Behind the Headlines Video
"Osama bin Laden is dead and General Motors is alive." [Vice-President Joe Biden addressing the Democrat National Committee convention on September 5, 2012 in Charlotte, North Carolina.]
GM is a major Obama-Biden campaign theme:
- GM was kept out of bankruptcy.
- One million jobs saved.
- And the bailout was repaid.
Sounds impressive. But not true.
Companies don't disappear in Chapter 11 bankruptcy. They reorganize and emerge from bankruptcy. Like these companies: Delta, Northwest, United Airlines, Trump Entertainment, and Readers Digest, just to name a few.
One of today's greatest companies - Apple - stayed alive in 1997 by working out a pre-bankruptcy deal.
The one million jobs claim is totally absurd. A dozen other companies that didn't get a bail-out build vehicles in the U.S. Parts suppliers have plenty of customers.
Only one-third of GM's 200,000 employees are actually in the U.S. as GM CEO Dan Akerson told Chinese officials last year.
"Almost seven out of every ten automobiles -- seven out of ten of our vehicles were made outside of the United States." [Dan Akerson, CEO, General Motors in Shanghai, February 2011.]
According to its annual report, the U.S. accounted for only 18% of GM sales last year. But GM has 13 separate ventures in China[; meanwhile, GM closed 15 plants in the U.S.] In other words, billions of bailout dollars went to China.
And contrary to Obama's claim, GM did enter Chapter 11 bankruptcy in 2009. According to an Inspector General's report, US taxpayers will lose $42 billion on the deal.
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