General Motors stock (NYSE: GM) finished 2011 down 46.1% – the absolute worst car or car-related product stock on the board. Besting (so to speak) the second worst by 4.5%.
And GM’s unprofitable, unpopular, combustible electric Chevy Volt was a ‘Worst Product Flop of 2011’ winner. Oh, and GM is moving electric vehicle development (and production?) to China – which sort of undermines the jobs “created or saved” reason for the $50 billion GM bailout.
All of which is even more terrible GM news for We the Taxpayers.
Per the titanic GM stock price drop-off: As a result of President Barack Obama’s $30 billion in additional bailout coin, we own more than 500 million shares of GM stock. To break even on our “investment,” these shares must be sold at $53 per. GM closed yesterday at $21.15. Which if sold today would mean for us about a $16 billion loss – just on the stock portion of the GM bailout (we’ve suffered additional huge losses on other portions thereof).
Less Government tracks the looming stock loss – and offers the solution for how we can extricate ourselves from GM – at www.BailoutCost.com.
Less Government President Seton Motley:
“From the moment the bailouts began – and General Motors became Government Motors – we have seen GM stack failure upon failure.
“There’s the unprofitable, unpopular, combustible electric Chevy Volt – a ‘Worst Product Flop of 2011’ winner. That costs We the Taxpayers $250,000 per unit sold. GM sold in 2011 25% fewer Volts than they had planned – but is in 2012 bizarrely increasing production by 500%. And despite all of this failure – including the inability to determine what is causing Volts to burst into flames – GM will next year begin producing an electric Cadillac and an electric Cruze.
“GM in 2010 received more clean (non-energy) energy patents than any other entity – of the Solyndra,Tesla, Fisker, uber-failure variety.
“And GM and its Obama Administration-Democrat backers ludicrously tell We the Shareholders that all of this failure is a ‘success.’
“Well, GM was last year the worst car stock of all – and the Chevy Volt was an award-winning flop. So the market ain’t buying it. And neither are We the People.”
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Posted January 5, 2012 at 6:36 am in Latest
{ 15 comments… read them below or add one }
Consumer Reports also gave a couple of their cars worst in their class ratings. Included were the Chevrolet Cruze LT in the Small Car category, and the Chevrolet Colorado LS Z71 in the Compact Pickup category.
The Chevy Cruze was the best seller in the subcompact class. The Chevy Traverse and Equinox are out selling most of the competition in their classifications. Taho, Suburban, and Siverado continue to sell like hot cakes. I do not know how you can condem a prouduct line that is setting sales records. The Volt is another story. The vehicle is ingeneous in it’s design, however the roll out and marketing has been a disaster. I suggest you get your facts straight and realize that the GM family does produce an excellent product, and employs hundreds of thousands of American tax payers. I take great offence to the tone of your article
Frank,
Am I to assume that you are one of the union leeches sucking hind tit at GM on my dime? I’ve owned several chevy POS rigs in my life and every one of them has been inferior to Ford and VASTLY inferior to anything foreign. Chevy makes junk and they cannot be competitive with Japan or any other because of it’s massive entitlement spending on it’s workforce. You expect me to support and be proud of a company who has priced itself out of the market and then begs the taxpayers for a bailout designed to feed it’s gaggle of whining entitlement whores? And another thing, those “American Tax Payers” that you speak of are not only bankrupting GM (again) but the country as well. There is no free market capitalism when you involve unions and/or the government. I swear to God, when my Impala bites the dust I will NEVER own another GM product. I have a college degree and I work my ass off in healthcare everyday and I can’t touch a GM employee’s salary or benefits or retirement. You can straight up kiss my ass. How’s that for an offensive tone?
- John
I work for GM an last time I checked I don’t make millions. If we didn’t receive the bailout America would be further in the hole than what we are now. Almost a millions jobs would have been gone across the U.S. An the unemployment rates would be crazy high an the economy would crumble. We bust our ass off chasing that line!!! Sounds to me your pissed bc you spent thousands of dollars to wipe people’s ass for a living. Not my fault you dont know anyone in the auto business to get in. When ur chevy dies an u go buy a forign car don’t bitch when cost of living goes up.
Frank- Like you, I am a huge fan of GM Products esp the Big Gas Guzzling SUVs! Seriously. In spite of that, this article’s criticism of the stock performance, company marketing of Volt, and Government influence could not be more accurate. I hope GM can get their act together, quit pandering to the government and organized labor, and make good products that consumers want at a profit.
You have a typo in your article. You say, “we own more than 500,000 shares of GM stock”, but the number should be 500,000,000 shares.
Thank you very much. Repaired.
This article is crap. First off, GM sold more Volts it’s first year than Toyota did with the first year of the Prius. Second, GM has had sales gains every year since bankruptcy; and is now, once again, the biggest autmanufaturer in the world.
I am not for big government, but the author of this article is so off base it’s scary.
@ Frank,
The Chevy volt isn’t a flop because of its “roll out and marketing”. It is a flop because it is way too expensive. Consumers who’s number 1 criteria is gas mileage can’t afford a $50,000 car. The problem is that government is telling GM what cars to make instead of letting the consumer do it through a free market. All one needs to do is look at the only car communist Russia (and East Germany) ever produced, the Trabant. It was horrible and expensive. You actually had to poor your gas and oil into two different parts of the engine and shake them together by hand.
Sure in 200 years, when gas is $15/gallon, people might justify buying a Volt. But there is NO reason for government to push technology before it’s ready. That is what a free market is for. YOU CAN’T GOVERN TECHNOLOGY.
As a former loyal GM buyer I personally will never buy another GM product as they sent 400 some odd million to build GM engines in Mexico. (Aren’t there enough of them comin here and stealing American jobs). Now they are sending development of electric vehicles to China. GM is a traitor to the Americans who saved them and the loyal customers who had faith they would reinvest in this country who’s taxpaying people saved them from extinction. I will purchase Fords from now on who took not a penny in bailouts and saved themselves through good business decisions and tough choices that’s the American way only the strong survive and the weak perish. Should’ve let GM fail a better company would’ve replaced them.
Retired from a good paying UAW job…..Unions have their faults, but America would not be the same without them. Big business would have their way with workers, without the unions keeping them in check…..John, sounds like you wasted a college degree, Do you “work your ass off in an un-air-conditioned building for 35-40 years. You don’t know the meaning of WMAO Thank you UAW for my $2,000-plus check on the 1st of EVERY month…Without you, Caterpillar would not even send me my calender, let alone money. Sounds like someone thinks that they are better than a Union worker…Wrong….numbers don’t lie. cha-ching.! ,,,,Nothing mentioned about Toyota and Honda problems here. must be the 6 degrees of Obama that has folks bi-atching about GM (ya’ think?)
Here is some info. for ya
http://www.vincentric.com/2011AwardsLandingPage/2011BestFleetValueinAmericaLandingPage/2011BestFleetWinnersList/2011FleetFullSizePickup12Ton.aspx
For many years US automakers were able to pass their costs on to consumers. Today, with a global economy, they must deal with global competition, which puts the spotlight on all production costs. No doubt the unions had a positive impact in protecting workers in the past. I do however wonder if the government doesn’t fill that role today. US Automakers (and other domestic manufacturing companies) and US workers must address global competition to be successful long term. Certainly, labor costs are a significant production cost. Due to dire circumstances, It seems the unions are now more aware of this than in the recent past. The economic realities of their future existence is now undeniable. If the labor costs are not competitive, US Automakers will continue to export jobs. My hope is that US Automakers and US Workers can recognize their mutual best interest and expedite a remedy to the current labor inequities that US Automakers currently face so that our country does not lose any more of these important manufacturing jobs. The world is changing very fast. It must happen quickly.
John, your blanket statement that “GM makes crap” is ridiculous. I use Chevy trucks in my fleet and currently have 5 at over 160,000 miles. I used to sell them at 100,000 in the 90′s but with the current quality I can expect 200,000 before it becomes more cost effective to replace rather than repair. The Japanese trucks are definitely not heavy duty enough to actually qualify as a truck and Fords and Dodges are certainly a half step down in my experience as they have typically costed more to maintain. Your owning one Impala that you may or may not maintain properly certainly doesn’t qualify you as an expert in global automobile technology.
Tim, agreed. I currently have 2 Chevy Tahoes. One with 240,000 miles and one with 160,000 miles. No drive train problems, ever. Change oil at 5k, always synthetic. Had many GM products over the years. Hate car payments, so i run ‘em till they die. I suspect other manufacturer’s products are also good if maintained. GM makes a quality product. Statements to the contrary are not credible to me. They need to make a profit too.
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