Posted by Lambchop
President Downgrade continues on his campaign - ranting about socializing ALL industries:
The truth about the GM auto bailout:
GM Ranked #1, but counts its affiliate (world-wide) sales numbers differently. Volkswagen may actually be #1 for 2011.
GM sales barely edged out Toyota who lost a significant amount of inventory because of the Tsunami and Earthquake disasters.
Ford sales increased 11% during the same time period without any government help.
The taxpayers ended up paying $73,000 per job saved ($132.9 BILLION). The real question is how much will the taxpayers get back?
The UAW (union) fared extremely well under the bailout – much better than if the company had gone Chapter 11. And the bondholders’ interests were subjugated to the UAW’s.
A managed bankruptcy (overseen by the courts) is more appropriate and would have forced the company to reorganize and clean house. Had the government treated the UAW required by bankruptcy law, taxpayers would have broken even. The program would have amounted to bankruptcy financing instead of an outright bailout. The Administration could have kept the automakers running without losing a dime