“On the whole, we made tremendous progress last year,” CEO and Chairman Dan Akerson said Monday in an e-mail message to employees announcing the payments. “With our collective teamwork, this can be just the beginning.”
Last year, according to the statistics, GM made $4.2B in profit. Then, there are the things these statistics just don’t take into account. GM was given, on very favorable terms, a loan of $49.5B from the US treasury. They’ve paid back $23B. Without the $49.5B in taxpayer dollars, this firm would have lost $22.3B.
Of course, the bailout only begins to scratch the surface of what the government did to boost its new Soviet-style manufacturing collective. Transportation Secretary, Ray LaHood used the regulatory power and goodwill of the US Government to deliberately sabotage GM’s principle competitor; Toyota Motors.
The US Department of Transportation launched an aggressive probe of unintended acceleration accidents involving Toyota vehicles. It did so in perfect synonymy with their efforts to revitalize GM under their directorship. The Department of Transportation Secretary LaHood’s Orwellian scare-mongering follows below.
LaHood’s warning came Wednesday in testimony before a House Appropriations subcommittee on transportation. LaHood says his advice to owners is to “stop driving it. Take it to a Toyota dealer because they believe they have a fix for it.”
– Ray LaHood (HT:USAToday)
Later, once Toyota’s brand name and reputation had suffered suitable damage, he began the detestable “walk-back.” He later admitted he had “obviously misspoke”. Oops, me so sowwy! The result of LaHood’s deliberate scaremongering was that Toyota’s two best-selling models went off the market. How convenient for GM! The total list of models that were effected in the resulting 2.3Million vehicle recall.
It was after a significant chunk of Toyota’s intended sales inventory was taken off the road, after the company’s reputation had been dragged through the dirt. Then, we discover these guys couldn’t replicate the reported faults under similar test conditions. The nefarious case of James Sikes is case and point.
In the end, of course, the Toyota brake pedal failures were a lie. It was a convenient lie that probably contributed a significant bump to GM’s $4.2B profits. The Washington Post offers us the preliminary results of what NHTSA engineers have discovered in the investigation of 58 “suspicious” accidents in which Toyota vehicles were involved.
Of the 58 data recorders analyzed by the agency and the company, 35 showed that the brake pedal was not depressed at the time of the crash. Partial braking was involved in 14 other cases. Drivers were hitting the gas pedal instead of the brake. In short, electronics was not the issue. Human error was.
Not only did GM only make a profit because it was back-stopped out of your wallet and mine. Not only did GM benefit from nefarious and unjust regulatory hostility towards its largest and most successful privately-owned competitor. The GM workforce has the unmitigated gall to actually have internal food-fight over who should be getting the bonuses. I wish I were kidding. It makes me LIVID. Regrettably, I’m not kidding.
The size of the white-collar bonuses could become an issue later this year when the Detroit Three begin contract talks with the United Auto Workers union. The master contract with all three companies expires in September.
(HT:Brietbart, OB. Cit.)
I’ll explain something to the loyal and hard-working GM workers who feel like sticking it to the man with respect to their new-found “profitability.” You did not make ANY legitimate profits last year. You had the POTUS stiff your creditors and steal other people’s money to pay your goddamn bonuses.
If an actual private-sector tried this sort of a thing he would first go to jail. After he was paroled he would be perpetually unemployed and bankrupt. His family would disown him. He would wind up sleeping behind a dumpster in Detroit or Cleveland and offering to perform oral sex-acts on passers-by so that he could round up enough money to buy a tin of Beanie-weenies and a bottle of Wild Irish Rose. This is what happens to dishonest jerks like these UAW members out in the real world, where consequences exist.
In the Movie Wall Street, Villain-cum-LBO Artist Gordan Gekko had the following to say about the fictitious corporation Teldar Paper.
Teldar Paper, Mr. Cromwell, Teldar Paper has 33 different vice presidents, each earning over 200 thousand dollars a year. Now, I have spent the last two months analyzing what all these guys do, and I still can’t figure it out. One thing I do know is that our paper company lost 110 million dollars last year, and I’ll bet that half of that was spent in all the paperwork going back and forth between all these vice presidents.
– Gordan Gekko (HT: American Rhetoric.com)
The UAW has a Job Bank at GM. Fired and layed-off workers have to be paid 90% of their prior salaries by GM. They get paid that money for doing nothing; literally nothing all.day.long. Further comparisons between GM, the UAW and the useless and wasteful companies that real-life Gordon Gekkos eviscerate all over Wall Street abound in plentitude.
When Blue Horseshoe loved somebody, it was an example of justice being the opposite of fairness. Blue Horseshoe just loved inefficient, dishonest firms where the people who worked their kept getting something for nothing. Gekko zeroed in on wasteful gravy trains and took them away. Like Tyrannosaurus Rex; he was an evil jerk, but he served a valuable ecological niche in the modern economy.
I keep hearing these rumblings that there will be a reprivitization of GM. They took some baby-steps with a recent $20B IPO. 500 million shares still sit in the US Treasury. They will be out there, on the market, without Ray LaHood to knee-cap their most proficient competitors. Personally, I can’t wait for this to come true. After all, Blue Horseshoe would just love General Motors.