It would appear that the insiders at General Motors do not have as rosy a view on the financial outlook for the company as they would have the rest of the public believe. The well-paid executives at GM sold out of another $2.8 million worth of shares in June according to Yahoo Financial statistics. Of course, the sales of shares are pure profits for the higher-ups at GM, considering that the elite group of executives receive millions of dollars’ worth of GM shares for free through stock options.
Heavy insider selling has been ongoing at GM since I wrote about a SIGTARP report in September of 2014 that unveiled excessive pay at GM. The report found that the top nine executives at GM saw income rise from $32,307,500 to $35,335,000 in 2013.
During the 12 month period from March of 2013 to March of 2014 eight GM executives sold … Read More ➡
It’s been six years since electric vehicle manufacturers enjoyed their windfall from U.S. taxpayers via the stimulus, but the thirst for subsidies, and pain from financial losses, have not waned.
The pursuit of government goodies continues apace for Tesla Motors, even more vigorously after the Los Angeles Times reported last month that CEO Elon Musk depends on more than $4.9 billion in corporate welfare for his companies, which also include SolarCity and SpaceX.
Tesla’s quest may more accurately be portrayed as preservation of the golden goose that is California’s zero-emission vehicle (ZEV) credit scheme. The Golden State requires the six largest auto manufacturers to produce a certain percentage of vehicles that are “green” – in other words, electric – or to purchase zero-emission “credits” from companies that do, such as Tesla. According to the Christian Science Monitor, Tesla is the largest seller of ZEV credits, … Read More ➡
General Motors seems intent on becoming the global leader in producing money-losing vehicles that attempt to compete with Tesla. The latest so-called Tesla Killer from GM is the Chevy Bolt and the hype is beginning with media articles such as With Jab at Tesla, GM Amps Up Chevy Bolt Promotion, Testing. GM shareholders need this latest sequel to the Tesla Killer series as much as movie aficionados need another sequel of Police Academy.
OK, I’m sure there are many fans of the b-rated Police Academy series, just as there are fans of the previous GM versions of Tesla Killers. The difference is, b-rated movies are produced with low budgets; not so with GM Tesla Killers. GM (and taxpayers) have spent billions of dollars to produce the initial series of much-hyped electric vehicles which were never a hit with mainstream consumers. That growing list of vehicles includes the Chevy Volt … Read More ➡
Earlier this month, the Wall Street Journal reported that the United Auto Workers union (UAW) was drawing up contingency plans to strike if upcoming negotiations with General Motors, Ford and Fiat Chrysler Automobiles do not satisfy UAW officials. The UAW is leveraging the good timing of the negotiations, which are occurring at the same time as the auto industry’s cyclical top.
Will history repeat itself with GM eventually driven to a second bankruptcy if the UAW is successful in raising labor costs at the automaker? The stage seems to be set for the UAW to further put unionized automakers at a disadvantage to automakers with lower labor costs in a very competitive industry. The current US hourly labor cost at GM is already one of the highest in the industry at $58 per hour. That compares to the US wages at Toyota and Volkswagen of $48 and $38 per hour, … Read More ➡
The monument to former Duke Energy CEO Jim Rogers’s boondogglery – a “clean coal and carbon capture” power plant in Edwardsport, Ind. – has become the rate-busting gift that keeps on giving.
Over the weekend the Indianapolis Star reported that the facility that Duke Energy’s Indiana president called “state-of-the-art” continues to have premature breakdown and decay problems. Repair costs are likely to be passed on to customers, who have already seen their electric bills increase by up to 16 percent because of construction estimate overruns.
“Cracking welds. Eroding pipes. Frozen transmitters. Slag building up. Coal slurry spilling on floors,” the Star reported, citing disclosures to the Indiana Utility Regulatory Commission. “And all that was just in December.”
The plant has been operating for two years and was promoted as one of the “world’s cleanest” with the ability to deliver dependable, low-cost electricity. According to Power … Read More ➡
The Wall Street Journal recently reported that Fiat Chrysler Automobiles CEO, Sergio Marchionne, has been pressing for a merger with General Motors. Marchionne has been appealing to hedge funds and activist investors in a move that seems to verge on desperation. The main takeaways from the appeal are that the government bailouts of GM and Chrysler were not a long-term fix for the industry and that Mr. Marchionne is one of the few experts on the industry who is honest enough to admit it.
Marchionne has had a history of speaking his mind on topics that are not politically palatable to other auto industry executives, such as GM CEO Mary Barra. In 2014 Marchionne asked consumers not to purchase Fiat’s entry into the money-losing electric car segment, the Fiat 500e. Unlike Barra and GM, who refuse to admit to the struggles of electric cars like the Cadillac ELR and Chevy … Read More ➡
Alt-energy/transport-tech CEO Elon Musk and his trio of companies (Tesla, SolarCity and SpaceX) didn’t cooperate with the Los Angeles Times on its article that tabulated his businesses’ whopping sum of corporate welfare ($4.9 billion), and he was predictably miffed by the (accurate) portrayal.
So he went about trying to fix things on CNBC and with the Times on Monday, but not by denying the conclusions reached by reporter Jerry Hirsch, but instead by essentially pointing at fossil fuel industries and saying “they do it more.”
“If I cared about subsidies,” Musk told Hirsch in a follow-up to his Sunday expose’, “I would have entered the oil and gas industry.” He added that the financial help he receives is a “pittance” compared to government backing of fossil fuels.
Musk’s resentment (envy?) of oil and gas subsidies is amusing. Would you like to shoot your rockets into space … Read More ➡
Well, somebody did it, and it was the mainstream media. Congratulations to the Los Angeles Times for taking the time to research and estimate the total amount of U.S. public (local, state, and federal) subsidies for companies owned or run by South African-born Canadian-American Elon Musk.
The total amount calculated by reporter Jerry Hirsch for taxpayer-backed incentives – of many different forms, including tax credits and rebates provided to customers – was $4.9 billion. The corporate beneficiaries have been Tesla Motors and SpaceX, where Musk is CEO, and SolarCity Corp., where he is chairman. The sum does not include SpaceX’s contracts with the government to carry out programs for NASA and the U.S. Air Force.
“Government support is a theme of all three of these companies, and without it none of them would be around,” said Mark Spiegel, a hedge fund manager for Stanphyl Capital Partners, to the Times… Read More ➡
The New York Times reports that the Justice Department has concluded that there was criminal wrongdoing by General Motors as the company covered-up a deadly ignition switch defect for years. That defect has now been blamed for causing the deaths of at least 107 motorists. While many observers may have been able to come to the conclusion that GM was guilty long before the Justice Department’s recent epiphany, the bigger question now is, what’s next?
GM still faces litigation risks as ongoing lawsuits seek justice for the victims’ families that suffered as a result of GM’s criminal actions. Full justice may never be served for those who suffered their losses prior to GM’s Obama-orchestrated 2009 bankruptcy process as the bankruptcy judge in that case, Robert Gerber, has given GM a free pass on any losses that occurred prior to the government bailout in a recent ruling.
There is one major … Read More ➡
While Apple Inc. continues its laughable claim that its data centers are run “100-percent” on renewable energy – highlighted by a solar farm built adjacent to its server facility in Maiden, N.C. – public records show the company has received permits to install 44 pollutant-spewing diesel generators for back-up power.
Meanwhile two weeks ago the Cupertino, Calif.-based computing giant boasted far and wide that it was joining with the Conservation Fund to “protect” a “working forest” in Brunswick Co., N.C., which is on the state’s southeastern coast. So Apple asserts that it reduces pollution produced by fossil fuels, while conserving timber for future generations. Wouldn’t that be wonderful if it was true? Instead it’s more of what the environmental left likes to call “greenwashing.”
The diesel generators for the western North Carolina data center are the normal redundancy you’d expect a power-dependent corporation to install to insure continual … Read More ➡