GM #1 AGAIN, FORD #2, TOYOTA, VOLKSWAGON 3RD, NO THANKS TO ROMNEY

President Barrack Obama must feel some vindication today after General Motors regained their #1 position world-wide in-car sales after a federal bail out severely criticized by Republicans; Presidential candidate Mitt Romney said the government should not bail out GM but allow them to go bankrupt. His father was president of the former American Motors which no longer exists.

Obama said the federal bail out saved 1 million automotive jobs including many small businesses which served as vendors to the automotive industry.

The story below:

http://money.cnn.com/2012/01/19/autos/gm_global_sales_leader/index.htm?iid=HP_River

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10 thoughts on “GM #1 AGAIN, FORD #2, TOYOTA, VOLKSWAGON 3RD, NO THANKS TO ROMNEY

  1. I think this can be attributed more to the Toycar issues and not successes at Ford and Chevy. I am Dodge person myself !!! This is really another sore subject with me and I could really get on my soapbox but won’t!

  2. No doubt, $3.2 billion is a big number. But an even bigger number is $60 billion. That’s what this administration and the last one together sank into GM (not to mention another $20 billion or so they dumped into Chrysler). When President Obama gave GM this money, he insisted that it was not a handout but an “investment” that would cost taxpayers “not a dime.”

    But if there was ever any doubt that this wasn’t going to happen, this earning report dispels it.

    For starters, included in the $3.2 billion figure is the net $1.5 billion that the company generated from the one-time sale of Delphi, its auto parts supplier, and Ally Financial, its financial arm. Subtract that, and its performance looks much less impressive, especially compared to its rival Ford that really didn’t receive a dime from taxpayers yet made $2.6 billion last quarter—or nearly a billion more than GM.

    But cold, hard cash is not the only help that GM got. Usually when companies declare bankruptcy, their tax liabilities increase since they have no more losses to write off. But GM got Uncle Sam’s special bankruptcy package that allows it write off up to $45 billion of old losses going forward. That puts its total bailout at up to $75 billion*. Even that’s not all. The Treasury gave GM $10 billion of the $60 billion as a loan; the rest was through the purchase of equity. (It has more or less paid back the loan.)

    The equity means two things: One, GM has zero interest payments, something that gives it a distinct advantage over competitors. Ford, by contrast, had to pay $251 million in debt-service costs. Despite this, GM’s real per vehicle margin was over $1,000 less than Ford’s, thanks to the heavy incentives it was forced to give buyers. (If the administration can call this success, can it please call me the next American Idol?)

    With all this I would hope they show a profit.

  3. SOLUTION; Do away with labor unions because they drive up the price of everything that they touch and, make the taxes and Import fees on ALL foreign originated vehicles high enough so that people will not buy them!= No bailout would have been necessary. Our Government FAILED us again !!!!!!!!!!

    • John yes union wages are higher, but if it were not for unions driving wages you and others would be working for the same wages as other 3rd world companies. Look at the industries we use to have in the 30’s and 40’s and to protect their low wages they kept industry out of Laurel; had those industries come to Laurel people here would have good paying jobs. And if businesses treated their employees fairly their would not have to be unions.

      • “businesses treated their employees fairly” = my roll (as a elected officer) to my fellow union members and I love this responsibility!

  4. Do away with unions? Really? Please do your homework on how labor unions have helped the employees in the good ole USA. I have been active in a public employee labor union for a long time .. average yearly income of our membership = $25,000.
    (and after MY 30 years MY union continues to support and protect the jobs of all front line employees…like prison guards, direct care employees for 24hr. facilities, social workers, maintenance workers, nurses, secretaries, clerks, dental assistants, bus drivers, paramedics and more..) and we drive up prices?…lol

  5. Didn’t they bring in a new CEO or whatever the three letter designation for the big cheese is nowadays? If so perhaps he might be deserving of part of these attaboys. I agree with John on his point of part their success may have been largely contributed to Toyotas issues. From an auto parts salesman standpoint, Ford seems to do all the goofy stuff, yet they stood on their own merits…maybe they had a better idea after all.

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