By Skip Chatterson - August 3, 2012
Ask any fan of Obama to list three reasons why they think Obama has done a good job and invariably the “saving” of GM is in the top three. The question now is, did Obama save GM or did he just delay the inevitable?
In June 2009, GM filed for Obama-managed bankruptcy, costing the taxpayer some $50 billion. The vast majority of that cash was never paid back by GM. In November 2010, GM issued a new initial public offering at a price of $33 per share. Today, GM stock is trading at approximately $19.36, down about 40% from its initial price.
Edmunds says that GM’s growth in the month of July will be essentially flat. GM is losing domestic market share at a rapid rate. From January to April 2012, GM lost 11% of its market share – about 300,000 vehicles of market share, and Cadillac was down almost 25%.
What about the vaunted Volt? This car was to be the superhero of GM’s lineup. It is an electric car and guaranteed to be loved by ALL Americans. Well, maybe not so much love. Not only did the car not sell well, but the vehicles that did sell had some trouble (count house fires among the list) causing most of the Volts to be recalled. Now Austin, Texas wants to develop their own 700-acre Volt Village Utopia at the tax payer’s expense. Besides the Volt, residents will use smart appliances with home-management systems and energy storage that optimizes the use of solar power, clean energy distribution and green building construction. Love to know what they will be plugging those cars into, remember India this week? If they have plenty of firehouses, they can always rename it Hidenberg.
Since Obama is an expert in the world of corporate economics, why he has given hundreds of millions of dollars to each of these companies: Evergreen, Abound Solar, Beacon Power, Ener 1, Solyndra and the foreign company with foreign labor, Fisker Automotive. I’m sorry, each and every one of these companies that received hundreds of millions of dollars of our tax money, has gone bankrupt, leaving you and me on the hook for each of these bankruptcies. Nearly everyone of these companies were a high risk company to start with, but have one thing in common…a rich campaign bundler for Obama behind almost every one of these companies.
I’m sorry GM, it does not look good for your future with Obama’s corporate history. Not only did GM “pay” the government back with loaned government money, now they be looking at a true bankruptcy in the near future. That’s OK though because Obama’s union backers, the UAW, is getting billions of dollars out of this deal and will eventually sell their majority ownership in GM, that Obama illegally allowed. So all is good in Obamaland…another company may go bankrupt but Obama’s supporters are protected.
I do fell sorry for the Obama fans, this takes one of their few reasons for liking the President away from them. He was proudly spending the $6 million per minute to advertise his success at managing the automobile industry during the Super Bowl . Currently, millions of Americans are unemployed, with a real rate above 12%, numerous bankruptcies, numerous foreclosures, record poverty, record food stamp enrollment, ailing housing situation, sickly GDP performance and multiple leaks of national security secrets. Carter is very thankful for the Obama presidency. Obama has been a great President. Yeah, Right!!