If the Treasury is able to sell the rest of the taxpayers’ GM shares at the same price that it bought them from GM, then the Obama administration will have recouped just $34 billion of the $51 billion the federal government spent on the car company. That’s a $17 billion loss.
Throw in the $14 billion the federal government lost bailing out Ally Financial, formerly known as GMAC (GM’s technically independent financing arm), and Obama’s total GM losses reach about $31 billion.
What did this get in return? Well, it didn’t get us a resurgent company, no matter what Obama campaign press releases say. As recently as 2006, GM had almost a quarter — 24 percent — of the domestic auto market. That has now fallen to about 16 percent, down from 18 percent a year ago and just barely above Ford and Toyota. At this rate, Obama could round out his second term by giving it another bailout.
It didn’t turn around America’s manufacturing sector either. Since July of this year, the U.S. economy has lost, not gained, 26,000 manufacturing jobs.