GM

Obama’s GM Bailout Nothing to Brag About

Submitted by Mark Modica on Thu, 10/18/2012 - 09:03

Obama debate photoAs the presidential election nears we continue to hear about what a great job the Obama Administration did "saving" General Motors. The claims are that millions of jobs were saved and Mitt Romney wanted to let Detroit go bankrupt. A review of the facts reveals that the auto bailout process that cost taxpayers billions of dollars is hardly anything to brag about.

When President Obama says he "saved" GM, what he means is that his administration guided a bankruptcy process for the company, funded with taxpayer dollars. The repeated statements by Obama that Romney would have let the company go bankrupt are deceptive. Let's be clear, GM DID go bankrupt.

GM Bankruptcy Misrepresentations Prefaced Libya Attack Controversy

Submitted by Mark Modica on Wed, 10/10/2012 - 09:44

The 2012 election campaigns have seen accusations thrown about that both President Obama and Governor Romney have been less than honest at times. After Obama was soundly trounced in the first debate, the defense for the President's poor performance (other than Al Gore's theory that it was the high altitude) was that Mitt Romney lied. While that unsubstantiated charge might make Governor Romney an accused liar, the facts surrounding the General Motors bankruptcy process reveal that those in the Obama Administration are proven liars.

Taxpayer-Funded EV Company Abandons IPO It Thought Would Save It

Submitted by Paul Chesser on Mon, 09/24/2012 - 08:01

Frito Lay Electric TruckThe failing British electric vehicle company that pretended to become an American one in order to save its U.K. investors has scrapped its planned initial public offering that it hoped would save it in Kansas City.

Smith Electric Vehicles, recipient of $32 million in taxpayer stimulus, had reportedly fantasized it would raise $76 million (down from $125 million) via an IPO by selling roughly 4 ½ million shares at $16 to $18 each. CEO Bryan Hansel bowed to reality Thursday night and rescinded those plans.

General Motors Makes Obama an Offer He Can’t Accept

Submitted by Mark Modica on Tue, 09/18/2012 - 17:01

Here we go again. Déjà vu all over again as General Motors spreads rumors that they are tired of being Government Motors and they are so cash rich that they offered to buy Treasury's taxpayer-funded stake in the company. In typical deceptive GM fashion, sources were not named and spokesman Jim Cain refused to confirm the rumors. This is not the first time GM played the rumor game, as I previously wrote about over a year ago.

VIDEO: Treasury Rejects Sale of GM Stake

Submitted by NLPC Staff on Tue, 09/18/2012 - 17:00

NLPC Associate Fellow Mark Modica was interviewed last night on Fox Business Network's Willis Report. Here's a transcript:

GM Admits There's No Market for Chevy Volt - Updated

Submitted by Mark Modica on Thu, 09/13/2012 - 09:44

Volt and AkersonA Reuters' article earlier this week created quite a buzz when it suggested that General Motors was losing $49,000 on every Chevy Volt sold. While many continue to debate just how much money GM loses on the politically-motivated car, a more important story on the Volt was reported by Automotive.com last week which explained the increase in August sales numbers for the vehicle. The piece exposes how GM (along with taxpayers) is heavily subsidizing leases and even gets an embarrassing admission from GM on the struggling Volt that, "The whole idea is we're creating a market." And this blockbuster, "There is no plug-in market."

VIDEO: Obama's Ridiculous Fuel Economy Standards

Submitted by NLPC Staff on Wed, 09/12/2012 - 16:57

NLPC Associate Fellow Mark Modica is interviewed on 9/5/12 about new vehicular fuel economy standards on the Fox Business Network. Host is Gerri Willis. Here is a transcript:

Obama Misrepresents Auto Bailout– GM DID Go Bankrupt

Submitted by Mark Modica on Mon, 09/10/2012 - 10:06

We have heard the claims over and over again from the Obama campaign; the President "saved" General Motors and Mitt Romney said "let Detroit go bankrupt." The clear implication is that GM never went through the bankruptcy process that Romney suggested. Here's news for voters who didn't pay attention to how, exactly, Obama "saved" GM; $50 billion dollars of taxpayer money was given to GM to get them through a manipulated bankruptcy process. Replacing the word bankrupted with saved does not change the facts. And the fact is, GM DID go bankrupt.

God and Jerusalem Crash DNC Auto Bailout Party

Submitted by Mark Modica on Thu, 09/06/2012 - 13:08

VillaralgosaThe Democratic National Convention continued to celebrate the General Motors' bankruptcy and auto bailouts last night. Guests at the party included union leaders Bob King, President of the UAW and AFL-CIO President, Richard Trumka, both of whom gave speeches at the event. Union members cheered and waved their UAW signs at the affair as President Obama was repeatedly given credit for "saving" GM and the American auto industry. The fact that GM, along with Chrysler, went bankrupt was not mentioned. The only time the word "bankrupt" was used was to condemn Republican Presidential candidate, Mitt Romney, for wanting to let GM go bankrupt. Democrats seem to be in denial that GM actually did go bankrupt.

Auto Bailout is a FAILURE

Submitted by Peter Flaherty on Wed, 09/05/2012 - 13:05

GM/ObamaTonight, the Democratic National Convention will reportedly highlight the "success" of the auto bailout.  Michelle Malkin comments in a column today, and quotes NLPC Associate Fellow Mark Modica:

The claims that GM paid back its taxpayer-funded loans "in full" - a story peddled in campaign ads narrated by Hollywood actor Tom Hanks - were debunked by the Treasury Department's TARP watchdog this summer. GM still owes nearly $30 billion of the $50 billion it received, and its lending arm still owes nearly $15 billion of the more than $17 billion it received. Bailout watchdog Mark Modica of the National Legal and Policy Center adds: "In addition to U.S. taxpayers anteing up, Canada put in over $10 billion, and GM was relieved of about $28 billion of bondholder obligations as UAW claims were protected. That's an improvement of almost $90 billion to the balance sheet, and the company still lags the competition."

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