auto bailout

Women's Museum Asked to Rescind Mary Barra Award; GM CEO Made History 'of Wrong Kind'

Mary BarraToday I sent the following letter to Dr. Gretchen Green, the Acting Chair of the National Women's History Museum:

We ask the National Women's History Museum (NWHM) to withdraw its planned award to General Motors CEO Mary Barra.

As you know, Barra is scheduled to receive the Katharine Graham Living Legacy Award on November 17 as part of your annual de Pizan Honors at The Mead Center for American Theater at Arena Stage in Washington, DC.

Barra has indeed made history - of the wrong kind.

McCaskill and Blumenthal Must Press GM's Barra for Brake Corrosion Recall

Claire McCaskillOn Thursday, July 17, General Motors CEO Mary Barra will be back as a witness on Capitol Hill, this time before the Senate Subcommittee on Consumer Protection, Product Safety and Insurance.

Senator Claire McCaskill (D-MO), who has been an outspoken critic of GM's response to the deadly ignition switch defect, chairs the Subcommittee. Indeed, the hearing is titled, "Examining Accountability and Corporate Culture in Wake of the GM Recalls." Another subcommittee member, Senator Richard Blumenthal (D-CT), has been even more outspoken. Both deserve credit for seeking to make GM accountable, especially since some members on both House and Senate committees have pulled their punches on Barra and GM.

Dana Milbank's Hack Journalism

MilbankYesterday, I confronted outgoing General Motors CEO Dan Akerson, the speaker at a National Press Club luncheon. At a press conference beforehand, and through the first question at the conclusion of his remarks, I requested that GM repay taxpayers the $10 billion in direct GM bailout costs.

Akerson's refusal dominated much of the media coverage of the event. This was clearly not the story line that Akerson intended.  In short, we happily stepped all over his message that the bailout is a success and that GM is back.

Sorry Dan Akerson, GM Bailout is Failure

I made these remarks today at the National Press Club in Washington, DC before the luncheon speech of outgoing General Motors CEO Dan Akerson:

President Obama justified the auto bailout by predicting it would make money for the taxpayer. With Treasury now selling its remaining shares, the direct loss is about $10 billion. So on its most fundamental level, the auto bailout is a failure.

But that $10 billion figure dramatically understates the true cost. There were separate multibillion dollar bailouts of Ally Financial, formerly know as GMAC, and Delphi and other suppliers. There was cash for clunkers, the government guarantee of warrantees, accelerated fleet purchases, etc., etc.

GM Asked to Pay Back $10 Billion Bailout Costs

pile of cashPeter Flaherty, president of the National Legal and Policy Center (NLPC), today posed key questions to the General Motors leadership at a National Press Club press conference, including whether the company will repay to taxpayers the $10 billion direct cost of the GM bailout.

News that the U.S. Treasury Department has sold its remaining stake and that Mary Barra will take over as GM's new CEO have put the spotlight on the company and its future. GM executives have pointed to GM's $26.8 billion in cash as evidence of its improved financial position. Analysts have raised the possibility that the company will buy back shares or institute a dividend.

Questions for GM:

When Will General Motors Repay Taxpayers $10 Billion?; Bailed-Out Automaker Sits on Cash Hoard

pile of cashI will hold a press conference on Monday, December 16 at 11:00am to pose key questions to General Motors leadership, including whether and when the company will repay to taxpayers the $10 billion direct cost of the auto bailout.

News that the U.S. Treasury Department has sold its remaining financial stake and that Mary Barra will take over as GM's new CEO have put the spotlight on the company and its future. GM executives have pointed to the company's gigantic cash position as evidence of its improved finances. Analysts have raised the possibility that the company will buy back shares or institute a dividend.

Survey: Auto Bailout is Drag on GM Truck Sales

A consumer survey taken last week on behalf of the National Legal and Policy Center confirms that public disapproval of the auto bailout continues to dog General Motors, and is likely hurting pickup truck sales, a highly profitable segment of its line.

When 500 consumers in Texas were asked, "Would your decision to buy a specific brand of truck be influenced by whether that company received financial assistance from the federal government?," 40.08% answered "absolutely."  Another 11.75% responded "very likely," and 10.60% responded "likely." Thus, more than 60% said that the bailout would have some influence on their decision.

Only 23.89% responded "not too likely."

Will Fiat/Chrysler Need Another Bailout?

NLPC Associate Fellow Mark Modica was interviewed Wednesday by David Asman on the Fox Business Network on Moody's credit downgrade of Fiat. The Italian automaker, which owns Chrysler, is facing financial difficulties, even as President Obama is ballyhooing the "success" of the auto bailout. Here's a transcript:

More Green Energy Money Down the Drain

NLPC Associate Fellow Paul Chesser is interviewed on Fox Business Network's Money With Melissa Francis. Here is a transcript:

Embassies Facing Security Cuts Waste Money on Chevy Volts

Volt and Embassy officialThe U.S. military's newspaper, Stars & Stripes, recently reported that the Pentagon is buying Chevy Volts in a 1,500 electric-vehicle purchase, as part of the Defense Department's "green initiatives," which seek to reduce the country's dependence on foreign energy sources.

A recent Congressional Budget Office study challenged the assumption that electric vehicles have any impact on such dependence, prompting the question of why the government is spending money this way. Against the backdrop of the attack on our embassy in Benghazi, and looming embassy security cuts due to sequestration, it appears politics and ideology are trumping common sense.

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