By: Mark Hyman
“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.
“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.
Mark Hyman hosts "Behind the Headlines," a commentary program for Sinclair Broadcast Group.