President Obama

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.”

Will GM Buy Back Ally Financial on the Cheap?

GM Ally logosI recently wrote about how government-owned Ally Financial was the only big bank that failed the Federal Reserve's stress test and how that ties in to General Motors' operations. The bailed-out bank formerly known as GMAC received about $17 billion of taxpayer money as part of the auto bailout (aka bankruptcy) process. It is now possible for GM, which relies on the auto lending unit of Ally Financial, to buy back the best segment of the bank on the cheap after taking advantage of the taxpayer largesse that saved the lender.

Bailed-Out Ally Financial Only Bank to Fail Stress Test

GM Ally logosThe Federal Reserve's latest round of stress tests for the banking industry showed only one bank remaining on a shaky financial foundation. That bank was government-owned Ally Financial (the bailed-out company formerly known as GMAC), which also happens to be General Motors' prime source for financing.

Save Billions by Ending Electric Vehicle Subsidies for Wealthy

Akerson and VoltIf the White House and Congress are looking for a place to cut, how about ending the $7,500 electric vehicle (EV) tax credit for those making over $200,000 a year?

The Congressional Budget Office recently reported that federal EV subsidies will cost taxpayers about $7.5 billion over the next few years. The majority of those buying costly "green" vehicles, like General Motors' Chevy Volt, are making far more money than the average American. Why should those that can afford to buy these green toys get reimbursed $7,500 each as the nation is going broke?

Abound Solar's Toxic Waste Highlights Enviro Hypocrisy on Pollution

Abound logoAnd the environmental pressure groups wanted you to believe solar energy was “clean” and “green.”

If that’s true, then why do we keep hearing the words “toxic” and “hazardous” connected with the production of solar panels – especially with the companies that fail?

Tesla CEO Elon Musk Fights Perceptions as Stock Drops

Elon MuskTaxpayer-supported Tesla, recipient of a $465 million stimulus loan guarantee to produce yet another electric toy car (the Model S) for rich people, reported its 4th quarter earnings last week. The word from billionaire CEO Elon Musk (Flickr photo: Jurvetson) was, “we’ll do better next quarter – promise.”

That’s a paraphrase, but nonetheless Tesla’s announcement fell short of most Wall Street analysts’ expectations. The company lost $90 million for the quarter as it ramped up production to fill pre-orders, paying workers to put in an average of 68 hours per week in December. On Thursday the company suffered the biggest one-day drop in its stock price – tumbling nearly 10 percent – in more than a year. Shares fell to $35.16 before recovering slightly on Friday, but were at $34.38 for Tuesday morning's opening.

Taxpayer-Supported Fisker Looking to China, Like A123

Fisker logoStimulus déjà vu-lishness lurks: Another “green” tech company that received hundreds of millions of taxpayer dollars is financially troubled, seeks a buyer (or their preferred term – a “partner”), and China is ready to swoop in and buy up the remains on the cheap. And the same two Republican senators who slammed the last deal that went down like this are sickened again.

The first time this happened it was electric car battery maker A123 Systems that set up a deal to get $249 million (plus other multimillion dollar grants) from U.S. taxpayers, who then got left holding the bag when executives ran the company into bankruptcy, made off with some sweet bonuses, and left the techno-carcass for China’s Wanxiang Group to buy and learn about American battery innovation from.

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