Amount of taxpayer funding given to GM and GMAC comes to a staggering $50.4 billion.
By Dave Gibson at Watchdogwire
Two weeks ago, General Motors Co. (GM) announced that they were investing $691 million in Mexico, and while they acknowledged the expansion would bring many new jobs south of the border, they would not disclose the actual figure.
The Detroit News reported:
“The Detroit-based automaker said it will spend $349 million for the new transmission plant in Silao; $131 million to expand its San Luis Potosi Complex transmission plant and to build lighter and smoother transmissions with better fuel economy, and $211 million to expand its Toluca complex. GM said it would provide details of its investment at Toluca at a later date.
GM spokeswoman Katie McBride said the investments will include adding jobs, but the numbers won’t be announced until the projects are further along.”
In March, it was reported that GM still owes the U.S. taxpayers about $20 billion.
Of course, this is only the latest slap-in-the-face to the American taxpayer…
In October 2012, GM announced plans to expand their Rosario Automotive Complex in Argentina , move which will reportedly cost $450 million and result in scores of new jobs.
The plant will be producing a new Chevrolet vehicle.
In a press release, GM Chairman and CEO Dan Akerson said: “We are pleased to be making this investment in Argentina, which remains a very important market for us. We have a long, proud history here dating to 1925 and our latest investment is certainly good news for our GM Argentina employees, our extensive dealer and supplier network and the local economy.”
While announcing the creation of manufacturing jobs in a foreign country by a U.S. firm that received an, as yet, outstanding ‘loan,’ is upsetting–this is only the latest example of GM nose-thumbing directed towards the American taxpayer.
In July 2012, it was discovered that GM inked a sponsorship deal with British soccer team Manchester United. The deal will send $600 million to the soccer team over the next seven years, in exchange for players wearing the brand name “Chevrolet” on their jerseys.
This high-stakes, global shell game has been going on for the last five years…
On Dec. 19, 2008, President Bush announced that as part of a bailout plan of U.S. automakers, General Motors would be receiving $9.4 billion in taxpayer funds. Unfortunately, GM has since decided to cut the jobs of 10,000 salaried U.S. workers, while investing heavily in their foreign operations.
Later, GM asked for and received a great deal more taxpayer funding from the Obama administration. In June 2009, GM filed for bankruptcy protection, subsequently, President Obama agreed to give GM another $30 billion.
Actually, the total amount of taxpayer funding given to GM including the money distributed through the Department of Energy incentives to produce more fuel efficient cars, along with GM’s finance division (GMAC) comes to a staggering $50.4 billion to date.
When the CEOs of the big three U.S. automakers went before the Senate Banking Committee, Sen. John Tester (D-MT) asked whether or not they planned to invest in overseas markets in the near future. Then-GM CEO Rick Wagoner assured Sen. Tester that the bailout money would be spent at home rather than overseas.
The following exchange took place between the Senator from Montana and Wagoner:
SEN. JON TESTER : “I don’t want to give American taxpayer dollars to somebody who’s going to invest it in some other country than this country. That’s been a problem.”
WAGONER: “Sir, let me just be clear. No funding that comes out of this would go to fund the facility overseas.”
Despite Wagoner´s denial, a year later, president of GM Brazil, Jaime Ardila told Gazeta Mercantil that General Motors would be investing $1 billion in Brazil to “complete the renovation of the line of products up to 2012.” Ardilar went on to say: “It wouldn’t be logical to withdraw the investment from where we’re growing, and our goal is to protect investments in emerging markets.”
In July 2009, Ardila announced that the expenditure will bring at least 1,000 jobs to their production plant in southern Brazil, with another 7,000 jobs being added in support and supplier jobs.
Though the head of GM came to Congress pleading poverty, as well as his desire to keep Americans working, and assured Sen. Tester that any money received would be used in this country, our tax money will be used to grow their operation in Brazil and hire Brazilians.
Wagoner went on that day to say that he would investigate the rumors that GM planned a major investment and expansion of their operations in Mexico, though he claimed to be unaware of any such plans. However, he never mentioned anything about their plans to spend $1 billion in Brazil…Perhaps, a lie of omission? Or, maybe we are supposed to believe the billion dollar plan simply slipped his mind!
While Wagoner bemoaned years of GM´s slumping sales in this country, he failed to mention the booming business his company is doing in other parts of the world. GM´s LAAM (Latin America, Africa, and the Middle East) division saw sales totaling $14.6 billion in 2006 alone.
In 2007, president of GM LAAM Maureen Kempston Darkes said of the previous year: “It was a very positive year for our business in Latin America. We had all-time sales records in Argentina, Brazil, Colombia, Ecuador and Venezuela.”
Those rosy sales numbers continued in 2008, despite dismal U.S. sales. In fact, all-time annual GM sales records were set in Argentina, Brazil, Chile, Ecuador, Paraguay, Peru, Uruguay, Egypt, Kenya, North Africa and Middle East markets in 2008. Also, market share was greatly increased last year in Ecuador, Paraguay, Peru, Uruguay, Egypt, Kenya, Israel, Middle East, North Africa, South Africa and Venezuela.
In 2008, General Motors LAAM sold over 1.276 million vehicles, with their market share increasing to 17.1 percent for the year. Darkes recently announced: “We are pleased to post our fifth consecutive record sales year, with the Chevrolet brand continuing to lead the growth throughout the region.”
Additionally, on Aug. 30, 2009, GM announced a $300 million investment in China to build a
commercial vehicle production plant in the northeastern Chinese city of Harbin. The venture will be a partnership with Chinese automaker FAW Group.
Chinese media reported that GM had recently paid $43.9 million to purchase a controlling interest in that country’s Liuzhou Wuling Auto Co.
Apparently, the newly-christened Government Motors Company is becoming nothing more than a clearing house for U.S. tax dollars to be distributed worldwide, as more Americans join the ranks of the unemployed.
Of course, our government-controlled media has chosen to completely ignore GM’s exportation of our hard-earned tax dollars.
So not only do we now have to ask the question…Why was this information not brought up during the auto bailout hearings? But, why couldn’t GM bail itself out?
With every new day, we are faced with yet another example of how our money is being wasted and given to scam artists. Whether they reside in Washington or Detroit, it does not matter. Ultimately, the American people will always be the ones left to pay the bill.
Under President Obama, the United States has been continuously losing jobs. All the while, new jobs are being created in other countries, with our money.
If GM wants to re-create brand loyalty amongst American consumers, they have a lot to learn.
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