GM, TARP, and China

My wife and I proudly own only GM cars.  All told, we have owned eight GM cars, as well as a few Fords, in our combined lifetimes.  To me, it was a patriotic thing to buy an American car and create more American jobs.

So, it pains me to present the following, all of which have been sourced from mainstream financial and auto industry publications.

• The government owns 60.8% of GM. 
• GM is planning to sell a portion of the government’s share in an IPO right after the elections.
• GM needs an estimated $133.78 per share for the government to re-coup its $49.5 B investment.
• Financial press has speculated for months that GM and the government will lose money on the initial sale of shares in the upcoming IPO.  In fact, the latest speculation is that the IPO will yield only $10 B when the initial target was $16 B.
• The new GM CEO has said that it will take years for the American taxpayer to realize a payback.

But wait, there’s more.

• SAIC, a Chinese auto company intends to buy GM shares in the upcoming IPO.
• China has signaled its intent to force US and other automakers operating in China to share its technology.  Rep. Dingell, a Michigan Democrat, has voiced his strong objections.  This means that the new battery technology behind the Volt will be at risk.
• GM recently sponsored a film in China promoting the Chinese Communist Party.
• GM has recently begun giving money to various candidates for the upcoming election, mostly incumbents from both parties.

Just a few more facts. Most Apple, HP, or Dell computers are made in China when the technology was invented here.  China is at the top of the FBI’s list of nations sponsoring industrial espionage? 

My boss’ favorite saying is ‘you can’t make this stuff up.’

I have been visiting the AutoTrader website recently and found myself looking at BMW coupes, 3-series, automatic with paddle shifters, and a sunroof.  White with a tan interior would be nice.