. . . and most likely it is. Government Motors has done something truly stupendous. After paying back all of its loans to the federal government, it still was able to report a big first quarter profit. After all the problems with debt and union liabilities and sales slumping, it is truly a miracle to see the amazing feat that is Government Motors. See, socialism works.
"G.M. reported first-quarter earnings of $865 million as its revenue surged 40 percent, to $31.5 billion. It broke a long string of losses in North America even though industry sales remain near multidecade lows." New York Times' Nick Bunkley, May 17th, 2010.
There sales just went through the roof, according to this story. It is just beyond belief how efficient government is when it is in charge, right?
Well, according to the GM balance sheet, the sale of Saab provided 123 million of this 'profit.'
Gain of $123 million as a result of the sale of Saab to Spyker Cars NV. GM Balance Sheet provided by PR Newswire. Hmmm.
So, who bought all these cars and trucks that have made GM a success story for the Obama Administration's socialist agenda. Certainly the American people are lining up to buy into this collectivist nirvana.
Well, not quite. GM's market share stayed the same. Their retail/fleet sales, those sales to large groups that pay significantly less, jumped to double First Quarter for cars and 50% for trucks. Let's see. What organization may be buying a large number of cars to make their own interests look better? Can I think of one? Let's just imagine a group of slimy, lying, cheats who would do anything to make themselves look like heroes.
Could it be the government buying cars from their own company to make it look good? "Government buying 5,600 hybrid vehicles for its fleet." A headline in the Detroit News - 03/31/2010. Let's see, what is the last day of the First Quarter? Hmm, I don't know, could it be March 31st? Interesting. Who did they order these cars from? Well, of course Government Motors and UAW motors, once called Chrysler.
But these numbers are not nearly enough to make GM look great and UAW look promising. Well, they are changing the entire fleet of government cars and leased cars. That's a good start. So, Government Motors is getting significant sales from the government at a significant discount. So where did this profit come from?
Well, where are these assets we gave Government Motors? We know they dipped into the escrow account to 'pay' back the 'loan' to the government. Meanwhile, we had provided more than 50 billion dollars that got us this 'equity' stake in the company. Where is that money? What is happening to it? I wonder.
Could this all be smoke and mirrors? Could it be that Government Motors miracle is no more real than the Piltdown Man? I wonder if any enterprising journalist at the New Obama Times or the Washington ComPost will look into this strange phenomenon. Well, we will see. I very much doubt the CEO's at Obama Motors found a sock drawer with a few million in it. I also, sadly, doubt anything that comes out of the controlled grasp of this regime.