Just the Facts:
- The United Auto Workers received a 39% Equity stake in the company
- Over 1000 GM dealerships were forced out of business
- Bond holders received a 10% stake – much less than invested
- Salaried employees lost most or all pensions benefits
- $50 billion of taxpayer money is still invested in GM – 500 million stock shares
- Every Chevy Volt still has a $7500 Tax Credit
- GM filed bankruptcy despite government intervention
- In 2011 GM paid ZERO Taxes on profits of $7.6 billion – they received a tax refund of $110 million because they are allowed to write-off bankruptcy losses for the next 20 years
- Including the bailout – the government “Gifts” to GM total $22-$40 billion Tax Dollars
- Stock price is hovering around $20 a share – it needs to be $54 for taxpayers to be repaid
- Almost 7 out of 10 vehicles are now built OUTSIDE the US-see video below
- GM is now loaning money in the sub-prime market (high-risk customers) to aid vehicle sales – up 79%
The bottom line is that taxpayers are still on the hook for about $27 billion in GM bailout money, plus $15 billion for Ally Financial, the company financier once known as GMAC. That comes as a surprise to most Americans. What about those heartwarming TV ads in 2010, when GM chairman Ed Whitacre gazed dramatically into the camera and swore, “We have repaid our government loan, in full, with interest, five years ahead of the original schedule”?
It turns out that Whitacre, like the wily car salesman he is, was concealing the real dimensions of the deal in the fine print. Of the $67 billion government bailout of GM and its lending arm, only about $6.7 billion came in the form of a loan. The rest was invested in GM stock, which these days is barking like a dog – though Obama prefers the phrase “roaring back.”
Maybe he’s got a future in conveying pre-owned automobiles.
http://articles.philly.com/2012-08-19/news/33262024_1_gm-bailout-gm-chairman-ed-whitacre-chevy-volts
It gets better:
GM is heading for bankruptcy again!
http://www.forbes.com/sites/louiswoodhill/2012/08/15/general-motors-is-headed-for-bankruptcy-again/
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Other sources:
http://www.foxnews.com/opinion/2012/05/18/what-gm-bailout-really-cost-american-taxpayers/
http://money.cnn.com/2012/02/16/news/companies/gm_bailout/index.htm
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