GM CEO Burst into Flames at Volt Meeting- Almost

http://finance.townhall.com/columnists/johnransom/2012/01/27/gm_ceo_burst_ into_flames_at_volt_meeting_almost
The first rule of taking public money is that by doing so you invite
public scrutiny.
General Motors CEO Daniel Akerson should have acknowledged that when Congress raked him over the coals because his government-designed flagship car, the Chevy Volt, has the habit of bursting into flames after accidents.
But instead he chose to imitate his own boss, car-designer-in-chief Barack Obama, and fire off angry, sulking whines that the public didn’t appreciate how great the car is.
“Volt is among the safest cars on the road, earning 5 Stars for occupant safety (with the NHTSA) and a Top Safety Pick from the Insurance Institute for Highway Safety,” he complained in a statement to Congress.
Had he left it at that, all would have been well.
Put then he had to go all incendiary.
“Unfortunately, there is one thing we did not engineer,” he continued. “Although we loaded the Volt with state-of-the-art safety features, we did not engineer the Volt to be a political punching bag.”
Sure he did. Or, more precisely, he should have.
The moment GM asked the US taxpayers to save their company and to save their union, GM made the company a target, and rightly so. If they didn’t design everything after that to be a political punching bag, especially the car they let the president of the United States design, they get an “F” in engineering.
If they’d like, the taxpayers- you know the rest of us that didn’t get a bailout- we can put the company right back the way we found it.
Because right now, legally, General Motors operates as a subsidiary of the US Department of the Treasury, not as a normal public company. US taxpayers and their representatives in Congress have every right, and every obligation to question every penny that GM spends.
As to being the safest car on the road: I suppose if you only measured car safety by gross weight on the road, it might qualify.
To date, the company had sold only about 6,800 of the Chevy Volts. The cars are so safe because they are so rare. They are even safer, in fact, because GM has offered to replace or buy back each one of the cars because of the fire hazard. Bloomberg reports “Nissan has said that it has had no reports of fires in its Leaf electric car. Tesla also said it hasn’t had a fire in its Roadster electric car.” Toyota Prius has had some fire incidents, but there are also 3 million of them on the world’s roads- and somehow, miraculously Toyota didn’t have to rely on taxpayer dollars to pull that off.
As to the money: GM has now slid to a closing price of $24.74 as of January 26, 2012, for an additional loss of $13 billion since the Initial Public Offering price of $33. The company trades at 5.4 times its earnings while non-bailout Ford Motor trades at 7.76 times its earnings. In other words, Ford enjoys a 43 percent premium to GM in the market even though it didn’t enjoy the preferential credit advantage that US government guaranteed financing confers on GM.
Toyota? It trades at 45 times its earnings, even after a tsunami knocked it about last year. Guess what? Toyota doesn’t operate as a subsidiary of the US Department of the Treasury.
I wonder what the stock market understands that Ackerson, Obama and Geithner don’t?
Plenty, I am sure.
Because GM doesn’t define success the way the rest of us in the marketplace do now.
They have a whole other ethos, inspired by Obama: “The Volt’s technology and its recent accolade from Consumer Reports make the Volt a marketing tool for Chevy,” said Alan Batey, vice president for Chevrolet U.S. sales, according to Bloomberg “This vehicle is about more than how many we sell,” Batey said. “This vehicle is a magnet around everything we are trying to do to showcase our brand.”
Ah, the old magnet ploy.
Gosh. Sales have become so passé as a way of measuring success
It’s nice to know from the guy in charge of sales at GM that actual sales really don’t matter, in the same way that Democrats want us to believe that Obama’s actual job performance doesn’t really matter either.
It makes sense, though, when you think about it.
The Volt and Obama: two brands best known for crashing and burning everything around them.
Akerson not included.
--
Obama's black racist USAG appointee.

Eric Holder, racist black United States Attorney General drops voter
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On 1/29/12 7:05 PM, Leroy N. Soetoro wrote:

Truth DEsign was started long before govt.stepped in. after accidents no crash tests yes (2) WEEKS after test.

reading more into the hearing than there was

This is a compalint it did pass all safety tests

Has it not become a republican political punching bag.

Source of the govt desiging autos for GM

Maybe they should have left it fail closing 5000 dealers and costing 100s of thousands of jobs and lost pensions. Or let the chinese buy it and take more money out of the country

The Govt own less than 50% of stock and dosnt have anyone dealing with day to day operations

ONe of the safest, no worse or better than anyone else never claimed different

HOw many gasoline powered cars had fires last year

GM closed 4 brands and still sold the most cars in 2011 they also showed a profit of 7 billion ( is this bad)

Toyota received low intrest loans for govt and govt assistance in keeping other brands out of japan. When Toyota first came to this country it receive many loans for state and local govts and tax incentives from the federal govt.

so many things in this article that were figmnets of imagination that it cast doubt on the rest of the story.
If you hate something Hate it but tell the whole story if this was toyota who recalled 13million cars last year Gm 500K it would be all peaches and cream
I am an American retired GM salaired employee, and i dont want to see anymore jobs go to japan or China or Korea or anywhere else.
Instead of complaining about the bailout money, how about the 90 billion that passed thu AIGs hands and will never be repaid. The govt hands out money to lots of companys every year. How much did Tesla get how much did the solar panel company get that was completly lost., Thats enough for now, i will probably get bashed for the next w few weeks so have fun.

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On 30/01/2012 7:12 AM, Tom wrote:

Government Motors made a huge tactical mistake. Many like me will never buy GM/UAW/CAW again. In fact my next purchase preference is going to be offshore as many domestic cars, even with Japanese names are CAW/UAW parts.
GM underestimated the brand damage by using the taxpayers for bailouts. I would have had more respect for them if they did chapter 7 and were bought on the auction block and reorganized from ground up.
It didn't save jobs, no more or less cars would have been consumed. GM going down likely would have resulted in less layoffs at Ford or others as they pick up market share. GM wouldn't have died, but the whole business could have undergone total forced changes with no sacred cows or screwed up management.

ALL bailouts are bad. Just shifted the screwing to the grand kids as debt-tax slavery for corruption today. Scary part, nothing was really fixed.

It is why government shouldn't ever be in business. Government cant do anything efficiently but for wasting.
--
No mater how liberally you try to ignore rationality and reality,
reality always wins in the end.
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That would be me.
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On 1/31/2012 8:14 PM, Shall not be infringed wrote:

I always bought GM, until Obama and now I will never buy another GM car.
I'll buy Ford or foreign.
--
A little Liberalism like a little alcohol, can be a good thing but when
either of them take control, they become self destructive.
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On 2/1/2012 10:16 AM, BeamMeUpScotty wrote:

I wonder if enough people both share your sentiments and actually act upon them to make a measurable difference in GM sales.
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wrote:

I bought GM for decades with my first in 1963. Last two cars in my driveway have been Hyundai, (well) built in the USA by American workers.
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wrote:

...
t.net ---
Right out of the gate with a lie... at least that's in front so no time has to be wasted on the rest.
Dave
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On Wed, 01 Feb 2012 11:16:54 -0500, BeamMeUpScotty

Go ahead.
Sabotage your own country.
Moron.
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wrote:

Buying an inferior product is patriotic?
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On 2/3/12 5:46 AM, Ed Pawlowski wrote:

Most would say it is dumb to buy an inferior product.
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If I'm spending boat loads of quality money, it's sure as hell going to be for a needed, good value quality product.
Sorry, I won't buy crap just to be politically correct.
Erik
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