The House Oversight and Government Reform Committee has announced that it has served Treasury Secretary Jacob Lew a subpoena to obtain records relating to the Delphi retirees’ pension scandal. Up to this point, the Obama Administration has stonewalled attempts by Congress to get an explanation on why Treasury seemed to be involved in orchestrating preferential treatment for unionized retirees over non-union retirees at Delphi during General Motors’ bankruptcy process.
An article at Vindy.com reports that the Obama Administration’s lack of cooperation regarding the Delphi case for the past three and a half years has left the Oversight Committee no choice but to subpoena the documents from Treasury. Here is a full explanation from the piece:
“Congress has made repeated requests with the Treasury for what lawyers representing the salaried retirees estimate could be as many as 30,000 documents that could help determine why they saw their pensions slashed by more
… Read More ➡
The Chevy Volt madness continued this week with General Motors announcing that consumers will see a $5,000 decrease in the price of President Obama’s favorite green wonder-car. Sales of the Volt have been dismal, with most consumers refusing to be as smitten with the car as the President and the few enthusiastic green ideologues who seemed to believe that spending approximately $20,000 more for a car (over a gas-powered rival) that can save them about $3 a day in gas makes sense. What seems to go unrecognized is the fact that the price cut comes at the expense of GM shareholders, not to mention the costs to American taxpayers.
The price for the 2014 Volt will start at around $35,000. Some sources, including GM, deceptively tout the reduced cost of the Volt as being $27,500, reflecting the $7,500 federal tax credit for the car. It is important to realize that … Read More ➡
The lack of transparency from the Obama Administration continues as leaders of the House Oversight and Government Reform Committee continue to try and persuade the Treasury Department to hand over documents relating to the Administration’s involvement in the termination of non-union Delphi retirees’ pension benefits. Non-union Delphi retirees saw their benefits lost while unionized UAW retirees at the company had their benefits “topped off” and preserved with taxpayer dollars funneled through General Motors during the 2009 auto bailout process.
Evidence surfaced about a year ago that the Obama Administration played a role, once again, in choosing winners and losers by protecting friends in the UAW over less-favored groups when the Daily Caller unearthed emails pointing to Treasury’s involvement. The emails confirmed that the Treasury Department was the driving force behind the termination of non-union pension benefits. The evidence suggests that Treasury officials lied when they testified, under oath, that the … Read More ➡
President Obama’s former head of the Auto Task Force, Steven Rattner, helped orchestrate the auto bailouts that saw billions of taxpayer dollars spent to save General Motors and Chrysler in a rigged bankruptcy proceeding favorable to political allies (i.e., the UAW). Rattner is now calling for taxpayers to come to the rescue of Detroit as the city struggles to restructure through a bankruptcy process without federal handouts.
Rattner penned an op-ed piece for the NY Times that trumpeted the success of the auto bailouts and called for similar action to save Detroit. Rattner likens the Detroit situation to Hurricane Sandy, and as such, deserving of taxpayer money. Perhaps Mr. Rattner should contribute his own money to help the noble folks of Detroit rather than continue to try and redistribute the wealth of others to those he deems worthy.
There were many contributing factors to the bankrupting of Detroit, all of … Read More ➡
The US Chamber of Commerce’s “On the Road with Free Enterprise” tour has quietly entered its second month. The main story currently on the “Free Enterprise” website is a piece titled “First Ever Sushi Tech Combats Fish Fraud.” The fact that General Motors is hypocritically co-sponsoring a free enterprise tour might bring to mind the words fishy and fraud as well.
“Beneath the deep purple cuts of healthy tuna and the smell of fresh wasabi, there lies a sushi underbelly in America that will make your stomach turn,” reads the first line of the all-important “fish fraud” story. Likewise, GM’s anti-free enterprise bailout process exhibited an underbelly of political cronyism that turned the stomach of those (like GM bondholders and Delphi non-union retirees) who saw there rights subordinated to the politically-favored UAW.
Merriam-Webster Dictionary defines free enterprise as: “freedom of private business to organize and operate … Read More ➡
It appears that there is no end in sight to the Obama Administration’s costly quest to electrify America’s auto fleet, despite the recent flurry of reports that continue to confirm that the benefits of electric vehicles (EVs) are practically nonexistent in comparison to the costs. One of these reports even came from Obama’s own NHTSA (National Highway Traffic Safety Administration) panel which downplayed the importance of EVs and claimed that electric cars will only need to account for between one and three percent of car manufacturer’s product portfolios by 2025 for lofty government EPA requirements to be met.
The Autoguide.com article on the NHTSA panel findings states, “Despite those findings, the government has willingly shoveled millions of dollars at manufacturers and consumers in a ploy to popularize electric cars.” I would whole-heartedly agree with that, except it has been “billions” of dollars shoveled, not “millions.” And money is not all … Read More ➡
A recent Reuters article regarding the likelihood of a bankruptcy filing by the city of Detroit may come as a surprise to those who have heard nothing but positive spin on Motor City’s resurgence since General Motors and Chrysler emerged from their Obama-manipulated bankruptcies. Who can forget Clint Eastwood’s 2012 Super Bowl ad which gave a heartfelt tribute (paid for by Italian-owned Chrysler) trumpeting Detroit’s comeback? It seems like the outlook is now not so rosy for Detroit as its emergency manager Kevyn Orr puts the odds of a bankruptcy for the city at 50/50.
A proposal has been set forth by Orr to creditors offering them just pennies on the dollar reminiscent of GM’s low-ball offer to its bondholders which was made just prior to their bankruptcy filing. The GM offer was not made in good faith and never had a chance of succeeding. The parallel reality is that … Read More ➡
General Motors has announced a $4,000 rebate (or $3,000 and a four year, zero interest loan from government-owned Ally Financial) on the slow-selling Chevy Volt. The company had a choice regarding how to deal with an excess supply of Volts that is growing faster than demand. GM could have, once again, temporarily halted production until inventory (currently at about a 6 month supply) came down to reasonable levels. It instead chooses to lose more millions of dollars by spending on incentives designed to manufacture demand that otherwise is practically nonexistent.
The much-hyped Chevy Volt was originally presented by GM as a green wonder-car that would be a savior for the company with sales expected in the 10,000 per month range by now. Almost three years after first hitting showrooms, the Volt now sees sales stabilizing at a dismal rate of approximately 1,500 per month. That’s roughly one Volt every two … Read More ➡
It looks like the Obama Administration and the UAW are again working hand in hand as the two entities are coordinating on an offering of a total of 50 million General Motors shares. Treasury is planning on selling 30 million shares as the UAW’s VEBA (Voluntary Employee Beneficiary Association) Trust will sell 20 million shares. The VEBA Trust was formed to cover retiree’s medical benefits for the UAW and received about a 17.5% ownership stake in GM as part of the 2009 bankruptcy process.
The VEBA Trust was formed as part of GM’s negotiations with the UAW back in 2007, well before the GM bankruptcy. The UAW agreed to take responsibility for health care costs for retirees in exchange for GM funding the VEBA account to the tune of about $30 billion. The only problem was that GM didn’t have the cash flow to fund the account. The VEBA deal … Read More ➡
The IRS scandal that revealed targeting of conservative groups by the Treasury Department has reopened speculation that the Obama-orchestrated auto bailouts unfairly targeted Republican-leaning dealerships for closure. Republican Congressmen Mike Kelly (PA) and Jim Renacci (OH) have penned a letter to Treasury Secretary Jack Lew requesting documentation so that an investigation can determine what criteria was used to shutter dealers that appear to have had one thing in common: their political affiliations.
The outrageous behavior of the IRS in targeting non-profit organizations with conservative roots, like the Tea Party, for extra scrutiny came at around the same time that General Motors and Chrysler were being guided through bankruptcy processes by the Treasury Department. Obama’s Auto Task Force required that GM and Chrysler close about 2,000 dealerships as part of the restructuring. This job-killing decision came at the same time that the Administration boasted about all the jobs that would be … Read More ➡