpg. The closest is the Toyota Prius Hybrid at 50 mpg. Even the tiny Scion iQ gets only 37 miles to the gallon.

And now the industry has just 10 years to figure out how to build, and get consumers to buy, cars that they clearly don't want. And in the process they'll spend upwards of $200 billion, according to the Detroit News. Those costs, of course, will end up hidden in the cars' inflated sticker prices.

Somehow, we doubt that Obama will explain any of this to his audience in Detroit while he's patting himself on the back for "rescuing" the auto industry.

A man that lies about who he is will never have a problem lying about what he does

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Treasury: U.S. to lose $25 billion on auto bailout

David Shepardson is reporting that The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That's 15 percent higher than its previous forecast.
In a monthly report sent to Congress on Friday, the Obama administration boosted its forecast of expected losses by more than $3.3 billion to almost $25.1 billion, up from $21.7 billion in the last quarterly update.
The report may still underestimate the losses. The report covers predicted losses through May 31, when GM's stock price was $22.20 a share.
On Monday, GM stock fell $0.07, or 0.3 percent, to $20.47. At that price, the government would lose another $850 million on its GM bailout.
The government still holds 500 million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout. At the current price, the Treasury would lose more than $16 billion on its GM bailout.
The steep decline in GM's stock price has indefinitely delayed the Treasury's sale of its remaining 26 percent stake in GM. No sale will take place before the November election.
Treasury spokesman Matt Anderson said the costs were still far less than some predicted.
"The auto industry rescue helped save more than one million jobs throughout our nation's industrial heartland and is expected to cost far less than many had feared during the height of the crisis," Anderson said.
The Obama administration initially estimated it would lose $44 billion on the bailout but reduced the forecast to $30 billion in December 2009.
But the recent estimates are not as optimistic as last year.
The Treasury Department said in a May 2011 report that its estimate of auto bailout losses was $13.9 billion. The Congressional Budget Office also estimates a $14 billion loss. The CBO has written off $8 billion of the government's auto bailout as an unrecoverable loss.
Republican presidential candidate Mitt Romney has decried the losses on the auto bailout and insisted that forcing GM and Chrysler Group LLC to go through bankruptcy first would have saved taxpayers money.

A man that lies about who he is will never have a problem lying about what he does

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Posts: 23,050
Reply with quote  #3 

General Motors is imploding -- and Team Obama is lying about it

PJMedia is reporting that last week we cataloged how much General Motors (GM) likes firing people.

As we pointed out, 2009 was not a good year if you were a Republican-donating GM or Chrysler dealer.

(M)ultiple dealers who have been closed are found to have contributed millions to Republicans and mere hundreds to Obama….

“It became clear to us that Chrysler does not see the wisdom of terminating 25 percent of its dealers. It really wasn’t Chrysler’s decision. They are under enormous pressure from the President (Obama)’s automotive task force,” said attorney Leonard Bellavia.

The $82 billion automotive bailout was supposed to “create or save” American jobs. But this Republican hunt killed 100,000 gigs right out of the gate.

And Europe has (again) become a GM employee graveyard.

GM Heads Roll in Europe

GM intends to shed another 500 managers in Europe, adding to the 8,000 factory workers let go over the past three years as part of a massive though only modestly successful push to cut costs.

GM is serially throwing people over the side in part as a personnel bailing of the sinking ship. But it appears the Bad Ship Bailout is going down even faster than we knew – or they can address.

Sit back and take in the additional cavalcades of terrible Government Motors news.

Dan Akerson Runs GM With A Tight Fist, But Appears To Be Losing His Grip

Series Of High Level Executions Paint A Picture Of GM in Turmoil

Two weeks ago, Opel chief Karl-Friedrich Stracke presented numbers to Dan Akerson. Akerson fires him. Opel gets two interim chiefs in a week. Last Thursday, Opel’s new design chief Dave Lyon doesn’t even start his job….A day later, global marketing chief Joel Ewanick suddenly leaves. Instead of wishing him all the best for his future endeavors, GM spokesman Greg Martin puts a knife in Ewanick’s back: “He failed to meet the expectations the company has of an employee.”…

It all looks like (President Obama-appointee CEO) Dan Akerson is panicking. The GM stock is at an all-time low. GM is losing market share. When July numbers will be announced this week, GM won’t look so good, industry oracles say. Mass executions always are great to deflect criticism – for a while.

Speaking of that “all-time low” stock:

We are still stuck with 500+ million shares of the stuff. For us to break even, they must be sold at $53 per. They debuted post-bankruptcy at $33 per. They closed on Tuesday at $19.71 per. Setting us up for a nearly $17 billion loss – just on the stock.

Speaking of those “industry oracles”:

General Motors Faces Head Winds Ahead Of Q2 Report

For GM earnings, analysts forecast 74 cents per share, down 52% from a year ago.

Head winds?

Akerson…is getting impatient with the slow pace of GM’s revival.

“Earnings…down 52% from a year ago” isn’t a “slow pace revival.” It is a free fall implosion. Remind you of anything else?

U.S. Growth Falls to 1.5%; a Recovery Seems Mired

GM is “recovering” – like the entire Obama Economy is “recovering.”

And more and more, the GM jobs “created or saved” are in…China.

32% of first-quarter vehicle productions is going to be in China versus 30% in North America.

That would be Communist China. Where Shanghai GM in 2011 sponsored a movie celebrating the “Glorious Revolution”s 90th Anniversary.

To duck the deserved criticism:

Greg Martin, executive director of communications strategy for GM, told The Daily Caller in May 2011 that Shanghai GM “is a completely separate and distinct business entity based in China that has no organizational or financial ties whatsoever” with the Detroit car maker.

“It is not GM,” Martin said then. “It is not GM money. And it is in no shape or form, or indirectly, taxpayer money.”

But now that ever more of its sales are in China:

“Shanghai GM is GM,” Martin told TheDC on Friday. “We make money, they make money.”

Disingenuousness in fact abounds when it comes to the Obama Administration and GM.

President Obama once upon a time told us we would make money on the $82 billion auto bailout. Which was then amended to:

“The government will lose less than 20 percent of the $80 billion used to bail out the U.S. automobile industry.”

Only now we’re poised to lose (at least) $42 billion. And as we’ve seen, that number is serially fungible – always upward. And reliant on Administration-provided data. It will undoubtedly end up being even worse.

GM and the Obama Administration claim to have fixed the Chevy Volt fire problem – when there are at least five fires and a whole host of attending Volt charging problems that have not yet been adequately explained.

President Obama continues to incessantly claim that GM is #1 in global sales – even though Toyota has now recovered from their post-tsunami devastation and reclaimed the top spot.

President Obama in April 2010 asserted:

“It won’t be too long before the stock the Treasury is holding in GM could be sold ….”

And on, and on, and….

GM is allegedly an Obama Administration “success.” This is the President trying his plan, and it “working”.

Yet it’s all smoke and mirrors – when it’s not outright lies.

Welcome to Campaign Obama 2012.

A man that lies about who he is will never have a problem lying about what he does

Posts: 1,186
Reply with quote  #4 
That was the main reason that Leo took the cases on, THE DEMOCRATS who contributed to the Obama Campaign DID NOT LOSE ANYTHING, yet the Republucans who DID NOT contribute to Obama's campaign LOST EVERYTHING IN THE BLINK OF AN EYE, like there was a vendetta out for them for not contributing.....  and even though the trial went on for what, 6 months, NOTHING CHANGED that outcome, the Repubs lost and anyone who was a contributor to Obama came out smelling like a rose  both before the trial and AFTER.......  and Leo got sanctioned for his work in and on the trial by the DoJ......  it was FORCE VOTING AND DONATING OR ELSE.... and that is so Chicago CROOKED and ILLEGAL for any campaign to do, let alone the Obama Campaign to be so blatant when he was shouting to the people that he was going to "CHANGE and be TRANSPARENT" and everything.  That was the beginning of the Socialist transformation and lead into Marxism.  The rest of the bad news just kept getting worse for everyone from then on out because Obama in his mighty wisdom, got to put himself into every business or decision that was going to be made about whether or not that business survived or failed on whether or not they were FOR or AGAINST HIM personally.... the doors opened and he made it all about his desires, not what was best for America, but what was BEST FOR HIM.....   and it has been that way every day since in every aspect of the running of America down the drain.  ENTER THE NARCISSIST DICTATOR without any CLOTHES.....  not just an Emperor anymore, but a full fledged DICTATOR, because he was not doing anything for anyone else, just HIMSELF..... 
Lou E Brown

Posts: 516
Reply with quote  #5 

Did any of the real, deserving stockholders get anything back from their stockholdings? I know of a Chrysler dealer in my hometown who lost his Chrysler dealership to another one about 40 miles away. The one here did not donate to the Halfrican's campaign.


Super Moderators
Posts: 23,050
Reply with quote  #6 


General Motors is becoming China Motors. Forget the spin.  The evidence is clear and convincing.  Did U.S. taxpayers save GM for China?  Listen to the candid comments of GM's CEO.


Related:  A Chinese group plans to construct a 200 acre "China City" in Michigan


Related:  CBS cues up GM’s CEO to proclaim Obama saved GM -- and the country



A man that lies about who he is will never have a problem lying about what he does
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