Big 3 Auto bailout

[jimzinsocal]

For me the one billion isnt a huge deal but I understand how politicians have to look into stuff.
If I recall correctly, the reasoning for the one billion to Delphi employees pensions was they were indeed still invested in some GM retirement/pension plan. In other words, after the company was spun off the employee pensions still were under the GM umbrella so were basically made whole thru the one billion.
Maybe I dont agree with the reasoning but I sure can understand it.

[AMDScooter]

For me the one billion isnt a huge deal but I understand how politicians have to look into stuff.
If I recall correctly, the reasoning for the one billion to Delphi employees pensions was they were indeed still invested in some GM retirement/pension plan. In other words, after the company was spun off the employee pensions still were under the GM umbrella so were basically made whole thru the one billion.
Maybe I dont agree with the reasoning but I sure can understand it.

I know they bungholed the secured shareholders to pay off the union douchbags with our $$$. That's the GM "bailout" in a nutshell.

[jimzinsocal]

This guy will no doubt get the "call" from Obama. Not nice to wander off message

http://dailycaller.com/2012/07/27/ra...is-inevitable/

[no2guncntrl]

So howd the bailout work for GM ? How about GM offering SUB PRIME CAR LOANS
on credit scores of 660 and below...?

http://news.investors.com/article/62...fuel-sales.htm
excerpt

President Obama has touted General Motors (GM) as a successful example of his administration's policies. Yet GM's recovery is built, at least in part, on the increasing use of subprime loans.

The Obama administration in 2009 bailed out GM to the tune of $50 billion as it went into a managed bankruptcy.

Near the end of 2010, GM acquired a new captive lending arm, subprime specialist AmeriCredit. Renamed GM Financial, it has played a significant role in GM's growth .

The automaker is relying increasingly on subprime loans, 10-Q financial reports shows.

Potential borrowers of car loans are rated on FICO scores that range from 300 to 850. Anything under 660 is generally deemed subprime.

Subprime Key Driver

GM Financial auto loans to customers with FICO scores below 660 rose from 87% of total loans in Q4 2010 to 93% in Q1 2012.

The worse the FICO score, the bigger the increase. From Q4 2010 to Q1 2012, GM Financial loans to customers with the worst FICO scores — below 540 — shot up 79% to more than $2.3 billion. The second worst category, 540-599, rose 28% from about $3.4 billion to $4.3 billion.

Prime loans, those above 660, dropped 42% to $676 million.

GM Financial provides just over 8% of GM's financing. Prior to 2006, GM's captive lending arm was GMAC, but GM sold a controlling stake in 2006. GMAC later renamed itself Ally Financial and continues to provide the bulk of GM's financing.

Oh, boy. This is a train wreck waiting to happen, and I DO NOT want us to bail
out anymore damn companies.

[kbohip]

^^^Any college kids looking for work and not finding any should become repo men. It's going to be a growth industry soon!

[tucker]

^^^ Do you get combat pay and free life insurance?

[Dutchcedar]

Uh-oh. The Obambi administration lied about their involvement in stripping pensions of Delphi workers... 20,000 of them.

Imagine that.

[AMDScooter]

Let's do the same in every manufacturing industry!!!

Is GM already on track to go bankrupt, again?

“When the American auto industry was on the brink of collapse, more than one million jobs at stake, Gov. Romney said, ‘let’s let Detroit go bankrupt.’ I said, I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back. And GM’s number one…”

That was just last week, during one of President Obama’s campaign stops in Colorado. President Obama can often be heard these days touting the ostensible success of his auto-industry bailouts in rescuing the industry, while scolding Mitt Romney for his oh-so-callous prescription to merely allow Detroit to go bankrupt. Yes, because quelle horreur that any company that employs a relatively large number of people should be forced to compete based on free-market signals rather than being coddled by the political whimsy of federal assistance. Federal bailouts are a product of short-term thinking that rewards and perpetuates poor decision-making — allowing a company to go bankrupt might cause pain in the short-term, but in the long-term leads to economic growth and efficiency.

President Obama claims he’d like to do the same in every manufacturing industry, not just the auto industry — because GM is number one again! …Apparently, under Obamanomics, this is what “success” looks like, reports Forbes:

President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again. The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.

Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company. It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday. This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion. …

In the 1960s, GM averaged a 48.3% share of the U.S. car and truck market. For the first 7 months of 2012, their market share was 18.0%, down from 20.0% for the same period in 2011. With a loss of market share comes a loss of relative cost-competitiveness. There is only so much market share that GM can lose before it would no longer have the resources to attempt to recover.

And unexpectedly, of course, this is all costing the taxpayer quite a bit more than the Obama administration originally thought. Unusual, right?

But, in a report sent to Congress, the White House raised to $25.1 billion the amount it said it cannot now expect to recover – primarily by selling off the remaining 26% stake it still holds in GM. The previous quarterly estimate was $21.7 billion. On the other hand, the latest figure is about 45% less than the $44 billion the Obama Administration had once predicted.

But hey, who could’ve seen this coming? No, really, I mean it — who?

If General Motors, Ford and Chrysler get the bailout that their chief executives asked for on Tuesday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed. …

Without that bailout, Detroit will need to drastically restructure itself. With it, the automakers will stay the course – the suicidal course of declining market shares, insurmountable labor and retiree burdens, technology atrophy, product inferiority and never-ending job losses. Detroit needs a turnaround, not a check. …

The American auto industry is vital to our national interest as an employer and as a hub for manufacturing. A managed bankruptcy may be the only path to the fundamental restructuring the industry needs. It would permit the companies to shed excess labor, pension and real estate costs.

[AMDScooter]

It's another obama "SUCCESS!!" story...

GM Seeks Bigger Credit Line To Shrink Pension Obligations; Déjà Vu Pension Woes

&

GM to shut down Chevy Volt plant for four weeks — for the second time this year

[kbohip]

Oh quit your worrying Scoot! GM has been loaning to people with terrible credit and they are doing a booming business with them. If there's one thing history has proven, this business model has never come back to bite anyone in the ass!

[AMDScooter]

Another Obama backed gubberment motors success. Only losing as much as $49,000 on every Volt sold. And there ain't many of em being sold.

Insight: GM's Volt: The ugly math of low sales, high costs

(Reuters) - General Motors Co sold a record number of Chevrolet Volt sedans in August — but that probably isn't a good thing for the automaker's bottom line.

Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts.

Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.

. . .

PLANT SHUTDOWN

The lack of interest in the car has prevented GM from coming close to its early, optimistic sales projections. Discounted leases as low as $199 a month helped propel Volt sales in August to 2,831, pushing year-to-date sales to 13,500, well below the 40,000 cars that GM originally had hoped to sell in 2012.

. . .

It currently costs GM "at least" $75,000 to build the Volt, including development costs, Munro said. That's nearly twice the base price of the Volt before a $7,500 federal tax credit provided as part of President Barack Obama's green energy policy.

Other estimates range from $76,000 to $88,000, according to four industry consultants contacted by Reuters. The consultants' companies all have performed work for GM and are familiar with the Volt's development and production. They requested anonymity because of the sensitive nature of their auto industry ties.

. . .

[Frank1946]

Another Obama backed gubberment motors success. Only losing as much as $49,000 on every Volt sold. And there ain't many of em being sold.

Insight: GM's Volt: The ugly math of low sales, high costs

Well let's give them more taxpayers dollars until they get it right.

[AMDScooter]

Now's not a good time.. Mr. Flexibility has a campaign to worry about after all.

GM to fed govt: So, about ready to sell those remaining shares yet?

[Keven]

Best selling American-made cars according to latest issue of Car & Driver.

1 - Toyota Avalon - made in Georgetown, Kentucky.
2 - Chevrolet Express / GMC Savana - made in Wentzville, Missouri.
3 - Toyota Sienna - made in Princeton, Indiana.
4 - Honda Accord - made in Marysville, Ohio.
5 - Honda Crosstour - made in East Elizabeth, Ohio.
6 - Lincoln Navigator / Ford Expedition - made in Louisville, Kentucky.
7 - Chrysler 200 - made in Sterling Heights, Michigan.
8 - Jeep Liberty - made in Toledo, Ohio.
9 - GMC Arcadia / Buick Enclave - made in Lansing, Michigan.
10 - Toyota Sequoia - made in Princeton, Indiana.

[AMDScooter]

H/T ACE