VIdeo- President's Weekly Address: Good News from the Auto Industry

General Motors repays government loans, plans $120M investment in Detroit-area plant

KAPOW!!! Need some hot sauce to put on your "GM = GOVERNEMENT MOTORS**" signs you'll be eating, Tea Bagger Nation?

General Motors is investing $257 million at two of its factories that will build the next generation of the hot-selling midsize Chevrolet Malibu.

CEO Ed Whitacre was at the factory in Kansas City, Kan., on Wednesday to announce the investment and the company's early repayment of $6.7 billion in U.S. government loans.

GM's investment will be shared by the Fairfax Assembly Plant and the Detroit-Hamtramck plant, which is expected to see about $120 million. Fairfax makes the popular Buick LaCrosse and Chevrolet Malibu sedans. Both are selling well for GM and helping to generate cash.

The plant has been working around the clock to meet with demand. Meanwhile, a new Associated Press poll finds more Americans now say the U.S. makes better-quality vehicles than Asia does.

** Changed for Tea Bagger spelling

Chevy Volt hits assembly line with Obama Administration pledge to buy first 100

Putting your money where Detroit's mouth is.

Wednesday proved a day of firsts for the Chevy Volt: General Motors assembled the first Volt at its Detroit-Hamtramck plant, and the Obama administration pledged to buy the first 100.

(snip)

The news comes one day after rival Nissan announced its own upcoming electric, the Leaf, will cost around $25,000 after a federal tax credit. GM CEO Ed Whitacre in January suggested the Volt will sell for a profit "in the low 30s."

But regardless of the price tag, it appears General Motors' largest investor will help the company move product: The Detroit Free Press reports the Obama administration has pledged to "purchase the first 100 plug-in electric vehicles to roll of American assembly lines" this year. That means the Volt.

The administration also announced it will purchase more than 5,000 hybrid vehicles to replace aging units in its own fleet.

Palin lies about Obama "closing" Alaska dealership

I'm sure it's just a little fact free misstatement and the Governor will be clarifying any time now.

Gov. Sarah Palin’s new statement criticizing Barack Obama blames the president for the closure of a Soldotna car dealership.

But the dealership tells me it’s not closing.

Here’s the relevant part of the statement Palin put out through SarahPAC.

“Today, we learned that Obama’s decisions continue to impact Alaskans; while we as taxpayers now own General Motors, Obama closes another dealership – this time in Soldotna as more of Alaskans’ hard-earned money and jobs are lost to big government.”

Hutchings Chevrolet in Soldotna did decide to terminate its General Motors franchise agreements. But it’s not closing.

“We’re terminating our GM franchise but we’re going to remain open for parts and service and used car sales,” General Manager Shawn Hutchings said when I called him about it.

This actually isn’t new. The Peninsula Clarion ran a story back on May 10 saying the dealership was cutting its GM ties because the risk of remaining with GM was outweighing the potential reward.

Frank Rich: Even Rick Wagoner’s Firing Got Lousy Mileage

By GottaLaff

Frank Rich:

Sure, Rick Wagoner deserved his fate. He did too little too late to save an iconic American institution from devolving into a government charity case. [...] Yet few disputed the judgment of the Michigan governor, Jennifer Granholm, that Wagoner was a “sacrificial lamb,” a symbolic concession to public rage ordered by a president who had to look tough after being blindsided by the A.I.G. bonuses. Detroit’s chief executive had to be beheaded so that the masters of the universe at the top of Wall Street’s bailed-out behemoths might survive.

On this point even the left and the right could agree. The union leader Andy Stern publicly wondered why the administration didn’t also dethrone Ken Lewis of Bank of America. Thaddeus McCotter, a conservative Republican congressman from suburban Detroit, asked, “When will the Wall Street C.E.O.’s receiving TARP funds summon the honor to resign? Will this White House ever bother to raise the issue?” [...]

But even as that unanswered question hangs in the air, a more revealing inquiry might be this: Why is there any sympathy whatsoever for a Detroit C.E.O. who helped wreck his company, ruined investors and cost thousands of hard-working underlings their jobs, when there is no mercy for those who did the same on Wall Street? Might we, too, have a double standard? Could we still be in denial of the reality that greed and irresponsibility were not an exclusive Wall Street franchise during our national bender? [...]

At least Wagoner, unlike the sultans of finance, created cars, clunkers though they often were. [...]

But this romantic view of the auto industry is a sentimental illusion. Some of Wall Street’s exact failings also capsized G.M.: the hard sell of alluring but junky products, crony capitalism, reckless gambling, unregulated accounting sleights of hand. Only if we accept the full extent to which the bubble virus spread beyond that New York City town can we grasp the radical treatment President Obama must administer to restore the nation to health.

The parallels between G.M. and the likes of Citigroup are uncanny. Much as bloated financial institutions gorged on mortgage-backed derivatives even when the underlying fundamentals made no rational sense, so G.M. doubled down on sure-to-be obsolete S.U.V.’s and trucks to serve a market transitorily enthralled by them. Much as the housing boom’s collapse left the get-rich-quick holders of AAA-rated mortgage derivatives with worthless paper, so the oil price spike left consumers trapped with self-indulgent, wealth-depleting gas guzzlers. In both instances, the customers were not entirely innocent. [...]

G.M. further emulated Wall Street by creatively finessing its balance sheets, moving its health care liabilities for retirees off its books (into a trust) to cosmetically enhance its appearance of fiscal health. It’s no surprise that members of G.M.’s often-compliant board — also now slated for overhaul by the White House — served as well on boards at Morgan Stanley, Goldman Sachs and SunTrust Banks (another recipient of a multibillion-dollar government bailout).

Perhaps the most illuminating Detroit/Wall Street parallel of all is GMAC, the G.M. financial affiliate whose phantom profits were used to help hedge the parent company’s losses when its share of the car market plummeted. GMAC was yet another outfit that placed risky bets on the housing bubble until it burst, taking G.M.’s bottom line down with it. [...]

Nice as it might be to believe that Wagoner was done in only by his unreconstructed retro faith in antiquated cars and his lethargic management of the various G.M. restructurings, he was part of this larger financial culture. And like bailed-out Wall Street executives, he walked away with a sizable reward for his failure: $23 million. [...]

Those on Wall Street who took the money and ran are beyond the reach of the guillotine. [...]

But facts matter little when set against the public anger at corporate America in general and banks in particular. The latest ABC News/Washington Post poll found that 80 percent of the country blames banks for the financial crisis — a percentage even larger than that blaming George W. Bush (70 percent). To be less popular than our departed president is a Herculean feat heretofore achieved only by Dick Cheney.

The cheering news in this poll is that Barack Obama remains hugely popular, with a 66 percent approval rating that has surely gone up since, boosted last week by his and Michelle Obama’s beguiling representation of America abroad. It doesn’t hurt that the president’s political opponents back home are laughable. [...]

The only group more out of touch remains bailed-out Wall Streeters. [...]

As we hope Obama learned from his narrow escape from the A.I.G. bonus firestorm, it’s imperative he stays clear of these conflagrations. Timothy Geithner’s latest bank-rescue plan has not remotely addressed fears that the fix is in for the same well-connected banking crowd that created the mess. The plan’s transparency — let alone its effectiveness — will be essential to deflecting those suspicions.

But in the unsatisfying aftermath of Rick Wagoner’s demise, we must rid ourselves of the illusion that there’s a rigid separation between Wall Street and what John Rich calls “the real world.” Any citizen or business that overspent or overborrowed in the bubble subscribed to its reckless culture. That culture has crumbled everywhere now, and a new economic order will have to rise from its ruins.

This is what Obama is talking about when he insists on pushing for change simultaneously on so many fronts — green jobs, health care, education, new financial regulation, infrastructure spending and all the rest. [...] [T]he most important question is not whether he will try to do too much at once but whether he will and can do enough. Change is hard. Change is traumatic. Sending a juicy C.E.O. — or six — to the gallows is at most a crowd-pleasing opening act to the heavy lifting of reform and rebuilding we still await.

Ann Coulter falls for fake Obama NASCAR story

By GottaLaff

In case you haven't heard about this yet:

In her April 1 column, Ann Coulter fell for a fake April Fools' Day article by Car and Driver magazine that claimed that President Obama has ordered General Motors and Chrysler to cease their participation in NASCAR because it is an "unnecessary expenditure." Coulter wrote, "If Obama can tell GM and Chrysler that their participation in NASCAR is an 'unnecessary expenditure,' isn't having public schools force students to follow Muslim rituals, recite Islamic prayers and plan 'jihads' also an 'unnecessary expenditure'?" Car and Driver originally posted an April 1 story online -- since removed -- with the headline, "Obama Orders Chevrolet and Dodge Out Of NASCAR," and the text, "With their racing budgets deemed 'unnecessary expenditures,' GM and Chrysler are ordered to cease racing operations at the end of the season." However, Car and Driver later clarified that the story was an April Fools' Day joke, then removed the story from its website.

In an April 1 USA Today article, Larry Marshak reported that "Car and Driver later pulled the fake story (which estimated savings of $250 million between the manufacturers) and apologized for 'going too far' while noting the magazine 'has a proud tradition of irreverent editorial and we amplify that each year with our April Fool's Day joke.'

You can read the rest here. Looks like the original April fool, The Madam's Apple, was pwnd. And Car and Driver apologized, something you'll never see The Madam's Apple do.

H/t: Babzter

VIDEO-- Fox News: Blame Unions For Auto Companies' Demise; Fire UAW Head

By GottaLaff

Who ya gonna call? (Fox) Union Busters:


Think Progress:

When Detroit’s Big Three auto companies first came to Washington last fall to ask for bailout funds, conservatives immediately insisted the companies’ woes were the fault of the United Auto Workers (UAW). Even though the Senate Republicans effectively blocked a fair bailout deal, they pointed the finger at the UAW, falsely claiming it was “willing to make no concessions — zero.”

Today, President Obama announced that the government will recommit to providing assistance to General Motors and Chrysler — but only if the companies presented restructured plans, including the firing of GM CEO Rick Wagoner. Fox News and Fox Business was apoplectic, insisting that the UAW had never been forced to make concessions (a false claim) and that the union’s leader, Ron Gettelfinger, should be fired instead. [...]

Unlike Fox News hosts, President Obama recognized that restoring the auto industry to health will require a shared sacrifice from everyone involved in the industry — including but certainly not limited to the union:

What we are asking is difficult. It will require hard choices by companies. It will require unions and workers who have already made painful concessions to make even more. It will require creditors to recognize that they cannot hold out for the prospect of endless government bailouts. […]

Let there be no doubt, it will take an unprecedented effort on all our parts — from the halls of Congress to the boardroom, from the union hall to the factory floor — to see the auto industry through these difficult times.

It’s clear that the Fox hosts’ anti-UAW rhetoric has nothing to do with the specifics of the auto industry’s woes and everything to do perusing their own favorite pastime: union busting.

Once again, Faux Newsers spew their unAmerican, destructive lies for all to see. Feel free to take it from here, in Comments. If I go on, it will be redundant, as well as inappropriate for readers who don't appreciate words that begin with F, C, and S.

Obama sets tough deadlines, standards in auto industry aid plan

Transcript here.

Auto industry updates

By GottaLaff

Via Breaking News Tweets:

Officials tell The Associated Press that the Obama administration is giving General Motors financing for 60 days to restructure; Chrysler will get up to $6 billion and 30 days to complete alliance with Italian automaker Fiat.

Slooowwww right now.

Obama statement on Bush bailout

By GottaLaff

That post title is lifted from First Read, and now that I've re-read it, it reads as if Bush is the one getting the bailout. That's not far from the mark.

Obama:

"Today's actions are a necessary step to help avoid a collapse in our auto industry that would have devastating consequences for our economy and our workers. With the short-term assistance provided by this package, the auto companies must bring all their stakeholders together -- including labor, dealers, creditors and suppliers -- to make the hard choices necessary to achieve long-term viability. The auto companies must not squander this chance to reform bad management practices and begin the long-term restructuring that is absolutely required to save this critical industry and the millions of American jobs that depend on it."

UPDATE:

In addition to his choices for Labor (Hilda Solis), Transportation (Ray LaHood) and U.S. Trade Representative (Ron Kirk), Obama will announce Karen Mills as his choice to head the Small Business Administration at his news conference later today.

Mills:

Mills is a venture capitalist and a founding partner of the New York-based equity firm Solera Capital. She has been an adviser to Maine Gov. John Baldacci on economic matters. She's also president of the MMP Group in Brunswick.

Bush considering "orderly bankruptcy" for automakers

By GottaLaff

Another bait and switch. Did we ever really buy the idea of BushCo really and truly throwing a life preserver to union guys:

The Bush administration is looking at “orderly” bankruptcy as a possible way to deal with the desperately ailing U.S. auto industry, the White House said Thursday as carmakers readied more plant closings and a half million Americans filed new jobless claims. [...]

President George W. Bush, asked about an auto bailout, said he hadn’t decided what he would do but didn’t want to leave a mess for Barack Obama who takes office a month from Saturday.

Of course not. He's all about making Obama look good and helping him succeed so that we'll be treated to a second Obama term. That's just the kinda guy Bush is.

The Big Three automakers said anew that bankruptcy wasn’t the answer, as did an official of the United Auto Workers who called the idea unworkable and even dangerous.

FUBAR.

Separated At Birth Automaker Edition

Heh. Via LOLFed.

Face The Nation- Auto Industry Bailout Battle

Bob Schieffer spoke to Sen. Carl Levin, Sen. Sherrod Brown and Sen. Bob Corker about whether or not the White House should take action to bailout the American Auto Industry.

I'm with Oliver, Corker makes me crazy in many way.

Auto pilot

By GottaLaff

David Kurtz at TPM:

If the UAW was really the party who blew up the auto bailout negotiations, the people screaming the loudest would be the automakers. Yet, all the noise today is coming from Senate Republicans and their surrogates. What does that tell you?

The auto industry affects all 50 states: Interactive map

By GottaLaff

Click here to see the spiffy interactive map.

• Map below breaks down each state's contribution by jobs, parts and sales
  
• The states are ranked by total number of jobs per state

Click on each state. I live in California, and found out that:

• We have the second largest number of auto-related jobs in the country: 189,749.
• Auto assembly jobs: 7,430
• Auto parts jobs: 42,741
• Auto sales jobs: 139,578
• Average wages: $17,590

Those pesky unions. They've destroyed an entire industry.

Oh wait. I'm confusing them with the Republican party.

Obama responds to the bailout's defeat

By GottaLaff

Here is Obama's statement:

"I am disappointed that the Senate could not reach agreement on a short-term plan for the auto industry. I share the frustration of so many about the decades of mismanagement in this industry that has helped deliver the current crisis. Those bad practices cannot be rewarded or continued. But I also know that millions of American jobs rely directly or indirectly on a viable auto industry, and that the beginnings of reform are at hand. The revival of our economy as a whole should not be a partisan issue. So I commend those in Congress as well as the Administration who tried valiantly to forge a compromise. My hope is that the Administration and the Congress will still find a way to give the industry the temporary assistance it needs while demanding the long-term restructuring that is absolutely required."

Republicans stiff Big 3, despite donations

By GottaLaff

Republicans have a habit of accepting big, fat donations and then screwing the donors. Why, here's an example now!

Since 1990, the auto industry has cut $100 million in checks to the GOP, compared with $34 million to Democrats. But the Big Three is snubbed on bailout.

By standing in the way of an auto industry bailout, GOP senators appear to have bitten the hand that fed them.

Over the last decade, General Motors has given $1.50 to Republican candidates for every $1 it has given to Democrats. That same pattern has been followed by Chrysler and Ford, which year after year have favored the right side of the aisle, sometimes by more than a 3-to-1 ratio in dollar terms.

Since 1990, the auto industry as a whole – including suppliers, dealers and manufacturers – has cut $100 million in checks to Republicans, compared with just $34 million to Democrats.

On Thursday night, the carmakers discovered just how little loyalty that investment strategy had bought them.

More here.

The joke was on the Big 3, and it was a real Corker.

John Cole Has Saved Detroit

No really, he has. I can't imagine any self respecting GOP'r wouldn't love this. Go read.

A Bailout Plan the GOP Can Support

UAW President Ron Gettelfinger on Senate failure

Above part 1, part 2 as soon as I get it.