Here's a big part of GM's current success.
jd



 GM Sales: Bloomberg report.

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.American vision 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 dealerships.



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