About that GM success story ….

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.

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One Response to “About that GM success story ….”

  1. JG Says:

    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.

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