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View Full Version : Yeah, the gov't investment in GM is working out great.


500grains
09-10-12, 13:58
Congress ought to deduct these losses from Barack's pension.



Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts. GM on Monday issued a statement disputing the estimates.

Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.

http://www.reuters.com/article/2012/09/10/us-generalmotors-autos-volt-idUSBRE88904J20120910
Caeser25
09-10-12, 16:47
It didn't actually save GM. It prevented GM from going through the normal bankruptcy process, which saved the current union contracts. Otherwise those contracts would have to be renegotiated had GM went through bankruptcy. So in essence, it was a back door bailout for the UAW.

No matter how you try to explain it to your union friends though, you'll be labeled a union basher :rolleyes:

Oh and if you have a 401k that invested in them, you lost money as a shareholder. I wonder how many pension funds were invested them as well? Which makes it pretty ironic when the unions bash the shareholders thinking they're all thise evil, rich, fat cats.
ForTehNguyen
09-10-12, 16:58
it just bought time, GM is increasing its loans to subprime borrowers. Damn didnt we go through this already?
glocktogo
09-10-12, 20:42
GM has nothing to offer that will make up for stealing from me via taxes. Unless they want to sell me a ZR1 for $35,000, in which case I might reconsider! :D
SMETNA
09-10-12, 22:53
Chrysler is doing splendidly since it became an Italian company
ryr8828
09-11-12, 07:48
I've got a deal for them. They lose 49 grand on each volt they sell, so I won't buy one. That saves them 49 grand right away.

Take 40 grand of that and my silverado 4x4 crew cab and trade it for a Suburban or maybe a Tahoe. They get to keep the 9 grand.

They've just made 9 grand.

I know it sounds a little bit like the way Obamacare was explained to me.
Business_Casual
09-11-12, 07:56
I've got a deal for them. They lose 49 grand on each volt they sell, so I won't buy one. That saves them 49 grand right away.

Take 40 grand of that and my silverado 4x4 crew cab and trade it for a Suburban or maybe a Tahoe. They get to keep the 9 grand.

They've just made 9 grand.

I know it sounds a little bit like the way Obamacare was explained to me.

Are you an executive at GM?









:D
anthony1
09-12-12, 00:46
I don't know anyone thats buying gm stock- do you?
Kfgk14
09-12-12, 18:08
Chrysler is doing splendidly since it became an Italian company

Very good point! I may even one day purchase a Chrysler product, given they're a successful company.

When you look at all the products GM sells though...come on. An F150 Ecoboost puts out 380 HP and 425 ft/lbs with 19/22 per gallon fuel economy. GM puts down 315 HP and 335 ft/lbs, 14/21 per gallon fuel economy and you pay more for the truck...don't mean to delve too deep in to truck tech but trucks are easy to compare and demonstrate the problem very effectively...the truck market in the US is massive and GM has completely lost hold of it...it's just one more reason they're doomed to fail. The sad part is that they're failing AGAIN...this time hopefully we won't have to pay for it.
SMETNA
09-12-12, 22:33
Very good point! I may even one day purchase a Chrysler product, given they're a successful company.

When you look at all the products GM sells though...come on. An F150 Ecoboost puts out 380 HP and 425 ft/lbs with 19/22 per gallon fuel economy. GM puts down 315 HP and 335 ft/lbs, 14/21 per gallon fuel economy and you pay more for the truck...don't mean to delve too deep in to truck tech but trucks are easy to compare and demonstrate the problem very effectively...the truck market in the US is massive and GM has completely lost hold of it...it's just one more reason they're doomed to fail. The sad part is that they're failing AGAIN...this time hopefully we won't have to pay for it.

I have a 2011 Jeep. I'm not embarrassed

Chrysler still builds most of their stuff here, but Fiat owns some 60% of the company and Sergio Marchionne is the CEO.

They have an agreement where most of the small cars are going to be heavily influenced by Fiat, but the larger stuff is all Chrysler. Ram and Jeep have almost complete autonomy
Belmont31R
09-12-12, 23:27
Welcome to the new auto industry where they can make cars which lose money but the losses are absorbed by the tax payer. Just like every other government agency. Report a loss? Thats ok we just subsidize it with tax money....