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GM to Recall at Least 38,000 Cars; $25 Billion Loss on Auto Bailout

maggiemay 2012/08/14 18:29:34

On a day in which GM announced it was recalling at least 38,000 of its vehicles due to a crash risk, the Treasury Department said in a new report that it now expects to lose $25 billion on the auto bailout, which is $3.3 billion more than was previously forecast.


According to The Detroit News, the report may actually
underestimate the losses and comes on the day in which GM’s stock price
fell $.07 to $22.20 a share. At this price, the government, which spent
$50 billion of taxpayer monies to bailout GM, would lose another $850
million on its “investment” in GM.


The report notes the government still has 500 million
shares of GM and needs to sell those shares at $53 a share for the
government to break even on the GM bailout. This seems unlikely, and
officials said no sale will take place before the November election.


The government holds another 74 percent state in an auto
finance company, which is part of another bailout portfolio in which the
government invested $17.2 billion. They have only recovered $5.7 to
date.


And the recalls are not going to help GM become more profitable.


According to Reuters, over 38,000 Impalas -- including
36,413 police cars in the U.S. and 1,713 more in Canada -- from model
years 2008 to 2012 will be recalled, and the recalls should begin on
August 21st. Non-police versions will not be impacted.




National Highway Traffic Safety Administration (NHTSA)
documents revealed that the cars are being recalled because defects “can
lead to loss of control of the car.”



Meanwhile GM’s CEO Dan Akerson said he would take actions
to boost the company’s stock price, and this could mean a doubling down
on the company’s subprime lending.
The Obama administration has crusaded against subprime lenders except
when those lenders -- like GM Financial -- can benefit the
administration politically


http://www.breitbart.com/Big-Government/2012/08/13/Double-Fai...
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  • IndyLinda 2012/08/16 17:56:02
    IndyLinda
    Obie's day will end and I will throw a party. I will never buy GM again, Never.
  • WhereIsAmerica? ~PWCM~JLA 2012/08/16 00:56:52
    WhereIsAmerica? ~PWCM~JLA
    +2
    No surprise, Obama is an idiot.
  • schjaz 2012/08/15 14:50:01
    schjaz
    +2
    Because they are made in China?

    http://www.youtube.com/watch_...
  • Maynard 2012/08/15 12:13:39
    Maynard
    +6
    Look on the bright side my fellow Americans.

    HE WANTS TO DO THIS FOR ALL BUSINESSES IN AMERICA.


    Can we admit how lucky we are to have Obama?


    Just think,

    NO ONE WILL HAVE TO BUILD ANYTHING EVER AGAIN, you know, we didn't build it anyways.


    Then we can ALL HATE EACH OTHER because there is always someone who has something you don't have.


    Obama change has been SO GREAT,

    PLEASE SIR, CAN I HAVE SOME MORE?




    JUST KIDDING, move along now.
  • maggiemay Maynard 2012/08/15 15:24:38
    maggiemay
    +1
    Thanks for the cheering up. Now I need to go put a bullet in my head.
  • bman~AVA~BTTB 2012/08/15 07:01:01
    bman~AVA~BTTB
    +3
    Well now isn't this just special?? GM is losing money hand over fist and recalling their automobiles and yet Obama the liar states that GM is at the top of their game! I guess he doesn't know how to read at all.
  • redhorse29 2012/08/15 05:58:52
    redhorse29
    +4
    This is another Obama success made possible by the government. What is needed are more tax payer dollars to keep the unions going and the manufacturing errors at a safe but embarrassing level of incompetence.
  • maggiemay redhorse29 2012/08/15 06:03:09
    maggiemay
    +2
    He should wear it around his neck like a Gold Medal so no one ever forgets.
  • bman~AV... maggiemay 2012/08/15 07:02:17
    bman~AVA~BTTB
    +2
    Either that or have it branded into his forehead. That way he won't ever lose it.
  • maggiemay bman~AV... 2012/08/15 15:27:16
  • bman~AV... maggiemay 2012/08/16 00:46:20
    bman~AVA~BTTB
    +1
    There you go! That'll work.
  • DavE 2012/08/15 04:49:07
    DavE
    +5
    I drive a GMC made in Arlington, Texas some time ago.
    Went to the GMC dealer looking for a new truck. They're made in Mexico now !
    GM and GMC are off my list of possible sources for that new truck.
    Not voting Nov 6th is a vote for Obama and Obamunism.
  • WhereIs... DavE 2012/08/16 00:58:13
    WhereIsAmerica? ~PWCM~JLA
    +2
    Buy one of the Japanese cars they make in America by Americans to sell here.
  • DavE WhereIs... 2012/08/16 04:20:49
    DavE
    +2
    We sure didn't have to bail out Honda and Nissan and Toyota !
  • littleb... WhereIs... 2012/08/16 04:23:26
    littlebuffalo55TBA
    +1
    They sell them here and export them to many places even back to Japan!
  • Herb 2012/08/15 02:22:19 (edited)
    Herb
    +2
    don't forget the 46m they still owe the tax payer. unions got theirs the tax payer is geting it up the ass with no KY.
  • maggiemay Herb 2012/08/15 05:42:08
    maggiemay
    +1
    We will never see that money again. It was swallowed by the great hole in Washington, and he wants to do it again!! I don't think so.
  • ★Calliope★ 2012/08/15 01:43:26
    ★Calliope★
    +3
    And I'm sure this is the tip of the iceberg. Obama pissed that money away.
  • maggiemay ★Calliope★ 2012/08/15 05:43:00
    maggiemay
    +2
    And wants to do it again!!
  • ★Calliope★ maggiemay 2012/08/15 17:05:26
    ★Calliope★
    +2
    All those folks, 2200 of 'em, that lost their livelihood with nary a blink. Obama has no remorse so long as his union buddies are happy.
  • ed 2012/08/15 00:28:16
    ed
    +3
    I'm sure obama will bail them out again.
  • Maddog 2012/08/14 23:06:16 (edited)
    Maddog
    +6
    Thanks for nothing, Obama!

    obama
  • jimmy d 2012/08/14 22:24:31
  • johnc jimmy d 2012/08/14 22:29:55
    johnc
    +6
    Obamas vision for America. sad isn't it.

    NOBAMA 2012
  • maggiemay johnc 2012/08/14 22:30:38
    maggiemay
    +3
    Pathetic is what it is.
  • merlinskiss 2012/08/14 22:19:12
    merlinskiss
    Non sequitur! Auto recalls are a fact of life. It has nothing to do with the bailout.
  • maggiemay merlins... 2012/08/14 22:22:59
    maggiemay
    +1
    Treasury Department said in a new report that it now expects to lose $25 billion on the auto bailout, which is $3.3 billion more than was previously forecast.

    According to The Detroit News, the report may actually
    underestimate the losses and comes on the day in which GM’s stock price
    fell $.07 to $22.20 a share. At this price, the government, which spent
    $50 billion of taxpayer monies to bailout GM, would lose another $850
    million on its “investment” in GM.
  • merlins... maggiemay 2012/08/14 22:35:41
    merlinskiss
    Stocks rise and stocks fall. A good investor bides his time.
  • Defend ... merlins... 2012/08/15 11:40:25
    Defend Western Civlization
    +1
    in other words your making excuses for COMPLETE FAILURES your gods are
  • jimmy d merlins... 2012/08/14 22:28:23
    jimmy d
    +3
    Can you read more than the first few words of the post?
  • maggiemay jimmy d 2012/08/14 22:30:01
    maggiemay
    +1
    Doubt if he got past the headline.GM to Recall at Least 38,000 Cars.
  • merlins... jimmy d 2012/08/14 22:36:02
    merlinskiss
    Yep. Same answer.
  • johnc merlins... 2012/08/14 22:31:03
    johnc
    +3
    The incompetence of Obama results in waste of taxpayer dollars for a few dollars back in campaign funds.

    NOBAMA 2012
  • merlins... johnc 2012/08/14 22:36:35
    merlinskiss
    One man does not a bailout make. It took a congress to do that.
  • johnc merlins... 2012/08/15 01:29:45 (edited)
    johnc
    +2
    Obama said at the state of the union, "with or without congress I will get my way"
    but you are right, congress approved it, let me see, Nancy PP D-ca speaker in the house. and Harry Ried, the rumor mill D-Nev. as leader in the senate.

    In 2010 Nancy PP got her well earn downgrade , Harry and Barry will get thiers this November,

    The great obama socialist experiment is over, it did not go well.. Obie should consider moving to Europle they really like his type there.

    NOBAMA 2012
  • Squatch 2012/08/14 22:18:01
    Squatch
    +3
    Sad thing is - if Obama gets re-elected he will probably give them more money.
  • dasimon1 2012/08/14 22:05:18
    dasimon1
    +3
    General Motors of China..................screw Obama...........he caused that!
  • none 2012/08/14 22:04:57
    none
    +5
    How does anyone justify wanting to vote for Obama again, why make the same massive mistake again?
  • jimmy d none 2012/08/14 22:29:27
    jimmy d
    +3
    To vote for him you really had to have lost some significant brain cells throughout one's life. The bottom line is we're RIGHT and they are WRONG!
  • bman~AV... none 2012/08/15 07:09:44
    bman~AVA~BTTB
    +2
    My friend I do believe that is the definition of insanity. "Doing the same thing over and over and over and expecting a different result every time."

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