Another “Obama Bailout Success” Story.

It is just that this has NOTHING to do with American jobs or workers.

And, SILENCE from the damnable UAW criminals. From The Washington Examiner.com

 

 

Examiner Editorial: GM got bailout, now ships jobs to China

     By Editorial Writer |  OCTOBER 17, 2013 AT 7:30 AM

 

Instead of THIS flying over Governement Motors headquarters, it OUGHT to be……

 

 

THIS instead. The American Taxpayer. Screwed YET AGAIN by this bunch.

Saving General Motors from bankruptcy was among President Obama’s most frequently cited achievements when he ran for re-election last year. Democrats everywhere touted the company’s revival as proof of the 2009 bailout’s wisdom. That was then. Now, Obama has quietly released the auto manufacturer from a bailout requirement that it increase its production in the U.S. Instead, GM is spending billions of dollars building up its production capacity in … China.

This is happening despite the fact that the Treasury Department has to date recovered just $36 billion of its original $51 billion loan to GM. By most analysts’ predictions, American taxpayers will be out approximately $10 billion when the remaining stock is sold off. Which is a long way of saying that it now appears that taxpayers paid $10 billion to make it easier for GM to accelerate its foreign outsourcing and send more manufacturing jobs to China.

Here’s what happened: In exchange for the bailout in 2009, GM promised to meet certain domestic car production targets over the next four years. The obvious point of this stipulation was to ensure that GM jobs remained here at home and weren’t shipped overseas. The production targets started at 1.8 million in 2010 and were supposed to rise to 2.26 million by 2014. GM repeatedly missed the targets, beginning with an 81,000-unit shortfall the first year. Production increased thereafter, but never quite enough to meet the targets. Last year, GM fell about 13,000 cars short of its 2 million target.

How did it do this year? GM refuses to say. But in February, GM announced in its annual report to shareholders that Treasury had agreed to “irrevocably waive certain of its rights” regarding the federal loan. These included “certain manufacturing volume requirements.” Guess what happened next? GM announced in June that it would stop releasing its North American production figures altogether. Its spokesman tried to justify this move with Orwellian doublespeak about how providing more information would result in “an incomplete data set to look at.”

The same month, GM announced it would boost its output from its China plants by 70 percent. It is not just selling Chinese-made cars to the Chinese, either. GM is nearly doubling its export production capacity there from 77,000 units to 130,000. It doesn’t take a Ph.D. in economics to see what is really going on. GM cannot make the domestic production targets and still turn a profit. It wants to be spared the embarrassment of having everyone know that. Obama, who is in this as deep as anyone can be, doesn’t want the embarrassment, either. So both buried the news.

It is yet more proof that Mitt Romney was right in the 2012 presidential campaign: GM should have gone through a traditional bankruptcy instead of the politicized farce of a taxpayer-funded bailout and government managed “bankruptcy.” The TARP funds involved could have instead been used to provide liquidity for a managed sale to a private buyer that minimized the opportunities for political interference in the new GM’s operations.

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Just another BLATANT example of Obama picking winners, and losers. In THIS case, it looks like he not only has shafted the taxpayers, but GM has also shafted Obama’s buds at the UAW. I wonder how well this sits about 2 miles down Jefferson Avenue from Government Motors  at Solidarity House, home of the now-screwed-by -Obama -and -GM UAW.

If you, or anyone you know is in the market for a new vehicle, I would urge you to “help” this government-sponsored enterprise out. Go to your local Ford dealer if you want a U.S. vehicle.

At LEAST you know your hard-earned money won’t be HELPING Obama and GM ship more jobs overseas.

~

Clyde

 

 

 

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8 Responses to Another “Obama Bailout Success” Story.

  1. Hardnox says:

    This is example 4,132 of the screwing of America by this pretender.

    I want to know WHEN Americans will finally wake up to this tragedy. It is stunning. All the while everything is still Bush’s fault. Unfrigginbelieveable.

    Good post.

    • Clyde says:

      I think you missed th 5 other digits in front of the “4”. haha. To answer the question, hopefully in our lifetimes. Thanks, nox.

  2. bullright says:

    We the people hoodwinked once again. (same with GE) Hope they’re good swimmers.. When they run into trouble there …

  3. Mrs AL says:

    I am constantly amazed at the blatant hypocrisy of the leftist water carriers. Those who accused Romney of sending money off-shore or whatever is was still support the Resident and his gang who sold out taxpayers for this whoha.

    Good post, Clyde. I’m just in a mood and this kind of schtuff is irritating, to say the least.

  4. Kathy says:

    Obama should have let them sink or swim. Another sterling example of his lack of business sense. Did they really think they could hide this from us? DA’s

    • Clyde says:

      Damn sure should have, but, since this was NEVER about “saving” GM, but the UAW, we see the result. Don’t pay your creditors, or shareholders, give up THAT money for the damned union, then make your “investments” overseas. Easy to make a much-stronger company that way. Fails the smell test for sure, but the assholes who benefitted most don’t seem to care. Thanks, Kathy.