General Motors always has made good cars. But some management “bad driving,” difficult economic conditions, problematic labor costs and challenging foreign competition ran GM into a deep economic hole.
GM once assured 324,000 good jobs – but sadly, GM today provides 115,000 fewer jobs than it once did.
So GM unfortunately had to call upon the federal government for “wrecker service.”
The GM bailout has cost $50 billion of the American people’s tax money. That saved the once-thriving company, preserved thousands of jobs and, according to backers of the bailout, avoided the potentially worse consequences of failure.
Now, fortunately, GM is doing better and the federal government is reducing the 61 percent of GM stock that it holds, to “just” 33 percent, by selling off some stock to willing investors.
GM stock shot up to nearly $36 a share this week. But about $53 a share will be required for the rest of the GM stock if the government – meaning the taxpayers – are to break even.
Wouldn’t everyone love to have GM thrive again (it still makes great cars, after all), have it employ more people again and have all the government-owned stock sold? Wouldn’t it be good to get the federal government permanently out of the car business?
It’s a “rough road” ahead for this big deal to work out. No matter what happens, it is going to be expensive.