Thu Mar 1, 2012, 11:38 AM
jpak (26,953 posts)
Automakers Report Sales Gains, Despite Rising Gas Prices
Source: New York Times
DETROIT — Auto sales rose substantially in February despite surging gasoline prices, carmakers and analysts said Thursday.
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Chrysler Group said its sales were up 40 percent from February 2011, while the Ford Motor Company reported a 14 percent gain.
General Motors said its sales increased 1 percent from a year ago, when it had an especially strong month as a result of big discounts.
All three Detroit carmakers beat analysts’ expectations, as did Nissan, which posted a 16 percent increase.
Read more: http://www.nytimes.com/2012/03/02/business/ford-and-chrysler-report-sales-gains-despite-gas-prices.html
4 replies, 1174 views
Automakers Report Sales Gains, Despite Rising Gas Prices (Original post)
Response to jpak (Original post)
Thu Mar 1, 2012, 11:45 AM
Robbins (2,055 posts)
Consider If Romney had his way Chrysler and GM would be bankrupted.Obama bailed them out.The goverment was paid back,and now
both have seen sales Increase.
Response to Robbins (Reply #1)
Thu Mar 1, 2012, 12:16 PM
former9thward (6,654 posts)
3. Unfortunately the government was never paid back.
In order to get its money back the Treasury Department would have to make $53 a share in stock. The stock is currently less than half that at $26. So the taxpayers will lose about $17 billion. http://www.nytimes.com/2011/06/08/business/08gm.html
Also when companies enter bankruptcy, as GM did, they are not allowed to carry forward past losses when they come out of bankruptcy. The IRS has given a special waiver to GM so even though they are making profits they will not pay taxes for years to come.
Response to former9thward (Reply #3)
Thu Mar 1, 2012, 09:04 PM
MD20 (123 posts)
4. Half of the money was paid back!
"Because most of the $50 billion G.M. received was converted to an equity stake held by the Treasury Department, Mr. Akerson said G.M. had “technically” repaid its debt to the government, but he added that executives were “doing our level best” to help taxpayers recoup the remaining amount. The Treasury, which still owns 26 percent of G.M., has recovered about half of its investment in G.M."
I am also wondering how the AAWU worker's tax dollars play into all of this. Those saved jobs are still generating taxes. And although that may be a paltry sum, think of the tax dollars generated by associated businesses such as those who make small parts, windshields, tires,batteries etc. From that perspective, the Auto bailouts make more sense.