Obama’s GM “Success” is Failing

President Obama told us in his convention acceptance speech that “…we reinvented a dying auto industry that’s back on the top of the world”. Along with many other nebulous claims meant to give the impression of success, this one stretches the facts and insults reality.

According to Forbes’ list of top car makers in 2012, the American car manufacturer, Ford, comes in fourth and Obama’s pet project, GM, sits in seventh place. This is not quite “on the top of the world” and the fact that Ford, which refused government bailout money, beat out GM makes the claim of “reinventing” the auto industry preposterous.

Obama should be embarrassed by GM’s falling stock, down 40% since emerging from bankruptcy, in no small part fueled by financial losses from the Chevy Volt, the “green” car championed by Obama. The government provides a $7500 tax break for buyers of the Volt in an effort to make Obama’s dream car successful. Failing to bolster sales with the tax break, the Department of Defense began purchasing them in its “greening” of the Pentagon effort. (Volt retail cost is $40K.)

One could consider this a continuing bailout of GM. The government is still down approximately $25 billion from the initial $80 billion bailout and the 500 million shares of down-sliding GM stock the government owns (taxpayers own) are far below the value needed to repay the bailout money. Some financial analysts are even predicting that GM is heading back into bankruptcy.

Obama’s bold claim of success with this fiasco and his “green” investments (such as Solyndra) indicates just how little he has accomplished. If this is the best he can boast about, a second term in office makes no sense. Voters need to take a serious look behind the curtain of accolades constructed by believers in the “One”. The “hope” is gone and “change” hasn’t been for the better.

David J. Hentosh

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