Tuesday, May 26, 2009

GM Bailout Math - 33k Per Car Sold

Over the last six months, the government has provided bailouts for GM and GMAC totaling 19.4 billion and 13.5 billion respectively.  GM has sold 1 million cars over that 6 month period. We are providing them a bailout of $33,000 per car sold.  In other words, GM needs to get $33,000 in government assistance per car sold to stay in business.  Is the average selling price of a GM car even 33k?  This is complete nonsense.  GM is not close to a viable company and needs to fail now. The bailouts to GMAC show how weak GM is.  Without GMAC writing bad loans and leases to move cars, the situation at GM would be even worse.  Why are we bailing out an auto-finance company anyway?  There are hundred of auto finance companies out there who are still loaning money on cars.  You do not need GMAC to buy a GM.  Propping up GMAC so they can prop up GM is a joke.  This is simply a union job saving move at the expense of non-union jobs.  If Obama was honest about what was going on here, the U.S. would simply buy GM out of bankruptcy, and give the surviving company to the UAW.  That is exactly what we are doing, but under the disguise of "bankruptcy financing".  How about paying GM 25k per car to stop making them.  That would save the United States billions, and be just slightly less stupid than what we are doing now.  These numbers are simply too big for the average citizen to grasp. There have been so many billion dollar bailouts, we are getting immune to it all.  Will the mainstream Media ever step up and do a story like this?  I am sure the people would be interested in a 33K per car bailout for a company in a decades long death spiral.      

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At 9:52 PM, Blogger Easycure said...

The worst part is that the shareholders who invested over $25 Billion into GM is going to get only 10% of what's leftover; while the union, who have around $11B invested, are going to get 39%. Basically, Obama is shifting billions from shareholders (private interest) through GM to the unions. It's a swindle. Not to mention the 50% that is going to the White House. It's criminal.

At 1:10 PM, Blogger Rice and Salt said...

The stupid. Does it burn?

At 3:38 PM, Blogger KenP said...

It also represent about $1.2M per employee. Hand out the money in lieu of 401K and SS benefits. That'd do in 3 birds with one stone. (Gov also on hook for house retirement package.)


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