Barnstorming the MidWest accompanied by a battalion of PR flacks and Yes men, a beaming Barack O’TomA in a major campaign style teleprompter address presented himself with yet another Loving Cup for the General Motors (GM) bailout.
He thundered that any right thinking American has to agree that the facts of the matter show the wisdom of his actions to save GM. These facts include that GM still owes the government $14 Billion of the $50 billion + loan with no reasonable short-term plan to repay the taxpayers. GM received a special tax dispensation not available in regular bankruptcy to carryover prior year losses to the tune of $45 Billion. Thus despite $9 Billion in profits for 2011, GM didn’t have to pay any taxes. Despite working class Americans helping to subsidize the above $59 Billion, they are also on the hook for a $7,500 subsidy for each and every Chevy volt that is sold. Recent dismal sales figures for the Volt has led to the suspension of production idling 1,300 workers. In addition GM dealers are also sitting on bloated inventories of SUVs and pick-up as gas soars to record levels. GM had a 1% sales increase in January while every other car maker has double-digit % increases. Finally the facts support the wisdom of installing a telephone guy followed by a finance guy as CEO. And last, but surely not least, instead of repaying the government, GM took profits and bought a $335 Million stake in France’s PSA Peugeot Citroen which like GM’s European Opal unit is suffering from overcapacity and bleeding red ink.
The facts are overwhelming that the O’TomA plan was much better than a managed bankruptcy advocated by Mitt Tomney.
Finally, we have given Chrysler to the Italians (FIAT) and left TomVille Motors (TM) to twist in the wind. Could it be the TM is better off twisting in the wind? No, pass another Loving Cup up to Barack.