79 % of GM’s sales last month was government purchased, during 2012 Remember how Obama keeps telling us how he saved GM, and how our economy is getting better, it seems the car company he bought is being saved by Govt employees using our tax money to buy new cars. GM’s sales figures for last month were the best since 2008 , up 16% for the month of June. YIPPEE! Well, wait just a minute. It seems that those rosy sales figures are due primarily to a 79% increase in fleet sales to the U.S. government in June.
That’s right. Our tax dollars are being used to pump up GM’s sales figures ahead of next month’s quarterly report so that our Dear Leader can point to "Government Motors" as a huge success. The incestuous relationship between GM, the UAW and the Regime has never been more glaringly apparent.
GM is unsustainable without government subsidies and will ultimately go bust again, taking billions of taxpayer dollars down with it .We bailed out General Motors to the tune of $50 billion. $30 billion of this is effectively a loss, mostly sunk into fattening the United Auto Workers union—plus fierce fierce Obama supporters—while the actual bondholders were shown the elevator shaft.
Meanwhile, as News Busters reports, “We the Taxpayers are still stuck holding 500+ million shares of GM stock. Which we need to sell at $53 per share. Which debuted post-bankruptcy at $33 per share.. And which is currently trading at just over $20 per. Meaning we’ll lose about $15 billion.”But it gets better. Despite the overwhelming negatives, the tiny bright spot of positive June sales numbers is being heralded by Obama and the leftist press as proof the auto bailout was a “success.” Obama is now campaigning on the “success” of – the government buying cars from…the government’s car company. with our money.
Americanvision says That’s like you setting up a lemonade stand for your kids. You buy them the lemons, sugar, cups and pitchers – and then buy most of the lemonade yourself.
The pressure is on Government Motors to appear financially strong as this may be the last earnings report before November elections and sets the stage for how “successful” GM is. One of GM’s past tricks to help fudge earnings numbers has been to stuff truck inventory channels. Old habits die hard at GM. According to a Bloomberg report, “GM said inventory of its full-size pickups, which will be refreshed next year, climbed to 238,194 at the end of June, a 135 days’ supply, up from 116 days at the end of May.” 135 days’ supply is huge, the accepted norm is a 60 day supply. The trick here is that GM records revenue (probably at list prices for costing and sales number) when vehicles go into dealerships to be floor planned.
We are being fed a numbers game.