Expect much wailing and gnashing of teeth from the anti-American right-wing as they find out that GM posted a sales increase of +18%. Most will remember that GM was bailed out by the federal government in order to keep it from shuttering its doors while declaring bankruptcy. Well, GM is not only out of bankruptcy but is selling strong. Just this month, GM completed a retooling of its Voltec factory in preparation to increase production of its well-received and much wanted Volt, an electric-gas hybrid vehicle that makes the anti-American right-wing wet its bed at night because it has the potential to change the way we drive. Stylish and innovative, the first run of this AMERICAN produced vehicle virtually sold out even though it was limited both in the regions in which it was sold and by the limited numbers that were produced. Way to go GM! I know that the Rush Limbaughs and Sean Hannitys out there are gunning for you but it's not the first time that an American company has faced adversity from the enemies of this Great Nation!!! More cars = more jobs. Suck on that righties...
Man, you are angry. I'm extremely happy Generous Motors made a profit. Our company only buys Generous Motors. But, I'm not going to suck on anything, mmm'kk?
But.... I thought GM was fundamentally broken and should have just been liquidated? That we were just throwing good money after bad? What critics of GM never seemed to get was that their problems were related to cost structure. They never stopped selling cars, they just had a cost structure which made it difficult to sell cars profitably. That is exactly the kind of problem that bankruptcy is designed to solve. And lo and behold! It worked! GM shed debt, the UAW made large concessions, unprofitable divisions were closed or sold, excess manufacturing capacity was shuttered, and now GM's cost structure is substantially lower. And you know the best part? That's 200,000 people who *didn't* lose their jobs in the middle of the worst recession in modern history. And that's just people directly employed by GM; it doesn't count all the people who work at GM's suppliers. Add them in, and it seems to me that avoiding a million or so layoffs was a worthwhile achievement.
I need a better link Todd. That one is not working. In the paragraph you quoted GM increased 18% compared to August 2010. Are they up for the whole year or just 1 month compared to same month last year? Need more info....
That's called projection, Todd, as is your desire to suck on something. Up 18% from bankruptcy is wonderful news. Attributing that to Obama would imply that GM was an accomplice. I don't think that's fair. The illegal bankruptcy process wasn't GM's fault.
http://www.freep.com/article/201109...ts-31-hike?odyssey=tab|topnews|text|FRONTPAGE There are, naturally, caveats -- Detroit benefited from a shortage of Japanese vehicles due to the tsunami in Japan, for example. But on the other hand, Hurricane Irene interfered with sales on the east coast. Overall sales are up in 2011 from 2010, though the second half of 2011 is seeing slightly slower sales than the first half.
Does it really hurt that much to admit that the government got this one right? We're going to get most of our money back, and we avoided a massive number of layoffs that would have hit at the worst possible time for our economy. Once again, even as it slid into bankruptcy, GM was selling cars by the millions. The problem wasn't selling cars; the problem was making them cheaply enough to turn a profit. Yes, there were other issues -- like GM's ridiculously long product-development cycle. But the main factor was simply costs. Bankruptcy took care of the costs, just like it's supposed to. End result: GM is profitable again, and we as a nation are much better off than we would have been had GM collapsed.
There stock price suggests just that. IIRC we still own quite a bit and need 50 something to get our money back. Today it's bumping just above 52 week (lifetime) lows at 23. Thanks, Obama. GM The Home Game: Take all your money and divide it into two equal piles. Set either pile on fire. Repeat a year from now.
What about-that last paragraph Raytri? That last paragraph says that they still aren't meeting their numbers. Everything written before that last paragraph, is simply comparing August 2011 to August 2010. Am I wrong? Am I reading it wrong?
Are you so clueless about business you believe bankruptcy means a company shuts down completely and never recovers?
Precedent. That's what it's all about. When the rule of law was discarded to favor the UAW over secured bondholders there is no benefit that can compensate.
That's great news. I find myself feeling like the Fonz trying to say "soo....soorr....soorrry"..when I say this, but thanks for posting it Todd.
Radio, would you please read raytri's linked article and tell me what you think that last paragraph says. It appears the entire story is comparin august 2010 and 2011, which the numbers are up there, but that last paragraph is saying they still aren't meeting their goals.
But you need to read the whole article Rich. They are up 18% in August 2011 compared to August 2010. It's not what it looks like it is.
Oh my bad, hadn't scrutinized the entire article, and trusted the OP's breakdown. I will do so, thanks Hat.
What is right about government using taxpayer money to favor one group of workers over another to give them an unfair advantage?
