A Green Detroit? No, a Guzzling One (SWWE)

Gas guzzlers - Picture courtesy savingadvice.com

WHEN President Obama announced in March 2009 that his administration would guide General Motors and Chrysler through a government-financed bankruptcy, he made it clear that the taxpayers’ $80 billion would buy nothing less than a sweeping transformation of the entire auto industry. [Continue Reading]

Taking Taxpayers for a Ride

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GENERAL MOTORS raised more than a few eyebrows last week by announcing plans to repay what it describes as $6.7 billion in outstanding loans to taxpayers. So provocative was this announcement that it all but overshadowed the real news of the day: G.M. had lost $1.2 billion since exiting bankruptcy in July, and its fourth-quarter results were expected to be worse.

The company’s chief executive, Fritz Henderson, called the repayment plan “a personal commitment.” The Obama administration, wardens of the 60 percent taxpayer stake in the company, declared itself “encouraged” by the news. Many commentators followed suit. But in the premature rush to herald the beginning of the end of the government’s involvement in the auto industry, a number of key considerations were left out. [Continue Reading]