General Motors

Hold Off on Buying That Chevy Volt; Price to Drop $10,000 in Face of Dismal Sales

Volt and AkersonGreat news for consumers who are considering buying General Motors' green wonder car, the Chevy Volt. I know how excited those environmentally conscientious Volt enthusiasts can get, but a little patience can pay off big time if potential buyers hold off for a year or so on their purchase. According to GM CEO Dan Akerson and following another dismal month of Volt sales (1,306 in April), the car that defies logic will soon be available for up to $10,000 less money. The good news extends to shareholders of GM as the next generation of the Volt will supposedly be profitable for the company. So, as we say prepare to say goodbye to the current generation of the obsolescent Volt, let's take a trip down memory lane to review how past promises for the car panned out.

Will GM Earnings be Driven by Channel Stuffing?

GM logo and ObamaEarlier this year, I reviewed General Motors' first quarter earnings report and annual results. My take-away from the report was that GM relied upon shady accounting techniques and a build-up of US dealer inventories to produce some rosy-looking results. Channel stuffing to the tune of an over 20% increase in inventory from year end 2011 provided for GM's revenue growth. The trend continues as GM has further pumped-up inventory for quarter one.

Lawsuit and a Congressional Hearing as Fisker Bankruptcy Nears

Fisker logoAs green energy stimulus recipients raked in billions of dollars the last few years, with President Obama declaring what a great “investment” they were for taxpayers, friends of mine would jokingly ask, “Where’s my dividend?” “Where are my stock certificates?” “Where’s my free electric car?!” 

In the case of our $193-million stake in Fisker Automotive, thanks to a Department of Energy loan guarantee, it looks like American shareholders will end up with the whole company itself.

Chevy Volt Battery Technology Questioned After Billions Wasted

Akerson and VoltIt appears that the Mainstream Media folks may finally be starting to expose one of the worst cases of taxpayer abuse that this country has ever seen. Kudos to Deepa Seetharaman who wrote a piece for Reuters which questions the feasibility of the government-subsidized, lithium-ion based battery technology behind electric vehicles (EVs) like the Chevy Volt. While Seetharaman acknowledges the limitations of lithium-ion batteries, what remains unchallenged is the continued waste of billions of taxpayer dollars to support the failing, pseudo-green technology.

Chevy Volt Sales Plunge – Obama’s Flagship EV a Failure

Obama and VoltThe Chevy Volt has inarguably been the poster child for President Obama's push to electrify America's auto fleet. Billions of taxpayer dollars have been spent to produce and subsidize the plug-in electric car. For years we have heard about the supposedly amazing technology for the Volt which would lead America to energy independence, be a "game-changer" for General Motors and provide a multitude of new green jobs. Proclamations were made that supply for the wonder-car could not keep up with the demand. Well, March's sales figures are in and give further confirmation that the lofty claims were all lies.

No April Fools: Obama's Green Energy Stimulus is Officially a Joke

Three Stooges photoPresident Obama’s alternative energy “stimulus,” administered through his Department of Energy by previous Secretary Steven Chu, had already become a joke because of the failures and foibles of so many recipients of Recovery Act funds. But now – as though officially commemorating the absurdity of this historically bad U.S. government program – one of its bankrupt beneficiaries has changed its name from one of simplicity to one of mockery.

Electric vehicle battery maker A123 Systems has changed its name to B456 Systems. Incorporated.

Will Politics or Law Govern Upcoming Ruling on GM Creditor Case?

There has been an important story brewing over the past several months regarding General Motors' flawed bankruptcy process that has been widely ignored by the media. GM may have to readdress its 2009 bankruptcy settlement due to a lawsuit by a group of GM creditors against hedge funds over a settlement involving the company's Nova Scotia debt. The creditors brought to light the fact that the company did not have its ducks in a row at the time of its 2009 bankruptcy filing and allege that GM was still in the middle of backroom negotiations with hedge funds beyond the deadline. A court decision is now imminent.

China Can't Appreciate Obama-Biden Vision for Fisker in Delaware

Biden Strickland photo

For weeks now the buzz about Fisker Automotive, the latest Department of Energy-funded clunker, is that two China-based automotive companies – Zhejiang Geely Holding Group (which owns Volvo) and Dongfeng Motor Corp. (which is state-owned) – were in bidding negotiations to buy an ownership stake of an unknown size. The speculation was that Fisker was following a similar path as stimulus-financed A123 Systems, which supplied the batteries for Fisker and was recently bought by Sino-owned Wanxiang Group.

What Twinkies Can Teach Us About GM

TwinkiesBin Laden is dead and Twinkies are alive! That might have been the rallying cry if we were in an election year and if the Bakers Union was deemed as important as the UAW to the parties seeking reelection. But the Obama Administration is not as dependent on smaller unions, like the Bakers Union, for contributions and votes. That fact allowed the Hostess bankruptcy to proceed in an unimpeded manner in which such processes were designed to.

Henrik Fisker Quits as Chairman of His Own Company

Fisker logoIn the end, even Al Gore, Leonardo DiCaprio, Justin Bieber, Jay Leno, former Chrysler and General Motors execs, billionaire Silicon Valley venture capitalists, generous California government incentive givers, Delaware subsidizers, and President Obama’s Department of Energy investment arm couldn’t overcome the dud that was the $102,000-plus Fisker Karma.

And now as the company desperately seeks for cash and/or a rescuer – probably in China – a disagreement arose between Fisker’s founder and its top management. So the man for whom the company was named, Henrik Fisker, quit. The Los Angeles Times and dozens of other outlets reported yesterday that Mr. Fisker left over disputes about “direction” for the company, citing “several major disagreements.”

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