Team Obama is touting the rousing success of GM.
You know, Bin Laden is dead; the UAW is alive.
Oops, Imeant GM is alive.
Hmmm. Let’s see …
The original GM stockholders — you know, your grandma and the pension funds — got completely wiped out.
The secured creditors got about 65% of their principal wiped out.
And privileged folks got the opportunity to buy stock in the new GM.
Those share have declined by 30% from the $33 IPO price ,,, a 50 point spread vs, the S&P 500 which increased 20% over the same period.
That’s a loss of about $16 Billion in market cap in about 18 months.
Now, that’s what I call a roaring success … many more successes and we really will be bankrupt.
Tags: Bailouts, GM, GM is alive, market capitalization
The Homa Files 
May 2, 2012 at 11:06 am |
Let’s not forget his 1 million electric vehicle goal by 2015 of which 800,000 would be derived from the Chevy Volt (500K) and Nissan Leaf (300K). Here’s how their projections have worked out:
2011:
Volt = 15,000 (projected), 7,670 (actual)
Leaf = 25,000 (projected), 9,674 (actual)
2012:
Volt = 120,000 (projected or 10K/month), 5,377 (actual thru April; avg 1,344/month)
Leaf = 25,000 (projected or ~2K/month), 2,103 (actual thru April; avg 525/month)
All of these sales have been subsidized by a $7500 federal tax credit. The average buyer of Leafs and Volts are nearly all male and have HHI well over $100K. So there are two issues here: 1) People will eventually realize that the govt is paying “rich” people to buy electric vehicles that the general public can’t afford; or 2) When funding dries up, it’s doubtful folks will pay full retail for these vehicles.
Must be nice to make bold projections without any accountability.