Login to your account
Not a member? Register now.
AutoShopperBlog

Subscribe To The Blog:




Follow Us



The Latest News And Reviews
Throughout The Car Industry



Obama to Announce Early Success of Auto Bailouts

Comments: Leave | View
On: Fri, Jul 30, 2010 at 5:12PM | By: Sherry Christiansen


Obama to Announce Early Success of Auto Bailouts

President Barrack Obama traveled to visit Chrysler Group LLC and General Motors Company this week to attempt to sway the taxpayers into believing that the bailouts have had a positive outcome and will result in bringing a financial return. Recent polls have shown that voters are not impressed about the bailouts in general and they are currently unconvinced that the $84.8 billion rescue will result in a financial return. In fact, as many as 48% of the public polled are less in favor of the bailouts while only 17% are more supportive. 

Obama’s speeches will take place in the Detroit area GM and Chrysler plants in what he is calling “an industry revival that has saved millions of jobs," according to the Bloomberg News. In a preview of the President’s speech on ABC earlier this week President Obama stated: “We are going to get all the money back that we invested in those car companies.” The automakers’ recovery “tells a good story” about the U.S. economic recovery, he said.

According to the former head of the automotive task force (initiated by President Obama): “It appears that those of us behind it haven't succeeded in convincing people that it's worked.” According to Ronald Bloom, a recent appraisal of General Motors reveals that the company is worth about $60 billion, the same amount that it took from the taxpayers last year as a bailout.

Bloom also made comment about the number of jobs that have risen in the automotive industry since the bailout, stating, “If we hadn't have stepped in when we did, most observers believe at least a million jobs would have been lost.” All of the Detroit Three have reportedly posted a profit in the first quarter of 2010, and Ford Motor Company realized a net profit that was the highest in two years for the second quarter, a sure sign that the automotive industry is recovering. General Motors has already repaid $6.7 billion in loans and the U.S. hopes to recoup tens of billions of dollars more when the company conducts an IPO scheduled for later this year.

aaasasasdsfsfsallajdflkjfl;skajfl;skfj
 
 
President Barrack Obama traveled to visit Chrysler Group LLC and General Motors Company this week in order to attempt to sway the taxpayers into believing that the bailouts have had a positive outcome and will result in bringing a financial return. 

Obama began his speech campaign at the Jefferson North Plant owned by Chrysler (the location where the new Jeep Grand Cherokee is being assembled). This particular plant has added over 700 employees and an entire second shift since last year.

Next stop for Obama will be the Hamtramck GM plant, which is actually down by over 600 workers. It was one of the plants that survived the auto crisis and was deemed one of 9 other plants that GM decided to keep in operations after the “scheduled summer shutdown.”

GM, maker of the electric vehicle, the Chevy Volt, will be the stage for President Obama’s speech on alternative energy sources. The Obama administration has contributed over $12 billion to promote furthering the development of 5 different alternative energy sources including electric drive, biofuels, natural gas, fuel cells, and advanced technology for combustion engines.

Ford Motor Company will be the President's third stop; he will visit a Chicago plant that is adding as many as 1,200 new jobs to assemble the new Explorer SUV. Ford was the only company of the Big Three Detroit automakers to NOT accept a government bailout and the company looks to be coming out on top so far in 2010, as far as sales and profits are concerned.

Although automakers have added 55,000 jobs since 2009, the auto manufacturing industry is slowing down as a whole. Bloomberg News reports that “a 2009 University of Michigan study found that the state would end up with 95,500 blue-collar auto manufacturing jobs by the end of 2011, compared with 172,350 in 2008." It may be more difficult than expected for the President to sell the idea to the public that the tax payer’s investment in a dying industry was a smart move.




Comments

Be the first to leave a comment.


Leave A Commment

Allowed HTML tags: <a href=""> <abbr title=""> <b> <em> <i>
Please no link dropping, no keywords or domains as names; do not spam, and do not advertise! rel="nofollow" is in use

Captcha