Hey it’s only the taxpayer’s money. Why any American who cares about the size of government, or simply just using money wisely, would ever buy a GM product is lost on me.
The GM bailout was really a bailout for the United Auto Workers and their pensioners. A solid pro-Obama constituency the unions were given a colossal gift courtesy of the American taxpayer. A company which made terrible products for decades and which paid its workers much too much, got to live another day because Obama knew he needed to win the northern Midwest in 2012.
According to the Mackinac Center at one point in 2011 every Volt one saw on the road had over $200,000 taxpayer dollars in it. Now that they’ve made a few more we are confident that the number is lower, thank goodness. However it does still have plenty of subsidy in it that one can be sure of.
That’s right, GM, General Motors, the car company which was nationalized, is sponsoring a “free enterprise tour.”
Look GM, you have embraced crony capitalism at every turn. Don’t you even think for a moment that you can associate yourself with honest business, with free enterprise.
You the tax payer, you do not matter.
Most likely the Treasury (really you, the taxpayer) will sell at a steep loss unless that new Stingray Vette—which I will admit looks pretty cool—turns the company around. But I don’t know, they’d have to sell a lot of Vettes.
Toyota just paid $1.1 billion to settle lawsuits alleging random acceleration problems in its cars. The allegations were, and are essentially false. But, Toyota paid out because it knew it had to, to move on. A giant speeding ticket to the government. (And Toyota wasn’t even speeding.)
Yesterday, it was announced that GM will buy back 200 million shares at a nearly 50% discount. (To the level which is “break even” for taxpayers.) That’s right, the taxpayer bailed out the company, or more specifically the United Auto Workers and their over funded pension and health care system, and now the taxpayer is selling (because the government wants to sell the shares) at far below the point at which taxpayers are paid back in full.
Nice deal for GM.
They got these grants because the Obama administration wants to see a certain technology developed. This sort of thing is nothing new, but does reflect the culture of government/private “partnership” that runs deep through this administration.
At least they shoveled money to companies unlikely to go belly up anytime soon. Dow is unlikely to because it makes lots of useful chemicals (and weapons). GM is unlikely to because undead companies don’t go belly up. They just suck blood from the economy.