auto bailout

Modica Criticizes Tax Credits to GM Dealers Selling Chevy Volts to Gov't

Submitted by NLPC Staff on Thu, 02/23/2012 - 09:21

Chevy Volt Sales Figures Inflated With Fleet Purchases

Submitted by NLPC Staff on Tue, 12/20/2011 - 18:19

Last night on Neil Cavuto's show on Fox News Channel, NLPC Associate Fellow Mark Modica discussed disappointing sales of the Chevy Volt, and GM's apparent goosing of sales figures through fleet sales. Here's a transcript:

Auto Bailout Czar Ron Bloom Changes Story

Submitted by Mark Modica on Tue, 07/19/2011 - 11:18

On Friday night, I discussed White House staffer Ron Bloom's statement that the auto bailout was done for the unions, and his subsequent denial of making such a claim, only to now back off his denial. The show was America's Nightly Scorecard on Fox Business Channel. Here's a transcript:

GM Wastes Taxpayer Money at New York Auto Show

Submitted by Peter Flaherty on Thu, 04/21/2011 - 10:23

private reception signFrom General Motor's lavish presence at the New York International Auto Show taking place this week and next, you would think that the company is wildly profitable and that it has already paid back the $50 billion it got from taxpayers. Either that, or GM's much-ballyhooed cost cutting has failed, and that its bad old habits are very much alive.

NLPC Associate Fellow Mark Modica and I spent Wednesday walking the floor of the show at the massive Jacob Javits Convention Center on New York City's west side. It is impossible to know how much GM is spending on displaying its vehicles, technologies and related events, but it is more than any other car company. And it is certainly too much.

GM CEO Akerson Offers Little on Automaker's Future

Submitted by Peter Flaherty on Tue, 04/19/2011 - 13:26

Akerson photoAmid reports that the Treasury will soon attempt to sell the government's stake in General Motors at a huge loss, CEO Dan Akerson this morning offered thin gruel for those hopeful about the future of the company. Akerson keynoted a breakfast sponsored by the National Association of Automobile Dealers in New York City, the site of the New York International Auto Show.

Asked about the flagging share price, which is now below its IPO price, Akerson cited oil prices, supply chain problems in Japan, and the fact that GM "incented (sic) more heavily" in the first quarter. He offered no scenario that would propel the share price higher.

We Told You So: Taxpayers to Take Massive Hit on GM Bailout

Submitted by Peter Flaherty on Tue, 04/19/2011 - 07:46

This week I am attending the New York International Auto Show and already there is plenty of news. The Wall Street Journal is today reporting that the government will "sell a significant share of its remaining stake in General Motors Co. this summer despite the disappointing performance of the auto maker's stock."

GM's share price yesterday dipped below $30. It was already under its IPO price was $33. For taxpayers to break even, shares would have to rise to $53, now increasingly unlikely. In fact, the stock is probably headed down. The Treasury understands this and wants to get out before the situation becomes even worse. The sales would probably take place sooner if not for the fact that the shares are locked up until May 22.

Government Motors is Still a Lemon

Submitted by NLPC Staff on Mon, 04/18/2011 - 06:30

NLPC Associate Fellow Mark Modica wrote this op-ed appearing in today's New York Post:

Fans of the federal govern ment's auto bailout will push the "GM comeback" story at this week's New York International Auto Show. Good luck with that one.

Taxpayers still own about 26 percent of GM, and it looks increasingly unlikely that they'll ever get their money back: The share price would have to rise to more than $54, and it's stuck in the low thirties. Here's why:

Is Dan Akerson Driving GM Off a Cliff?

Submitted by Peter Flaherty on Fri, 02/04/2011 - 15:06

Akerson photoAs Karl Marx once said, history repeats itself, first as tragedy, second as farce. In last year's epic auto chronicle, Crash Course: The American Automobile Industry's Road from Glory to Disaster, author Paul Ingrassia wrote about the catastrophic decline of the American automobile industry in the seventies:

Just as General Motors was led by financial people, Honda would always be led by engineers... Put another way, the bean counters ran GM, while the car guys ran Honda. It would make a crucial difference between Honda's success and GM's failure.

GM IPO Land Mines

Submitted by Mark Modica on Tue, 11/16/2010 - 07:23

GM logoIt would be easy to believe that the GM IPO is an opportunity to make easy money based on the reporting by television news networks. Themes such as allowing retail investors to "benefit" from the IPO imply that GM stock has no where to go but up.  However, under the surface of this optimistic appearance lurk some hazards.

A little research on the web uncovers some of the red flags potential investors in GM should be aware of. Rather than speculate on why it is a "Tale of Two Cities" when it comes to GM reporting by TV networks compared to the internet, let's focus on one of the major warning signs that the outlook for GM may not be as rosy as expected.

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