General Motors continues to claim that demand will drive Chevy Volt sales and 10,000 of the vehicles will be sold in 2011, even as September sales came in at a still disappointing dismal rate of 723 units sold. GM has staked its credibility on the success of the much-hyped hybrid. The Obama Administration also risks another embarrassment if Volt sales continue to underwhelm following the Solyndra scandal that saw a similar failed green energy initiative lead to a 500 million dollar loss on its taxpayer funded gamble. Now we learn that GM has been selling the $40,000 plus vehicles for as low as $29,500 each according to the gmauthority.com site. How far will GM and the Administration go to pump sales figures to persuade the public that the Chevy Volt is a green success story that justifies the spending of billions of taxpayer dollars on such initiatives?
Submitted by NLPC Staff on Thu, 09/29/2011 - 16:15
Today we filed Freedom of Information Act (FOIA) requests with the Labor Department, its Wage and Hour Division, and the Internal Revenue Service (IRS). We ask for all third-party communications related to this week's signing of a Memorandum of Understanding (MOU) between the two agencies and eleven state governments.
The MOU is the basis for a crackdown on employers who allegedly misclassify employees as independent contractors, but the action appears calculated to assist the Laborers International Union of North America (LIUNA) in a campaign directed at the nation's homebuilders.
A recent article on Newsmax.com by John Berlau exposes another scheme by the Obama Administration designed to redistribute more wealth in an effort to cover taxpayer losses in the General Motors and Chrysler bailout fiasco. The plan is to have financial institutions with assets of more than $50 billion to continue to pay a "financial crisis responsibility fee" until TARP losses by firms like GM and Chrysler are recouped. Of course, cronies at GM and Chrysler are not on the hook for the losses. It seems that the old playbook used by Obama to have others pay for the costs of failure at GM and Chrysler is still being used.
It seems the promise of job creation for taxpayer funded green initiatives, such as the Chevy Volt development, is partially being kept. The only problem is that many of those jobs are going to China. General Motors confirmed last week that it would develop an electric vehicle platform in China. USA Today reports that GM Vice Chairman, Steve Girsky, stated that GM and Chinese auto company, SAIC, will develop a new electric vehicle that would draw upon the Chevy Volt's technology. Girsky also hinted that future Chevy Volts will be built in China in order to qualify for Chinese subsidies of about $19,000 per car. Girsky claims that neither China nor SAIC are demanding that GM share Volt technology. Whether they are demanding it or not, it is obvious that they will get it.
Not surprisingly the new partner - in a 50-50 joint venture with the state-run auto industry - is China. And also unsurprisingly, General Electric will join GM in a related partnership in the communist nation.
Media headlines about General Motors trumpet events that would lead one to believe that the company has successfully transformed itself into a self-sustaining, profitable American corporation. Readers are to believe that thousands of jobs are now being created at GM and the taxpayers are on their way to reaping the rewards of their so-called "investment" of $50 billion in an ownership stake of the company, even as Wall Street pricing of GM shares indicates otherwise. However, there is a portion of Americans who do not buy into the GM success story and now refuse to purchase vehicles from the company based on moral grounds.
Beginning in 2009, the Department of Education -- mightily aided by Senator Tom Harkin's HELP Committee and a coterie of Wall Street short sellers -- laid siege to the for-profit college sector in a knock-down, drag-out battle to the finish. Their strategic objective was to seriously hobble the profitability of career schools that had devised a competitive, career pathway for predominantly at-risk, low-income, non-traditional and minority students. On June 2, in the infamous Battle of the Beltway, the Department issued its (you should excuse the expression) 'Gainful Employment' rule, which was heralded as a major blow to career schools, whose recruitment rates have since dropped precipitously.
Allegations that we first made in February about White House political favors for a company called LightSquared are starting to get the attention they deserve.
LightSquared is owned by the Harbinger Capital hedge fund, headed by billionaire investor Phil Falcone. He visited the White House and made large donations to the Democratic Senatorial Campaign Committee. Soon after, the Federal Communications Commission (FCC) granted LightSquared a highly unusual waiver that allows the company to build out a national 4G wireless network on the cheap.
The story of bankrupt solar company, Solyndra, has turned into a major scandal for the Obama Administration as questions arise about the government's free spending of taxpayer money on failing so-called green initiatives. A $535 million federal loan was initially rushed through for the company as Obama touted Solyndra as being a prime example of how the bold new green-energy driven economy would create jobs while saving the environment. Now the results bring into question how dangerous the green economy strategy may be.