GM Dealers Say Low Demand, Not Lack of Supply Explain Poor Truck Sales

Chevy pickupThe past month has brought much confusion and concern for General Motors’ shareholders regarding the most important and profitable segment of sales for the company. As the company prepares to report earnings for the third quarter this week, media reports are still unclear on just what is going on with GM’s new truck lineup; specifically pertaining to the reasons behind the disappointing sales figures that were reported for the month of September when Ford’s truck offerings left them in the dust.

While GM’s Obama-appointed management spun the story (claiming supply could not keep up with demand) to some in the media who are gullible enough to print the misinformation without question, some GM dealers were more honest with their assessment.

GM’s management has lots of experience when it comes to trying to deceptively explain away poor sales of much-hyped vehicles. The Chevy Volt has never lived up to … Read More ➡ “GM Dealers Say Low Demand, Not Lack of Supply Explain Poor Truck Sales”

FBI Again Raids Offices of Dr. Salomon Melgen, Sen. Menendez Biggest Donor

Melgen and Menendez

As the Palm Beach Post reports, the offices of Dr. Salomon Melgen were yesterday again raided by the FBI, evidencing an ongoing investigation into what appears to be Medicare fraud. Melgen is the largest campaign donor of Senator Robert Menendez (D-NJ). In 2012, he contributed $700,000 to a super PAC affiliated with Senate Majority Leader Harry Reid (D-NV) that spent the bulk of the funds for Menendez’ re-election.

The Post notes that Menendez went to bat for Melgen on a port security deal in the Dominican Republic. These actions on Melgen’s behalf were first reported by the New York Times on February 1, 2013, based on information provided by NLPC. The Washington Post reported in March that Menendez’ advocacy on behalf of Melgen is the subject of a grand jury investigation in Miami.

New York Times reporters Ray Hernandez and Frances Robles detailed how Menendez sought to … Read More ➡ “FBI Again Raids Offices of Dr. Salomon Melgen, Sen. Menendez Biggest Donor”

Walmart Prefers Political Correctness to Profitability

Mike Duke photoLast week it was Walmart CEO Mike Duke’s duty to find an explanation for continuing declines in same store sales, as the company hosted its 20th Annual Meeting for the Investment Community on Tuesday.

Despite the fact that the most recent quarterly report ended in July and brought a surprising (to analysts) .3 percent drop for the second quarter, when a one percent gain was expected, Duke cited the two-week old government shutdown and a “tough and unpredictable global economy” as reasons for the poor performance.

“It should come as no surprise that the government shutdown is on the minds of our U.S. customers,” Duke told his audience. “As you would expect, we’re following the situation very closely.”

Of course the shutdown came long after the second quarter reports, so there had to be other explanations.

“The competition is also tough,” Duke said. “I see it when I … Read More ➡ “Walmart Prefers Political Correctness to Profitability”

GM’s Advertising Identity Crisis Hurting Sales

Volt gay adIt looks like General Motors is going through an identity crisis as its marketing strategy has flip-flopped by changing its targeted audience. The new General Motors’ truck ad, “Strong,” targets conservatives by honoring a heroic and manly GM truck buyer with lyrics that describe him as a “love one woman for all his life” type of guy who arrived at work on time for twenty straight years. The rugged, heterosexual identity of today’s GM differs greatly from last year’s politically correct version when the company won praise for running a “gay” Chevy Volt ad and for flying rainbow banners to celebrate America’s sexual diversity.

As mentioned recently on NLPC, the new GM truck ads have done little to pull buyers of any sexual orientation into dealerships. A recent survey (unveiled here) points to the fact that conservative truck buyers still hold it against GM for taking billions of taxpayer dollars … Read More ➡ “GM’s Advertising Identity Crisis Hurting Sales”

Newark Mayor Cory Booker Linked to Pay-to-Play Scheme

Cory BookerThe New York Post reports today:

A Newark nonprofit tied to associates of Cory Booker acted as a clearinghouse for lucrative construction contracts in exchange for donations to his charity and mayoral campaign, The Post has learned.

The Newark Downtown Core Redevelopment Corp., founded in 2005 to buy land for the Prudential Center and develop the surrounding area, has not completed its mission and had doled out multimillion-dollar contracts to companies that made donations to Booker’s pet causes.

Among those firms was the largest demolition company in New Jersey, which raked in $4.7 million from the nonprofit in 2007 and 2008.

The Post quotes NLPC Chairman Ken Boehm:

“The Newark Downtown Core Redevelopment Corp. was supposed to be a nonprofit that would help eliminate downtown blight, according to Mayor Cory Booker,” said Ken Boehm, chairman of ethics watchdog group National Legal and Policy Center. “Instead, the group was plagued with

Read More ➡ “Newark Mayor Cory Booker Linked to Pay-to-Play Scheme”

Survey: Auto Bailout is Drag on GM Truck Sales

A consumer survey taken last week on behalf of the National Legal and Policy Center confirms that public disapproval of the auto bailout continues to dog General Motors, and is likely hurting pickup truck sales, a highly profitable segment of its line.

When 500 consumers in Texas were asked, “Would your decision to buy a specific brand of truck be influenced by whether that company received financial assistance from the federal government?,” 40.08% answered “absolutely.”  Another 11.75% responded “very likely,” and 10.60% responded “likely.” Thus, more than 60% said that the bailout would have some influence on their decision.

Only 23.89% responded “not too likely.”

Texas is the largest truck market in the country, with more sales than the next three states combined.

The release of the survey results comes amidst a major advertising campaign for GM’s full-size trucks – the Chevrolet Silverado and GMC Sierra – with significant visibility … Read More ➡ “Survey: Auto Bailout is Drag on GM Truck Sales”

Are Truck Buyers Avoiding GM Because of Bailout?

One of the most disappointing aspects of last week’s sales results from General Motors was the underperformance of the much-hyped new truck offerings from the company. While the industry-leading Ford F-Series saw sales increase about 10 percent to around 60,500 vehicles for the month, GM’s combined sales for its competing Chevy Silverado and GMC Sierra fell approximately 8 percent to about 46,000 units.

GM’s Obama-appointed management’s performance in trying to explain the declining sales was as lame as the sales results. Amongst the excuses for disappointing truck sales, GM did not include the possibility that a hangover from the auto bailout is contributing to the dip and to many consumers GM still stands for “Government Motors.”

Demographically, truck buyers are older, less urban and more politically conservative than other consumers, just the kind of people who are responsible for all the internet postings along the lines of, “I’ll never buy … Read More ➡ “Are Truck Buyers Avoiding GM Because of Bailout?”

Tesla Fire is About Rushing, Subsidizing Immature Technology, Not Stock Price

Tesla fireA fire (screen capture from Jalopnik.com) that torched a Model S from the formerly Teflon Tesla Motors on Tuesday blackened its front end, lowered its stock price, and (further) revealed a corporate arrogance not seen since Fisker Karmas were alight.

But CEO Elon Musk saw to it that taxpayers were fully paid back their $465 million Department of Energy loan, so as watchdogs over the public purse we can forget all about it and just go on about our business – right?

Wrong. The incident near Seattle still should be of great concern because Tesla still heavily depends on tax breaks (like the consumer’s $7,500 federal credit) and the sale of emissions credits (mainly from California) to partially subsidize the costs of their electric cars. Moreover, the government has invested billions of dollars in the research and development of new battery technology, all in the name of energy efficiency … Read More ➡ “Tesla Fire is About Rushing, Subsidizing Immature Technology, Not Stock Price”

EPA’s Emissions Rule Would Likely Increase Carbon Dioxide

enhanced oil recovery

On the heels of the UN Intergovernmental Panel on Climate Change’s official position that human-generated carbon dioxide is “extremely likely” the “dominant” cause of warming since the mid-20th Century, the Environmental Protection Agency’s simultaneously proposed rule to limit such emissions from fossil-fueled power plants is contradictory.

EPA has wholeheartedly sold the global warming “scientific consensus” justification for CO2 limits to the public, and as a result has conducted a “war against coal” in conjunction with environmental pressure groups for years. And President Obama – who was most recently vocal about it in June – called for the elimination of tax breaks for “Big Oil” and has repeatedly expressed opposition to the construction of the Keystone XL pipeline.

So what’s the contradiction?

Under the proposed EPA rule, newly built coal-fired power plants would have to eliminate 40 percent of their carbon dioxide emissions by using not-ready-for-prime-time capture and sequestration … Read More ➡ “EPA’s Emissions Rule Would Likely Increase Carbon Dioxide”

Durbin Misrepresented Daughter’s Plight in Floor Challenge to Cruz on Obamacare

DurbinSenator Richard Durbin (D-IL) deserves credit for engaging Senator Ted Cruz (R-TX) during the Cruz’s recent marathon speech critical of ObamaCare. The only problem is he misrepresented key facts about his now-deceased daughter’s heart condition, and her ability to receive coverage under health insurance plans.

Moreover, he did not mention that the hospital that treated his daughter Christine was the recipient of huge earmarks of taxpayer money that he arranged. One can assume that Christine was treated as a Very Important Patient. With the full implementation of ObamaCare, will political connections become increasingly important to getting expensive medical treatments, which will not be available to everybody?

As Charles Johnson in the Daily Caller writes:

Sen. Dick Durbin movingly described his sick child’s preexisting condition as a reason to support Obamacare last week, but the Illinois Democrat neglected to mention that his late daughter was easily covered by existing insurance, and that he

Read More ➡ “Durbin Misrepresented Daughter’s Plight in Floor Challenge to Cruz on Obamacare”