Ed Morrissey and I have not agreed much on G.M. and the status of the bail outs that they received from the Government. But it appears, that for a change, I agree with Ed; mark your calendars, because this does not happen often. Ed reports over on HotAir, that General Motors has taken the money, that was funded by taxpayers; like Ed, Me, and yes, you and has spent it —- overseas. Needless to say, there some lawmakers that are not very happy about it either.
Specifically, at a time when the nation’s unemployment rate has soared to levels not seen in decades and GM is cutting thousands of U.S. jobs, the company’s CEO is considering spending millions from its U.S. coffers — fattened by $50 billion in taxpayer aid — on its overseas operations, a possibility that has outraged critics and lawmakers.
“I don’t think most Americans believe that when the taxpayer bailouts were happening it was intended for that purpose,” said Rep. Anthony Weiner, D-N.Y. “It was intended to protect the American economy — not take the money overseas.”
GM’s Chief Executive Fritz Henderson recently announced that the bailed-out automaker might use its U.S. funds to help restructure its European unit Opel, noting that the financing agreements with the Treasury for the $34 billion of bailout funds already spent allow GM to spend any subsequently earned funds as its executives see fit. Some $16 billion remaining after its bankruptcy has strings attached.
GM has other plans to expand its business abroad. In August, GM China announced a $293 million venture, while last month GM South Korea announced a new infusion of more than $400 million. The automaker also recently inaugurated a $300 million transmission plant in Mexico.
So, is General Motors making money here in America? Uh, No.
General Motors Co. says it lost $1.2 billion from the time it left bankruptcy protection through Sept. 30, far better than previous quarters and a sign that the auto giant is starting to turn around.
….and how’s that account going?:
Chief Financial Officer Ray Young cautioned that the second- and third-quarter figures don’t comply with U.S. accounting standards and shouldn’t be compared with previous earnings.
GM says it is re-valuing its assets and liabilities and should comply with accounting standards next year.
While I was at the doctors with my Dad earlier today; I happened to mention this to him and another gentleman that worked at the same plant as my Father. Needless to say, their reaction to this was less than, um, shall we say, happy? My Dad replied in terms that I cannot write on this blog. To say that both of those guys were a bit ticked, would be an understatement.
Ed Morrissey cracks:
Let’s get this straight. GM gets tens of billions of dollars in taxpayer money and gets an Obama-managed bankruptcy — and stops complying with accounting standards? My goodness, they really are Government Motors!
In the past, I have given Ed Morrissey a bit of a hassle when he would criticize the auto workers and to an extent the Auto Companies. However, I feel this criticism is much warranted. Call it a hunch, but I tend to believe that the U.A.W. and the workers at the various G.M. plants, especially the one’s here in Michigan; are not going to be too thrilled that the company is taking it’s money and investing overseas; instead of investing it here, where the jobs are actually needed. No matter how you slice it; this was an extremely boneheaded move on the part of General Motors and it deserves the criticism it receives from ALL quarters.