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Down East Labs 217
09-04-2012, 09:57 AM
I found this entertaining and a good read.

Have a great day

Richard

79% of GM’s sales last month was ‘government purchased’

July 12th, 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. 79% of GM’s sales last month was government purchased.

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 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—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. Which debuted post-bankruptcy at $33 per. 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 when vehicles go into dealership

ARay11
09-04-2012, 10:14 AM
and you know who procured those vehicles for our govt fleets..... the GSA of course. Hope they have fun at their next convention.

menmon
09-04-2012, 10:15 AM
At least they are buying American:cool:

M&K's Retrievers
09-04-2012, 10:48 AM
At least they are buying American:cool:

How not buying at all? I can't afford it!

huntinman
09-04-2012, 11:24 AM
I wouldn't buy a GM product. When they became Gov't motors, we got rid of my wifes GM car and we bought her a loaded Explorer. I drive an F-150 Supercrew. I'll stick with Ford...

Brandoned
09-04-2012, 12:40 PM
At least they are buying American:cool:

How many of those do you think are actually being built in America?

menmon
09-04-2012, 02:23 PM
How many of those do you think are actually being built in America?

All of them

zeus3925
09-04-2012, 10:36 PM
And my nephews are screwing them together in a GM plant in Flint!

Brandoned
09-05-2012, 05:34 AM
All of them

Now that's funny!

Blackstone
09-07-2012, 11:03 PM
I don’t know where the author of this article got his numbers, but they are incorrect. GM’s total sales for June 2012 were 248,750 vehicles. Of those, 169,019 were Retail Sales. That leaves 79,731 for Total Fleet Sales. That makes Fleet Sales 32% of Total Sales. Total Fleet Sales numbers include Commercial Fleet, Commercial Non-Fleet (Small Business Fleet), Rental, and Government Fleet.

Government Sales include Federal, State and Local Municipality Sales. According to GM’s financial reporting, Total Government Sales were less than 5% of Total Sales for the month of June. Which means, less than 14,300 sales were to government entities. According to a GM spokesperson, the majority of government sales increases were attributed to state and local governments as opposed to the federal government.

Now, I work for GM, so you may think I am biased. But, this is the information reported to the SEC by GM, so I am pretty certain it is accurate. All this information is also available on the internet and public filings, if the author had taken the time to look, and had been trying to be honest, he would have known Government sales (Federal or otherwise) did not account for 79% of GM’s June sales.

zeus3925
09-09-2012, 08:36 PM
The right wing propaganda sheets don't give a rip whether they're accurate or not. Blackstone, thanks for the fact check.

paul young
09-10-2012, 04:38 AM
Facts seem to be in short supply lately, from either party. Must be something in the air........-Paul

duckheads
09-10-2012, 10:19 AM
They could not make these kind of mistakes without the taxpayer's money. How long have they been making bad management decisions? If I am selling a product and losing money I am out of business. Government should not get involved in deciding who should stay in business as it just breeds this type of stupidity! You manufacture a product that the consumer wants not what the government wants you to sell! How long until they are ready to go belly up again? Then what give them more taxpayer money so they can continue to make bad decisions?




Insight: GM's Volt - The ugly math of low sales, high costshttp://finance.yahoo.com/news/insight-gms-volt-ugly-math-041323478.html

ARay11
09-10-2012, 10:51 AM
Facts seem to be in short supply lately, from either party. Must be something in the air........-Paul

;)two thumbs up!

Gun_Dog2002
09-10-2012, 12:07 PM
Lets not confuse politics with facts.

/Paul

Blackstone
09-10-2012, 12:50 PM
They could not make these kind of mistakes without the taxpayer's money. How long have they been making bad management decisions? If I am selling a product and losing money I am out of business. Government should not get involved in deciding who should stay in business as it just breeds this type of stupidity! You manufacture a product that the consumer wants not what the government wants you to sell! How long until they are ready to go belly up again? Then what give them more taxpayer money so they can continue to make bad decisions?




Insight: GM's Volt - The ugly math of low sales, high costshttp://finance.yahoo.com/news/insight-gms-volt-ugly-math-041323478.html

Are you aware that all hybrids & electric vehicles by all manufacturers have lost money for several years after they were introduced? Prius is now 13 years old, and it is just now starting to turn a profit for Toyota. The trick manufacturers use is to charge as much as they can for the vehicle without running off too many buyers, then spread the remainder of the cost out over the other models they produce. In that way, they recover the cost of producing the vehicle even if the vehicle is not profitable. Surely, you didn’t think any manufacturer could stand that kind of loss on every hybrid or electric vehicle they produce.

Cody Covey
09-10-2012, 01:50 PM
Are you aware that all hybrids & electric vehicles by all manufacturers have lost money for several years after they were introduced? Prius is now 13 years old, and it is just now starting to turn a profit for Toyota. The trick manufacturers use is to charge as much as they can for the vehicle without running off too many buyers, then spread the remainder of the cost out over the other models they produce. In that way, they recover the cost of producing the vehicle even if the vehicle is not profitable. Surely, you didn’t think any manufacturer could stand that kind of loss on every hybrid or electric vehicle they produce.
The difference is people actually buy the prius....

caryalsobrook
09-10-2012, 06:35 PM
Are you aware that all hybrids & electric vehicles by all manufacturers have lost money for several years after they were introduced? Prius is now 13 years old, and it is just now starting to turn a profit for Toyota. The trick manufacturers use is to charge as much as they can for the vehicle without running off too many buyers, then spread the remainder of the cost out over the other models they produce. In that way, they recover the cost of producing the vehicle even if the vehicle is not profitable. Surely, you didn’t think any manufacturer could stand that kind of loss on every hybrid or electric vehicle they produce.

If you are correct, that is SOME TRICK. the TRICK is that if they perform mny of those tricks, they will wind up broke JUST LIKE GM DID!!!!!!

Blackstone
09-11-2012, 12:58 AM
If you are correct, that is SOME TRICK. the TRICK is that if they perform mny of those tricks, they will wind up broke JUST LIKE GM DID!!!!!!

Not really. The manufacturer breaks even on the cost. They pass the additional cost on to you when you buy their other vehicles.

caryalsobrook
09-11-2012, 05:55 AM
Not really. The manufacturer breaks even on the cost. They pass the additional cost on to you when you buy their other vehicles.

Now I see how I got it wrong. GM didn't go broke by selling vehicles at a price lower than the cost of producing them. THEY WENT BROKE BY SELLING THEM AT A PRICE HIGHER THAN THE COST OF PRODUCING THEM!! That REALLY makes good sense.:razz:

Franco
09-11-2012, 05:57 AM
I have a hunch that when the August numbers come out that the Big 3 will see some records fall. That is if the rest of the country experiences the sales volume of our local dealers. Trucks sales were through the roof and I'm not talking about fleet sales. Dodge trucks are kicking butt and taking no prisoners! I still don't agree with the bailouts as a restructuring out of bankruptcy would have done the same thing without putting tax payers on the line for the UAW.

gmhr1
09-11-2012, 09:38 AM
http://tucsoncitizen.com/usa-today-news/2012/09/10/gm-denies-losses-of-49k-on-every-volt/


GM denies they lose 49K on every volt sold

Uncle Bill
09-11-2012, 01:18 PM
Reckon they'll need to deny some more.

UB

GM Loses Almost $50,000 On Each New Volt Built

http://sayanythingblog.com/files/2012/04/Obama-Chevy-Volt-300x168.jpg






Written By:
Rob Port (http://sayanythingblog.com/entry/author/admin/)
Sep 10, 2012



This is what happens when businesses act to satisfy government policy instead of actual market demand.
At this rate, GM selling more Volts just means more losses. They’d be better off selling fewer Volts.

(Reuters) (http://www.reuters.com/article/2012/09/10/us-generalmotors-autos-volt-idUSBRE88904J20120910) – General Motors Co sold a record number of Chevrolet Volt sedans in August — but that probably isn’t a good thing for the automaker’s bottom line.

Nearly two years after the introduction of the path-breaking plug-in hybrid, GM is still losing as much as $49,000 on each Volt it builds, according to estimates provided to Reuters by industry analysts and manufacturing experts.

Cheap Volt lease offers meant to drive more customers to Chevy showrooms this summer may have pushed that loss even higher. There are some Americans paying just $5,050 to drive around for two years in a vehicle that cost as much as $89,000 to produce.

And while the loss per vehicle will shrink as more are built and sold, GM is still years away from making money on the Volt, which will soon face new competitors from Ford, Honda and others.


Perhaps the most absurd part of this grotesque spectacle of waste is that even as the federal government subsidizes the production of these very expensive “green” cars in a multitude of ways, from subsidies for the manufacture of the batteries they use to tax credits for those purchasing them, there exists on the market cars that are every bit as fuel efficient as the Volts which have a fraction of the price tag.

According to General Motors, the range of a Chevy Volt on a 9.7 gallon tank of gas is 344 miles, which works out to about 37mpg.
That’s impressive, but the Honda CR-Z also gets 37mpg with a traditional gasoline engine and costs just under $20,000 brand new compared to the Volt’s $31,465 price tag. Even if you subtract the $7,500 federal tax credit you can take from the price of a Volt, the CR-Z is a better price for an equivalent car.

The Volt doesn’t sell because it doesn’t make sense. The market it appeals to are the sort of people who want to buy it to make a political statement as opposed to people trying to shop smart.

To the extent that there is a market in America for fuel-efficient vehicles, the auto makers are already serving it. Vehicles, with standard gasoline engines, are on the market which are every bit as fuel-efficient as the Volt is but cost far less.

The Volt is a bad deal for General Motors, a bad deal for taxpayers and a bad deal for consumers. But the government likes them, so they’re on the market.