GM got bailout, now ships jobs to China

Jun 2013
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GM got bailout, now ships jobs to China
BY EDITORIAL WRITER | OCTOBER 17, 2013 AT 7:30 AM

President 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.

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.

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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.


Examiner Editorial: GM got bailout, now ships jobs to China | WashingtonExaminer.com
 

KnightOfSappho

Forum Staff
Feb 2007
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Fact check:

GM Expanding

Narrator Wade states that “GM has been shrinking its U.S. operations, while it’s aggressively expanding and investing in the People’s Republic of China.” But the fact is GM is currently expanding in both places.

It’s true that GM shrank much of its U.S. operations — shedding old brands and dealerships and many workers — when it went through bankruptcy in 2009. The alternative was to go out of business entirely.

But since then, the “new” GM has enjoyed expanding sales and operations. For example, it announced in January that it is building a new, $200 million stamping plant in Arlington, Texas. And it states: “Since June 2009, the company has announced more than $6.9 billion of investment to upgrade or expand operations in 12 states, creating or retaining more than 17,600 jobs.”

It’s true that GM also has been expanding in China — but that was true long before the bailout. The “old” GM (the one that went bankrupt) was the largest foreign car maker in China in 2008, battling for supremacy there with Volkswagen.

The “new” GM has continued that overseas success. It sold a record 231,183 vehicles in China in May, up 21 percent from a year earlier, for example. That compares with 245,256 vehicles sold in the United States, up 11 percent from a year earlier and the highest in 33 months.
Full article:

Is GM Becoming ?China Motors??
 
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Jun 2013
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You caught Uncle Fester in another deception......heck, if it was up to him, GM would have not been bailed out and all those jobs would be gone period....Uncle Fester is not only a deceiver but he's also not the sharpest tool in the shed....if you know what I mean..........
BLAH HA HA HA HA
 
Jun 2013
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You caught Uncle Fester in another deception......heck, if it was up to him, GM would have not been bailed out and all those jobs would be gone period....Uncle Fester is not only a deceiver but he's also not the sharpest tool in the shed....if you know what I mean..........
BLAH HA HA HA HA
She did? What facts in my article are incorrect or misleading? :lol:

STAY ON TOPIC TROLLBOY!
 
Jun 2013
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She did? What facts in my article are incorrect or misleading? :lol:

STAY ON TOPIC TROLLBOY!
Read the full article Uncle Fester. Outsourcing was going in long before the bailout. Don't you ever get tired of being embarrassed by me from thread to thread ? You my friend are Right wing filth.....changing your Depends once in awhile might help you with that problem........BLAH HA HA HA HA
 
Jun 2013
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Read the full article Uncle Fester. Outsourcing was going in long before the bailout. Don't you ever get tired of being embarrassed by me from thread to thread ? You my friend are Right wing filth.....changing your Depends once in awhile might help you with that problem........BLAH HA HA HA HA
My article never said outsourcing wasn't going on....Stay on topic trollboy! What fact is wrong? Are you saying the US production targets were wrong?!

I bet you can't do it because you fail all the time and will here as well!

:lol: :lol: :lol: :lol: :lol:
 
May 2013
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You caught Uncle Fester in another deception......heck, if it was up to him, GM would have not been bailed out and all those jobs would be gone period....Uncle Fester is not only a deceiver but he's also not the sharpest tool in the shed....if you know what I mean..........
BLAH HA HA HA HA
I think of him, more, as a receptacle.



 
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Jun 2013
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GM has to go where the money and prosperity is, few can afford to buy a new car here in the Obamaconomy.

The roads around Shanghai are full of Buicks.
It's global growth. Today 1 in 10 Chinese drive a car. It is estimated that in 10 years time 1 in 4 Chinese will drive a car. It's not rocket science. And for that reason, today's gas prices will seem like the good old days in 10 years.