Ford owner Obama happy about GM anyway

posted at 7:12 pm on November 18, 2010 by Andrew Malcolm

OK, so there’s this Democratic president who’s really good on spending. Meaning, he does it a lot. Among the most ever, in fact.

For more than 18 months he spent like there was no midterm.

He authorized the government takeover of a car company. When in doubt — or not — get the government involved. Something about saving jobs, union jobs.

But now the government’s getting out by selling stock. And it looks to be making money. Which is an unknown thing in government but in private business usually involves getting back more money than was put it. It’s called a profit. He couldn’t bring himself to say the word. But that’s what it is, a profit for taxpayers.

So do you think that profit will be returned to taxpaying shareholders whose money saved the day?

Here’s how that president put it:

THE PRESIDENT:  Hello, everybody. Good afternoon. Today, one of the toughest tales of the recession took another big step towards becoming a success story.

General Motors relaunched itself as a public company, cutting the government’s stake in the company by nearly half. What’s more, American taxpayers are now positioned to recover more than my administration invested in GM.

And that’s a very good thing. Last year, we told GM’s management and workers that if they made the tough decisions necessary to make themselves more competitive in the 21st century — decisions requiring real leadership, fresh thinking and also some shared sacrifice –- then we would stand by them.

And because they did, the American auto industry -– an industry that’s been the proud symbol of America’s manufacturing might for a century; an industry that helped to build our middle class -– is once again on the rise.

Our automakers are in the midst of their strongest period of job growth in more than a decade. Since GM and Chrysler emerged from bankruptcy, the industry has created more than 75,000 new jobs. For the first time in six years, Ford, GM and Chrysler are all operating at a profit.

In fact, last week, GM announced its best quarter in over 11 years. And most importantly, American workers are back at the assembly line manufacturing the high-quality, fuel-efficient, American-made cars of tomorrow, capable of going toe to toe with any other manufacturer in the world.

Just two years ago, this seemed impossible. In fact, there were plenty of doubters and naysayers who said it couldn’t be done, who were prepared to throw in the towel and read the American auto industry last rites.

Independent estimates suggested, however, that had we taken that step, had we given up, we would have lost more than 1 million jobs across all 50 states. It would have also resulted in economic chaos, devastating communities across the country and costing governments tens of billions of dollars in additional social safety net benefits and lost revenue. 

That wasn’t an acceptable option –- to throw up our hands and to quit. That’s not what we do. This is a country of optimistic and determined people who don’t give up when times are tough. We do what’s necessary to move forward.

So these last two years haven’t been easy on anybody. They haven’t been without pain or sacrifice, as the tough restructuring of GM reminds us.

And obviously we’ve still got a long road ahead and a lot of work to do -– to rebuild this economy, to put people back to work, to make America more competitive for the future and to secure the American Dream for our children and our grandchildren.

But we are finally beginning to see some of these tough decisions that we made in the midst of crisis pay off. And I’m absolutely confident that we’re going to keep on making progress. I believe we’re going to get through this tougher and stronger than we were before.  Because just as I had faith in the ability of our autoworkers to persevere and succeed, I have faith in the American people’s ability to persevere and succeed. And I have faith that America’s best days and America’s — and American manufacturing’s best days are still ahead of us.

Finally, I just want to embarrass a couple of people. Ron Bloom and Brian Deese are key members of the team that helped to engineer this rescue of GM and Chrysler. So it had not been for these two gentlemen, a whole lot of people might be out of work right now. We are very proud of them and I figured that I’d go ahead — you can see they’re all looking sheepish — point them out to you. So thank you very much, everybody.

(Malcolm is the Top of the Ticket blogger at latimes.com/ticket )

Update (AP): Here’s the clip. The good news? We’ve only lost $4.5 billion on share sales thus far.

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Still won’t buy a GM or Dodge.

ladyingray on November 18, 2010 at 7:15 PM

I will only buy Toyota cars. Have been since 1987. Camrys are the best.

OmahaConservative on November 18, 2010 at 7:17 PM

So it had not been for these two gentlemen, a whole lot of people might be out of work right now.

It’s not hard creating jobs while going into debt , creating jobs while making profit is a different game.

the_nile on November 18, 2010 at 7:18 PM

And how does he explain the continued existence of Ford without the consent assistance of the omnipotent Obama administration?

Abheration? Glitch? Outside, anonymous donors? Bush?

‘Cause the way he described it, there ain’t no way Ford made it without divine progressive intervention.

BobMbx on November 18, 2010 at 7:19 PM

Chryslers and GM?………not happening for our house.

BTW, Just when you think the DOTUS can’t do more to accelerate the decline of America……

http://www.politico.com/news/stories/1110/45371.html

PappyD61 on November 18, 2010 at 7:20 PM

I was a Chevy man in my old life. No more, never.

OmahaConservative on November 18, 2010 at 7:20 PM

Did he say cars? When he says “cars” all that I can think of is Slurpees?

who’s thirsty?

ted c on November 18, 2010 at 7:21 PM

Ford owner Obama happy about GM anyway

What does this mean?

portlandon on November 18, 2010 at 7:21 PM

If I have to read anything longer from BHO than I quit, I’m not going to read it.

madmonkphotog on November 18, 2010 at 7:22 PM

What does this mean?

portlandon on November 18, 2010 at 7:21 PM

You’d make a good Lutheran with that language.

OmahaConservative on November 18, 2010 at 7:23 PM

So it had not been for these two gentlemen, a whole lot of people might be out of work right now.

Meaning, I suppose, that the former employees of the cancelled franchises and are:

1) Not people or,

2) Not counted among the unemployed.

I guess if you lost your job in the auto industry, you’re what he means when he says “sacrifice”.

BobMbx on November 18, 2010 at 7:23 PM

by Andrew Malcolm

Dude. Awesome.

amerpundit on November 18, 2010 at 7:25 PM

So LOSING $3.5 BILLION is a ‘success’ in Barry’s world?

GarandFan on November 18, 2010 at 7:25 PM

Ooops! Make that $4.5 BILLION – which I suppose is an even BIGGER success.

GarandFan on November 18, 2010 at 7:26 PM

On a side note, I don’t know if anyone here watched CNBC today, but good grief! You would almost think that GM was providing TSA style love pats under the on air “talent’s” desks! It was the most shameful display of cheerleading I’ve ever seen.

Weight of Glory on November 18, 2010 at 7:27 PM

What does this mean?

portlandon on November 18, 2010 at 7:21 PM

Obama bought a Ford two months before he got Secret Service protection. So he wants Americans to bailout GM and buy its cars when even he turned to Ford for his family’s transportation.

amerpundit on November 18, 2010 at 7:27 PM

Obama obviously didn’t get the focus group report on his successful/s policy statements.

During the run up to the 2010 election, voters in focus groups “would get mad” when confronted with the administration message that its policies were working, Mr. Carville said. The CNN commentator and Tulane University professor ran President Clinton’s 1992 election campaign.

INC on November 18, 2010 at 7:27 PM

75 thousand new jobs? Where?

Skandia Recluse on November 18, 2010 at 7:28 PM

Hopey looks like he had more grey hair dyeing done!!

canopfor on November 18, 2010 at 7:31 PM

Obama bought a Ford two months before he got Secret Service protection. So he wants Americans to bailout GM and buy its cars when even he turned to Ford for his family’s transportation.

amerpundit on November 18, 2010 at 7:27 PM

Thank you. I didn’t know Barry had bought a Ford.

He seems more of a Volvo or Saab purchaser.

portlandon on November 18, 2010 at 7:31 PM

And that’s a very good thing. Last year, we told GM’s management and workers that if they made the tough decisions necessary to make themselves more competitive in the 21st century — decisions requiring real leadership, fresh thinking and also some shared sacrifice –- then we would stand by them.

Grrrrrr…..Imagine that I’m at home right now, cursing away and not commenting on a blog, trying desperately to remain civil and civilized. I am so ****ing sick of this shared sacrifice crap. Obama didn’t sacrifice squat. The UAW didn’t sacrifice anything. The Senior bondholders sacrificed everything on their behalf. Many car dealerships sacrificed their businesses. And the taxpayers are stuck with the Chevy Volt and a whole lotta debt. And we’re all still stuck with the worst freaking president ever.

Buy Danish on November 18, 2010 at 7:33 PM

And just how well is Chrysler doing?

Chrysler. C-H-R-Y-S-L-E-R. It’s an Italian car company.

BobMbx on November 18, 2010 at 7:34 PM

The bond holders and share holders of the ‘old’ GM are still dancing in the streets too.

Oh wait…..

GnuBreed on November 18, 2010 at 7:34 PM

(GM).
Current Stock Price/

Last Trade: 34.19

(NYSE: GM )
After Hours:: 0.00 0.10 (0.29%) 04:00

http://uk.finance.yahoo.com/q?s=GM

canopfor on November 18, 2010 at 7:34 PM

I hate when he always talks about the middle class. A thriving auto industry benefited all Americans. Almost everyone thinks they’re in the middle class. What class are you? I’m lowerer than low, thank-you.

Democrats used to talk about working Americans because they were associated with welfare giveaways. Now its middle class, class, class. I don’t like the word. It’s too Marx for me.

No Niks on November 18, 2010 at 7:36 PM

My ranch in Texas and my farms in Florida just bought 40 new trucks. All Fords, thank you very much, Mr. Obama. No Chevys or Dodges here. Not now, not ever.

TXUS on November 18, 2010 at 7:36 PM

Video: Wilson Says GM Bailout May Have Averted Ford Liquidation
=============

Nov. 17 (Bloomberg) — Harry Wilson, former adviser to President Barack Obama’s Auto Task Force, discusses General Motors Co.’s initial public offering and the effects of the U.S. government bailout of the automaker. GM’s IPO may raise $15.8 billion after the U.S. Treasury and United Auto Workers’ retiree health-care trust increased the shares they are selling, according to a regulatory filing. Wilson talks with Betty Liu on Bloomberg Television’s “In the Loop.” (This is an excerpt of the full interview. Source: Bloomberg)

http://myprops.org/channelcontent/Video-Wilson-Says-GM-Bailout-May-Have-Averted-Ford-Liquidation/

canopfor on November 18, 2010 at 7:39 PM

Too funny. I am getting a Chevy Volt ad in the middle of this post.

-2011 Motor Trend Paid Advertiser of the Year-

Fallon on November 18, 2010 at 7:45 PM

And we’re all still stuck with the worst freaking president ever.

Buy Danish on November 18, 2010 at 7:33 PM

Buy Danish:He sure does like using that ‘Middle Class’
Talk’n point phrase!:)

canopfor on November 18, 2010 at 7:47 PM

General Motors relaunched itself as a public company, cutting the government’s stake in the company by nearly half. What’s more, American taxpayers are now positioned to recover more than my administration invested in GM.

Cavuto pointed out just another Obamism here, note that he said “recover more than MY administration invested”. He’s not counting the additional money thrown away while President George W. Bush was in office. The real concern should be what the American government invested. History starts with Obama!

slickwillie2001 on November 18, 2010 at 7:50 PM

BTW, Just when you think the DOTUS can’t do more to accelerate the decline of America……

http://www.politico.com/news/stories/1110/45371.html

PappyD61 on November 18, 2010 at 7:20 PM

PappyD61:It would be nice,if Obama would tell the American
people,that this is another goal of his.That image
looks as if,the guy was a former TSA Agent,by his
hand gesturing!!:)

canopfor on November 18, 2010 at 7:50 PM

We lost $4.5B. Since the sale is zero sum, who gained $4.5B?

unclesmrgol on November 18, 2010 at 7:55 PM

But Ford has been showing a profit for a long time now, with no bailout.

Speakup on November 18, 2010 at 7:55 PM

Still won’t buy a GM or Dodge.

ladyingray on November 18, 2010 at 7:15 PM

Never…ever.

BigWyo on November 18, 2010 at 7:55 PM

When he was running for election, he owned a Chrysler 300. When did he buy a Ford?

unclesmrgol on November 18, 2010 at 7:56 PM

Let us see…

Investment the union goons made to take over GM = $0.00

Return on investment thanks to Obowma and a media that wouldn’t know Democrat corruption if it felt it’s junk in an airport = $8 Billion

… Cash going to Dems for the 2012 election cycle = Bottom less.

Seven Percent Solution on November 18, 2010 at 8:05 PM

you can really tell he’s basically a union rep.

workers this, workers that….middle class=union workers to him

but the big deal is will he pivot this into more bailouts of states?…it worked with GM…why not CA? oh, and IL?

you know he wants to do it. pay them back for there love.

just enough to get thru the tough times…say 30 or 40 billion…at least for now.

PIMCO CA Muni Fund now yields 9 percent…that used to be called junk. symbol PCK

r keller on November 18, 2010 at 8:05 PM

But Ford has been showing a profit for a long time now, with no bailout.

Speakup on November 18, 2010 at 7:55 PM

A Tale of Two Car Dealerships

unclesmrgol on November 18, 2010 at 8:09 PM

bomma needs to get the first armored Electric Edsel and have a fleet of Yugo’s for chase cars.
We drive an old chebby and will run it into the dirt then maybe some good used non gummit motors iron.New is so uncool now that we are on the road to prosperity with the majik leader.

Col.John Wm. Reed on November 18, 2010 at 8:10 PM

We lost $4.5B. Since the sale is zero sum, who gained $4.5B?

The unions.

4of8 on November 18, 2010 at 8:15 PM

… Cash going to Dems for the 2012 election cycle = Bottom less.

Seven Percent Solution on November 18, 2010 at 8:05 PM

Seven Percent Soultion:Reading SPS’s posts,

!!!!!!!!!!!!!!PRICELESS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:)

canopfor on November 18, 2010 at 8:28 PM

When do I get MY freakin money back????? Oh yeah….wait….it belongs to Obummer not me. I.JUST.PAID.FOR.THE.BAILOUT.! Man, I H8 this guy…..good thing is I own a VW….heh heh

sicoit on November 18, 2010 at 8:28 PM

What profit?Spend $50 bil,get back $23bil.Doesn’t sound profitable to me.No matter where the stock price goes,the gov’t.only gets the initial offering price.
Does anyone actually think GM is going to became profitable in the near future?Dream on.
We’ll be bailing GM out again within 10 years,or they will be filing for bankrupcy protection.

DDT on November 18, 2010 at 8:53 PM

And the taxpayers are stuck with the Chevy Volt and a whole lotta debt. And we’re all still stuck with the worst freaking president ever.

Buy Danish on November 18, 2010 at 7:33 PM

Plus, the taxpayers were not allowed to participate in this IPO. Boycott GM!

p.s. love it when you’re mad.

Schadenfreude on November 18, 2010 at 9:07 PM

the proud symbol of America’s manufacturing might for a century

I would trade a symbol for a job any day.

PattyJ on November 18, 2010 at 9:44 PM

Anybody here heard of the 3 year moratorium on the gubmint being able to sell? Didn’t think so.

The gubmint can’t sell when the stock is inflated, like today! They can’t sell their stock for another 3 years!

Wonder what the price will be then? Today Ford is goin’ for $16! They inflated the price on GM to $33!

Ya think it will stay there?

AllosaursRus on November 18, 2010 at 10:10 PM

Yhey pumped 65 billion into the cars. They screwed the bondholders. Obama lies and people report what he says and don’t fact check it.

seven on November 18, 2010 at 11:19 PM

Obama makes war on the middle class whilst claiming to care about them soooo much.

Army Brat on November 19, 2010 at 12:45 AM

Anybody here heard of the 3 year moratorium on the gubmint being able to sell? Didn’t think so.

The gubmint can’t sell when the stock is inflated, like today! They can’t sell their stock for another 3 years!

Wonder what the price will be then? Today Ford is goin’ for $16! They inflated the price on GM to $33!

Ya think it will stay there?

AllosaursRus on November 18, 2010 at 10:10 PM

It will very likely be higher. GM is doing very well in emerging markets. Canada opted out of the IPO sale because they wanted to make more money on their tranche. The US should make all the money back eventually.

lexhamfox on November 19, 2010 at 3:05 AM

p.s. love it when you’re mad.
Schadenfreude on November 18, 2010 at 9:07 PM

XXXOOO

Buy Danish on November 19, 2010 at 7:17 AM

Taxpayers gave GM $50 billion, and even after the stock sale, GM still owes taxpayers $25 billion. How is that a “profit” for taxpayers? We’re still being screwed, and we’re still being lied to about it.

AZCoyote on November 19, 2010 at 7:32 AM

I still don’t get how selling us something WE OWN is in any way making us a profit. My microwave is probably worth $20 but if I sell it to myself for &30 did I make $10? We are paying twice!!!

HAExpert on November 19, 2010 at 10:34 AM

It will very likely be higher. GM is doing very well in emerging markets. Canada opted out of the IPO sale because they wanted to make more money on their tranche. The US should make all the money back eventually.

lexhamfox on November 19, 2010 at 3:05 AM

-
From here…

New model making in automotive industry involves complex phases of development program and would require long lead-time before the model introduction. Globally, the lead-time average from model fix to the start of production is 27 months, however, for this particular model under study, it was planned for 36 months. The program was totally managed by the company’s engineers started from the concept stage until the product rolled out. Although the planning was 9 months above the global average, the actual lead-time taken was 40 months. The problems that related to the delays of the project were mostly related to technical issues, management responsibility, quality and third party involvement.

Though it’s an ‘in general/on average’ paper… one specific project seems to be the central example (not named).
-
The cars they will be selling next year, were locked down as solid concepts 2 years ago. Nothing that has be sold since the bailout is from the ‘new era at GM’.
-
The Volt will go down as a great idea that did not meet it’s potential. I love that designs concept, however wait until the electronics failures start… These are very complex critters and GM has not been at the top of their game for decades. Complex is hard to do right even when your well funded and well oiled (preferably not after lunch with the oiled thing though).
-
And here’s an anecdotal jab at the union/Obama worshiper mentality… And how that will not save GM…
-
My partner at work use to be in an auto industry union and he came into some cash last year. He started looking at new cars. For about a week he had the GM something or other on his desk, computer, and conversations… constantly.
-
The quote that cracked me up was the one he said while drooling over some GM model on his computer screen… ‘Um, um, um… GM finally got it right’… (yes he really said ‘Um, um, um’).
-
Well by that time GM was government owned. And this guy had told me the day after Obama’s election that I didn’t understand how important Barry’s winning was to black people… Yes my partner is a black guy. Did I think he was goo-goo for GM because of Obama…? In fact yes… that was the reason for the Um, um, um…
-
Now for the punch line… Within a week or 2 of the drooling ‘Um, um, um’ comment… he bought a new Kia or some such Korean made car. I guess the Koreans got righter than GM.
-
If GM couldn’t sell him then, how will they ever sell him… and his buddies?
-
Decades of bad habits and poor engineering will not be corrected over night just because a load of cash was poured into the company. I would not buy this company‘s anything… It’s a bad risk. Hell… I’m still waiting for them to release the Unicorn… One HP, a very unique horn, comes in white, and impresses the weak minded.
-
Sales pitch… It’s the car Obama wants you to drive buy.
-

RalphyBoy on November 19, 2010 at 12:00 PM

Sales pitch… It’s the car Obama wants you to drive buy.

-
Missed a spot…

RalphyBoy on November 19, 2010 at 12:09 PM