GM Buyback of Treasury Shares – Why Now?

General Motors moved quickly to complete its buyback of 200 million shares from the US Treasury Department before year end. It is a welcome sign that the Obama Administration is finally beginning to exit taxpayers’ GM stake, a move that could have been made a year and a half ago when share price was closer to $30. While some felt it was never the place of Government to gamble taxpayer money on Wall Street by market timing the exit of Treasury’s GM stake, others argued that taxpayers would be better served by waiting until GM share price rose to at least over the $33 IPO price of two years ago.

Of course, the presidential election affected the politically-sensitive decision as well, as no one in the Obama Administration would suggest locking in losses for American taxpayers prior to Election Day. Now the question must be asked, what drove the decision …

General Motors Makes Obama an Offer He Can’t Accept

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.

Supposedly, GM wants to buy back about $5 billion of shares from Treasury, but Treasury just won’t sell. No kidding. As if GM honestly believes the Obama Administration would sell shares at a loss to taxpayers before election time. But honest and GM are two words that, when used together, seem to be oxymoronic since the company became known as Government Motors. Are we to believe that there were good faith meetings between …

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

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.

Evidence now surfaces of the Obama Administration rubbing salt in the wounds of the non-politically connected retirees. When the salaried retirees requested help from President Obama to restore their pension benefits, the Department of Labor’s Director of Recovery

UAW Gets $12 Million from GM as Taxpayers Get Scrooged

Bloomberg reported last week that General Motors will be paying $12 million in additional bonuses to its UAW workers for meeting “quality targets.” It’s nice to see the holiday spirit of giving at GM. Unfortunately; US taxpayers are not faring as well as Government Motors’ politically favored union members.

The Obama Administration still refuses to exit its stake in GM with Treasury serving as Money Manager for the American taxpayers. Geithner and friends continue to gamble on a market-timing strategy to “maximize” taxpayers return on its GM bailout (sorry, “investment.”) So, how are they doing?

Back in July, I criticized Treasury’s decision to continue holding the 500 million or so shares of GM that taxpayers own. Treasury could have filed to sell shares at the first available date in May at about $31 a share. The July share price was around $28 a share. The financial wizards at the Obama …

A Cadillac Volt – Are You Kidding Me!?

Akerson and Volt photoAccording to a USA Today report, General Motors has decided to offer a Cadillac version of the Chevy Volt called the Converj. This follows reports that the Obama Administration will continue to hold its stake in GM. That makes sense, since a decision to build a Cadillac version of the Volt could not be based on economic considerations, but political ones.

Sales of the Chevy Volt have been horrible. The statements out of GM that the vehicle was “virtually sold out” turned out not to be true. Even in a best case scenario where sales pick up, the vehicle is a money loser for GM. What in the world would make them want to clone such a loser?

The hype for the Chevy Volt has been going on for years. The politically popular vehicle was named Car of the Year by Motor Trend whose publisher, Source Interlink, has …

General Motors to Remain Government Motors?

Geithner photoAccording to a WSJ report, “people familiar with the situation” said on Tuesday that the Obama Administration has put on hold its decision to sell the taxpayers’ stake in General Motors. The article also states that “Treasury officials had anticipated GM’s share price would increase following its public stock offering last November at $33 a share.” It would seem that Treasury anticipated wrong.

Once again, the Obama Administration is arrogantly assuming that GM share price will recover to above $33 a share in the near future. Or perhaps the administration is not as averse to continuing its intrusion in private industry as it would have us believe. Considering that President Obama is staking a great deal on the recovery of GM regarding his reelection chances, the decision to continue a market timing gamble on the company carries significant risk that the government will try and help GM recover at …

Shafted Delphi Retirees Suing Treasury, Auto Task Force

GM UAW Delphi logosThe unprecedented intrusion of the executive branch of the US government into the American auto industry when the Obama Administration orchestrated the General Motors and Chrysler bankruptcy processes is now leading to unprecedented responses. Groups that were clearly discriminated against and had their rights subordinated to politically powerful unions may actually have a winnable case against our own government as lawsuits are being brought against the US Treasury Dept. and others.

The Delphi salaried retirees who saw their pension benefits disintegrate after the GM bankruptcy are now suing the US Treasury, the Auto Task Force, Treasury Secretary Tim Geithner, and ex-Auto Task Force heads, Steve Rattner and Ron Bloom. The first hearing against the Treasury Dept. and others will occur on August 17th. The basis of the suit is that the Obama Administration wrongfully used taxpayer dollars to pick winners and losers in the GM bankruptcy. I had …