GM, Ford & Chrysler Bailout Update

Government Motors isn’t a bit better since Obama took them over. Taxpayers have dumped over $50 billion into GM in the past few months with only negative results. In today’s world, $50 billion often gets overlooked but that comes out to around $30,000 per Iowa taxpayer. Some would think that isn’t too bad to save a company but the $50 billion has gone down a hole never to be seen again. No results, no jobs saved, just gone. And as a side note, with all the news of GM’s sales plummeting, they still sold in May alone almost 40,000 more vehicles than Toyota, 93,000 more than Honda, and 124,000 more than Nissan.

Ford on the other hand, who didn’t take a bailout and is the only one of the big three who isn’t in bankruptcy, is seeing their sales slip at a much slower pace. Compared to Honda and Toyota, Ford’s sales dropped almost half as much. Obviously any drop in sales is still bad news but the projections painted a much more pessimistic picture. I’ve never been a Ford customer and won’t buy a foreign car, so with Ford’s free market philosophy, I’ll be rewarding good behavior with my next car purchase.

And finally, the state of Indiana is challenging the constitutionality of using TARP funds to bailout automakers. According the Indiana’s Sec. of State, Richard Mourdock, “The administration misappropriated funds because it is stated in the law (TARP) this is for financial institutions. Is Chrysler a financial institution? Clearly not.” Currently the case is being heard in the Indiana Court of Appeals.

And just to lighten the mood, the following video from Bob & Tom’s radio show is pretty good.