GM suspends Chevy Volt production as sales tank...

Obama's favorite car is turning out to be a huge white elephant for GM. 

General Motors will stop making the Chevrolet Volt for four weeks in June and July due to slow sales and to deal with the change to an all-new version of the gas-electric hybrid car.
The company says the Detroit-Hamtramck plant that makes the Volt and four other cars will probably stay open through the summer despite plans for the Volt. The factory also is undergoing construction so it can build a new full-size Cadillac CT6 and the 2016 Volt starting late in the summer.
Sales of electric and hybrid cars have slowed this year, largely due to low gasoline prices. The national average for a gallon of regular gas was about $2.40 US on Thursday, 35 per cent lower than last year's peak of $3.70.
The cheap gas has really hurt Volt sales and caused inventory to build on dealer lots. Through March, GM sold only 1,874 Volts, down 48 per cent from a year ago. The company now has enough Volts to supply dealers for 210 days, according to Ward's Automotive. A 60-day supply is optimal.

GM Recall Grows Another 8.2 Million

GM is in recall Hell...

General Motors Co.’s growing recall crisis ballooned Monday as the Detroit automaker called back 8.45 million more vehicles worldwide in six new recall campaigns — including 8.2 million cars for unintended ignition key rotation linked to reports of three deaths and eight injuries.

Monday’s recalls for ignition switch issues are the latest major campaigns for related problems since February, when GM began calling back 2.6 million Chevrolet Cobalts, Saturn Ions and other cars linked to at least 13 deaths and 54 crashes for defective switches. The callbacks were announced the same day GM opened a victims compensation fund for crashes linked to the Cobalt recall that could cost hundreds of millions of dollars.

GM has now recalled 14.8 million vehicles this year for ignition switch problems — more than doubling the total on Monday — amid growing scrutiny of vehicles whose ignition keys can move out of the “on” position and cause air bags to not deploy in a crash.

Guess which US automaker is rated as worst to deal with by suppliers...

If you guessed Obama's favorite, you win.

DETROIT (Reuters) - General Motors Co , already locked in a public relations crisis because of a deadly ignition defect that has triggered the recall of 2.6 million vehicles, has a new perception problem on its hands.

The U.S. company is now considered the worst big automaker to deal with, according to a new survey of top suppliers to the car industry in the United States.

U.S. lost $11.2 billion in GM bailout, TARP report says The annual survey, conducted by the automotive consultant group Planning Perspectives Inc, asks the industry's biggest suppliers to rate their relationships with the six automakers that account for more than 85 percent of all light vehicle sales in the United States.

Those so-called "Tier 1" suppliers say GM is now their least favorite big customer, according to the rankings, less popular even than Chrysler, the unit of Fiat Chrysler Automobiles , which since 2008 had consistently earned that dubious distinction.

Taxpayer losses on GM revised upwards...

Taxpayers lost almost a billion more than previously reported.

The U.S. government posted a deeper loss than initially recorded on the General Motors bailout, according to a government report released today.

Taxpayers lost $11.2 billion on the GM bailout, up from $10.3 billion the Treasury Department estimated when it sold its last GM shares on Dec. 9.

A Treasury Department auditor said the government had written off an $826-million “administrative claim” tied to the GM bailout on March 20.

General Motors trying to use 2009 bankruptcy to avoid responsibility for at least 13 deaths

GM should follow the Obama administration and blame it all on Bush.

DETROIT (AP) -- General Motors revealed in court filings late Tuesday that it will soon ask a federal bankruptcy judge to shield the company from legal claims for conduct that occurred before its 2009 bankruptcy.
The automaker's strategy is in a motion filed in a Corpus Christi, Texas, federal court case, and in other cases across the nation that involve the defective ignition switches that have led GM to recall 2.6 million small cars.
The motion asks U.S. District Judge Nelva Gonzales Ramos to delay action on the lawsuit until the bankruptcy court rules and other federal courts decide if the case should be combined with other lawsuits. But GM says it's not asking to halt action on a motion to force GM to tell customers not to drive their cars that are being recalled.
GM has said at least 13 deaths have been linked to the switch problem. The switch can unexpectedly slip out of the "run" position, shutting down the engine, knocking out power-assisted steering and power brakes, and disabling the air bags. GM admits knowing about the problem for at least a decade, but it didn't start recalling the cars, including Chevrolet Cobal.

GM 2014 recalled vehicles now at 4.8 million and the year is only three months old

If GM holds this recall pace, they will hit 12 million vehicles in 2014. That's going to leave a mark on the financial statement.

Via The NY Times:

General Motors announced on Saturday morning that it was recalling 490,000 trucks and 172,000 compact cars, meaning the automaker has now recalled about 4.8 million vehicles in the United States during the first three months of the year. That is about six times the number of vehicles it recalled in all of 2013.

This year’s recalls involve many of G.M.’s most popular and best-known models.

The recall announced on Saturday morning covers the 2014 Chevrolet Silverado 1500 and GMC Sierra 1500 pickups, as well as the 2015 Chevrolet Suburban and Tahoe and the GMC Yukon and Yukon XL with six-speed automatic transmissions. G.M. said a loose fitting for the transmission’s oil cooler line could allow oil leaks and possibly lead to fires. The automaker said it was aware of three fires but no injuries linked to the defect, and officials decided to recall the vehicles within a week of learning of the problem, said Alan Adler, a G.M. spokesman.

The compact cars being recalled are the 2013-14 Cruze models with 1.4 liter four-cylinder engines. G.M. said the right-front axle half-shaft could break, cutting power to the front wheels, although the engine would continue to run and the steering and brakes would still function. The company said it was aware of several dozen episodes but was not aware of any crashes or injuries related to the problem. 

GM CEO not interested in paying back $10 billion bailout loss...

I, and many other Americans,  will never by a GM car.

WASHINGTON -- The General Motors bailout may have cost the government $10 billion, but GM CEO Dan Akerson rejects any suggestion that the company should compensate for the losses.
He says Treasury officials took the same risk assumed by anyone who purchases stock.
"I would not accept the premise that this was a bad deal," Akerson said during a question-and-answer session at the National Press Club in Washington. He also said the government's $49.5-billion aid to GM helped save billions of dollars in tax revenue and government social services.
Akerson spoke in the wake of Treasury announcement last week that it sold its last shares in GM and Akerson's decision to retire in January. The automaker's board of directors named Mary Barra, the company's first CEO, to succeed Akerson.
The speech also came as GM announced it is investing $1.2-billion in five U.S. plants, which Akerson said is a recognition that after 15 straight profitable quarters the automaker can't rest on its success.

Spin: Obama claims "GM has now repaid every taxpayer dollar my Administration committed to its rescue...."

Couldn't we just as easily say "GM has now repaid every taxpayer dollar the previous Administration committed to its rescue, plus billions invested by my Administration?"

Via WhiteHouse.gov:

When I took office, the American auto industry – the heartbeat of American manufacturing – was on the verge of collapse.  Two of the Big Three – GM and Chrysler – were on the brink of failure, threatening to take suppliers, distributors and entire communities down with them.  In the midst of what was already the worst recession since the Great Depression, another one million Americans were in danger of losing their jobs.
As President, I refused to let that happen.  I refused to walk away from American workers and an iconic American industry.  But in exchange for rescuing and retooling GM and Chrysler with taxpayer dollars, we demanded responsibility and results.  In 2011, we marked the end of an important chapter as Chrysler repaid every dime and more of what it owed the American taxpayers from the investment we made under my Administration’s watch.  Today, we’re closing the book by selling the remaining shares of the federal government’s investment in General Motors.  GM has now repaid every taxpayer dollar my Administration committed to its rescue, plus billions invested by the previous Administration. [...]
 

That nuanced change still omits the fact taxpayers lost $10.5-billion.

Treasury sells rest of its GM stock, ends bailout with $10.5-billion loss, says it prevented further economic damage http://t.co/tGefctSg0u
— Los Angeles Times (@latimes) December 9, 2013

Fire Sale: GM slashes Chevy Volt prices...

Reportedly, GM is already losing as much as $50 thousand on the Chevy Volt...

Via Detroit News:

General Motors Co. is slashing the price of its plug-in hybrid Chevrolet Volt by $5,000, making it the latest automaker to lower prices of electric vehicles in the face of lagging consumer demand.
The Detroit-based automaker said it will cut the base price 12.5 percent, from $39,995 to $34,995. The price cut comes just weeks after the automaker announced a $5,000 give-back on the 2012 Volt and $4,000 on the 2013 model.
The first Volt, a 2010 model, cost $41,000.
GM put a positive face on its decision to lower the list price.
“The lower price and cost savings from driving on electricity provide Volt owners an unmatched balance of technology, capability and cost of ownership,” said Don Johnson, U.S. vice president, Chevrolet sales and service. “We have made great strides in reducing costs as we gain experience with electric vehicles and their components.”

Keep on reading…

Green Fail: GM Pins Another $4000 To Chevy Volts In Attempt To Get Anyone To Buy Them...

Let's add the incentives up: $4000 from GM, $7500 from federal taxpayers, $2000 from may states. That comes to about $14,000  per vehicle and GM reportedly is selling them for a large loss. 

General Motors has announced a $4,000 rebate (or $3,000 and a four year, zero interest loan from government-owned Ally Financial) on the slow-selling Chevy Volt. The company had a choice regarding how to deal with an excess supply of Volts that is growing faster than demand. GM could have, once again, temporarily halted production until inventory (currently at about a 6 month supply) came down to reasonable levels. It instead chooses to lose more millions of dollars by spending on incentives designed to manufacture demand that otherwise is practically nonexistent.

The much-hyped Chevy Volt was originally presented by GM as a green wonder-car that would be a savior for the company with sales expected in the 10,000 per month range by now. Almost three years after first hitting showrooms, the Volt now sees sales stabilizing at a dismal rate of approximately 1,500 per month. That's roughly one Volt every two months for each Chevy dealership.

Obama administration dumping GM shares for a $10 billion loss...

Taxpayers spent $10 billion to save 70,000 American-based UAW jobs UAW extravagant pensions. 

Washington — The U.S. Treasury said Wednesday it plans to sell 30 million additional shares of General Motors stock in a new public offering in conjunction with GM’s return to the S&P 500 index on Thursday.

The United Auto Workers Retiree Medical Benefits Trust — which holds about 14 percent of GM — will also participate by selling 20 million shares, making the total offering size 50 million shares. It represents about 12 percent of Treasury’s outstanding GM stock.

The move may mean that Treasury completely exits in 2013, rather than by the end of March 2014. The return to the S&P will prompt significant demand for GM shares and the stock has recently traded near its highest level since February 2011. GM is filing a new prospectus ahead of the sale.

The Treasury sold nearly 20 percent of its remaining shares in General Motors Co. in the first three months of the year, the Detroit automaker disclosed Thursday.

The Treasury, which initially held 60.8 percent of GM as part of the U.S. $49.5 billion bailout, now owns just 16.4 percent, or 241.7 million shares. In December, the Treasury sold GM 200 million shares of its stake for $5.5 billion to reduce its stake to 300 million shares.

In total, Treasury has recouped $30.6 billion. At current trading prices, Treasury would lose around $10 billion on its GM bailout.

Is this the next scandal shoe to drop on Obama?

GOP Congressman is asking if Obama's treasury department targeted GOP dealers during GM bankruptcy and bailout...

Two Congressmen are asking the Treasury Department if it inappropriately scrutinized conservative-owned businesses the same way it targeted Tea Party groups filing for tax-exempt status.

Republicans Mike Kelly (PA-03) and Jim Renacci (OH-16) circulated a letter Thursday requesting Treasury Secretary Jack Lew to release documents detailing the process and methodology the Automotive Task Force used to shut down General Motors dealerships in 2009 during the automotive industry crisis.

Renacci's Northeast Ohio Chevrolet dealership was closed in 2010 after losing a battle with General Motors. Congress loaned General Motors $50 billion in 2009 after GM declared bankruptcy, which resulted in the federal government owning a majority share of the company. Roughly 2000 dealerships received "wind-down" agreements, and while hundreds were able to survive an exhaustive arbitration process, Renacci-Doraty Chevrolet in Wadsworth did not. Renacci, then a Congressional candidate challenging incumbent John Boccieri, placed the blame squarely on President Obama.

Taxpayers to take multibillion-dollar haircut on GM bailout...

Taxpayers hardest hit...

Via FOX News:

The U.S. Treasury plans to sell its stake in General Motors Co over the coming year, all but assuring a multibillion-dollar loss in a move that will end the automaker's "Government Motors" era.

Treasury's plan - a two-step process that includes a $5.5 billion stock sale to GM - is part of a broader push to wind down the controversial financial bailout under the Troubled Asset Relief (TARP) program. TARP was created by former president George W. Bush to prevent the collapse of the U.S. banking industry during the 2007-2009 financial crisis.

The planned GM sale will raise the proceeds that Treasury has recovered to $28.6 billion of the $50 billion bailout GM received. With $20.9 billion left from the original bailout, the government would have to sell its remaining shares at an average price of $69.72 to break even.

Read more here...

Remember the campaign video where Obama claimed they repaid their loans?

A new Barack Obama campaign video narrated by Tom Hanks portrays the president’s bailout of General Motors and Chrysler as courageous and successful — with loans repaid by car companies.

"Because of the tough choices the president made, the stage was set for a resurgent U.S. auto industry," Hanks says in the 17-minute highlights reel of Obama’s presidency, titled The Road We’ve Traveled.

"With business booming, (GM and Chrysler) repaid their loans," he later concludes.

Petagon propping up sales of failed Chevy Volt

The government buys cars from Government Motors...

Via WFB:

The Pentagon is buying Chevrolet Volts to help “green up” the military—while propping up sales of the bailed-out automaker’s most politicized car.

The Department of Defense began purchasing the struggling luxury electric car, which retails at $40,000, this summer as part of its goal to purchase 1,500 such green vehicles. The Marine Corps Air Station in Miramar, Calif. purchased its first two Volts in July, and 18 more vehicles will come shortly to Joint Base Andrews in Maryland, where Air Force One is based, according to military magazine Stars and Stripes.

The Obama administration championed the production of the Volt. Along with the president’s pledge this year to “buy one and drive it myself … five years from now when I’m not president anymore,” the government offers a $7,500 tax break to encourage sales.

Keep on reading…

GM to idle Chevy Volt factory for second time this year

This is the car that was supposed to save GM...

(Reuters) - General Motors Co will idle the Michigan assembly plant that makes the Chevrolet Volt for four weeks from the middle of September to the middle of October, plant suppliers and union sources said on Monday.

It will be the second time this year that the plant, which straddles the border of Detroit and the city of Hamtramck, has stopped making Volts.

GM confirmed the plant idling, saying it will continue to "match supply with demand" for both the Volt and the Chevrolet Malibu sedan that is also made at the plant. The automaker declined to specify how long the plant will be closed.

Amusing: Government Motors bans Obama until after election day...

President Obama won't be making any campaign stops at GM factories this election cycle. In an attempt to make it look fair, they also uninvited Mitt Romney to visit...

Here are two people you won't find touring a General Motors plant during the political season this fall: Barack Obama and Mitt Romney.

GM, saved by federal loans a few years ago, desperately wants to avoid becoming the centerpiece of campaign rhetoric. So it has banned candidates from its plants at least until after Election Day, Nov. 6, despite the fact that the U.S. Treasury remains its largest shareholder.

The Detroit car giant wants to be viewed as a success story -- not the arm of any campaign. After all, Democrats, Republicans and independents all buy vehicles.

Is GM headed towards another bankruptcy?

Is GM headed towards another bankruptcy? Forbes contributor Louis Woodhill makes the case.

President Obama is proud of his bailout of General Motors.  That’s good, because, if he wins a second term, he is probably going to have to bail GM out again.  The company is once again losing market share, and it seems unable to develop products that are truly competitive in the U.S. market.

Right now, the federal government owns 500,000,000 shares of GM, or about 26% of the company.  It would need to get about $53.00/share for these to break even on the bailout, but the stock closed at only $20.21/share on Tuesday.  This left the government holding $10.1 billion worth of stock, and sitting on an unrealized loss of $16.4 billion. Read the whole article...

GM gives criminals eluding police a chance. Recalls 38,000 Chevrolet Impala police cars...

This story is brought to you by President Obama and the UAW...

Via AP by ABC News:

General Motors is recalling more than 38,000 Chevrolet Impala police cars in the U.S. and Canada because a part in the front suspension can crack and cause a crash.

The recall affects police cars from the 2008 through 2012 model years. The lower control arm in the suspension can fracture, causing sudden changes in handling that could make the driver lose control, GM said in documents posted Saturday on the National Highway Traffic Safety Administration website.

Impalas sold to the public have some different suspension parts and are not affected by the recall, spokesman Alan Adler said. "We tested for durability on the civilian Impala, and we believe there are no issues," he said.

GM hoses non-union retirees...

As if we needed another reason to not buy GM products...

Via NLPC:

The president of the GM Retirees Association, Jim Shepherd, sent a scathing letter last week to GM CEO, Dan Akerson. The letter was in response to General Motors' decision to modify pension plans for non-union retirees. Mr. Shepherd stated that the non-union retirees wanted to express their "absolute consternation and disgust" and described the move by GM as not being only unfair but, "it is sheer irresponsibility and greed."

So, on behalf of its many members, I now welcome the GM non-union retirees to the "Hosed by Government Motors Club." As I mentioned when I welcomed Canadian taxpayers to the club, members of the club include former GM

shareholders and bondholders, widows and other accident and asbestos litigants, owners of "Old" GM vehicles who did not have their vehicles' problems covered by "New" GM, Indian tribes and others who have had their lands polluted by Old GM, Delphi non-union retirees, non-union workers at shuttered GM dealerships and the American taxpayers. The club does not include politically-favored US unionized labor or legal firms enriched by the GM bankruptcy process which were awarded DOE contracts worth million of dollars in addition to the millions they already made in the GM bankruptcy.

You tax dollars are hard at work hosing anyone who isn't union.

Obama and Biden tout success of GM bailout, but GM is the biggest TARP laggard

Bank of America, Citigroup, Chrysler and Chrysler Financial have paid TARP off, but GM still owes taxpayers at least $25 billion.

Of the top bailout recipients, GM is the biggest laggard, the TARP watchdog says in his latest quarterly report to Congress. Bank of America, Citigroup, Chrysler and Chrysler Financial all have paid off their debt and left the TARP program. Even AIG has paid back more than 75% of what it owes taxpayers.

GM, on the other hand, still owes more than half the $50 billion in federal funds it received when the combination of the recession and its costly union contracts drove it into bankruptcy. And its lending arm, GMAC (now Ally Financial), still owes $14.5 billion.

Actually, GM may be deceiving us about what they claim to have paid off.

What's worse, it's not clear that GM actually repaid what it's gotten credit for repaying. Check out this note buried in the inspector's report: "As part of a credit agreement with Treasury, $16.4 billion in TARP funds were placed in an escrow account that GM could access only with Treasury's permission."

As it turns out, GM got Treasury's OK to "repay" more than $6.7 billion "using a portion of the escrow account that had been funded with TARP funds." So GM is merely paying the government back with government money, not money GM is earning selling cars, as the administration has claimed.