General Motors is Imploding — and Team Obama is Lying About It
Note: This first appeared in the PJ Tatler.
Last week we cataloged how much General Motors (GM) likes firing people.
As we pointed out, 2009 was not a good year if you were a Republican-donating GM or Chrysler dealer.
(M)ultiple dealers who have been closed are found to have contributed millions to Republicans and mere hundreds to Obama….
“It became clear to us that Chrysler does not see the wisdom of terminating 25 percent of its dealers. It really wasn’t Chrysler’s decision. They are under enormous pressure from the President (Obama)’s automotive task force,” said attorney Leonard Bellavia.
And Europe has (again) become a GM employee graveyard.
GM intends to shed another 500 managers in Europe, adding to the 8,000 factory workers let go over the past three years as part of a massive though only modestly successful push to cut costs.
GM is serially throwing people over the side in part as a personnel bailing of the sinking ship. But it appears the Bad Ship Bailout is going down even faster than we knew – or they can address.
Sit back and take in the additional cavalcades of terrible Government Motors news.
Two weeks ago, Opel chief Karl-Friedrich Stracke presented numbers to Dan Akerson. Akerson fires him. Opel gets two interim chiefs in a week. Last Thursday, Opel’s new design chief Dave Lyon doesn’t even start his job….A day later, global marketing chief Joel Ewanick suddenly leaves. Instead of wishing him all the best for his future endeavors, GM spokesman Greg Martin puts a knife in Ewanick’s back: “He failed to meet the expectations the company has of an employee.”…
It all looks like (President Obama-appointee CEO) Dan Akerson is panicking. The GM stock is at an all-time low. GM is losing market share. When July numbers will be announced this week, GM won’t look so good, industry oracles say. Mass executions always are great to deflect criticism – for a while.
Speaking of that “all-time low” stock:
We are still stuck with 500+ million shares of the stuff. For us to break even, they must be sold at $53 per. They debuted post-bankruptcy at $33 per. They closed on Tuesday at $19.71 per. Setting us up for a nearly $17 billion loss – just on the stock.
Speaking of those “industry oracles”:
For GM earnings, analysts forecast 74 cents per share, down 52% from a year ago.
Akerson…is getting impatient with the slow pace of GM’s revival.
“Earnings…down 52% from a year ago” isn’t a “slow pace revival.” It is a free fall implosion.
Remind you of anything else?
GM is “recovering” – like the entire Obama Economy is “recovering.”
And more and more, the GM jobs “created or saved” are in…China.
32% of first-quarter vehicle productions is going to be in China versus 30% in North America.
That would be Communist China. Where Shanghai GM in 2011 sponsored a movie celebrating the “Glorious Revolution”s 90th Anniv….
Greg Martin, executive director of communications strategy for GM, told The Daily Caller in May 2011 that Shanghai GM “is a completely separate and distinct business entity based in China that has no organizational or financial ties whatsoever” with the Detroit car maker.
“It is not GM,” Martin said then. “It is not GM money. And it is in no shape or form, or indirectly, taxpayer money.”
But now that ever more of its sales are in China:
“Shanghai GM is GM,” Martin told TheDC on Friday. “We make money, they make money.”
Disingenuousness in fact abounds when it comes to the Obama Administration and GM.
“The government will lose less than 20 percent of the $80 billion used to bail out the U.S. automobile industry.”
Only now we’re poised to lose (at least) $42 billion. And as we’ve seen, that number is serially fungible – always upward. And reliant on Administration-provided data. It will undoubtedly end up being even worse.
GM and the Obama Administration claim to have fixed the Chevy Volt fire problem – when there are at least five fires and a whole host of attending Volt charging pro….
President Obama continues to incessantly claim that GM is #1 in global sales – even though Toyota has now recovered from their post-tsunami devastation and reclaimed the top spot.
President Obama in April 2010 asserted:
“It won’t be too long before the stock the Treasury is holding in GM could be sold ….”
And on, and on, and….
Yet it’s all smoke and mirrors – when it’s not outright lies.
Welcome to Campaign Obama 2012.