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Tag: United Auto Workers

Geithner's Spin: Auto Bailout A Success

By Warner Todd Huston, Section News
Posted on Thu Apr 28, 2011 at 05:44:09 PM EST
Tags: General Motors, GM, Chevy Volt, Timothy Geithner, subsidies, bailouts, UAW, United Auto Workers (all tags)

At the Detroit Economic Club today, Treasury Secretary Timothy Geithner tried to claim the auto bailout is a success.

It certainly doesn't seem like a success for the taxpayers. GM stock is about $30 today, and unless it gets up to $54, the taxpayers lose money on the deal. Why would it go up? You want to fight high gas prices by buying a Volt? How does $41 grand a pop sound? And still GM loses money on every one it sells even at that price. Not only that but we are seeing that government subsidies for electric cars is good tax money wasted in any case.

It doesn't get any better. Worldwide, U.S. cars aren't selling worth beans and domestically, GM is lagging because people who hate the bailouts won't support it with their car-buying dollars any more than they did with their votes last year when they kicked out every incumbent they could find who'd been for it. And GM still has all its old problems, too, like those big fat union pension obligations. Sadly, nothing that caused GM's financial trouble has been fixed.

(16 comments, 371 words in story) Full Story