GM

More Energy Department Rewards for GM Bankruptcy Allies?

Submitted by Mark Modica on Mon, 05/21/2012 - 09:10

I recently reported that the Houlihan Lokey group suspiciously received a $1.35 million contract from the Energy Department to track the government money lent to Fisker Automotive and Beacon Power Corp. Houlihan Lokey was the institutional bondholder representative which smoothed the way for the General Motors' bankruptcy process by endorsing the Obama Administration's 363 bankruptcy plan. I have now uncovered three more firms that cooperated in the GM bankruptcy process that have subsequently been awarded Energy Department contracts.

Chevy Volt Pep Rally Masquerades as Electric Vehicle Safety Symposium

Submitted by Mark Modica on Thu, 05/17/2012 - 13:01

Chevy Volt charger The Department of Transportation and NHTSA have announced that a "technical symposium" will be held on May 18^th "to discuss safety considerations for electric vehicles powered by lithium-ion (Li-ion) batteries." In addition to NHTSA's presentations, the Department of Energy, automotive manufacturers and battery makers will participate. Given the bias of the participants, the symposium sounds like it is going to be less informational and more infomercial.

Obama’s Gamble on GM Worse than JPM’s Trading Flub

Submitted by Mark Modica on Tue, 05/15/2012 - 11:06

When JPM Chase reported that it had lost $2 billion recently on risky derivative trades, the predictable call came from the Obama Administration to increase regulation on banks. The hypocrisy of the politically motivated proclamations becomes evident when you compare the JPM trades to Treasury's continued gamble on its taxpayer funded stake in General Motors, which has suffered an approximate $5 billion loss in value over the past year.

Ally Financial - Another Auto Bailout Bankruptcy

Submitted by Mark Modica on Mon, 05/14/2012 - 10:30

The Obama Administration has become quite the expert on bankruptcy filings. The Detroit Free Press reports that the third auto bailout partaker, Ally Financial, has filed bankruptcy for its mortgage subsidiary, ResCap. The government still owns 74% of Ally, and now has an 0 for 3 record on restructuring bailed out auto-related companies outside of bankruptcy.

Non-Union Retirees Shafted in Auto Bailouts Told to Get Jobs

Submitted by Mark Modica on Thu, 05/10/2012 - 13:00

One of the most egregious abuses of the Obama Administration's auto bailouts was the blatant favoritism evidenced in the treatment of Delphi (General Motors' parts supplier) retirees. After the Delphi bankruptcy, UAW retirees had their pensions "topped off" by General Motors, apparently with taxpayer money accessed through TARP. While the UAW retirees maintained their pension benefits, non-union, salaried retirees of Delphi lost theirs. There was no logical reason for one group to have their pensions saved while another group lost theirs, just the facts that the distributions were inequitable and the only difference between the groups was that one belonged to a powerful ally of Team Obama and the other did not.

GM Boycott Hurting Market Share?

Submitted by Mark Modica on Tue, 05/08/2012 - 06:41

Last week's earnings report from General Motors revealed a troubling statistic for shareholders. GM's market share for North America shrunk from 18.3% a year ago to 16.7% for the latest quarter. Not coincidently, a survey by Yahoo Autos revealed that a full 13% of consumers would now "never" consider purchasing a GM vehicle while another 15% are less likely to purchase. A negative perception of the auto bailout process and the continued political overtones at GM are the reasons for the boycott.

Romney Must Clarify Positions on Auto Bailouts and Energy Subsidies

Submitted by Mark Modica on Fri, 05/04/2012 - 09:11

A couple of stories surfaced recently that should be of concern to voters that are analyzing how a Romney presidency would differ from the current administration. President Obama has a track record that can be examined to get a grasp of his agenda, but Governor Romney needs to further explain his positions on two key areas that many voters would expect to see a divergence with our present leader. The reports bring in to question whether or not Romney would be any different from the administrations over the past 12 years when it comes to dumping billions of taxpayer dollars into subsidies and bailouts.

Was Treasury’s GM Bankruptcy Ally Rewarded by Energy Department?

Submitted by Mark Modica on Wed, 05/02/2012 - 12:30

I may have just solved a General Motors bankruptcy mystery that has existed for about three years. That is, why did a group that was supposed to be representing bondholders immediately cave to Auto Task Force pressures and endorse a deal that saw GM bondholders get put to the bottom of the creditor list? The apparent answer exposes the ugly way in which cronies were rewarded with taxpayer money for their support in the Obama orchestrated bankruptcy process while less favored classes got thrown to the back of the bus. In fact, the group that helped smooth the bankruptcy process has received a $1.35 million contract from the Energy Department to "help track" capital raising efforts at Fisker Automotive as well as for advice on another green energy loser, Beacon Power.

GM Executive Refutes Chevy Volt / EV Hype

Submitted by Mark Modica on Fri, 04/27/2012 - 09:33

Sam Windgarden photo The WSJ yesterday reported that auto company executives are skeptical regarding the prospects for plug-in electric vehicles like the Chevy Volt. The skepticism was displayed at the annual Society of Automotive Engineers World Congress. Among the skeptics was General Motors' executive director of powertrain-engine engineering, Sam Winegarden (in photo). It seems that not all criticism of the Chevy Volt and cars like it are driven by a right-wing conspiracy to enrich oil companies.

Localities Get Up to $33,000 in Subsidies per Chevy Volt

Submitted by Mark Modica on Mon, 04/23/2012 - 07:25

A Jacksonville.com report gives a good explanation for why some Florida localities are purchasing Chevy Volts. When Jacksonville's chief of fleet management, Karim Kurji, was asked what the advantage of going green by purchasing Volts was he hit the nail on the head when he replied, "Federal money." The story goes on to reveal that the total federal taxpayer money used to subsidize one Chevy Volt purchased by Atlantic Beach was over $33,000. It now appears obvious that the Obama Administration and General Motors are willing to pay just about any price, even if the taxpayers are footing the bill, to see the Chevy Volt "succeed."

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