UAW

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.

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.

Which Pays Fair Share of Taxes, ExxonMobil or GM?

Submitted by Mark Modica on Tue, 04/03/2012 - 01:38

One thing that I have realized about the rhetoric surrounding green energy initiatives and the proclamations by Team Obama glorifying companies like General Motors while vilifying others like ExxonMobil is that the claims and the facts are worlds apart. Voters are led to believe that evil oil companies like ExxonMobil are getting a free pass and not paying their fair share while the supposedly patriotic GM is an American success story which now contributes to society and builds miracle cars like the Chevy Volt which will free the US from foreign oil dependence. One set of facts that is very easy to check on is the amount of taxes each of these companies pays. Following are the facts from the SEC annual financial reports (10Ks) of GM and ExxonMobil.

Ally Financial Failure Jeopardizes Auto Bailout 'Success'

Submitted by Mark Modica on Mon, 03/19/2012 - 01:20

Ally ad image Ally Financial seldom gets mentioned when the auto bailouts are discussed. The company was formerly known as GMAC and the 17 billion dollars that taxpayers sunk into the company was crucial for the perceived success at both General Motors and Chrysler. We now learn that Ally Financial has failed a government stress test and, according to Reuters, "fared by far the worst of 19 banks examined."

Romney Wants Reexamination of GM Bankruptcy Process

Submitted by Mark Modica on Wed, 03/07/2012 - 02:44

The Detroit News reports that Mitt Romney wants a reexamination of the General Motors' bankruptcy proceedings. Mr. Romney is quoted as stating, "I think it's important for us to go back and look at what happened and take apart this bankruptcy process. See to what extent the finger of politics was placed on the scales of justice and see if we can't be more fair to the people involved in this process." I agree with the sentiment, but I do have to ask, where were the Republicans on this issue over two years ago?

GM Chevy Volt Halt Confirms Green Energy Policy Failure

Submitted by Mark Modica on Mon, 03/05/2012 - 09:11

Volt photo I hate to beat a dead Edsel, but the Chevy Volt story is just too important to let slip away. After last week's announcement by General Motors that it would be temporarily halting production of the Chevy Volt due to low demand, you would think that the evidence would finally be conclusive that the over-hyped, over-subsidized vehicle is a flop. The response by GM and lack of same from the Obama-loving media is worthy of continued criticism from those of us who have recognized that taxpayers have been bilked out of billions of dollars to produce a car that does practically nothing for the environment or foreign oil dependence while being unwanted by the 99% of consumers that can not afford, nor want the car. In fact, most 1 percenters don't want the car either.

Millions Spent on Ads Does Little for Chevy Volt Sales

Submitted by Mark Modica on Fri, 03/02/2012 - 08:04

It looks like there is plenty of inventory of Chevy Volts available for those aliens that seemed to be so impressed with the car on Super Bowl Sunday. Unfortunately for General Motors, earthlings do not seem as enamored with President Obama's favorite vehicle. Despite GM spending millions of dollars during the month to advertise the taxpayer subsidized Volt, only 1,023 sold in February.

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