General Motors

GM Earnings Not as Rosy as Portrayed

General MotorsThe trumpets sounded this morning as General Motors reported its 2014 fourth quarter earnings. GM's bottom line earnings exceeded expectations (although revenue missed and was down from last year) and the pre-market share price of GM immediately jumped over a dollar a share. Despite the victory laps being taken by GM and its friends in the media, it would be wise for individual investors to think twice before jumping on the GM bandwagon.

GM Shareholders Shafted as UAW Cashes in on Preferred Stock Buybacks

Dennis WilliamsGeneral Motors recently announced that it bought back preferred stock from the UAW Retiree Medical Benefits Trust and the Canadian government. The deal closed in December of 2014 and supposedly will result in a reduction to GM's fourth quarter earnings to the tune of $800 million. GM had the option to redeem the shares at face value after December 31st of 2014. The timing of the deal brings into question the motivation behind the move and also leads us to reexamine a previous preferred share buyback that occurred in late 2013.

GM Asked to Disclose Donations to Nonprofits in Wake of Awards-for-Barra Controversy

Barra Appeal of ConscienceToday I sent the following letter to Theodore Solso, Chairman of the GM Board:

As a shareholder, the National Legal and Policy Center (NLPC) asks General Motors (GM) to disclose all its contributions to charitable and nonprofit organizations by the company, the General Motors Foundation, or any other entity.

This request is prompted by the acceptance of various awards by CEO Mary Barra offered by charitable and nonprofit organizations at the same time some of the groups are recipients of large cash donations from GM.

Chevy Bolt: As Lame as its Name?

Chevy Bolt and Mary BarraSound the trumpets! Here comes the next best, all-new, electric wonder-car from General Motors. The dust had not even cleared from the rollout of the new and improved 2016 Chevy Volt when GM CEO Mary Barra announced the newest Tesla-killer from GM, the Chevy Bolt. Let's hope that the engineers working on the Bolt put more thought into the design of the vehicle than the GM executives put into naming the car.

Obama Claims Bailout Success as GM Falsely Claims Best December Sales in 7 Years

Obama at Ford plantPresident Obama traveled to Michigan this week to declare the auto bailout a success. Interestingly, he toured a Ford plant. The company did not participate in the bailout.
GM is still trying to shake the Government Motors moniker, and that was certainly the reason for Obama's nonvisit.

Earlier this week, General Motors Company boasted that sales for December were the strongest in seven years. A review of the facts shows that this is not exactly true. You see, GM Co. has not been in existence for seven years. While GM points to this technicality when trying to weasel out of liability claims from the past, it continues to act as if the company is a stalwart 100 year-old American institution.

Did GM Bailout Cost Lives?

The death toll for General Motors' faulty ignition switch victims continues to rise with the last reported number being 42. There has been speculation that the death count is significantly higher, as safety advocate Clarence Ditlow has written to GM to request an expansion of efforts to uncover victims of accidents resulting from defective GM vehicles.

UAW Organizers Step up Use of 'Scab Lists'

UAWIntimidation is more than simply the use of physical force. It also is about the instilling of fear and shame in one's intended targets. Among labor leaders, one of the best tactics for getting the job done is the 'scab list.' The term refers to a longstanding union practice of compiling a list of employees at a given worksite who choose not to join a union or participate in a strike. The United Auto Workers in particular lately has been stepping up this practice as part of organizing drives in Right to Work states. Whether or not this tactic is legal, one thing is for certain: It amounts to bullying. By divulging the identities of workers who don't toe the union line, the scab list, like its close cousin, the card check, serves as a brake on a worker's right to say no. It is a reminder that "voluntary unionism" isn't quite voluntary in practice.

Congress Asked to Investigate Whether Obama Administration Delayed GM Ignition Switch Recall

Jason ChaffetzToday, we requested that the House Committee on Oversight & Government Reform undertake an "independent" investigation of the General Motors ignition switch recall delay, in light of newly obtained emails by lawyers suing GM.

Those emails suggest that the Treasury may have timed its final sale of GM shares to precede public knowledge of the ignition switch fiasco. They also cast doubt on GM CEO Mary Barra's previous account of what she knew and when she knew it.

Here is the text of a letter I sent today to Rep. Jason Chaffetz (R-UT), in photo, the incoming Chairman of the Oversight & Government Reform Committee:

GM CEO Mary Barra Forced to Give Up Award

General Motors announced today that CEO Mary Barra will not attend a ceremony on November 17 at which she was scheduled to receive an award from the National Women's History Museum (NWHM).

On Monday, we asked the museum to rescind the planned award to Barra in light of questions about her "credibility and veracity" in the wake of Sunday's report that GM ordered 500,000 ignition switches from a supplier almost two months before it reported the safety defect to the government.

Another GM Recall Bombshell Raises More Questions

Brooke's carThe evidence continues to mount that General Motors has been less than transparent, if not outright culpable, regarding its ignition switch recall fiasco. As the death toll mounts (from the original 13 casualties reported by GM to the just revised 32 deaths) for victims involved in crashes of GM vehicles with defective ignition switches, new evidence has emerged that GM actually ordered replacement parts for the defective switches a full two months before they even reported a problem.

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