Government Motors -- China Motors

GM     Sales: Bloomberg report.


79     % of GM’s sales last month was government purchased, during 2012 Remember     how Obama keeps telling us how he saved GM, and how our economy is getting     better, it seems the car company he bought is being saved by Govt employees     using our tax money to buy new cars. GM’s sales figures for last month were     the best since 2008 , up 16% for the month of June.     YIPPEE!

Well,     wait just a minute. It seems that those rosy sales figures are due primarily     to a 79% increase in fleet sales to the U.S. government in     June.
That’s right. Our tax dollars are being used to pump up GM’s     sales figures ahead of next month’s quarterly report so that our Dear Leader     can point to "Government Motors" as a huge success. The incestuous     relationship between GM, the UAW and the Regime has never been more     glaringly apparent.
I’ve said it before and I’ll say it again. GM is     unsustainable without government subsidies and will ultimately go bust     again, taking billions of taxpayer dollars down with it .We bailed out     General Motors to the tune of $50 billion. $30 billion of this is     effectively a loss, mostly sunk into fattening the United Auto Workers     union—plus fierce fierce Obama supporters—while the actual bondholders were     shown the elevator shaft. 

Meanwhile,     as News Busters reports, “We the Taxpayers are still stuck holding 500+     million shares of GM stock. Which we need to sell at $53 per share. Which     debuted post-bankruptcy     at $33 per share.. And which is currently trading at just over $20 per.     Meaning we’ll lose about $15 billion.”But it gets better. Despite the     overwhelming     negatives, the tiny bright spot of positive June sales numbers is being     heralded by Obama and the leftist press as proof the auto bailout was a     “success.” Obama is now campaigning on the “success” of – the government     buying cars from…the government’s car company. with our     money.

Americanvision     says That’s like you setting up a lemonade stand for your kids. You buy them     the lemons, sugar, cups and pitchers – and then buy most of the lemonade     yourself.

The     pressure is on Government Motors to appear financially strong as this may be     the last earnings report before November elections and sets the stage for     how “successful” GM is. One of GM’s past tricks to help fudge earnings     numbers has been to stuff truck inventory channels. Old habits die hard at     GM. According to a Bloomberg report, “GM
said inventory of its     full-size pickups, which will be refreshed next year, climbed to 238,194 at     the end of June, a 135 days’ supply, up from 116 days at the end of May.”     135 days’ supply is huge, the accepted norm is a 60 day supply. The trick     here is that GM records revenue (probably at list prices for costing and     sales number)  when vehicles go into dealerships to be floor planned.    

We  are being fed a numbers game.

As if that is not enough check out this site

I wonder how many U.S. jobs this is creating.  It sounds like they are all in China and the unions have been caught napping.