No more "Government" in GM

[i2disturbedSS]

Got word saying GM just paid all the debt they had from the bailout.
However gota text from Car&Driver saying they failed to break even. Anyone heard of anything of this and which one is true?

[FenwickHockey65]

The government sold off all its remaining shares in GM. The Treasury department is no longer a shareholder of GM.

However, the stock sale didn't fully recoup the costs.

[camarowa]

^^ ain't that the understatement of the year! $10.5 Billion loss!

[90503]

US exits GM stake, taxpayers lose $10B

By Reuters
December 10, 2013 | 9:51am

Modal Trigger



The U.S. government sold its last shares of automaker General Motors Co (GM.N) on Monday, marking an end to a historic bailout of one of America’s most storied companies.
The sale leaves taxpayers short about $10 billion of the funds that the Treasury sank into the automaker in 2009.
“With the final sale of GM stock, this important chapter in our nation’s history is now closed,” Treasury Secretary Jack Lew said.
Washington came to the rescue of Detroit during the darkest days of the country’s 2007-09 financial crisis, as the nation was sinking further into what would become its deepest recession since the Great Depression.
The money pumped into the auto industry came from a $700 billion pool of funds Congress had assembled to shore up the banking system and fight a growing panic on Wall Street.
Taxpayers could still turn a profit from the rescue efforts, despite losses on programs to help housing and autos.
The government also took a loss of just over $1 billion on its investments in Detroit automaker Chrysler. Taxpayers remain intertwined with GM’s former lending arm, Ally Financial Inc.
But the bailout helped Detroit automakers return to profitability, and a study released on Monday by the Center for Automotive Research said it saved 1.5 million U.S. jobs and preserved $105.3 billion in personal and social insurance tax collections.
Still, the crisis humbled one of America’s biggest companies and the powerhouse of the country’s industrial Midwest region.
“We will always be grateful for the second chance extended to us and we are doing our best to make the most of it,” GM Chairman and Chief Executive Dan Akerson said in a statement.
The company has carried a certain stigma since taking $49.5 billion in government money four years ago.
“They can finally put ‘Government Motors’ in the rear view mirror, and that’s an important step for consumers and for the company,” said Matthew Stover, an auto analyst at Guggenheim Securities.

[USMCSSGT-RET]

Just add that to the rest.....what's a few more billion?!?!

[2012-1822]

Originally Posted by USMCSSGT-RET

Just add that to the rest.....what's a few more billion?!?!

Frankly, and unfortunately, $10.5 B is just a drop in the bucket

[Q'smuscle]

Well Ford ppl can't say Government Motors nomore . So I'm happy!

[Angrybird 12]

Originally Posted by Q'smuscle

Well Ford ppl can't say Government Motors nomore . So I'm happy!

It won't matter, many people hold things like this against a company for a long time. I guarantee the Government Motors slur will remain.

[Q'smuscle]

Originally Posted by Angrybird 12

It won't matter, many people hold things like this against a company for a long time. I guarantee the Government Motors slur will remain.

Yea, you're right! But it's not current. But we know they don't care like you said.

[mlee]

http://blog.caranddriver.com/u-s-gov...eneral-motors/

[90503]

Auto bailout saved 1.5 million U.S. jobs -study

DETROIT Mon Dec 9, 2013 12:36pm EST

DETROIT Dec 9 (Reuters) - The federal bailout of General Motors Co, Chrysler and parts suppliers in 2009 saved 1.5 million U.S. jobs and preserved $105.3 billion in personal and social insurance tax collections, according to a study released on Monday.

The Bush and Obama administrations loaned the auto industry, including GM and Chrysler, which is now controlled by Italy's Fiat, $80 billion to avoid the collapse of the industry that they felt would result in the loss of millions of U.S. jobs.
Critics of the bailout at the time had argued the companies should be allowed to fail and the industry that resulted from the aftermath would be stronger. Treasury officials have repeatedly said the bailout was not an investment meant to turn a profit, but a move to save U.S. jobs.

The Center for Automotive Research (CAR) in Ann Arbor, Michigan, estimated in its study that the bailout saved a lot of jobs, even crediting for a rebound of the industry in 2010 after the initial fallout.
"Two consecutive executive administrations in Washington decided in late 2008 and early 2009 that the consequences of the potential losses and outcomes to the U.S. economy ... were worth avoiding through a federal intervention," Sean McAlinden, the center's chief economist, said in a statement.
"This peacetime intervention in the private sector by the U.S. government will be viewed as one of the most successful interventions in U.S. economic history," said McAlinden, who wrote the study along with Debra Maranger Menk.

The U.S. Treasury has said it will exit the last of its stake in GM by the end of the month, clearing the way for the U.S. automaker to operate without the nickname "Government Motors" that executives said had hurt sales some.

GM North American chief Mark Reuss said on Monday that some consumers may consider buying from the automaker immediately after the government has exited its stake, especially where the company sells trucks.
Reuss said a huge psychological barrier will be lifted when Treasury sells the rest of its remaining 2 percent stake this month.
"This has been a long, hard road with no repeat customers and the label of Government Motors," he told reporters at an event outside Detroit.
He acknowledged some critics will highlight the money lost in the bailout, but pointed to the jobs, plants, towns, suppliers and related service industry jobs saved by the bailout under the Troubled Asset Relief Program (TARP).
"How do you put numbers on that?" he said. "I feel good about that and I'm not sure it was the same with the other industries that were granted TARP funds."

CAR estimated that a complete shutdown of the industry that was bailed out in 2009 would have resulted in the loss of 2.63 million jobs and those losses would still have stood at more than 1.5 million in 2010. If only GM had been shut down, the job losses would have been almost 1.2 million in 2009, shrinking to 675,000 in 2010.
While U.S. Treasury's final loss on the bailout is estimated at $13.7 billion including $11.8 billion related to its investment in GM, it avoided the loss of $105.3 billion in unemployment benefit payments and the loss of personal and social insurance tax collections, according to CAR.

In the GM-only scenario, the lost tax collections would have totaled $39.4 billion, according to CAR.
CAR said the study did not take into account the benefits of preserving the pensions of almost 600,000 GM and Chrysler retirees as well as industry research and development jobs. It also did not account for the psychological impact the collapse of GM and Chrysler would have had on the U.S. industrial base.

[Mr. iNCREDIBLE]

curious..

the people running this country aren't familiar with the first rule of investing.

buy low, sell high..


what fracking idiot thought it would be a good idea to bail out @ a loss?

[mikeyg36]

Originally Posted by Mr. iNCREDIBLE

curious..

the people running this country aren't familiar with the first rule of investing.

buy low, sell high..


what fracking idiot thought it would be a good idea to bail out @ a loss?

Well they're generous with our money...

[mlee]

I know it's hard with this one but no Politics please.

It's definitely a relevant tread for this forum... just difficult to keep open for discussion.