Government Motors “Success” = A Hint For More Bailouts Ahead?
During recent campaigning, Obama has continuously exhorted the value of the auto industry. He went so far as to use their success as an example for bailing out other industries. During his famous “You Didn’t Build That” Speech, Obama said something that has been somewhat overlooked by his other immortalized phrase:
“I said, I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back,” he said. “Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.
You can view the video here
But a couple of weeks ago, the Treasury Department issued an updated report on the auto industry bailout.
The Treasury Department says in a new report the government expects to lose more than $25 billion on the $85 billion auto bailout. That’s 15 percent higher than its previous forecast.
The government still holds 500 million shares of GM stock and needs to sell them for about $53 each to recover its entire $49.5 billion bailout.
Shares that day were at $20.49
Under Obamanomics, a $25 Billion loss of taxpayer money is considered “a success” and “roaring back”. The spin is that the losses are less than the estimated $44 Billion, so hey, it’s okay! We saved the taxpayers $19 Billion!
Then, at the end of August, it was announced that the production of the highly touted Chevy Volt was to be suspended for a month. From Automotive News report:
“GM will close its Detroit-Hamtramck plant from Sept. 17 until Oct. 15, one of the sources said. Union representatives last week told the plant’s roughly 1,500 workers about the scheduled downtime, the source said.
It’s the second time this year that GM has throttled back on Volt production. The Detroit-Hamtramck plant was idled from March 19 until April 16 amid swollen Volt inventories.
But we didn’t hear about any of that at the Democrat Convention last week, did we?
And now this morning, Reuters is reporting that
Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts.
And don’t forget the additional $7,500 tax credit per car.
Our taxpayer money. Sucked down the drain. Propping up an industry that couldn’t make it anymore on its own merits and produces a product that no one wants.
Why do the Democrats keep lying about it?
Remember what he said:
“ I believe in American workers, I believe in this American industry, and now the American auto industry has come roaring back,” he said. “Now I want to do the same thing with manufacturing jobs, not just in the auto industry, but in every industry.
If he wins a second term, what will Obama do with other fledgling sectors?
More bailouts? Nationalizing other industries? That is legal plunder. That is government welfare. That is wrong.
Crossposted at alanjoelny.com